Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB
Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.S. — Q1 2012 Earnings Presentation
27 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2012
Slide 1: Q1 2012 Earnings Presentation
Q1 2012 Earnings Presentation BRSA Bank Only
Slide 2: Macro Outlook
Q1 2012 Earnings Presentation Macro Outlook > Turkey grew by 8.5% in 2011, being one of the fastest > CAD registered at USD 4.2 billion in February. It was growing economies worldwide. In 2012, 4% GDP growth the lowest figure since August 2011. YtD figure came to anticipated. USD 10.1 billion down b
Slide 3: Banking Sector Outlook
Q1 2012 Earnings Presentation Banking Sector Outlook > Loan book of the industry grew 2.2% YtD. > Total deposits of the industry increased 0.5% YtD. > TRY denominated loans up 4.2%, whereas FX loans in USD TRY deposits declined 0.2% while FX deposits in USD terms increased 3.4%. terms up 7.8% YtD. >
Slide 4: Q1 2012 Highlights
Q1 2012 Earnings Presentation Q1 2012 Highlights Strong business model bringing sustainable profitability > Net income up 7.9% QoQ and 3.7% YoY, quarterly highest > Strong top line performance; NII up by 40.5% YoY net income ever at TRY 544 mn; thanks to solid business > Net fees and commissions inc
Slide 5: Asset Growth
Q1 2012 Earnings Presentation Total assets up 21.2% YoY Asset Mix (%) Asset Growth IEA Loans YoY 21.2% QoQ 3.7% 86.7% Securities Other Assets Total Asset Growth (TRY billion) Composition of IEAs(a) 21.2% 87.3% 87.5% 86.7% 3.7% 91.1 94.5 FX 26.7% 28.6% 27.3% 61.0% 61.7% 61.1% 78.0 TRY 73.3% 71.4% 72.
Slide 6: Best positioning in L/D ratio, no pressure on funding front
Q1 2012 Earnings Presentation Best positioning in L/D ratio, no pressure on funding front Loan to Deposit (%) Composition of IBLs(a) Liabilities Mix (%) Total L/D Deposits Other Liabilities Funds Borrowed Shareholder’s Equity Interbank Money Market 85.3% 85.6% 84.3% 84.4 84.9 81.8 FX 32.8% 37.0% 41.
Slide 7: Securities portfolio up 4.5% YtD
Q1 2012 Earnings Presentation Securities portfolio up 4.5% YtD 2012 redemption ~ TRY 2.6 bn 100% Turkish Treasury bonds Total Securities Portfolio (TRY billion) Total Securities Composition Interest Structure (%) HTM AFS Trading 23.3 24.4 0.7% 0.5% 0.4% 4.2 20.9 3.7 38.3% 39.5% 39.9% 17% FIXED 47 49
Slide 8: 22% of TRY securities are linked to CPI
Q1 2012 Earnings Presentation 22% of TRY securities are linked to CPI TRY Securities Portfolio (%) CPI Linkers / Total Securities (%) Average CPI Yield (%) 24.1 13.2 16.6 FIXED 38 40 40 5.6 7.0 19 18 13 13 14 FRN 62 60 60 Mar-11 2011 Mar-12 Mar-11 Jun-11 Sep-11 2011 Mar-12 TRY Securities Yield (%) C
Slide 9: Targeting high quality segments; cooperative loans up 10.5% QoQ
Q1 2012 Earnings Presentation Targeting high quality segments; cooperative loans up 10.5% QoQ (TRY billion)(a) Total Loans HALKBANK B. Sector (b) 21.1% YoY YoY 21.1% 23.4% 2.7% Fund Loans QoQ QoQ 56.7 up 6.2% YoY 2.7% 2.2% 55.2 54.2 1.3 down -1.2% QoQ 50.8 1.3 1.3 Cooperative Loans TRY Loans 46.8 1.
Slide 10: Customer segmentation of loans remained unchanged
Q1 2012 Earnings Presentation Customer segmentation of loans remained unchanged Loans by Currency (TRY billion )(a) Loans by Types Funds 2% 14.2 17.4 17.0 FX 30.3% Cooperatives 11% 31.6% 29.9% Commercial 60% 32.6 37.8 39.8 TRY 69.7% 68.4% 70.1% Retail 27% Mar-11 2011 Mar-12 Market Share (%)(b) Loans
Slide 11: Retail lending grew in line with industry
Q1 2012 Earnings Presentation Retail lending grew in line with industry (TRY billion)(a) 22.9% HALKBANK 3.0% YoY 22.9% 15.0 15.4 QoQ 14.6 Consumer Loans 13.9 8.8 up 20.9% YoY 3.0% 12.5 8.4 8.6 8.1 up 3.0% QoQ 7.3 Share in total 57.3% B. SECTOR (b) YoY 22.9% QoQ Housing Loans 2.7% up 24.7% YoY up 2.0
Slide 12: Non-cash lending up 44.8% YoY
Q1 2012 Earnings Presentation Non-cash lending up 44.8% YoY Breakdown of Non-cash Loans (%)(a) Non-cash Loans (TRY billion )(a) (Mar-12 ) Bank Loans and Other 44.8% 6.9% 7.6% Letters of 19.2 Letters of Credit Guarantee 17.8 25.5% 67.5% 13.3 Letters of Credit & Letters of Guarantee (TRY billion) Lett
Slide 13: No deterioration in the CoR even with flat coverage ratio
Q1 2012 Earnings Presentation No deterioration in the CoR even with flat coverage ratio Loans under Close Watch (TRY million) NPL Coverage (%) Loans Under Close Watch/Total Loans (%) 95.6 95.8 1.5 1.4 89.5 86.0 85.8 (a) 1.2 832 84.2 696 84.4 84.0 84.0 84.0 649 Mar-11 2011 Mar-12 Mar-11 Jun-11 Sep-11
Slide 14: Well preserved asset quality
Q1 2012 Earnings Presentation Well preserved asset quality NPL Portfolio (TRY million) New NPLs by Segment (TRY million) 1,713 1,682 9 1,655 1,637 1,669 2 1,682 5 1,669 Since 2002 -1 -3 568 537 528 514 511 Legacy NPLs 2001 and before 2011 Corporate Commercial SME Retail Other Mar-12 Mar-11 Jun-11 Se
Slide 15: NPLs below industry average in each segment
Q1 2012 Earnings Presentation NPLs below industry average in each segment Halkbank Sector (a,b) Corporate - Commercial (%)(a) Consumer Loans (%)(b) 3.1 2.8 2.8 2.0 2.0 2.0 2.6 2.6 1.8 1.8 1.4 1.2 1.0 1.2 1.1 1.5 1.3 1.3 1.4 1.4 Mar-11 Jun-11 Sep-11 2011 Mar-12 Mar-11 Jun-11 Sep-11 2011 Mar-12 SME Lo
Slide 16: Market share in deposits up by 60 bps QoQ
Q1 2012 Earnings Presentation Market share in deposits up by 60 bps QoQ HALKBANK B. Sector (b) FX Dep. YoY 57.9% 27.6% HALKBANK B. Sector (b) HALKBANK B. Sector (b) QoQ 20.2% 1.6% Total Dep. YoY 25.0% 11.1% TRY Dep. YoY 11.1% 3.8% in USD YoY 36.9% 10.6% QoQ 6.4% 0.5% QoQ -0.4% -0.2% terms QoQ 27.5%
Slide 17: Limited increase in cost of deposit
Q1 2012 Earnings Presentation Limited increase in cost of deposit Demand Deposit (TRY billion)(a) Time Deposits (TRY billion)(a) Deposits by Currency (%)(a) Demand Deposits/Total Deposits (%) Time Deposits/Total Deposits (%) 15.7 13.9 14.3 FX TRY 77.6 74.0 75.3 38% 62% 28.4% 21.4% 8.4% 10.4 10.0 52.
Slide 18: Cost-Yield-Spread - Quarterly
Q1 2012 Earnings Presentation Cost-Yield-Spread(a) - Quarterly Cost of Deposits (%) Spreads (%) On Securities On Loans 5.5 5.8 5.1 5.2 5.4 5.7 5.7 5.2 5.0 5.3 5.7 4.5 3.1 4.0 3.0 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Yield on Loans (%)(b) Yield on Securities (%) 11.2 11.5 11.2
Slide 19: Unprecedented top line performance; 40.5% YoY growth
Q1 2012 Earnings Presentation Unprecedented top line performance; 40.5% YoY growth Interest Expenses Net Interest Income (TRY million) Interest Income Breakdown of Interest Income 40.5% 72% on Loans 1,102 1,032 791 846 734 1,550 1,697 1,866 2,166 2,170 816 906 1,020 1,064 1,138 28% on Securities Q1-
Slide 20: Resilient Net Fees & Commissions growth, despite the accounting adjustment
Q1 2012 Earnings Presentation Resilient Net Fees & Commissions growth, despite the accounting adjustment Net Fees & Commissions Income (TRY million) 32.3% 1.7% 195 209 Adjusted net fees and 182 193 161 158 48 Adjusted Net Fees & commissions income comprises Commissions 15.4% of the operating revenue
Slide 21: Industry low C/I ratio at 35.7%
Q1 2012 Earnings Presentation Industry low C/I ratio at 35.7% Operating Expenses (TRY million) OPEX / Average Assets (%) 12.5% 2.6% 2.2 2.1 1.9 2.0 2.0 433 453 465 414 425 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Cost/Income (%) Breakdown of Operating Expenses Credit Cards 11% Tax
Slide 22: Net Income – Profitability Ratios
Q1 2012 Earnings Presentation Net Income – Profitability Ratios Net Income (TRY million) 3.7% 7.9% 544 525 512 504 504 Quarterly the best performance in net income Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 ROE (%) ROA (%) YtD Quarterly YtD Quarterly 27.9 2.8 27.4 2.6 2.4 2.8 2.5 2.5 27.9 26.2 25.4 23.6 2.5 26.3
Slide 23: Solvency Ratios
Q1 2012 Earnings Presentation Solvency Ratios Capital Ratios (%) Details on Capital Ratios CAR Tier 1 Ratio (TRY mn) Mar-12 2011 16.0 Tier I Capital 9,543 8,999 15.0 14.5 Tier II and Deductions 804 354 15.3 14.5 14.3 Total Regulatory Capital 10,346 9,353 14.3 13.8 13.8 Credit risk base amount 61,353
Slide 24: Branch Network – Human Resources
Q1 2012 Earnings Presentation Branch Network – Human Resources Total Loans & Deposits per Branches (TRY million) Cash & Non-Cash Loans per Branches Deposit per Branches 98.7 > Branch network has been strengthened 96.7 with 13 new branches opened in Q1 12. The total figure climbs up to 779. 83.3 90.6
Slide 25: Balance Sheet
Q1 2012 Earnings Presentation Balance Sheet In TRY million Q1-11 2011 Q1-12 QoQ YoY Change % Change % Cash and Balances Held with the Central Bank (a) 5,953 7,272 7,724 6 30 Banks & Money Market (b) 888 1,475 1,124 (24) 27 Securities (b) 20,873 23,346 24,386 4 17 Net Loans (b) 47,567 56,216 57,714 3
Slide 26: Income Statement
Q1 2012 Earnings Presentation Income Statement In TRY million Q1-11 Q4-11 Q1-12 QoQ YoY Change % Change % Interest Income 1,550 2,166 2,170 0 40 On Loans 1,127 1,514 1,564 3 39 On Securities 421 649 603 (7) 43 Interest Expense 816 1,064 1,138 7 40 On Deposits 708 898 986 10 39 Net Interest Income 73
Slide 27: For further information please contact
For further information please contact halkbank.IR@halkbank.com.tr DISCLAIMER The information contained in this presentation has been prepared by Türkiye Halk Bankası A.S. (the Bank) for informational purposes only. Although the information in this presentation has been obtained from sources which t
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