Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB

Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.Ş. — FY2010 Earnings Presentation

27 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2011

  1. Slide 1: 2010 Earnings Presentation

    2010 Earnings Presentation BRSA Bank Only

  2. Slide 2: Macro Outlook 2011

    2010 Earnings Presentation Macro Outlook 2011 > 2010 GDP growth expected to be 8.0%; forecasts > Inflation is expected to be tame in the 1st half thanks to indicate roughly 5% GDP growth in 2011. base effects. It is likely to see upward movement in the > 2010 budget deficit of TRY 39.6 bn correspond

  3. Slide 3: Banking Sector Outlook

    2010 Earnings Presentation Banking Sector Outlook > Lending volume expansion is projected to be around 20-25 % > Such alternative funding instruments will cause moderate in line with CBT’s tolerance. deposit growth, driving a gradual rise in L/D. > NIM contraction expected to hover around 50-100 bps

  4. Slide 4: 2010 Highlights: High profitability along with strong loan growth

    2010 Earnings Presentation 2010 Highlights High profitability along with strong loan growth > Net income increased by 23.3% YoY, reaching > Unlike industry average, NII increased by 2.6% YoY TRY 2,010 mn > NIM at 5.1% > Outstanding ROE performance at 30.5% > Net fees and commissions income up by 14.

  5. Slide 5: Asset Growth

    2010 Earnings Presentation Assets increased by 20.3% YoY, loans being the main driver Asset Mix (%) Asset Growth IEA Loans YoY 20.3% QoQ 4.8% 88.3% Securities Other Assets Total Asset Growth (TRY billion) Composition of IEAs(a) 42.8% 93.9% 93.9% 88.3% (b) 20.3% 72.9 FX 26.9% 26.6% 25.6% 50.6% 53.5%

  6. Slide 6: Customer deposits represent greater part of the liabilities

    2010 Earnings Presentation Customer deposits represent greater part of the liabilities Loan to Deposit (%) Composition of IBLs(a) Liabilities Mix (%) Total L/D Deposits Other Liabilities Funds Borrowed Shareholder’s Equity Interbank Money Market 80.9 86.5% 85.5% 84.7% 73.9 64.2 FX 34.5% 32.8% 31.4%

  7. Slide 7: Strong presence all around the country

    2010 Earnings Presentation Strong presence all around the country Loans(a) Deposits(a) Kırklareli Kırklareli Bartın Sinop Bartın Sinop Edirne Tekirdağ İstanbul Zonguldak Kastamonu Edirne Zonguldak Kastamonu Artvin Tekirdağ İstanbul Artvin Ardahan Ardahan Karabük Samsun Karabük Samsun Kocaeli Düzce R

  8. Slide 8: Consequential increase in the AFS portfolio

    2010 Earnings Presentation Consequential increase in the AFS portfolio Total Securities Portfolio(a) (TRY billion) Total Securities Composition HTM AFS Trading 21.4 20.2 0.6% 0.2% 0.4% 4.0 18.3 12.9% 22.3% 36.6% 19% 3.5 3.8 FX 17% Total redemption of 20% TRY 3 bn in 2011; • TRY 1.4 bn TRY 14.5 17.4

  9. Slide 9: Well diversified securities portfolio

    2010 Earnings Presentation Well diversified securities portfolio Total Securities Portfolio(a) (%) FX Securities Portfolio(a) (%) FIX 33 38 46 FIX 79 99 99 67 62 54 FRN FRN 21 1 1 2008 2009 2010 2008 2009 2010 TRY Securities Portfolio(a) (%) CPI-linkers FIX 22 25 35 constitute 12% of total securitie

  10. Slide 10: Loan growth over 37%, reinforced by the retail and commercial loans

    2010 Earnings Presentation Loan growth over 37%, reinforced by the retail and commercial loans (TRY billion)(a) Total Loans HALKBANK B. Sector (b) 37.6% YoY YoY 37.6% 33.9% 9.2% Fund Loans 3,3 QoQ QoQ 43.6 up 4.1% YoY 9.2% 10.6% up 2.6% QoQ 39.9 1.2 3.7 Cooperative Loans TRY Loans 1.2 3.3 11.4 up 11

  11. Slide 11: Optimized customer segmentation

    2010 Earnings Presentation Optimized customer segmentation Loans by Currency (TRY billion )(a) Loans by Types Funds 3% FX 6.5 8.8 12.0 33 26.1% 38 27.9% 46 27.6% Cooperatives 8% Commercial 63% TRY 18.5 22.8 31.5 73.9% 67 72.1% 62 72.4% 54 Retail 26% 2008 2009 2010 Market Share in Loans by Currency (

  12. Slide 12: Consumer and housing loans are the primary sources of growth

    2010 Earnings Presentation Consumer and housing loans are the primary sources of growth (TRY billion)(a) 55.1% HALKBANK 11.1% YoY 11.4 55.1% QoQ 10.2 Consumer Loans 11.1% 6.6 up 58.6% YoY 5.9 up 10.5% QoQ Share in total 57.8% 7.3 B. SECTOR(b) YoY 5.5 4.1 33.1% QoQ Housing Loans 3.1 9.9% up 52.0% YoY

  13. Slide 13: Driven by trade finance, non-cash loans up by 37% YoY

    2010 Earnings Presentation Driven by trade finance, non-cash loans up by 37% YoY and market share up 90 bps Breakdown of Non-cash Loans (%)(a) Non-cash Loans (TRY billion )(a) (2010 ) 88.9% Letters of Credit 26.5% 36.6% Letters of 12.7 Guarantee 70.3% Bank Loans and Other 9.3 3.2% 6.7 (2009 ) Letter

  14. Slide 14: Slight uptick in coverage ratio; CoR at 80 bps

    2010 Earnings Presentation Slight uptick in coverage ratio; CoR at 80 bps NPL Portfolio (TRY million) NPL Coverage (%) 88.5 89.0 89.4 89.2 1,668 1,718 1,758 (a) 1,251 82.9 81.4 82.8 83.3 Since 2002 593 600 577 570 Legacy NPLs 2001 and before 2008 2009 Sep-10 2010 2008 2009 Sep-10 2010 NPL / Total Lo

  15. Slide 15: NPL ratio down 30 bps

    2010 Earnings Presentation NPL ratio down 30 bps Halkbank Sector (a,b) NPL / Total Loans (% )(a) Consumer Loans (%)(b) 5.4 5.1 4.6 5.3 4.3 4.9 3.7 4.4 4.3 4.9 4.7 3.8 2.7 2.4 2.1 4.3 1.9 4.1 1.7 3.7 2009 Mar-10 Jun-10 Sep-10 2010 2009 Mar-10 Jun-10 Sep-10 2010 SME Loans (%)(a) Credit Cards (%)(b) 10

  16. Slide 16: Expanding share of demand deposits

    2010 Earnings Presentation Expanding share of demand deposits TRY Deposits by Types Total Deposits by Currency Demand Deposit (TRY billion)(a) (TRY billion)(a) (TRY billion)(a) Demand Deposits/Total Deposits Other Inst. Deposits Public Sector 24.7% 12.9 13.7 Interbank Savings 9.7 Commercial 6.1% 33.

  17. Slide 17: 14.2% YoY growth in fees and commissions income

    2010 Earnings Presentation 14.2% YoY growth in fees and commissions income Net Fees & Commissions Income (TRY million) 8.1% 14.2 % 134 134 136 133 526 123 461 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 2009 2010 Breakdown of Fees & Commissions Income Net Fees & Commissions Income/Total Operating Revenues (%) Mon

  18. Slide 18: C/I still comfortable

    2010 Earnings Presentation C/I still comfortable Operating Expenses (TRY million) Operating Expenses/Average Assets (%) 14.4% 25.3% 2.1 2.2 2.2 2.2 2.2 428 1,495 359 374 321 334 1,194 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 2009 2010 2009 Mar-10 Jun-10 Sep-10 2010 Cost/Income (%) Breakdown of Operating Expens

  19. Slide 19: NII up 16.5% quarterly

    2010 Earnings Presentation NII up 16.5% quarterly Net Interest Income (TRY million) Breakdown of Interest Income 16.5% 2.6% 67% on Loans 878 3,191 840 824 822 3,109 706 32% on Securities 1% Other Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 2009 2010 Interest Income (TRY million) NIM (%) On Securities On Loans YtD

  20. Slide 20: Cost-Yield-Spread - Quarterly

    2010 Earnings Presentation Cost-Yield-Spread(a) - Quarterly Cost of Deposits (%) Spreads (%) On Securities On Loans 8.2 7.2 5.6 5.4 5.5 5.6 5.5 6.4 5.7 5.6 5.0 4.8 4.4 4.5 2.4 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Yield on Loans (%)(b) Yield on Securities (%) 13.8 12.6 10.6 11.

  21. Slide 21: Net Income - Profitability Ratios

    2010 Earnings Presentation Net Income - Profitability Ratios Net Income (TRY million) ROE (%) 18.0% 23.3% YtD Quarterly 5.1% 2,010 34.7 34.2 515 520 1,631 32.5 476 500 34.7 31.7 424 32.8 30.5 30.2 28.1 27.5 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 2009 2010 2009 Mar-10 Jun-10 Sep-10 2010 Capital Ratios (%) ROA

  22. Slide 22: Branch Network – Human Resources

    2010 Earnings Presentation Branch Network – Human Resources • In 2010, 37 new branches opened, 19 of which are in big cities. The total figure has come up to 705. • 1,829 new employees have been recruited since the end of 2009. Total Branches(a) Human Resources 12,467 12,505 13,450 11,484 705 622 66

  23. Slide 23: Appendix

    2010 Earnings Presentation Appendix Financial Institutions and Investor Relations 22 www.halkbank.com.tr

  24. Slide 24: Balance Sheet

    2010 Earnings Presentation Balance Sheet In TRY million 2009 Sep-10 2010 QoQ YoY Change % Change % Cash and Balances Held with the Central Bank (a) 3,416 4,026 4,650 15 36 Banks & Money Market (b) 1,136 1,515 1,109 (27) (2) Securities (b) 21,373 20,744 20,207 (3) (5) Net Loans (b) 32,458 40,618 44,2

  25. Slide 25: Income Statement

    2010 Earnings Presentation Income Statement In TRY million 2009 2010 YoY Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 QoQ (%) (%) Interest Income 6,817 6,351 (7) 1,626 1,565 1,596 1,543 1,647 7 On Loans 4,226 4,256 1 1,035 1,002 1,036 1,080 1,139 5 On Securities 2,442 2,014 (18) 563 540 535 437 502 15 Interest Exp

  26. Slide 26: 4th Quarter 2010 Non-recurring items

    2010 Earnings Presentation 4th Quarter 2010 Non-recurring items a) Net TRY 139 mn from the revaluation of the assets transferred to REIT company. b) TRY 49 mn foreign exchange loss in Demir-Halkbank after the evaluation with historical cost. c) TRY 10 mn additional provision to increase coverage. Fi

  27. 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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