Turkiye Is Bankasi Anonim Sirketi · BIST:ISBTR
Turkiye Is Bankasi Anonim Sirketi — Türkiye İş Bankası A.Ş. — Q1 2011 Earnings Presentation
42 slides from Turkiye Is Bankasi Anonim Sirketi's earnings presentation, Mar 31, 2011
Slide 1: Isbank Investor Presentation 2011-Q1
ISBANK INVESTOR PRESENTATION sh», 2011-Q1
Slide 2: Disclaimer
The information in this document has been obtained by Turkiye Is Bankasi A.S. (“Isbank”) from sources believed to be reliable, however, Isbank cannot guarantee the accuracy, completeness , or correctness of such information. This document has been issued for information purposes only. The financial
Slide 3: Agenda
Isbank at a Glance 5 Financial Highlights 9 Retail Banking 31 Major Equity Participations 36 3
Slide 4: Financial Highlights
Financial Highlights 9 Retail Bankingg 31 Major Equity Participations 36 4
Slide 5: Isbank at a Glance: shareholders and branch network
Free Float 32,62% Stocks are quoted at ISE and also traded at LSE in the form Ataturk Shares Isbank Pension Fund of GDR 28,09% 39,29% Largest stake owned by employees via pension fund 1,143 domestic branches country‐wide (Largest among private banks), and 16 foreign branches 4,267 ATMs (Larg
Slide 6: Other Financial Services
a] wo u Other Financiai Servi w y y a w q W mh £ x ct % oy
Slide 7: Market Share and Rank
Market Share(%) Rank(2) 2011 Q1 Total Assets (1) 13.8 1st Loans(1) Total Loans 13.2 1st TRY Loans 12.6 1st FX Loans 14.6 2nd Consumer Loans 11.2(3) 1st Deposits(1) TRY Deposits 14.2 1st FX Deposits 15.9 2nd Demand Deposits 15 6 15.6 1st Total Deposits 14.7 1st Retail Products(4) Volume of Debit Card
Slide 8: Financial Highlights
Isbank at a Glance 5 Retail Banking 31 Major Equity Participations 36 8
Slide 9: Total Assets, Loans, Deposits, Shareholders' Equity
Total Assets (TRY mn mn.) .) Loans (TRY mn mn.) .) 138.408 70.542 131.796 64.232 113.223 97.552 97 552 47.610 47 610 48 335 48.335 80.181 33.980 2007 2008 2009 2010 2011 Q1 2007 2008 2009 2010 2011 Q1 Deposits (TRY mn mn.) .) Shareholders’’ Equity (TRY mn Shareholders mn.) .) 88.260 91.132 17.014 17
Slide 10: Asset Composition
Asset Composition (TRY mn.) 2010 2011 Q1 Change 9% Cash & Banks Cash & Banks 11,708 15,146 29% 11% Securities (Net) 45,437 41,600 ‐8% 34% 30% Securities Loans 64,232 70,542 10% Participations (Net) 6,264 6,883 10% Loans Fixed Assets (Net) 1,918 1,966 3% 49% 51% Participations Other Assets 2,237 2,27
Slide 11: Loan Portfolio
Loan Portfolio QoQ (TRY mn.) Loans / Deposits 77,4% 78,6% 75,1% 70.542 72,8% 73,5% 71,2% 64.232 43.827 47.709 47 709 20.405 22.833 TRY FX Total 2010 2011 Q1 2010 Q4 2011 Q1 Loans/Deposits TRY Loans/TRY Deposits FX Loans/FX Deposits Loan Portfolio YoY (TRY mn.) TRY / FX Mix of Loans 26% 31% 29% 32% 3
Slide 12: Total Loans and Consumer Loans Breakdown
…53 53%% comprised of retail Total Loans Consumer Loans (TRY mn mn.) .) d SME loans and l loans. . 14,401 15,322 22% 22% Retail Loans General Purpose 30% 48% 48% Consumer Loans 8% 8% Auto Loans 23% 23% Consumer * 6% 6% Credit Cards Housing Loans SME** Retail Overdraft 47% 47% 44% 45% Corporate & Com
Slide 13: NPL Ratio and Management of NPLs
NPL Ratio Management of NPLs 100% NPL provisioning 100% since 2003 2003… … 0,6% 5,4% 0,0% ‐0,1% 4,8% 4,6% ‐0,4% ‐1,0% 1 0% 3,6% 3,2% 332 5 315 10 Q1 10 Q2 10 Q3 10 Q4 11 Q1 259 TRY mn. 236 258 244 237 230 ‐147 78 185 172 ‐64 ‐14 ‐1 Coverage 10 Q1 10 Q2 10 Q3 10 Q4 11 Q1 118,9% 127,8% 100,0% ‐ NPL Fo
Slide 14: NPL Ratio by Loan Categories
NPL Ratio by Loan Categories NPL Breakdown 9,1% 8,9% 83% 3,6% 94% 96% 97% 98% 2,9% 2,5% 3,2% 17% 4% 3% 2% 6% Consumer* Credit Cards Total Loans 2010 2011 Q1 2007 2008 2009 2010 2011 Q1 * Includes retail overdraft accounts. Restructured Other NPLs Performing Loan Groups 98,3% 1,7% I. Group Loans II.
Slide 15: Breakdown of Securities Portfolio
Breakdown of Securities Portfolio Total Portfolio (TRY mn.) mn.) 45.437 TRY 41.600 FX Floating; Discount & 39.290 5,7% 5 7% Fixed ; 34,6% TRY 24.326 24.981 FX Discount Floating; & Fixed ; 45,1% 14 6% 14,6% 2007 2008 2009 2010 2011 Q1 67 % of Securities are Available for Sale Average durations are Go
Slide 16: Liabilities Composition
(TRY mn.) 2010 2011 Q1 Change Liabilities Composition Deposits 88,260 91,132 3% 13% 12% Equity REPOs & Money Market 10,159 10,499 3% 6% 7% Funds Borrowed* 8,042 10,134 26% 6% Other 7% Other 8,321 9,481 14% 8% 8% Funds Equity 17,014 17,162 1% Borrowed* Borrowed Total Liabilities 131,796 138,408 5% RE
Slide 17: Deposit Base
l ... a clear i di t indicator off customer trust trust.. Deposit Base (TRY mn mn.) .) FX Deposits 88,260 91,132 TRY Deposits 72,177 33% 32% 63,539 38% 48,533 36% 36% 68% 67% 62% 64% 64% 2007 2008 2009 2010 2011 Q1 17
Slide 18: Deposits and Market Shares
Deposits QoQ (TRY mn.) Market Shares 91.132 88.260 15,9% 59.591 60.730 60 730 15,5% 15 5% 14,7% 28.669 30.402 14,0% 14,4% 14,2% 2010 2011 Q Q1 TRY FX Total 2010 Q4 2011 Q1 TRY Deposits FX Deposits Total Deposits Deposits YoY (TRY mn.) Largest g market share in TRY,, demand and total deposits among p
Slide 19: Demand Deposits
…make significant contribution to lower cost of Demand Deposits (TRY mn mn.) .) Share of Demand Deposits in Total Deposits funding.. funding 2011 Q1 14,469 14,425 11,259 84,2% 8,788 64% 62% 7,991 60% 54% 15,8% 55% 36% 38% 46% 40% Demand Deposits Other Deposits 45% 2007 2008 2009 2010 2011 Q1 TRY FX
Slide 20: Client Assets
... has reached a remarkable Client Assets ((TRY mn.) mn.)) No. Of Investment Accounts ((000)) total of TRY 138 billion. billion. 133,835 137,596 8.838 9.056 107,320 , 90,617 7.498 On‐Balance Shee 79,821 6.158 66% 5.231 66% et 67% 70% 61% 15% 13% 9% 11% 12% SSheet O Off‐Balance 6% 6% 6% 200 2007 200
Slide 21: Regulatory Capital and Capital Adequacy
Capital Adequacy Regulatory Capital (TRY mn mn.) .) High CAR support supportss balance sheet growth going forward… forward … 17.056 16.996 16.189 15.178 15.102 15.023 14.624 18,0% 14.258 17,6% 17,5% 14.048 17,4% 16,6% 3.136 6,3% 6,3% 6,2% 5,7% 14,7% 1 16 16 1 16 1 1 1 15 13 10 Q1 10 Q2 10 Q3 10 Q4 1
Slide 22: Operating Income Composition (QoQ)
Change (TRY mn.) 2010 Q4 2011 Q1 QoQ Operating Operati ng Income Composition N Interest Net I IIncome 1,114 1,118 ‐ Net Fees & Commissions 315 304 ‐3% NII Net Trading Gains/Losses ‐145 99 ++ 57% 64% Net Commissions Dividends Received 0 100 ++ Released R l d Provisions P ii 420 284 ‐32% % 18% 16% 5%
Slide 23: Operating Income Composition (YoY)
Change (TRY mn.) 2010 Q1 2011 Q1 YoY Operating Operat ing Income Composition Net Interest Income 1 254 1,254 1 118 1,118 ‐11% 11% Net Fees & Commissions 319 304 ‐5% NII Net Trading Gains/Losses 126 99 ‐21% 57% 57% Net Commissions Dividends Received 111 100 ‐10% Released Provisions 351 284 ‐19% 19% 1
Slide 24: Fees and Commissions Received
... supported by superior Fees and Commissions Received (Gross) Gross) Gross Commission Income (TRY mn mn.) .) retail and corporate franchise.. franchise 8% 9% 347 342 Non Cash Loans 5% 15% Credit Appraisal 21% 22% Mutual Fund Man. And Other 2010 Q1 2011 Q1 Inv Acc Fees Inv.Acc.Fees Credit Cards 38%
Slide 25: NIM and Average Spread
NIM (1) Average Spread 5,37% (2) 5,04% (2) 3,91% 3,80% 1,04% 1,04% 3,82% 2010 Q4 2011 Q1 3,42% TRY FX Blended 1 48% 1,48% 1 40% 1,40% Adj NIM (1) (3) Adj. 4,64% (4) 4,24% (4) 3,52% 3,25% 2010 Q4 2011 Q1 1,31% 1,04% TRY FX 2010 Q4 2011 Q1 TRY FX Blended 1) Interest Earnings Assets include TRY and FX
Slide 26: Cost / Income
Cost / Income Cost vs. Income (TRY mn mn.) .) 45,2% 40,6% 40,6% 2.193 36,7% 34,0% 1.954 668 794 2007 2008 2009 2010 2011 Q1 2010 Q1 2011 Q1 Cost Income Cost vs. Assets Cost Structure 10% 7% Other 4% 7% 2,6% 8% 7% SDIF Fees 2,5% 28% 30% Depreciation 50% 49% Administrative 2 3% 2,3% 2 3% 2,3% Expenses
Slide 27: ROAE and ROAA
ROAE ROAA 2,4% 2,3% 28 8% 28,8% 2,2% 2,2% 28,2% 2,0% 2,0% 24,3% 1,8% 1,7% 1,7% 21,6% 20,7% 22,1% 19,6% 1,4% 17 0% 17,0% 15,1% 15,6% 2007 2008 2009 2010 2011 Q1 2007 2008 2009 2010 2011 Q1 ROAE ROAE* ROAA ROAA* * Banking business (Excluding equity participations portfolio) 27
Slide 28: Market Cap, Earnings and Payout Ratio
Cap.. Comparison (TRY Market Cap (TRY mn .)) mn.) Earnings & Payout Ratio 32.7% 32.1% 36.1% 34.6% 23.2% 23.2% 24.836 32.4%** 22.313 22 313 20.311 19.450 2.982 2.372 11.342 1.702 1.509 1.109 956 2007 2008 2009 2010 2011 Q1 Isbank is included in the following indices: 635 • ISE‐100 • ISE‐30 2004 2005
Slide 29: Ratings
Rating R ti O tl k Outlook Rating Outlook Long Term FC IDR BBB‐ Positive Global Scale Long Term LC IDR BBB‐ Positive Longg Term Counter Partyy Credit BB Positive Sh t Term Short T FC IDR F3 ‐ Long Term Certificate of Deposits BB ‐ Short Term LC IDR F3 ‐ Short Term Counter Party Credit B ‐ National L
Slide 30: Retail Banking
Isbank at a Glance 5 Financial Highlights 9 Major Equity Participations 36 30
Slide 31: Credit Cards
18 different products for different customer segments 90,980 merchant firms and 192,504 chains are included in loyalty programme. The number of cards reached 8,4 million, 6 million of which are issued to Bank Bank’ss own customers. customers The first bank in Turkey which has made an agreement with
Slide 32: Market leader in mutual fund business
Isbank is the market leader in mutual fund business business.. 32
Slide 33: Mutual Funds
... 38 types of mutual funds Mutual Funds (TRY (TRY mn.) mn.) Number of Investors designed d i d for f different diff t risk i k appetites.. appetites 693.003 691.917 6.776 7.090 6.713 646.754 582.249 590.000 5.140 5.165 2007 2008 2009 2010 2011 Q1 2007 2008 2009 2010 2011 Q1 Income From Funds (TRY
Slide 34: Payroll Accounts and Automated Bill Payments
... supported by payroll accounts and bill p payment y Payroll y Accounts Automated Bill Payments y agreements.. agreements 5.281 5.262 4.934 4.084 5.095.266 4.739.370 2010 Q1 2011 Q1 2010 Q1 2011 Q1 Amount (TRY million) Amount (TRY million) Number of Active Payments Number of payroll accounts is 1.
Slide 35: Major Equity Participations
Isbank at a Glance 5 Financial Highlights 9 Retail Banking 31 35
Slide 36: One of the biggest conglomerates in Turkey
...as one of the biggest ...as gg conglomerates in Turkey. Turkey. 36
Slide 37: Sectoral Breakdown
Sectoral Bre Breaakdown Financial Non‐Financial 42,2% 57,8% Telecom Other 11,3% 11 3% 7 0% 7,0% Banks 13,8% Glass 39,5% Insurance Non‐financial Financial 16,9% Financial Fi i l Ins. I TRY 4.8 48 billion 11,5% Non ‐ Listed 26,6% Listed 73,4% As of 31 March 2011 2011,, Isbank has 21 participations. TR
Slide 38: Sisecam (Isbank 68%)
Isbank (68%) General Information Market/Production Market/Production Shares (%) A leading flat glass, glass glassware, glassware glass packaging, packaging soda Turkey Europe2,3 23 World3 ash and chromium chemicals producer in the domestic market. Flat Glass 70.0 13.4 4.0 Backed by its vision, Ş
Slide 39: Sisecam production facilities in neighbouring countries
The Group obtains efficiency and spreads its operational risk by positioning its production facilities in the fast growing neighbouring countries.. countries Flat Glass Glassware Glass Packaging Chemicals 39
Slide 40: Avea
İşbank* 18.63% Turk Telekom 81.37% Avea has been created through the merger of Aria and Aycell in February 2004 2004.. Avea brand has been successfully launched in June 20042004.. After the merger merger,, due to the integration of 2 GSM networks, networks, not only the coverage and efficiency have
Slide 41: Subsidiaries and Participations
Risk Shareholders’ Field of Bank’s Direct Assets Market Company Name Group Equity Basis for Market Share A ti it Activity Share(%) (USD 000) Share (%) Share (%) (USD 000) Türkiye Sınai Kalkınma Bankası A.Ş. Investment Bank 40.52 50.00 5,408,605 830,583 25.3 Total Assets İşbank GmbH Banking 100.00 10
Slide 42: Investor Relations Contacts
Süleyman H. Özcan Head of Investor Relations Division Phone : + 90 212 316 16 02 E‐mail : suleyman. suleyman.ozcan@isbank ozcan@isbank..com com..tr Alper Turgal Assistant Manager of Investor Relations Division Phone : + 90 212 316 16 10‐ 10‐11 / 316 30 36 E‐mail : alper. alper.turgal@isbank turgal@i
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