Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB

Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.Ş. — Q1 2025 Earnings Presentation

24 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2025

  1. Slide 1: 1Q25 Earnings Presentation

    1Q25 EARNINGS PRESENTATION BRSA Bank Only

  2. Slide 2: Asset Growth

    1Q25 Earnings Presentation Total assets surged 6.7% QoQ, driven by securities > FX LCR is at 224%, well above the regulatory limit of 80%. Asset Mix (%) Asset Growth Loans Securities Bank Placements CBRT Receivables Cash YoY 32.9% QoQ 6.7% Liq. Assets Other Assets Total Asset Growth (TRY billion) 46

  3. Slide 3: CPI-Linkers remain a key profitability driver

    1Q25 Earnings Presentation CPI-Linkers remain a key profitability driver Total Securities Portfolio (TRY billion) Securities Classification (TRY billion) Total Securities / Total Assets (%) Fixed Rate (FX) Other Floating Rate CPI Linkers Fixed Rate (TRY) 27.1 25.2 25.6 26.0 27.5 618.4 622.2 700.4 783.

  4. Slide 4: FX loan growth offset muted TRY loan growth

    1Q25 Earnings Presentation FX loan growth offset muted TRY loan growth (TRY billion)(a) 14.0% Total Loans 5.5% HALKBANK B. Sector(b) YoY YoY 14.0% 36.4% 1,448.7 QoQ QoQ 1,373.4 5.5% 9.9% 1,363.5 1,270.9 1,299.9 Business Loans YoY 19.1% TRY Loans 482.9 514.9 575.1 QoQ 11.7% HALKBANK B. Sector(b) 511.

  5. Slide 5: FX loans near 30% share amid strong demand and rising FX liquidity

    1Q25 Earnings Presentation FX loans near 30% share amid strong demand and rising FX liquidity Loans by Currency (%)(a) Loans by Customer Segmentation (%)(a) Commercial 6% SME 9.1% FX SME 48% Commercial 6.8% 28.9% Corporate 34% Corporate 84.1% TRY 71.1% CGF 4% Retail 12% Cooperative 36%(b) Sectoral B

  6. Slide 6: Lagged effects of rate hikes led to some deterioration

    1Q25 Earnings Presentation Lagged effects of rate hikes led to some deterioration NPL Portfolio (TRY million) NPL Coverage (%) 37,170 79.1 74.6 28,547 30,398 62.4 60.6 55.1 19,268 20,902 Mar-24 Jun-24 Sep-24 2024 Mar-25 Mar-24 Jun-24 Sep-24 2024 Mar-25 Loans under Close Watch (TRY million) NPL/Total

  7. Slide 7: NPL ratio by segments

    1Q25 Earnings Presentation NPL ratio by segments Halkbank NPL Sector NPL (*) Corporate - Commercial (%) Consumer Loans (%) 4.4 3.9 4.4 3.4 2.9 3.0 3.6 1.9 3.0 3.1 2.6 1.6 1.6 1.4 1.3 1.3 1.3 1.2 1.2 1.1 Mar-24 Jun-24 Sep-24 2024 Mar-25 Mar-24 Jun-24 Sep-24 2024 Mar-25 SME Loans (%) Credit Cards (%)

  8. Slide 8: Prudent approach remains a standout theme

    1Q25 Earnings Presentation Prudent approach remains a standout theme Provisions and Reversals (TRY million) Net Cost of Risk (bps) (Cumulative) Total Specific Quarterly 80 (TRY million) Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 55 25 23 56 S1 Provisions 1,905 -1,894 134 -52 1,081 S2 Provisions 2,762 -2,610 -152

  9. Slide 9: Deposit-driven funding structure

    1Q25 Earnings Presentation Deposit-driven funding structure Loan to Deposit (%) Composition of IBLs(a) Liabilities Mix (%) (b) Halkbank L/D Sector L/D 89.4% 89.9% 90.0% 91.1% 92.1% Deposits Marketable Funds Borrowed Securities Issued Interbank Money Market Shareholders’ Equity FX 43.2% 36.3% 35.7% 3

  10. Slide 10: FX deposits gained momentum

    1Q25 Earnings Presentation FX deposits gained momentum HALKBANK B. Sector(b) YoY 13.5% 17.1% HALKBANK B. Sector(b) HALKBANK B. Sector(b) QoQ 26.8% 20.0% YoY 33.7% 35.7% YoY 50.0% 50.6% in USD YoY -3.2% -0.2% QoQ 10.2% 11.1% QoQ 2.0% 6.2% terms QoQ 18.3% 12.0% Total Deposits TRY Deposits FX Deposits

  11. Slide 11: Rising demand deposits may ease funding cost pressures

    1Q25 Earnings Presentation Rising demand deposits may ease funding cost pressures Demand Deposits (TRY billion)(a) Time Deposits (TRY billion)(a) Deposits by Currency (%)(b) Demand Deposits/Total Deposits (%) Time Deposits/Total Deposits (%) 24.1% 22.6% 21.5% 22.7% 78.7% 78.5% 21.3% 75.9% 77.4% 77.3

  12. Slide 12: Expansion of TRY core spreads

    1Q25 Earnings Presentation Expansion of TRY core spreads Blended Cost - Yield - Spread (%) Spreads (%) Yield on Loans Cost of Deposits(*) Spread TRY Core FX Core Blended Core 7.5 8.3 6.7 7.0 7.2 7.1 28.7 32.8 34.0 35.0 33.7 6.3 6.9 6.9 5.9 5.9 6.3 6.9 7.2 8.3 4.4 3.2 1.1 (22.8) (26.6) (27.1) (27.8)

  13. Slide 13: NII increases by a strong 86.2% QoQ

    1Q25 Earnings Presentation NII increases by a strong 86.2% QoQ Net Interest Income (TRY million) NIM (%) Interest Income Interest Expenses YtD Quarterly Swap adj. (QoQ) Swap adj. (YtD) 86.2% 2.9 2.9 16,331 2.4 13,246 2.9 2.0 1.9 2.9 9,751 8,772 2.0 6,630 1.6 1.3 136,020 161,286 178,627 189,072 195,9

  14. Slide 14: RoE shifts from low-teens to high-teens

    1Q25 Earnings Presentation RoE shifts from low-teens to high-teens Total Operating Revenues (TRY million)(a) Q1-25 Revenue Walk (TRY million) 117.2% 31.7% 8,205 12,724 30,896 (2,952) 23,458 16,331 21,843 14,225 14,693 (21,450) 7,051 (5,806) NII Net F&C Income Net Trading Income Total Provisions Net

  15. Slide 15: Calendar effects influenced OPEX growth

    1Q25 Earnings Presentation Calender effects influenced OPEX growth Operating Expenses (TRY million) Operating Expenses / Average Assets (%) 36.6% 32.3% 2.74 2.81 21,450 2.48 2.28 2.29 16,208 15,698 13,884 13,688 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Cost/Income (%) Breakdown of

  16. Slide 16: Solvency Ratios

    1Q25 Earnings Presentation Solvency Ratios CAR (%) Details on Capital Ratio Tier-I CAR Details on Capital Ratio Cons. Basel III Uncons. Basel III (TRY mn) Mar-25 Mar-25 14.8 13.4 13.2 13.1 13.5 Credit Risk Base Amount (CRBA) 1,543,723 1,452,176 Market Risk Base Amount (MRBA) 106,775 86,192 12.0 11.5

  17. Slide 17: Details of digital customer base

    1Q25 Earnings Presentation Details of digital customer base Active Digital Customers by Types (Million) # of Total Active Digital Customers(a) 1% 6.4 6.3 6.4 6.5 6.5 # of active digital banking customers increased 1% YoY and reached 6.5 million Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Digital Transactions

  18. Slide 18: Branch Network – Human Resources

    1Q25 Earnings Presentation Branch Network – Human Resources Loans and Deposits per Branch (TRY million) Breakdown of Banking Transactions (%) Loans/Branches Deposits/Branches ATM 11% 2,413.1 Automatic Payment 3% Call Center 5% Branch 2% 2,147.4 2,197.2 1,988.6 Internet Banking 4% 1,822.3 1,381.3 Mob

  19. Slide 19: Annex

    1Q25 Earnings Presentation Annex TRY Market Banking Halkbank Million Share (%) Sector Metrics(b) 1Q24 1Q25 Total Assets 3,210,103 8.9 Loan Growth (YtD, %) 10.7 9.9 Loans (a) 1,448,708 8.2 Deposit Growth (YtD, %)(c) 4.4 11.1 TRY Loans 1,030,519 9.5 LDR (%) 81.4 82.1 FC Loans 418,189 6.2 NPL (%) 1.5 2

  20. Slide 20: Balance Sheet

    1Q25 Earnings Presentation Balance Sheet QoQ YoY In TRY million Mar-24 2024 Mar-25 Change % Change % Cash and Balances Held with the Central Bank(a) 351,340 623,117 622,282 (0.1) 77.1 Banks & Money Market(b) 14,581 26,984 24,478 (9.3) 67.9 Securities(b) 653,759 783,143 881,871 12.6 34.9 Net Loans(b)

  21. Slide 21: Income Statement

    1Q25 Earnings Presentation Income Statement QoQ YoY Change Change In TRY million Q1-24 Q4-24 Q1-25 % % Interest Income 136,020 189,072 195,901 3.6 44.0 On Loans 89,965 123,385 119,608 (3.1) 32.9 On Securities 41,019 45,066 56,486 25.3 37.7 Interest Expense 122,775 180,300 179,570 (0.4) 46.3 On Depos

  22. Slide 22: Notes

    1Q25 Earnings Presentation Notes Investor Relations 21 www.halkbank.com.tr

  23. Slide 23: Notes

    1Q25 Earnings Presentation Notes Investor Relations 22 www.halkbank.com.tr

  24. Slide 24: 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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