Turkiye Is Bankasi Anonim Sirketi · BIST:ISBTR
Turkiye Is Bankasi Anonim Sirketi — Türkiye İş Bankası A.Ş. — Q3 2010 Earnings Presentation
42 slides from Turkiye Is Bankasi Anonim Sirketi's earnings presentation, Sep 30, 2010
Slide 1: Isbank Investor Presentation 2010-Q3
ISBANK INVESTOR PRESENTATION > ™~ 2010-Q3
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 Page 3
Slide 4: Financial Highlights
Financial Highlights 9 Retail Bankingg 31 Major Equity Participations 36 Page 4
Slide 5: Isbank at a Glance
Free Float 31,46% Stocks are quoted at ISE and also traded at LSE in the form Ataturk Shares Isbank Pension Fund 28,09% of GDR 40,45% Largest stake owned by employees via pension fund 1,120 domestic branches country‐wide (Largest among private banks), and 15 foreign branches 3,988 ATMs (Larg
Slide 6: Group structure
v wo u Other Financiai Servi w y NY 7] G y W 1) £ x Co % g Page 6
Slide 7: Market Share and Rank
Market Share(%) Rank(2) 2010 Q3 Total Assets(1) 14.1 1st Loans(1) Total Loans 13.0 2nd TRY Loans 12.4 1st FX Loans 14.4 3rd Consumer Loans 11.2(3) 1st Deposits(1) TRY Deposits 13.8 1st FX Deposits 15.3 1st Demand Deposits 15 1 15.1 1st Total Deposits 14.3 1st Retail Products(4) Volume of Debit Cards
Slide 8: Financial Highlights
Isbank at a Glance 5 Retail Banking 31 Major Equity Participations 36 Page 8
Slide 9: Total Assets, Loans, Deposits, Equity
Total Assets (TRY mn mn.) .) Loans (TRY mn mn.) .) 124.828 58.460 113.223 48.335 47.610 97.552 75.205 80 181 80.181 33.980 29.818 2006 2007 2008 2009 2010 Q3 2006 2007 2008 2009 2010 Q3 Deposits (TRY mn mn.) .) Shareholders’’ Equity (TRY mn Shareholders mn.) .) 80.449 16.075 72.177 63.539 13.494 48.
Slide 10: Asset Composition
Asset Composition (TRY mn.) 2009 2010 Q3 Change 15% 10% C h & Banks Cash k 17,193 93 12,705 2 0 ‐26% 26% C h&B Cash Banks k Securities (Net) 39,290 43,190 10% 35% 35% Securities Loans 48,335 58,460 21% P ti i ti Participations (N t) (Net) 5 031 5,031 6 014 6,014 20% Loans Fixed Assets (Net) 1,922 1,
Slide 11: Loan Portfolio
Loan Portfolio QoQ (TRY mn.) Loans / Deposits 57.019 58.460 77,1% 72,7% 77,4% 67,0% 63,7% 39.757 40.830 50,5% 17.262 17.630 TRY FX* Total 2009 2010 Q3 2010 Q2 2010 Q3 * 12% increase in FX loans when adjusted for the change in exchange rate. Loans/Deposits TRY Loans/TRY Deposits FX Loans/FX Deposits
Slide 12: Total Loans and Consumer Loans
…55 55%% comprised of retail Total Loans Consumer Loans (TRY mn mn.) .) and SME loans. loans. 10,202 12,449 21% 21% Retail Loans 1% 30% 9% 9% Consumer 50% 51% General Purpose Consumer Loans 25% 25% Overdraft Credit Cards 8% 6% Auto Loans 44% 45% SME* Corporate 42% 43% Housing Loans 2009 2010 Q3 *SME
Slide 13: NPL Ratio and Management of NPLs
NPL Ratio Management of NPLs 100% NPL provisioning 100% since 2003 2003… … 6,1% 5,4% 5,4% 4,2% 4,8% 4,6% 0,5% 0 6% 0,6% ‐0,1% 0,0% 695 481 431 374 4 4 09 Q3 09 Q4 10 Q1 10 Q2 10 Q3 315 244 258 259 237 230 214 T mn. Coverage 57 78 TRY 14 ‐‐1 ‐1 09 Q3 09 Q4 10 Q1 10 Q2 10 Q3 130,6% 100,0% 120,9% ‐ NPL
Slide 14: NPL Ratio by Loan Categories
NPL Ratio by Loan Categories NPL Breakdown 10,2% 10,0% 67% 5 4% 5,4% 83% 94% 4,2% 4,6% 96% 96% 3,3% 33% 17% 6% 4% 4% Consumer Credit Cards Total Loans 2006 2007 2008 2009 2010 Q3 2009 2010 Q3 Restructured Other NPLs Performing Loan Groups 97,3% 2,7% I. Group Loans II. Group Loans Page 14
Slide 15: Breakdown of Securities Portfolio
Breakdown of Securities Portfolio Total Portfolio (TRY mn.) mn.) 43.190 TRY 39.290 Discount & Fixed ; FX Floating; 43,2% 5,2% 26.319 24.981 24.326 FX Discount TRY & Fixed ; Floating; 16,8% 34,8% 2006 2007 2008 2009 2010 Q3 68 % of Securities are Available for Sale Average durations are Government bo
Slide 16: Liabilities Composition
(TRY mn.) 2009 2010 Q3 Change Liabilities Composition Deposits 72,177 80,449 11% 12% 13% Equity REPOs & Money Market 10,984 9,556 ‐13% 5% 7% Funds Borrowed 9,744 9,900 2% 9% 8% Other Other 6,824 8,848 30% 10% 8% Equity 13,494 16,075 19% Funds Total Liabilities 113,223 124,828 10% Borrowed 64% 64% RE
Slide 17: Deposit Base
l ... a clear i di t indicator off customer trust trust.. Deposit Base (TRY mn mn.) .) FX Deposits 80,449 TRY Deposits 72,177 72 177 63,539 34% 38% 48,533 46,399 36% 36% 39% 66% 62% 64% 64% 61% 2006 2007 2008 2009 2010 Q3 Page 17
Slide 18: Deposits and Market Shares
Deposits QoQ (TRY mn.) Market Shares ‐ 80.403 80.449 15,9% 15,3% 14,3% 13 5% 13,5% 14,3% , 13,8% , 53.874 52.772 9,9% 26.529 27.677 4,1% 6,8% TRY FX Total 2000 2009 2010 Q Q3 2010 Q2 2010 Q3 TRY Deposits FX Deposits Total Deposits Deposits YtD (TRY mn.) Largest g market share in TRY,, FX and total d
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 2010 Q3 12,850 11,259 11 259 8,788 84,0% 7,991 60% 7,678 60% 54% 47% 55% 16,0% 53% 46% 40% 40% 45% Demand Deposits Other Deposits 2006 2007 2008 2009 2010 Q3 T
Slide 20: Client Assets
... has reached a remarkable Client Assets ((TRY mn.) mn.)) No. Of Investment Accounts ((000)) total of TRY 127 billion. billion. 126,528 107,320 8.357 90,617 7.498 On‐Balance Shee 79,821 6.158 70,488 5.231 64% 4.630 67% et 70% 61% 66% 15% 13% 9% 10% 18% SSheet O Off‐Balance 7% 6% 6% 6% 2006 200 200
Slide 21: Regulatory Capital and Capital Adequacy
Capital Adequacy Regulatory Capital (TRY mn mn.) .) High CAR support supportss balance sheet growth going forward… forward … 16.189 15.023 18,3% 14.624 18,0% 18,0% 14.258 17,6% 14.048 17,4% 13.963 17,0% 16,8% 3.148 3.136 6,3% 6,3% 6,2% 12.933 314 12.3 1 16 16 16 1 1 1 1 13 13 1 09 Q3 09 Q4 10 Q1 10
Slide 22: Operating Income Composition (QoQ)
Change (TRY mn.) 2010 Q2 2010 Q3 QoQ Operating Operati ng Income Composition N Interest Net I IIncome 1,133 1,080 ‐5% Net Fees & Commissions 315 288 ‐9% NII Net Trading Gains/Losses 115 39 ‐66% 52% 61% Dividends Received Net Commissions 255 3 ‐99% 14% Released R l d Provisions P ii 317 211 ‐33% % 5%
Slide 23: Operating Income Composition (YoY)
Change (TRY mn.) 2009 Q3 2010 Q3 YoY Operating Operat ing Income Composition Net Interest Income 3 585 3,585 3 468 3,468 ‐3% 3% Net Fees & Commissions 918 922 ‐ NII Net Trading Gains/Losses 308 279 ‐9% 61% 56% Net Commissions Dividends Received 325 369 14% Released Provisions 623 879 41% 15% Net Tra
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% Non Cash Loans 9% 11% 996 1.006 Credit Appraisal 20% 22% Mutual Fund Man. And Other Inv.Acc.Fees 2009 Q3 2010 Q3 Credit Cards 41% 34% Commis
Slide 25: Average Spread and NIM
Average Spread NIM 8,5% 5,8% 6,2% 6,4% 4,6% 1,6% , 1,2% 1 2% 5 0% 5,0% 2009 2010 Q3 2,4% TRY FX Blended , 2,2% Adj. NIM (1) 8,1% 5,9% 6,4% 2009 2010 Q3 5 0% 5,0% TRY FX 2,3% 2,0% 2009 2010 Q3 TRY FX Blended (1) Adjusted for Securities Trading Gains / Losses and Foreign Exchange Gains / Losses Page 2
Slide 26: Cost / Income
Cost / Income Cost vs. Income (TRY mn mn.) .) 45,2% 5.865 6.147 42,0% 36,7% 38,7% 34,0% 2.044 2.380 2006 2007 2008 2009 2010 Q3 2009 Q3 2010 Q3 Cost Income Cost vs. Assets Cost Structure 7%4% 10% Other 7% 4% 6% 3,0% 28% SDIF Fees 28% 2,9% Depreciation 54% 52% Administrative 2 7% 2,7% 2 7% 2,7% Expen
Slide 27: ROAE and ROAA
ROAE ROAA 2,7% 2,3% 2,4% 30,1% 2,2% 28,8% 2,0% 24,3% 22,2% 1,7% 1,7% 21,6% 20,7% 1,6% 21,5% 1,5% 1,4% 17 0% 17,0% 15,1% 11,9% 2006 2007 2008 2009 2010 Q3 2006 2007 2008 2009 2010 Q3 ROAE ROAE* ROAA ROAA* * Banking business (Excluding equity participations portfolio) Page 27
Slide 28: Market Cap Comparison and Earnings Payout
Cap.. Comparison (TRY Market Cap (TRY mn .)) mn.) Earnings & Payout Ratio 32.7% 32.1% 36.1% 34.6% 27.778 23.2% 32.4%** 20.311 19.450 2.372 17.972 11.342 1.702 1 509 1.509 1.109 956 2006 2007 2008 2009 2010 Q3 635 Isbank is included in the following indices: • ISE‐100 • ISE‐30 2004 2005 2006 2007 200
Slide 29: Credit Ratings and Outlook
Rating Outlook Rating Outlook Global Scale Long Term FC IDR BBB‐ Positive Longg Term Counter Partyy Credit BB Positive Longg Term LC IDR BBB‐ Positive Long Term Certificate of Deposits BB ‐ Short Term FC IDR F3 ‐ Short Term Counter Party Credit B ‐ Short Term LC IDR F3 ‐ Short Term Certificate of De
Slide 30: Retail Banking
Isbank at a Glance 5 Financial Highlights 9 Major Equity Participations 36 Page 30
Slide 31: Credit Cards
17 different products for different customer segments 98,224 merchant firms and 192,836 chains are included in loyalty programme. The number of cards reached 8 million, 5 million of which are issued to Bank Bank’ss own customers. customers The first bank in Turkey which has made an agreement with th
Slide 32: Isbank dominates the market, leader in mutual funds
Isbank dominates the market being the market market, leader in mutual funds. funds. Page 32
Slide 33: Mutual Funds
... 34 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 683.890 6.776 6.647 646.754 552.346 582.249 590.000 5.140 5.165 4.523 2006 2007 2008 2009 2010 Q3 2006 2007 2008 2009 2010 Q3 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 17.755 16.007 12.730 10.411 5.310.328 4.975.138 2009 Q3 2010 Q3 2009 Q3 2010 Q3 Amount (TRY million) Amount (TRY million) Number of Active Payments Number of payroll accounts i
Slide 35: Major Equity Participations
Isbank at a Glance 5 Financial Highlights 9 Retail Banking 31 Page 35
Slide 36: One of the biggest conglomerates in Turkey
...as one of the biggest ...as gg conglomerates in Turkey. Turkey. Page 36
Slide 37: Sectoral Breakdown of Participations
Sectoral Bre Breaakdown Financial Non‐Financial 45,9% 54,1% Telecom Other 7,7% 13,6% 13 6% 12,9% Banks Glass 33,4% 20,6% Non‐financial Financial Insurance 11,8% TRY 4.8 48 Financial Ins. billion Non ‐ Listed Listed 29,1% , 70,9% As of 30 September 2010 2010,, Isbank has 22 participations. TRY 4.8 Si
Slide 38: Sisecam
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 69.0 13.4 4.0 Backed by its vision, Ş
Slide 39: Sisecam production facilities
The Group obtains efficiency and spreads its operationall riskk byb 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 20042004.. 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 i
Slide 41: Major Subsidiaries and Affiliates
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 4,844,863 830,356 24.7 Total Assets İşbank GmbH Banking 100.00 100
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
Türkiye İş Bankası A.Ş. — Q3 2010 Earnings Presentation on 6ix