Turkiye Is Bankasi Anonim Sirketi · BIST:ISBTR
Turkiye Is Bankasi Anonim Sirketi — Türkiye İş Bankası A.Ş. — Q1 2009 Earnings Presentation
48 slides from Turkiye Is Bankasi Anonim Sirketi's earnings presentation, Mar 31, 2009
Slide 1: Isbank Investor Presentation 2009Q1
ISBANK INVESTOR PRESENTATION > 2009Q1
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 32 Customer Centric Transformation Program 38 Major Equity Participations 43 Page 3
Slide 4: Isbank at a Glance
Financial Highlights 9 Retail Bankingg 32 Customer Centric Transformation Program 38 Major Equity Participations 43 Page 4
Slide 5: Isbank at a Glance: ownership and network
30.4% Free Float • Share holding of employees via pension fund creates self‐ motivation Ataturk Shares Isbank Pension Fund • Stocks are quoted at ISE and also traded at LSE in the form of GDR 28.1% • 1,040 domestic branches (Largest among private banks) 41.5% • 3,450 ATMs (First in the sector) • 1,5
Slide 6: One of the biggest conglomerates in Turkey
...as one of the biggest ...as gg conglomerates in Turkey. Turkey. Page 6
Slide 7: Market Share and Rank
Market Share(%) (1) 2009 Q1 Rank(2) Total Assets 13.1 1st Loans TRY Loans 13.1 1st FX Loans 14.3 3rd Total Loans 13.4 2nd Deposits Demand Deposits 15.0 2nd TRY Deposits 14.1 1st FX Deposits D it 15 1 15.1 2nd Total Deposits 14.4 1st Retail Products Volume of Debit Cards 17.2 1st Number of POS 16.1 2
Slide 8: Financial Highlights
Isbank at a Glance 5 Retail Banking 32 Customer Centric Transformation Program 38 Major Equity Participations 43 Page 8
Slide 9: Total Assets, Loans, Deposits, Shareholders' Equity
Total Assets (TRY mn mn.) .) Loans * (TRY mn mn.) .) 47.610 46.445 97.552 98.608 80.181 33.980 75.205 29.818 63.755 21 859 21.859 2005 2006 2007 2008 2009 Q1 2005 2006 2007 2008 2009 Q1 * Including interest accruals Deposits * (TRY mn mn.) .) Shareholders’’ Equity (TRY mn Shareholders mn.) .) 63 539
Slide 10: Increasing share of loans since 2001 crisis
(TRY mn.) 2008 2009 Q1 Change Asset Composition ... increasing share of loans Cash & Banks 18,625 18 625 18 463 18,463 ‐1% Cash & Banks since 2001 crisis. crisis. Securities (Net) 24,981 27,352 9% 19% 19% Securities Loans 47,610 46,445 ‐2% 26% 28% Participations (Net) 3,096 3,114 1% Loans Fixed Asse
Slide 11: Loan Portfolio and Loans/Deposits
Loan Portfolio (TRY mn mn.) .) Loans / Deposits 81,2% 74,9% 72,4% 79,6% 47.610 64,0% 46.445 60,7% 32.792 2008 2009 Q1 31.502 Loans/Deposits TRY Loans/TRY Deposits FX Loans/FX Deposits TRY / FX Mix of Loans 23% 25% 26% 31% 32% 14.818 14.943 77% 75% 74% 69% 68% TRY Loans FX Loans Total Loans 2005 2006
Slide 12: Total Loans 59% retail and SME loans
...59% ...59 59% comprised of retail Total Loans Consumer Loans (TRY mn mn.) .) and SME loans. loans. 9,849 9,752 8% 8% 2% 2% 10% 11% Retail Loans 1% 1% 31% 9% 52% 52 % General Purpose 9% Housing Loans Consumer Loans Auto Loans 30% 28% General Purpose Consumer 10% 9% Auto Loans Overdraft 15% 16% Cre
Slide 13: NPLs and Loan Loss Reserves
NPL Ratio NPLs & Loan Loss Reserves (TRY mn.) 2.489 2.489 2.195 2.195 4.6% 4.2% 4.4% 5.1% 3.8% 2005 2006 2007 2008 2009 Q1 2008 2009 Q1 NPLs Reserves Coverage 100% NPL provisioning 127,9% 141,8% 100% Cash Provisions Adj. Coverage(1) Full Coverage(2) (1) Adjusted value of collaterals + loan loss prov
Slide 14: NPL Ratios by Category and vs Sector
NPL Ratio by Loan Categories NPL Ratios Ratios‐‐ Isbank vs. Sector (2009 Q1) 8,1% 8,1% 8,3% 6,1% 5,1% 5,1% 4,3% 4,4% 2,9% 2 9% 3,0% 3 0% 2,9% 2,3% Consumer Credit Cards Total Loans Consumer Credit Cards Total Loans 2008 2009 Q1 Isbank Sector Performing Loan Groups NPL Breakdown 96,1% 63% 67% 83% 94%
Slide 15: Breakdown of Securities Portfolio
Breakdown of Securities Portfolio Total Portfolio * (TRY mn.) mn.) 26.319 27.352 24.326 24.981 22.366 TRY Discount and FX Floating p Bonds Fixed Coupon 15.6% 19.9% FX Discount and TRY Floating Fixed Coupon Bonds 28.1% 36.4% 2005 2006 2007 2008 2009 Q1 * Including interest accruals on securities 85 %
Slide 16: Sectoral Breakdown of Participations
...increasing share of listed ...increasing Sectoral Bre Breaakdown companies.. companies Financial 37.2% Non‐Financial 62.8% Other Banks Telecom 15 9% 15,9% 9,1% 24,8% Strategic Insurance Core Non‐financial Financial Non‐core Glass Financial Ins. 19,0% Business TRY 4.8 48 Areas 22,0% billion 9,2% L
Slide 17: Liabilities Composition
(TRY mn.) 2008 2009 Q1 Change Liabilities Composition Deposits 63,539 64,188 1% 10% 10% Equity REPOs & Money 6% 7,007 7 007 6,483 6 483 7% ‐7% 7% Market 11% 12% Funds Borrowed 11,033 11,418 3% Other 7% 7% Other 6,524 6,708 3% Equity 9,449 9,811 4% Funds Borrowed Total Liabilities 97,552 98,608 1% 65
Slide 18: Deposit Base
l ... a clear i di t indicator off customer trust trust.. Deposit Base FX Deposits 63,539 64,188 TRY Deposits 48,533 38% 46,399 36% 37,222 36% 39% 41% 62% 64% 61% 64% 59% 2005 2006 2007 2008 2009 Q1 Page 18
Slide 19: Deposits and Market Shares
Deposits p ((TRY mn mn.) .)) Market Shares 14,1% 14,7% 14,3% 14,1% 15,1% 14,4% 63.539 64.188 9,9% 40.391 39.569 6,8% 6 8% 4,1% 23.148 24.619 TRY FX Total 2008 2009 Q1 2000 2008 2009 Q Q1 TRY Deposits FX Deposits Total Deposits TRY Savings Deposits (TRY mn mn.) .) Largest market share in TRY and tota
Slide 20: Demand Deposits
... constitute 13,8 13,8% % of total d i and deposits d are the h maini contributor to lower cost of Demand Deposits (TRY mn mn.) .) Market Shares of Demand Deposits funding. 8,788 8,829 7,991 7 991 7,678 15.4% 15,0% 6,759 14.3% 14.3% 14.1% 55% 54% 55% 47% 50% 45% 5% 46% 6% 45% 5% 2005 2006 2007 200
Slide 21: Client Assets Reached TRY 97 Billion
... has reached a remarkable Client Assets ((TRY mn.) mn.)) No. Of Investment Accounts (000) ( ) total of TRY 97 billion. 6.375 6.158 94,957 97,034 5.231 4.630 4 630 4.363 79,821 70,488 On‐Balance Sheet 59,952 66% 67% 61% 66% 62% 2005 2006 2007 2008 2009 Q1 20% 18% 15% 16% 17% Sheet Off‐Balance 10%
Slide 22: Capital Adequacy
Capital Adequacy Regulatory Capital (TRY mn.) mn.) ... and high CAR support balance sheet growth going 10.834 10.056 10.638 10.805 10.854 11.143 forward.. forward 25,0% 8.7948.164 23,9% 7.755 21,9% 22,2% 20,5% 6.787 19,1% 15,2% 15,5% 15,4%15,9% 2005 2006 2007 2008 2009 Q1 2005 2006 2007 2008 2009 Q1
Slide 23: Operating Income Composition (QoQ)
Change (TRY mn.) 2008 Q4 2009 Q1 QoQ Operating Operati ng Income Composition N Interest Net I IIncome 948 1,090 15% Net Fees & Comm. from Banking NII 310 291 ‐6% Serv. 61% 56% Net Trading Gains/Losses 198 196 ‐1% Net Dividends Received 18 150 733% 15% % Commissions 20% Released Provisions 39 178 356
Slide 24: Operating Income Composition (YoY)
Change (TRY mn.) 2008 Q1 2009 Q1 YoY Operating Operat ing Income Composition Net Interest Income 923 1 090 1,090 18% Net Fees & Comm. from Banking NII 286 291 2% Serv. 56% 56% Net Trading Gains/Losses 95 196 106% Net Dividends Received 41 150 266% Commissions Released Provisions 240 178 ‐26% 17% 15%
Slide 25: Fees and Commissions Received
... supported by superior Fees and Commissions Received ‐(Gross) Gross) Gross Commission Income (TRY mn mn.) .) retail and corporate franchise.. franchise 6% 8% Non Cash Loans 9% Credit Appraisal 319 19% 313 17% Mutual Fund Man. And Other 16% Inv.Acc.Fees Credit Cards Foreign Trade 2008Q1 2009 Q1 42
Slide 26: Spread and Adjusted NIM
Spread* Adj.. NIM* Adj 10,0% 8,2% 6,2% 6,2% 5,8% 3,2% 2,2% 2,3% 1,7% 1,9% 2008 2009Q1 2008 2009 Q1 TRY FX TRY FX Blended * Adjusted for Net Trading Gains / Losses and Commission from Cash Loans according to regulatory reclassification Page 26
Slide 27: Cost / Income
Cost / Income Cost vs. Income (TRY mn mn.) .) 1.945 43,6% 42,0% 45,2% 1,638 36,7% 31,0% 590 604 2005 2006 2007 2008 2009 Q1 2008 Q1 2009 Q1 Cost Income Cost vs. Assets Cost Structure 7% Other 19% 5% 4% 8% 7% SDIF Fees 29% 3,2% 29% 2,9% 2,6% Depreciation 2,5% 51% Administrative 41% Expenses Staff Cos
Slide 28: ROAE and ROAA
ROAE ROAA 28,9% 27,6% 2,5% 25,2% 24,3% 2,3% 22 2% 22,2% , 2,2% 21,6% 2 1% 2,1% 1,9% 1,7% 1,7% 17,0% 1,6% 15,1% 1,5% 1,4% 13 7% 13,7% 11,9% 2005 2006 2007 2008 2009 Q1 2005 2006 2007 2008 2009 Q1 ROAE ROAE* ROAA ROAA* * On banking business Page 28
Slide 29: Market Cap, Earnings and Payout Ratio
Cap.. Comparison (TRY Market Cap (TRY mn .)) mn.) Earnings & Payout Ratio 36.1% 34.6% 32.7% 32.1% 23 105 23.105 20.311 17.972 32.4%** 1,702 1,509 11.342 10.348 1,109 956 2005 2006 2007 2008 2009 Q1 635 Isbank is included in the following indices: • ISE‐100 • ISE‐30 • ISE‐Bank Index 2004 2005 2006 20
Slide 30: Credit Ratings
R i Rating O l k Outlook ... ahead of Turkey’s Rating Outlook Long Term FC IDR BB Stable standards in various aspects of rating Global Scale Long Term LC IDR BBB BBB‐‐ Stable Long Term Counter Party Credit BB‐‐ BB Negative Short Term FC IDR B ‐ Long Term Certificate of Deposits BB‐‐ BB ‐ Short Term
Slide 31: Retail Banking
Isbank at a Glance 5 Financial Highlights 9 Customer Centric Transformation Program 38 Major Equity Participations 43 Page 31
Slide 32: Credit Cards
14 different products for different customer segments Reward points by 100,165 merchant firms through 183,262 chains, called “Maxipuan” Maxipuan After the cooperation of Isbank with Ziraat Bank, regarding the use of Isbank’s “Maximum Card” brand, the number of cards using the “Maximum” advantages re
Slide 33: Area Isbank dominates since foundation
... an area which Isbank dominates since its foundation.. foundation Page 33
Slide 34: Mutual Funds
... 21 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 627.355 609.121 582.249 590.000 appetites.. appetites 552.346 5.659 5.882 5.140 5.158 4.523 2005 2006 2007 2008 2009 Q1 2005 2006 2007 2008 2009 Q1 Income From Funds (TRY
Slide 35: Payroll Accounts and Automated Bill Payments
... supported by payroll accounts and bill p payment y Payroll y Accounts Automated Bill Payments y agreements.. agreements 2.917 5.959 5.311 2.267 6.354.057 1.351.024 1.298.879 5.801.112 2008 Q1 2009 Q1 2008 Q1 2009 Q1 Amount (TRY million) Number of Accounts Amount (TRY million) Number of Payments
Slide 36: Use of Non-Branch Channels
... are being used more Use of Non Non‐‐Branch Channels efficiently efficiently. ffi i tl . ( ) (%) 2005 2006 2007 2008 2009 Q1 47% 44% 43% 43% ATM 26 26 26 24 23 49% Internet 20 22 26 29 30 Call Center 2 2 2 2 2 51% 53% 56% 57% 57% Kiosk 1 1 1 1 1 Telephone 2 2 1 1 1 2005 2006 2007 2008 2009 Q1 Non
Slide 37: Customer Centric Transformation Program
Isbank at a Glance 5 Financial Highlights 9 Retail Banking 32 Major Equity Participations 43 Page 37
Slide 38: Agenda of the Transformation Program
Agenda of the Transformation Program @ What the programme is doing? @ What will be the benefits to the bank? @ What will be the result? Page 38
Slide 39: Moving to a more customer centric organisation
The Programme is helping İş Bank to move to a more customer centric organisation with the Targeted Client Centric From Organization customer as the key focus. communication Organization and Distribution by product to This requires change in the initiatives Organization by current operating model in
Slide 40: Countering the increase in competition
The Programme is helping İş Bank to counter the increase in competition by: by: Page 40
Slide 41: Increasing shareholder value
We will increase our shareholder h h ld value l through th through: h: Page 41
Slide 42: Major Equity Participations
Isbank at a Glance 5 Financial Highlights 9 Retail Banking 32 Customer Centric Transformation Program 38 Page 42
Slide 43: Isbank (64%) Sisecam General Information
Isbank (64 %) General Information Production Shares (%)1 Market/Production Market/ A leading flat glass, glass glassware, glassware glass packaging, packaging soda Turkey Europe2 World3 ash and chromium chemicals producer in the domestic market. Flat Glass 82.0 13.13 3.7 Backed by its vision, Şişeca
Slide 44: Production facilities in neighbouring countries
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 44
Slide 45: Sisecam export markets by product
Glassware (%) Chromium Products (%) Bulgaria 30 Taiwan 77 Iran 30 Italy 60 Ukraine 29 S. Korea 40 U.K. 27 China/Hong Kong 24 Russian Federation 20 Flat Glass (%) Italy 17 Bulgaria 55 Germany 11 Albania 50 Spain 9 Greece 21 Romania 15 Glass Fibre (%) Soda Ash (%) Iran 18 Serbia 92 France 5,4 Bulgaria
Slide 46: Avea
İşbank Group 18.87% Turk Telekom 81.13% Aria and Aycell merged under TT & TIM as of February 19 19,, 2004 Avea brand has been successfully launched in June 20042004.. The coverage and efficiency have increased significantly due to the combination and integration of 2 GSM networks. networks. A number
Slide 47: Group Companies
Bank’s Shareholder’s Field of Group Assets (1) Market Group Company Direct Equity (1) Activity Share (%) (USD 000) Share (%) Share (%) (USD 000) Türkiye Sınai Kalkınma Bankası A.Ş. Investment Bank 40.52 50.10 4,036,968 (6) 487,683 (6) 27 (1) (6) İşbank GmbH Banking 100.00 100.00 747,924 88,555 N/A A
Slide 48: 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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