Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB

Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.S. — Q3 2012 Earnings Presentation

26 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2012

  1. Slide 1: Q3 2012 Earnings Presentation

    Q3 2012 Earnings Presentation BRSA Bank Only

  2. Slide 2: Macro Outlook Medium Term Program

    Q3 2012 Earnings Presentation Macro Outlook Medium Term Program > New Medium Term Program (MTP) announced; GDP 2012 2013 2014 2015 growth assumption of 3.2% and 4% for 2012 and 2013 GROWTH respectively. GDP(TRY Bn) 1,435 1,571 1,740 1,933 > Q2 12 GDP growth was 2.9%; still favourable in global envir

  3. Slide 3: Banking Sector Outlook

    Q3 2012 Earnings Presentation Banking Sector Outlook > CBRT lowered the upper end of interest rate corridor > Total securities portfolio of the industry displayed a 150 bps first, and then 50 bps more to 9.5%, also left slight decrease with 2.5% YtD. the policy rate at 5.75%. Additionally, CBRT incr

  4. Slide 4: Q3 2012 Highlights: Strong profitability, liquidity and funding metrics

    Q3 2012 Earnings Presentation Q3 2012 Highlights Strong profitability, liquidity and funding metrics > Net income reached TRY 1,853 mn, up 20.3% YoY > Loan growth in line with guidance; 12.1% YtD > Superb RoE of 25.1% > Solid deposit base preserved; 15.4% YtD growth > %34.2 YoY increase in net inter

  5. Slide 5: Net Income – Profitability Ratios

    Q3 2012 Earnings Presentation Net Income – Profitability Ratios Net Income (TRY million) 19.1% 20.3% 1,853 709 1,541 600 544 504 504 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Sep-11 Sep-12 ROE (%) ROA (%) YtD Quarterly YtD Quarterly 2.9 28.3 26.2 2.6 25.4 25.1 2.5 2.5 23.6 26.6 2.4 2.6 24.8 23.6 23.6 2.4 2.4 22

  6. Slide 6: Asset Growth: Lending driven asset growth

    Q3 2012 Earnings Presentation Lending driven asset growth Asset Mix (%) Asset Growth IEA Loans YoY 12.5% QoQ 1.1% 84.9% Securities Other Assets Total Asset Growth (TRY billion) Composition of IEAs(a) 12.5% 85.8% 87.5% 86.7% 84.5% 84.9% 1.1% 101.0 102.1 90.7 91.1 94.5 FX 29.1% 28.6% 27.3% 26.5% 25.4%

  7. Slide 7: Well managed portfolio

    Q3 2012 Earnings Presentation Well managed portfolio Total Securities Portfolio (TRY billion) Interest Structure (%) CPI Linkers / Total Securities (%) 25.0 19.0 21.0 18.0 14.0 24.4 24.4 22.5 23.3 22.9 4.2 17% 3.8 16% FRN Fixed FX 3.7 16% 3.7 16% 2.6 11% 58% 42% TRY 18.8 84% 19.6 84% 20.2 83% 20.6 8

  8. Slide 8: Loan market share increased

    Q3 2012 Earnings Presentation Loan market share increased (TRY billion)(a) Total Loans 12.2% HALKBANK B. Sector (b) 4.3% YtD YtD 12.2% 10.6% QoQ QoQ 61.9 4.3% 2.5% 59.4 Fund Loans 56.7 1.3 54.2 55.2 1.3 6.6 up 0.6% YtD 1.3 6.5 up 0.4% QoQ TRY Loans 1.3 5.2 1.3 5.5 6.1 HALKBANK B. Sector (b) Cooperat

  9. Slide 9: Optimised customer segmentation

    Q3 2012 Earnings Presentation Optimised customer segmentation Loans by Currency (TRY billion)(a) Loans by Types Funds 2% 17.3 17.4 17.0 17.0 17.4 Cooperatives 11% FX 31.9% 31.6% 29.9% 28.6% 28.1% 36.9 37.8 39.8 42.4 44.6 TRY Commercial 60% 68.1% 68.4% 70.1% 71.4% 71.9% Retail 27% Sep-11 2011 Mar-12

  10. Slide 10: Steady growth in retail

    Q3 2012 Earnings Presentation Steady growth in retail (TRY billion)(a) 12.9% HALKBANK 3.0% YtD 16.9 16.4 12.9% 15.4 QoQ 14.6 15.0 Consumer Loans 3.0% 8.4 8.6 8.8 9.2 9.4 up 9.3% YtD up 1.5% QoQ Share in total 55.5% B. SECTOR(b) YtD 12.5% QoQ Housing Loans 3.9% up 15.5% YtD up 4.0% QoQ 5.3 5.4 5.5 6.

  11. Slide 11: Non-cash lending up 15.2% YoY

    Q3 2012 Earnings Presentation Non-cash lending up 15.2% YoY Breakdown of Non-cash Loans (%) Non-cash Loans (TRY million)(a) Bank Loans and Other 15.2% (Sep-12 ) 9.8% 7.0% Letters of Credit 16.4% 0.9% 19.2 19.1 Letters of 18.9 Guarantee 17.8 16.6 73.9% (Sep-11 ) Bank Loans and Other 4.9% Letters of C

  12. Slide 12: NPL ratio stood at the same level with year end 2011

    Q3 2012 Earnings Presentation NPL ratio stood at the same level with year end 2011 NPL Portfolio (TRY million) NPL Coverage (%) 1,869 95.6 95.8 98.1 95.8 (a) 1,682 1,732 1,637 1,669 85.8 84.0 84.0 84.2 83.9 82.6 Since 2002 528 514 511 508 507 Legacy NPLs 2001 and before Sep-11 2011 Mar-12 Jun-12 Sep

  13. Slide 13: NPL ratio in all segments below industry average

    Q3 2012 Earnings Presentation NPL ratio in all segments below industry average Halkbank NPL Sector NPL (a,b) Corporate - Commercial (%)(a) Consumer Loans (%)(b) 3.2 2.8 2.8 2.0 2.0 1.8 2.0 2.6 2.6 1.8 1.3 1.4 1.0 1.2 1.1 1.4 1.4 1.5 1.6 1.3 Sep-11 2011 Mar-12 Jun-12 Sep-12 Sep-11 2011 Mar-12 Jun-12

  14. Slide 14: CoR still low at 62 bps

    Q3 2012 Earnings Presentation CoR still low at 62 bps New NPLs by segments (TRY million) Gross Cost of Risk by segments (bps)(a) 2 1,869 121 43 86 8 61 1,669 76 79 62 8 Corporate Commercial SME Retail Other 2011 Sep-12 SME Retail Commercial Corporate Total Net Cost of Risk Gross Cost of Risk (bps) (

  15. Slide 15: Superior liquidity and funding profile

    Q3 2012 Earnings Presentation Superior liquidity and funding profile IBL 84.1%(a) Loan to Deposit (%) Liabilities by Currency (%) Liabilities Mix (%) Halkbank L/D Sector L/D(b) Deposits Other Liabilities Funds Borrowed Shareholder’s Equity TRY Interbank Money Market 100.4 102.6 103.6 68.2% 96.7 98.2

  16. Slide 16: Rock solid franchise in customer deposits

    Q3 2012 Earnings Presentation Rock solid franchise in customer deposits HALKBANK B. Sector (b) FX Dep. YtD 12.8% 4.6% HALKBANK B. Sector (b) HALKBANK B. Sector (b) QoQ -10.7% -1.9% Total Dep. YtD 15.3% 6.4% TRY Dep. YtD 16.5% 7.4% in USD YtD 18.8% 10.2% QoQ -2.2% 2.4% QoQ 2.5% 4.8% terms QoQ -10.2%

  17. Slide 17: Further decrease in cost of TRY deposits

    Q3 2012 Earnings Presentation Further decrease in cost of TRY deposits Demand Deposit (TRY billion)(a) Time Deposits (TRY billion)(a) Deposits by Currency (%)(a) Demand Deposits/Total Deposits (%) Time Deposits/Total Deposits (%) 15.6 15.7 15.2 15.5 77.3 FX TRY 14.3 74.0 75.3 74.1 75.1 32.5% 67.5% 2

  18. Slide 18: Cost-Yield-Spread - Quarterly

    Q3 2012 Earnings Presentation Cost-Yield-Spread(a) - Quarterly Cost of Deposits (%) Spreads (%) On Securities On Loans 5.4 5.5 5.8 5.5 5.5 6.2 5.7 5.7 6.0 5.3 5.7 4.5 4.6 3.0 1.3 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Yield on Loans (%)(b) Yield on Securities (%) 11.7 11.4 11.2

  19. Slide 19: NIM stands at 5.1% even with temporary CPI impact

    Q3 2012 Earnings Presentation NIM stands at 5.1% even with temporary CPI impact Interest Expenses Net Interest Income (TRY million) Interest Income Breakdown of Interest Income 14.7% 1,102 1,032 1,181 970 25% on Securities 846 1,866 2,166 2,170 2,302 2,127 1,020 1,064 1,138 1,121 1,156 75% on Loans

  20. Slide 20: Strong fee generation continued despite seasonality

    Q3 2012 Earnings Presentation Strong fee generation continued despite seasonality Net Fees & Commissions Income (TRY million) 19.7% 641 269 535 195 193 211 161 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Sep-11 Sep-12 Breakdown of Fees & Commissions Net Fees & Commissions / Operating Revenues (%) Insurance 5% Mon

  21. Slide 21: Effective cost management

    Q3 2012 Earnings Presentation Effective cost management Operating Expenses (TRY million) OPEX / Average Assets (%) 17.0% 1,488 1,272 2.0 2.0 2.1 2.0 522 1.9 500 433 453 465 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Sep-11 Sep-12 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Cost/Income (%) Breakdown of Operating Expenses Tax 5

  22. Slide 22: Building capital strength organically

    Q3 2012 Earnings Presentation Building capital strength organically BASEL II Capital Ratios (%) (TRY mn) Jun-12 Sep-12 Basel II Basel I Tier 1 Ratio Credit Risk Base Amount (CRBA) 67,528 70,084 Market Risk Base Amount (MRBA) 3,008 2,161 15.2 14.5 14.5 14.7 14.3 Operational Risk Base Amount (ORBA) 7,

  23. Slide 23: Branch Network and Human Resources

    Q3 2012 Earnings Presentation Branch Network and Human Resources Employees per Branches Halkbank Sector > 15 new branches opened in the Q3 12. Branch network reached 802. 18.6 18.6 18.6 18.6 (b) 18.3 > New recruitments to substitute for the retired and also to meet the needs of new 18.0 17.9 17.8 br

  24. Slide 24: Balance Sheet

    Q3 2012 Earnings Presentation Balance Sheet QoQ YtD YoY In TRY million Sep-11 2011 Jun-12 Sep-12 Change % Change % Change % Cash and Balances Held with the Central Bank (a) 8,494 7,272 10,711 10,402 (2.9) 43.0 22.5 Banks & Money Market (b) 1,618 1,475 1,707 1,969 15.4 33.5 21.7 Securities (b) 22,469

  25. Slide 25: Income Statement

    Q3 2012 Earnings Presentation Income Statement YoY QoQ YoY In TRY million Sep-11 Sep-12 Change % Q3-11 Q1-12 Q2-12 Q3-12 Change % Change % Interest Income 5,112 6,598 29.1 1,866 2,170 2,302 2,127 (7.6) 14.0 On Loans 3,732 4,959 32.9 1,394 1,564 1,676 1,719 2.6 23.3 On Securities 1,370 1,626 18.7 464

  26. Slide 26: 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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