Icbc Turkey Bank Anonim Sirketi · BIST:ICBCT

Icbc Turkey Bank Anonim Sirketi — Tekstilbank — Q2 2013 Earnings Presentation

19 slides from Icbc Turkey Bank Anonim Sirketi's earnings presentation, Jun 30, 2013

  1. Slide 1: Earnings Presentation June 30, 2013 / BRSA Bank-Only

    Earnings Presentation June 30, 2013 / BRSA Bank-Only 1

  2. Slide 2: Macroeconomic environment in 2Q 2013

    Macroeconomic environment in 2Q 2013...  Positive mood dominating the first two months of 2Q, lifted by Japan’s drastic step in monetary expansion, turned into a gloomy outlook in June, due to Fed’s emphasis on reducing asset purchases  Turkish economy recovered by a notable rate of 3.0%, y/y, in

  3. Slide 3: Conservative balance sheet management continued in 2Q

    Conservative balance sheet management continued in 2Q Highlights of 2Q 2013:  A modest balance sheet recovery, due to TL’s weakening  More focus on TL corporate loans  Lower deposits/liabilities ratio at 65%, in order to reduce funding cost  Strong CAR at 16.7%  Declining asset quality  Higher

  4. Slide 4: Looking into second half of 2013

    Looking into second half of 2013 Macroeconomy Banking Sector Tekstilbank  Capital inflows may be hit by  Strong loan growth may  Conservative growth approach global risk aversion slowdown, hit by lower external will continue  The CB may increase funding rate funding opportunities of banks,  Lik

  5. Slide 5: A modest balance sheet growth

    A modest balance sheet growth Composition of Assets Total Assets (TLmn) CAGR 04-07: YoY: 2.9% 35% 3,543 3,502 3,677 3,598 3,645 1.3% 14.8% 16.2% 16.6% 18.8% 18.8% 2.9% 2.4% 3.2% 2.0% 1.4% 12.6% 8.9% 9.0% 8.7% 9.7% Jun 12 Sep 12 2012 Mar 13 Jun 13 69.7% 72.5% 71.2% 70.5% 70.1% Currency Composition of

  6. Slide 6: A minor rise in loan book, due to TL loan growth

    A minor rise in loan book, due to TL loan growth Total Cash Loans (TLmn) TL Cash Loans* (TLmn) YoY: 3.4% YoY: 6.1% 2,618 2,537 2,554 2,471 2,540 1,833 0.7% 1,821 1,810 Loans / Customer Deposits 1,727 1,704 7.5% 107.1% 107.2% 107.4% 103.2% 98.4% Jun 12 Sep 12 2012 Mar 13 Jun 13 Jun 12 Sep 12 2012 Mar

  7. Slide 7: Funds borrowed continued to gain more dominance, while high cost deposits lost weight

    Funds borrowed continued to gain more dominance, while high cost deposits lost weight Composition of Liabilities Total Deposits* (TLmn) TL Deposits* (TLmn) & SHE YoY: 3.0% YoY: -2.2% 2,662 1,511 1,508 2,370 2,459 2,377 2,307 1,268 1,318 -3.3% 1,240 4% 6% 3% 4% 4% -6.0% 15% 16% 15% 16% 16% 9% 16% 11%

  8. Slide 8: Strong CAR at 16.7%

    Strong CAR at 16.7% Capital Adequacy Ratio (CAR) Free Equity (TLmn) Free Equity / Equity 71.1% 71.8% 71.1% 17.0% 16.7% 68.1% 16.5% 16.5% 15.9% 66.4% 407 393 389 377 380 Jun 12 Sep 12* 2012* Mar 13* Jun 13* Jun 12 Sep 12 2012 Mar 13 Jun 13 * Calculated according to new BRSA regulations, in line with

  9. Slide 9: Decline in asset quality

    Decline in asset quality NPL Ratio NPL Ratio (including non-cash loans) Tekstilbank Market Average Tekstilbank Market Average 6.7% 5.9% 4.6% 4.9% 4.1% 4.9% 3.3% 3.4% 4.6% 3.4% 2.6% 2.9% 3.0% 2.0% 2.3% 2.1% 2.9% 2.7% 2.2% 2.2% Jun 12 Sep 12 2012 Mar 13 Jun 13 Jun 12 Sep 12 2012 Mar 13 Jun 13 Source:

  10. Slide 10: More focus on corporate loans

    More focus on corporate loans Breakdown of Loan Portfolio Breakdown of Retail Loans (TLmn) YoY: -2.0% 379 384 384 374 -0.8% 1.2% 1.3% 1.3% 1.3% 1.4% 371 13.4% 13.1% 30 33 35 14.1% 13.8% 13.3% 34 36 173 164 156 160 150 84.7% 85.4% 84.9% 85.3% 85.5% 26 28 30 32 30 167 159 173 144 132 Jun 12 Sep 12 201

  11. Slide 11: Higher F/X non-cash loans

    Higher F/X non-cash loans Total Non-Cash Loans (TLmn) TL Non-Cash Loans (TLmn) Non-Cash / Cash Loans YoY: 11.5% YoY: 18.9% 698 649 622 1,248 1,216 523 564 1,149 1,191 -4.2% 1,091 2.1% 47.7% 47.0% 47.6% Jun 12 Sep 12 2012 Mar 13 Jun 13 Jun 12 Sep 12 2012 Mar 13 Jun 13 45.3% 44.2% Currency Breakdown o

  12. Slide 12: Lower interest expense, thanks to the CB's monetary easing

    Lower interest expense, thanks to the CB’s monetary easing... Interest Income (TLmn) Composition of Interest Income 172 0.5% 0.4% -15% 146 13.3% 9.9% 0.7 23.0 0.7 Other 14.4 Securities 89.7% 86.2% 148.5 Loans 131.1 1H 2012 1H 2013 1H 2012 1H 2013 Interest Expense (TLmn) Composition of Interest Expen

  13. Slide 13: Resulting in better NIM

    Resulting in better NIM Banking Income (TLmn) Adjusted Net Interest Margin* (Quarterly) 1.2% 92 91 7.9 11.2 9.8 13.0 5.6% 4.7% 4.8% 70.8 4.6% 69.6 4.0% 2Q12 3Q12 4Q12 1Q13 2Q13 1H 2012 1H 2013 Other Net Fees Adj.NII (by FX and trading gain / loss) * Adjusted by FX gain / loss 13

  14. Slide 14: Strict control on OPEX

    Strict control on OPEX Operating Expenses (TLmn) Composition of Operating Expenses 3% 54 53 23.0% 23.0% 12.2 12.4 10.7% 11.3% 3.4% 2.9% 5.6 6.2 1.8 1.6 62.9% 62.8% 34.2 33.2 1H 2012 1H 2013 1H 2012 1H 2013 Personnel Depr.& Amort. Personnel Depr.& Amort. Operational Leasing Other Opex Operational Lea

  15. Slide 15: Summary Balance Sheet

    Summary Balance Sheet... Jun 2012 Dec 2012 Mar 2013 Jun 2013 TL million Cash & Banks 381 480 467 442 Total Securities 448 330 314 354 Total Cash Loans 2,471 2,618 2,537 2,554 Fixed Assets & Subsidiaries 111 124 125 122 Other 132 125 155 173 Total Assets 3,543 3,677 3,598 3,645 Deposits* 2,307 2,662

  16. Slide 16: Summary Income Statement

    Summary Income Statement... 1Q 2013 2Q 2013 1H 2012 1H 2013 TL million Interest Income 74.4 71.8 172.2 146.2 Loans 65.9 65.2 148.5 131.1 Securities 8.2 6.2 23.0 14.4 Other 0.3 0.4 0.7 0.7 Interest Expense 41.7 37.4 107.1 79.0 Deposits 34.4 29.5 86.0 63.9 Funds Borrowed 4.4 6.3 13.8 10.6 Other Borrow

  17. Slide 17: Summary Income Statement (Consolidated)

    Summary Income Statement (Consolidated)... 1Q 2013 2Q 2013 1H 2012 1H 2013 TL million Interest Income 75.1 72.6 173.6 147.7 Loans 66.4 65.9 149.3 132.3 Securities 8.2 6.2 23.2 14.4 Other 0.5 0.5 1.1 1.0 Interest Expense 41.6 37.4 107.0 79.0 Deposits 34.3 29.6 85.9 63.9 Funds Borrowed 4.4 6.2 13.8 10

  18. Slide 18: Disclaimer

    Disclaimer Statement The information, opinions and estimates contained in this document have been compiled or arrived at by Tekstilbank from sources believed to be reliable and in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or corre

  19. Slide 19: For further information please contact

    For further information please contact: Investor Relations Phone: +90-212-335-5159 investorrelations@tekstilbank.com.tr www.tekstilbank.com.tr 19

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