19 slides from Icbc Turkey Bank Anonim Sirketi's earnings presentation, Sep 30, 2014
Slide 1: Earnings Presentation September 30, 2014 / BRSA Bank-Only
Earnings Presentation September 30, 2014 / BRSA Bank-Only 1
Slide 2: Macroeconomic environment in 3Q 2014
Macroeconomic environment in 3Q 2014... Increasing jeopolitical risks and worries on Fed’s rate hike sooner than mid-2015 raised uncertainties, despite ECB’s plans for further monetary expansion Turkish Central Bank ceased policy rate cuts and kept the rate at 8.25% from July onwards, due to hig
Slide 3: Balance sheet expanded in 3Q
Balance sheet expanded in 3Q Highlights of 3Q 2014: Balance sheet expanded slightly TL loans increased, while securities portfolio shrinked Increase in OPEX vs. the same term of 2013 prevailed, owing to moving of headquarter building to a rental ICBC had signed an agreement with Tekstilbank’
Slide 4: Looking into 2014
Looking into 2014 Macroeconomy Banking Sector Tekstilbank Lower macroeconomic growth, Slower macroeconomic growth, Conservative growth approach around 3%, hit by the lower capital and restrictions on credit card will continue inflows, measures taken by the installments is expected to keep BRSA
Slide 5: Assets increased by 7% vs. second quarter
Assets increased by 7% vs. second quarter Composition of Assets Total Assets (TLmn) CAGR 04-07: YoY: 1.4% 35% 3,849 3,730 3,699 3,545 3,782 15.5% 6.7% 16.7% 15.6% 15.4% 15.7% 1.7% 2.0% 2.1% 1.1% 0.5% 9.1% 10.8% 10.5% 11.3% 11.7% Sep 13 2013 Mar 14 Jun 14 Sep 14 72.0% 71.8% 74.7% Currency Composition
Slide 6: Loan portfolio expanded by 11%, thanks to TL loans
Loan portfolio expanded by 11%, thanks to TL loans Total Cash Loans (TLmn) TL Cash Loans* (TLmn) YoY: 6.9% YoY: 18% 2,252 1,913 1,945 1,873 1,910 2,773 2,823 18% 2,641 2,625 2,545 Loans / Customer Deposits 11% 122% 120% 120% 120% 110% Sep 13 2013 Mar 14 Jun 14 Sep 14 Sep 13 2013 Mar 14 Jun 14 Sep 14
Slide 7: Deposits rose by 11%, in q/q terms
Deposits rose by 11%, in q/q terms Composition of Liabilities Total Deposits* (TLmn) TL Deposits* (TLmn) & SHE YoY: 8.6% YoY: 0.6% 2,526 2,344 2,158 2,193 2,120 1,239 1,254 1,247 3% 3% 4% 1,125 4% 5% 1,044 11% 11% 16% 16% 16% 18% 16% 15% 18% 22% 20% 19% Sep 13 2013 Mar 14 Jun 14 Sep 14 Sep 13 2013 M
Slide 8: CAR remained strong at 18.0%
CAR remained strong at 18.0% Capital Adequacy Ratio (CAR) Free Equity (TLmn) Free Equity / Equity 85.4% 84.4% 83.7% 83.2% 82.3% 18.5% 18.7% 18.0% 17.4% 17.6% 510 513 513 518 509 Sep 13 2013 Mar 14 Jun 14 Sep 14 Sep 13 2013 Mar 14 Jun 14 Sep 14 Free Equity: SHE-subsidiaries-property & equipment-intan
Slide 9: Cost of risk remained almost flat around 1.2%
Cost of risk remained almost flat around 1.2% NPL Ratio NPL Ratio (including non-cash loans) Tekstilbank Market Average Tekstilbank Market Average 6.3% 6.1% 4.4% 4.3% 4.7% 5.1% 5.0% 3.6% 3.8% 3.4% 2.7% 2.6% 2.7% 2.7% 2.8% 2.1% 2.1% 2.1% 2.1% 2.0% Sep 13 2013 Mar 14 Jun 14 Sep 14 Sep 13 2013 Mar 14 J
Slide 10: Composition of loan portfolio was preserved
Composition of loan portfolio was preserved Breakdown of Loan Portfolio Breakdown of Retail Loans (TLmn) YoY: -2.0% 394 1.4% 1.2% 1.2% 1.2% 1.0% 371 373 364 356 2.2% 12.7% 35 13.0% 13.0% 12.8% 11.9% 36 33 28 31 200 196 187 184 85.8% 87.1% 85.9% 85.8% 86.0% 176 29 27 24 21 19 136 129 130 120 117 Sep
Slide 11: Non-cash loans declined further in 3Q
Non-cash loans declined further in 3Q Total Non-Cash Loans (TLmn) TL Non-Cash Loans (TLmn) Non-Cash / Cash Loans YoY: -16.9% YoY: -27.3% 1,185 610 1,211 582 1,121 1,054 985 473 472 443 -6.5% -5.9% Sep 13 2013 Mar 14 Jun 14 Sep 14 Sep 13 2013 Mar 14 Jun 14 Sep 14 44.9% 43.7% 42.7% 41.4% 34.9% Currenc
Slide 12: Ratio of funds borrowed increased in interest expense, because of higher swap costs
Ratio of funds borrowed increased in interest expense, because of higher swap costs Interest Income (TLmn) Composition of Interest Income 260 0.5% 1.7% 20% 9.9% 12.8% 216 4.5 Other 1.2 33.2 21.4 Securities 89.6% 85.5% Loans 222.3 193.7 9mth13 9mth14 9mth13 9mth14 Interest Expense (TLmn) Composition
Slide 13: NIM declined in 3Q
NIM declined in 3Q Banking Income (TLmn) Adjusted Net Interest Margin* (Quarterly) 178 -24% 136 60.4 12.1 13.6 18.8 4.7% 4.6% 4.1% 110.1 3.8% 3.6% 98.4 3Q13 4Q13 1Q14 2Q14 3Q14 9mth13 9mth14 Other* Net Fees Adj.NII (by FX and trading gain/loss) * Other revenues were boosted by the sale of headquarte
Slide 14: OPEX was higher vs. last year, stimulated by rent expense
OPEX was higher vs. last year, stimulated by rent expense* Operating Expenses (TLmn) Composition of Operating Expenses 95 13% 84 26.2% 23.7% 22.5 22.0 10.8% 14.5% 13.8 1.8% 2.9% 9.1 2.7 1.5 61.2% 58.9% 55.9 51.4 9mth13 9mth14 9mth13 9mth14 Personnel Depr.& Amort. Personnel Depr.& Amort. Operational
Slide 15: Summary Balance Sheet
Summary Balance Sheet... Sep 2013 Dec 2013 Mar 2014 Jun 2014 Sep 2014 TL million Cash & Banks 477 526 476 400 432 Total Securities 401 403 417 416 344 Total Cash Loans 2,641 2,773 2,625 2,545 2,823 Fixed Assets & Subsidiaries 44 41 49 59 58 Other 167 106 132 125 125 Total Assets 3,730 3,849 3,699 3,
Slide 16: Summary Income Statement
Summary Income Statement... 1Q 2014 2Q 2014 3Q 2014 9mth 2013 9mth 2014 TL million Interest Income 89.6 89.3 81.1 216.3 260.0 Loans 74.2 75.4 72.7 193.7 222.3 Securities 11.7 13.6 7.9 21.4 33.2 Other 3.7 0.3 0.5 1.2 4.5 Interest Expense 53.6 54.6 49.7 122.4 157.9 Deposits 34.9 36.0 31.7 96.0 102.6 F
Slide 17: Summary Income Statement (Consolidated)
Summary Income Statement (Consolidated)... 1Q 2014 2Q 2014 3Q 2014 9mth 2013 9mth 2014 TL million Interest Income 90.4 90.2 82.2 218.4 262.8 Loans 74.8 75.9 73.4 195.5 224.1 Securities 11.7 13.7 7.9 21.4 33.3 Other 3.9 0.6 0.9 1.5 5.4 Interest Expense 53.6 54.5 49.7 122.3 157.8 Deposits 34.9 35.9 31
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
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