Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB

Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.Ş. — H1 2020 Earnings Presentation

24 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2020

  1. Slide 1: H1 2020 Earnings Presentation

    H1 2020 Earnings Presentation DISTINGUIS H ED PROFIT A BLE RESI L IENT RIS K CONSCIOUS RELIA B LE SUST A INABLE NATIO N WIDE MAR K ETMAKER BRSA Bank Only

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  3. Slide 3: Thriving core banking activities, expanding market shares

    H1 2020 Earnings Presentation Thriving core banking activities, expanding market shares Market Share (%) Asset Growth Halkbank Peer Banks Other YoY 38.9% QoQ 21.3% Total Assets Total Asset Growth (TRY billion) Asset Mix (%) 38.9% Loans Securities Liq. Assets Other Assets 11.1% 21.3% 595.7 491.2 68.7

  4. Slide 4: Eyeful contribution from gain on securities and its share in total assets continues to increase

    H1 2020 Earnings Presentation Eyeful contribution from gain on securities and its share in total assets continues to increase Total Securities Portfolio (TRY billion) Securities Classification (TRY billion)(*) Total Securities / Total Assets (%) Other Floating Rate CPI Linkers Fixed Rate (TRY) 22.5

  5. Slide 5: Supportive loan schemes brings along growing market share

    H1 2020 Earnings Presentation Supportive loan schemes brings along growing market share CGF Utilization (TRY bn) Current loan amount Mar-20 19.1 Jun-20 64.9 (TRY billion)(a) 48.1% Total Loans 23.3% HALKBANK B. Sector(b) YoY YoY 400.4 48.1% 28.3% QoQ QoQ 23.3% 12.5% 324.8 Business Loans TRY Loans 285

  6. Slide 6: Well solidified SME segment at historically peak level

    H1 2020 Earnings Presentation Well solidified SME segment at historically peak level Loans by Currency (%)(a) Loans by Customer Segmentation (%)(a) Commercial 5% FX SME 9% Commercial 4% 22% SME 45% Corporate 87% Corporate 33% CGF 25% TRY 78% Cooperative 36%(b) Retail 17% Sectoral Breakdown of Loans

  7. Slide 7: NPL coverage continues to increase

    H1 2020 Earnings Presentation NPL coverage continues to increase NPL Portfolio (TRY million)(a) NPL Coverage (%)(a) 16,540 16,537 15,920 13,910 11,524 63.4 62.2 56.5 59.1 55.8 Jun-19 Sep-19 2019 Mar-20 Jun-20 Jun-19 Sep-19 2019 Mar-20 Jun-20 Loans under Close Watch (TRY million) NPL/Total Loans (%)(

  8. Slide 8: NPL ratio by segments

    H1 2020 Earnings Presentation NPL ratio by segments Halkbank NPL Sector NPL (a) Corporate - Commercial (%) Consumer Loans (%) 5.1 5.0 4.5 4.4 4.0 4.1 3.9 3.5 3.9 3.2 4.5 3.9 3.6 2.8 2.8 2.8 3.5 2.5 3.1 1.8 Jun-19 Sep-19 2019 Mar-20 Jun-20 Jun-19 Sep-19 2019 Mar-20 Jun-20 SME Loans (%) Credit Cards (

  9. Slide 9: Maintaining a prudent approach in provisioning whilst decreasing risk costs

    H1 2020 Earnings Presentation Maintaining a prudent approach in provisioning whilst decreasing risk costs Provisions and Reversals (TRY million) Net Total Cost of Risk (bps)(a) Provision Reversals S1 Provisions S2 Provisions S3 Provisions YtD Quarterly 241 182 241 156 913 594 209 66 143 54 730 1,369

  10. Slide 10: TRY LDR maintained amid growing loan volume

    H1 2020 Earnings Presentation TRY LDR maintained amid growing loan volume Loan to Deposit (%) Composition of IBLs(a) Liabilities Mix (%) (b) Halkbank L/D Sector L/D Deposits Marketable 86.1% 86.3% 85.8% 86.7% 86.8% Funds Borrowed Securities Issued Interbank Money Market Shareholders’ Equity 35.3% FX

  11. Slide 11: Strong deposit growth and rising market share

    8 -6.36 3 H1 2020 Earnings Presentation Strong deposit growth and rising market share HALKBANK B. Sector(b) YoY 15.4% 22.5% HALKBANK B. Sector(b) HALKBANK B. Sector(b) QoQ 10.9% 5.4% YoY 52.4% 33.1% YoY 92.0% 45.8% in USD YoY -3.0% 2.9% QoQ 22.5% 8.9% QoQ 31.5% 12.7% terms QoQ 6.5% 1.3% Total Deposi

  12. Slide 12: Increasing share of demand deposits

    H1 2020 Earnings Presentation Increasing share of demand deposits Demand Deposits (TRY billion)(a) Time Deposits (TRY billion)(a) Deposits by Currency (%) Demand Deposits/Total Deposits (%) Time Deposits/Total Deposits (%) 19.2% 21.0% 17.6% 17.3% 17.3% 82.4% 82.7% 82.7% 80.8% 79.0% FX 39% 88.0% 51.2

  13. Slide 13: Spread dynamics supported by yield on securities

    H1 2020 Earnings Presentation Spread dynamics supported by yield on securities Cost of Deposits (%) Spreads (%) On Loans On Securities 7.4 9.0 7.2 8.8 6.7 6.2 5.8 5.4 4.9 4.8 4.7 4.4 4.3 4.4 1.1 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Yield on Loans (%) (*) Yield on Securities (%

  14. Slide 14: Reasonable NIM performance despite challenging environment

    H1 2020 Earnings Presentation Reasonable NIM performance despite challenging environment Net Interest Income (TRY million) NIM (%) Interest Income Interest Expenses YtD Quarterly 5.2 135.5% Swap adj. (YtD) Swap adj. (QoQ) 5.2 4.8 1.0% 4.0 4.5 3.0 2,268 2,819 3,797 5,288 5,341 2.6 3.0 4.9 4.9 2.6 4.5

  15. Slide 15: Enhanced earning capacity

    H1 2020 Earnings Presentation Enhanced earning capacity H1 – 19 / H1 – 20 Revenue Walk (TRY million) Quarterly Net Income (TRY million) 2,501 1,246 950 9,929 825 797 1,336 (1,013) 2,173 (2,912) (3,932) 615 1,775 (4,473) 310 308 (2,483) NII (inc. swaps) Net F&C Income Total Provisions Net Income (H1-

  16. Slide 16: Cost/Income Ratio preserves its reasonable level

    H1 2020 Earnings Presentation Cost/Income Ratio preserves its reasonable level Operating Expenses (TRY million) Operating Expenses / Average Assets (%) 46.7% 7.0% 1,5 1,5 1,6 1,5 1,900 2,032 1,4 1,669 1,705 1,385 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Jun-19 Sep-19 2019 Mar-20 Jun-20 Cost/Income (%) Breakdow

  17. Slide 17: Enhanced solvency ratios supported by new capital injection

    H1 2020 Earnings Presentation Enhanced solvency ratios supported by new capital injection CAR (%) Details on Capital Ratio Tier-I CAR Details on Capital Ratio Cons. Basel III Uncons. Basel III 14.6 15.7 (TRY mn) Jun-20 Jun-20 14.2 14.3 13.9 Credit Risk Base Amount (CRBA) 343,635 331,763 13.0 Market

  18. Slide 18: Branch Network – Human Resources

    H1 2020 Earnings Presentation Branch Network – Human Resources Loans and Deposits per Branch (TRY million) Breakdown of Banking Transactions (%) Loans/Branch Deposits/Branch Internet Automatic Banking 9% Payment 5% 408.1 334.6 ATM 20% 398.7 296.6 297.8 327.2 279.9 297.7 Mobile Call Center 8% 286.3 B

  19. Slide 19: Annex

    H1 2020 Earnings Presentation Annex TRY Market Banking Halkbank Million Share (%) Sector Metrics(b) H1-19 H1-20 Total Assets 595,717 11.1 Loan Growth (YtD, %) 6.1 22.6 Loans (a) 400,373 12.3 Deposit Growth (YtD, %) (c) 11.1 18.6 TRY Loans 313,029 14.8 LDR (%) 111.3 107.3 FC Loans 87,344 7.6 NPL (%)

  20. Slide 20: Balance Sheet

    H1 2020 Earnings Presentation Balance Sheet QoQ YtD YoY In TRY million H1-19 2019 Q1-20 H1-20 Change% Change% Change% Cash and Balances Held with the Central Bank(a) 34,212 34,489 23,336 27,153 16.4 (21.3) (20.6) Banks & Money Market(b) 2,827 3,750 3,235 2,219 (31.4) (40.8) (21.5) Securities(b) 99,1

  21. Slide 21: Income Statement

    H1 2020 Earnings Presentation Income Statement YoY QoQ YoY In TRY million H1-19 H1-20 Change% Q2-19 Q1-20 Q2-20 Change% Change% Interest Income 22,892 23,995 4.8 12,149 11,723 12,272 4.7 1.0 On Loans 17,738 17,750 0.1 9,297 8,788 8,962 2.0 (3.6) On Securities 4,808 6,140 27.7 2,680 2,868 3,273 14.1

  22. Slide 22: Notes

    H1 2020 Earnings Presentation Notes Investor Relations 20 www.halkbank.com.tr

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  24. Slide 24: 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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