Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB

Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.Ş. — Q1 2024 Earnings Presentation

24 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2024

  1. Slide 1: 1Q24 Earnings Presentation

    1Q24 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

  2. Slide 2: Slide 2

  3. Slide 3: Asset Growth

    1Q24 Earnings Presentation Securities spurred the asset growth while loans were subdued by > FX LCR is at 349%, well above tight financial conditions the regulatory limit of 80%. Asset Mix (%) Asset Growth Loans Securities Bank Placements CBRT Receivables Cash YoY 49.3% QoQ 10.0% Liq. Assets Other A

  4. Slide 4: CPI-Linkers continue to support profitability in the first quarter

    1Q24 Earnings Presentation CPI-Linkers continue to support profitability in the first quarter Total Securities Portfolio (TRY billion) Securities Classification (TRY billion)(*) Total Securities / Total Assets (%) Fixed Rate (FX) Other Floating Rate CPI Linkers Fixed Rate (TRY) 27.1 25.3 26.6 27.1 5

  5. Slide 5: Cooling down on loan growth continued due to declining demand

    1Q24 Earnings Presentation Cooling down on loan growth continued due to declining demand and monthly loan growth caps (TRY billion)(a) 31.1% Total Loans 3.8% HALKBANK B. Sector(b) YoY YoY 31.1% 51.8% 1,270.9 QoQ QoQ 1,176.4 1,210.2 1,224.9 3.8% 10.7% 969.3 Business Loans 482.9 YoY 38.1% TRY Loans 42

  6. Slide 6: SME loans are responsible for nearly half of our loan book

    1Q24 Earnings Presentation SME loans are responsible for nearly half of our loan book Loans by Currency (%)(a) Loans by Customer Segmentation (%)(a) Commercial 4% SME 7% FX SME 49% Commercial 3% 22.5% Corporate 34% Corporate 90% TRY 77.5% CGF 8% Retail 13% Cooperative 39%(b) Sectoral Breakdown of Lo

  7. Slide 7: Asset quality remains strong despite accelerated rate hike cycle

    1Q24 Earnings Presentation Asset quality remains strong despite accelerated rate hike cycle NPL Portfolio (TRY million) NPL Coverage (%) 19,268 82.6 83.2 81.2 81.6 17,820 17,911 18,574 18,540 79.1 Mar-23 Jun-23 Sep-23 2023 Mar-24 Mar-23 Jun-23 Sep-23 2023 Mar-24 Loans under Close Watch (TRY million)

  8. Slide 8: NPL ratio by segments

    1Q24 Earnings Presentation NPL ratio by segments Halkbank NPL Sector NPL (*) Corporate - Commercial (%) Consumer Loans (%) 3.2 3.0 2.9 2.9 2.8 2.8 2.9 2.8 2.8 2.6 1.7 1.6 1.5 1.5 1.4 1.5 1.3 1.4 1.4 1.3 Mar-23 Jun-23 Sep-23 2023 Mar-24 Mar-23 Jun-23 Sep-23 2023 Mar-24 SME Loans (%) Credit Cards (%)

  9. Slide 9: A cautious approach in provisioning to offset lagged effects

    1Q24 Earnings Presentation A cautious approach in provisioning to offset any potential lagged effects of tight financial conditions Provisions and Reversals (TRY million) Net Cost of Risk (bps) (Cumulative) Total Specific Quarterly (TRY million) Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 55 S1 Provisions 323 -29

  10. Slide 10: We shifted some of our deposit funding to repos

    1Q24 Earnings Presentation We shifted some of our deposit funding to repos in order to mitigate the marginal cost Loan to Deposit (%) Composition of IBLs(a) Liabilities Mix (%) (b) Halkbank L/D Sector L/D 86.0% 88.6% 89.2% 89.4% 89.9% Deposits Marketable Funds Borrowed Securities Issued Interbank Mo

  11. Slide 11: FX driven deposit growth

    8 -6.36 3 1Q24 Earnings Presentation FX driven deposit growth HALKBANK B. Sector(b) YoY 79.7% 67.1% HALKBANK B. Sector(b) HALKBANK B. Sector(b) QoQ 14.8% 13.0% YoY 52.7% 56.0% YoY 36.2% 48.1% in USD YoY 6.7% -0.8% QoQ 4.8% 4.4% QoQ -2.1% -1.7% terms QoQ 4.6% 3.0% Total Deposits TRY Deposits FX Depos

  12. Slide 12: Increase in the demand deposits alleviated some of our deposit costs

    1Q24 Earnings Presentation Increase in the demand deposits alleviated some of our deposit costs Demand Deposits (TRY billion)(a) Time Deposits (TRY billion)(a) Deposits by Currency (%)(b) Demand Deposits/Total Deposits (%) Time Deposits/Total Deposits (%) 23.5% 22.5% 24.1% 78.2% 78.1% 77.5% 21.8% 21

  13. Slide 13: Cost – Yield – Spread

    1Q24 Earnings Presentation Cost – Yield – Spread Blended Cost - Yield - Spread (%) Spreads (%) Yield on Loans Cost of Deposits(*) Spread TRY Core FX Core Blended Core 7.5 6.0 4.0 5.9 3.4 3.8 24.2 28.7 12.6 13.2 16.4 3.5 2.4 -0.1 0.4 3.5 5.9 2.4 (10.2) (13.4) (16.0) -0.1 0.4 (20.8) (22.8) -1.5 -5.2 -

  14. Slide 14: Net F&C increased 17% QoQ and 168% YoY

    1Q24 Earnings Presentation Net F&C increased 17% QoQ and 168% YoY Net Interest Income (TRY million) NIM (%) Interest Income Interest Expenses YtD Quarterly Swap adj. (QoQ) Swap adj. (YtD) 18.6% 5.2 13,246 11,171 9,489 5.2 3.1 2.8 2.7 2.9 15,887 4,837 2.3 2.5 2.9 48,859 56,745 82,680 116,707 136,020

  15. Slide 15: Details of profitability metrics

    1Q24 Earnings Presentation Details of profitability metrics Total Operating Revenues (TRY million)(a) Q1-24 Revenue Walk (TRY million) 16,545 21,091 8,020 14,225 (11,577) 12,711 13,506 13,246 9,987 4,818 (15,698) (5,718) NII Net F&C Income Net Trading Income Total Provisions Net Income (Q1-24) Other

  16. Slide 16: OPEX increased broadly due to wage growth

    1Q24 Earnings Presentation OPEX increased broadly due to wage growth Operating Expenses (TRY million) Operating Expenses / Average Assets (%) 4.14 15,375 TRY 7 bn 15,698 Earthquake 2.74 Donation 11,455 11,366 2.23 2.19 2.05 9,923 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Cost/Incom

  17. Slide 17: Solvency Ratios

    1Q24 Earnings Presentation Solvency Ratios CAR (%) Details on Capital Ratio Tier-I CAR Details on Capital Ratio Cons. Basel III Uncons. Basel III (TRY mn) Mar-24 Mar-24 15.2 Credit Risk Base Amount (CRBA) 1,198,320 1,134,985 13.7 13.2 14.3 13.2 Market Risk Base Amount (MRBA) 102,642 87,731 13.5 Oper

  18. Slide 18: Digital transactions grew by 31% YoY with ongoing efforts on digitalisation

    1Q24 Earnings Presentation Digital transactions grew by 31% YoY with ongoing efforts on digitalisation Active Digital Customers by Types (Million) # of Total Active Digital Customers(a) 11% 6.2 6.3 6.4 6.0 5.8 # of active digital banking customers increased 11% YoY and reached 6.4 million Mar-23 Jun

  19. Slide 19: Branch Network – Human Resources

    1Q24 Earnings Presentation Branch Network – Human Resources Loans and Deposits per Branch (TRY million) Breakdown of Banking Transactions (%) Loans/Branches Deposits/Branches ATM 13% Automatic Payment 3% 1,745.4 1,822.3 1,659.9 Call Center 5% Branch 2% 1,440.3 Internet Banking 4% 1,217.1 1,124.9 1,1

  20. Slide 20: Annex

    1Q24 Earnings Presentation Annex TRY Market Banking Halkbank Million Share (%) Sector Metrics(b) 1Q23 1Q24 Total Assets 2,414,878 9.3 Loan Growth (YtD, %) 12.4 10.7 Loans (a) 1,270,900 9.8 Deposit Growth (YtD, %)(c) 11.7 4.4 TRY Loans 984,659 11.5 LDR (%) 83.9 81.4 FC Loans 286,241 6.6 NPL (%) 1.8 1

  21. Slide 21: Balance Sheet

    1Q24 Earnings Presentation Balance Sheet QoQ YoY In TRY million Mar-23 2023 Mar-24 Change % Change % Cash and Balances Held with the Central Bank(a) 153,081 273,730 351,340 28.4 129.5 Banks & Money Market(b) 8,393 15,824 14,581 (7.9) 73.7 Securities(b) 439,032 584,393 653,759 11.9 48.9 Net Loans(b)

  22. Slide 22: Income Statement

    1Q24 Earnings Presentation Income Statement QoQ YoY In TRY million Q1-23 Q4-23 Q1-24 Change% Change% Interest Income 48,859 116,707 136,020 16.5 178.4 On Loans 27,966 75,515 89,965 19.1 221.7 On Securities 20,554 40,502 41,019 1.3 99.6 Interest Expense 32,972 105,535 122,775 16.3 272.4 On Deposits 2

  23. Slide 23: Slide 23

  24. Slide 24: For further information please contact halkbank.IR@halkbank.com.tr

    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

Türkiye Halk Bankası A.Ş. — Q1 2024 Earnings Presentation on 6ix