ICBC Turkey Bank Anonim Sirketi · BIST:ICBCT
ICBC Turkey Bank Anonim Sirketi — Tekstilbank — Q1 2009 Earnings Presentation
18 slides from ICBC Turkey Bank Anonim Sirketi's earnings presentation, Mar 31, 2009
Slide 1: Earnings Presentation
Earnings Presentation March 31, 2009 / BRSA Bank-Only 1
Slide 2: Cautious and conservative approach continues as uncertainty remains
Cautious and conservative approach continues as uncertainty in the environment remains... #1 priority: To ensure financial flexibility through this economic downturn Focus shift in this complex environment... Focal points in 2009: Maintaining liquidity Preserving capital Close cost monitoring
Slide 3: Focus shift to liquidity rather than growth remains
Focus shift to liquidity rather than growth remains in this uncertain environment... Composition of Assets Total Assets (TRY mn) CAGR 04-07: 35% 3,124 2,953 2,549 6.6% 8.1% 9.6% 11.7% 25.2% 28.2% 11.7% 13.3% 8.4% Q1 2008 2008 Q1 2009 70.0% Currency Composition of Assets 53.4% 53.8% 42.7% 40.0% 35.8%
Slide 4: Shrinkage in the loanbook continued in Q109 at slower pace
Shrinkage in the loanbook continued in Q109 due to complex market conditions, yet at slower pace... Total Cash Loans (TRY mn) TL Cash Loans (TRY mn) QoQ: -13% QoQ: -15% 2,186 1,242 1,576 1,371 882 746 Loans / Deposits 132% 111% Q1 2008 2008 Q1 2009 101% Q1 2008 2008 Q1 2009 Currency Breakdown of FX
Slide 5: Declining loan volumes dragged down funding needs
Declining loan volumes dragged down funding needs... Composition of Liabilities Total Deposits* (TRY mn) TL Deposits* (TRY mn) & SHE QoQ: -4% QoQ: -10% 1,655 871 822 787 1,418 1,358 3% 3% 3% 12% 15% 18% 34% 31% Q1 2008 2008 Q1 2009 Q1 2008 2008 Q1 2009 26% FX Deposits* (US$ mn) Currency Breakdown* 5
Slide 6: Capital adequacy ratio reached 20%, surpassing market average
Capital adequacy ratio reached 20%, surpassing market average of 18%* ... Capital Adequacy Ratio (CAR) Free Equity (TRY mn) Free Equity / Equity 65.8% 64.8% 64.8% 19.5% 17.9% 297.9 295.8 248.6 11.5% Q1 2008 2008 Q1 2009 Q1 2008 2008 Q1 2009 Free Equity: SHE-subsidiaries-property & equipment-intangib
Slide 7: Increase in NPL ratio mainly due to loanbook shrinkage
Increase in NPL ratio mainly due to the shrinkage in the loanbook... NPL Ratio NPL Ratio (including non-cash loans) Tekstilbank Market Average Tekstilbank Market Average 5.0% 3.1% 3.6% 4.3% 3.2% 2.3% 2.7% 3.3% 1.7% 3.0% 2.0% 1.0% Q1 2008 2008 Q1 2009 Q1 2008 2008 Q1 2009 Source: BRSA Source: BRSA NP
Slide 8: Retail banking
Retail banking... Breakdown of Loan Portfolio Breakdown of Retail Loans (TRY mn) QoQ: -10% 243 2% 3% 3% 8% 210 219 13% 13% 43 35 39 90% 77 75 67 84% 84% 23 19 27 100 94 73 Q1 2008 2008 Q1 2009 Q1 2008 2008 Q1 2009 Credit Cards Credit Cards General Purpose & Other Consumer Loans Retail Loans Auto Loa
Slide 9: Clean balance sheet
Clean balance sheet... Related party exposure has been historically below market average... Group Total Risk / Total Risk Tekstilbank Market Average* 2.4% 2.9% 0.6% 1.0% 1.2% Q1 2008 2008 Q1 2009 Cash + Non-cash risk Group Cash Loans / Cash Loans Group Non-Cash Loans / Non-Cash Loans Tekstilbank Mar
Slide 10: Decline in non-cash loans continued due to uncertain environment
Decline in non-cash loans continued due to uncertain environment... Total Non-Cash Loans (TRY mn) TL Non-Cash Loans (TRY mn) Non-Cash / Cash Loans 1,406 587 1,003 914 452 432 Q1 2008 2008 Q1 2009 Q1 2008 2008 Q1 2009 64% 64% 67% Currency Breakdown of FX Non-Cash Loans (US$ mn) Non-Cash Loans TL FX 6
Slide 11: Interest Income & Expense
Interest Income & Expense... Interest Income (TRY mn) Composition of Interest Income 99 5% -18% 81 9% Other 12% 12% 5 12 6 Securities 10 79% Loans 65 83% 82 Q1 2008 Q1 2009 Q1 2008 Q1 2009 Interest Expense (TRY mn) Composition of Interest Expense 67 -29% Other 0.30% 0.30% 0.21 47 5% Interbank 17% 12
Slide 12: Margin improvement thanks to decline in interest rates on deposits
Margin improvement thanks to decline in interest rates on deposits... Banking Income (TRY mn) Adjusted Net Interest Margin* 51.8 16% 44.8 4.6 1.2 5.0 5.9% 6.2 5.3% 5.3% 4.6% 42.1 4.3% 37.3 Q108 Q208 Q308 Q408 Q109 Q1 2008 Q1 2009 Adj.NII (by FX and trading gain / loss) Net Fees Other * Adjusted by F
Slide 13: Strict cost measures started to be effective in Q109
Strict cost measures started to be effective in Q109... Operating Expenses (TRY mn) Composition of Operating Expenses 30.2 -6% 28.4 23% 20% 6.0 6.5 1%8% 9% 0% 2.3 4% 0.2 2.5 5% 1.4 0.1 1.4 67% 20.3 63% 17.9 Q1 2008 Q1 2009 Q1 2008 Q1 2009 Personnel Depr.& Amort. Advertising Personnel Depr.& Amort. A
Slide 14: Improved profitability in Q109
Improved profitability in Q109 thanks to rapid decline in deposit costs and strict cost management... Q1 2008 2008 Q1 2009 2008 – Q1 2009 Change ROAE 7.1% 3.0% 6.4% 340 bps ROAA 0.9% 0.4% 1.0% 60 bps Cost / Average 4.0% 4.3% 4.1% -20 bps Assets Cost / Income 60.5% 68.6% 49.6% 1,900bps 14
Slide 15: Summary Balance Sheet
Summary Balance Sheet... TRY mn Q1 2008 2008 Q1 2009 Cash & Banks 394 764 739 Total Securities 364 394 215 Total Cash Loans 2,186 1,576 1,371 Fixed Assets & Subsidiaries 120 124 126 Other 60 95 98 Total Assets 3,124 2,953 2,549 Deposits* 1,655 1,418 1,358 Interbank Money Market* 154 223 4 Borrowings
Slide 16: Summary Income Statement
Summary Income Statement... TRY mn Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Interest Income 99.2 105.5 113.0 104.9 81.4 Loans 82.5 86.3 91.6 84.5 65.3 Securities 12.4 14.8 15.9 16.5 10.1 Other 4.3 4.4 5.5 3.9 6.1 Interest Expense 66.7 77.9 80.0 66.6 47.4 Deposits 39.2 46.4 51.5 46.6 36.2 Funds Borrow
Slide 17: 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 18: For further information please contact
For further information please contact: Aslı Su Head of Investor Relations asli.su@tekstilbank.com.tr Phone: +90-212-335-5410 investorrelations@tekstilbank.com.tr www.tekstilbank.com.tr 18