Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB

Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.S. — Q3 2010 Earnings Presentation

24 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2010

  1. Slide 1: Q3 2010 Earnings Presentation

    Q3 2010 Earnings Presentation BRSA Bank Only

  2. Slide 2: Macro Outlook

    Q3 2010 Earnings Presentation Macro Outlook > Recent referendum poll results signal long-term political stability and improved economic outlook. > Revised Medium Term Program targets seem easily achievable: > CPI expectation for 2010 is 7.5%, 5.3% for 2011. > GDP growth targets for 2010 and 2011 are

  3. Slide 3: Banking Sector Outlook

    Q3 2010 Earnings Presentation Banking Sector Outlook > Rewarding Q3 2010 growth figures in terms of loans and deposits. > Loans up 4.5% QoQ, 21.4% YtD and 26.5% YoY. TRY loans grew 22.6% while FX loans in USD terms up 22.8% since the end of 2009. > Deposits increased 12.1% YtD, 17.7% YoY and 1.5% qu

  4. Slide 4: September 2010 Highlights

    Q3 2010 Earnings Presentation September 2010 Highlights Solid profitability fostered by superior loan growth > Net income increased by 25.1% YoY, reaching TRY 1,511 mn. > Impressive ROE performance at 31.7%. > Deriving mainly from robust loan growth, 14.7% YtD increase in total assets. (ROA: 3.1%).

  5. Slide 5: Assets increased by 14.7% YtD, the share of loans reached 58.4%

    Q3 2010 Earnings Presentation Assets increased by 14.7% YtD, the share of loans reached 58.4% Asset Mix (%) ASSET GROWTH IEA Loans YoY 21.6% YtD 14.7% 94.1% Securities Other Assets Total Asset Growth (TRY billion) Composition of IEAs (a) 21.6% 93.7% 93.9% 94.2% 94.2% 94.1% 14.7% 2.2% FX 26.7% 26.6%

  6. Slide 6: L/D ratio, at 78.6%, offers ample scope for further growth

    Q3 2010 Earnings Presentation L/D ratio, at 78.6%, offers ample scope for further growth Loan to Deposit (%) Composition of IBLs (a) Liabilities Mix (%) Total L/D Deposits Other Liabilities Funds Borrowed Shareholder’s Equity Interbank Money Market 74.5 74.5 74.7 78.6 85.2% 85.5% 85.3% 85.3% 84.6% 7

  7. Slide 7: Redemptions in Q3 2010 channeled into higher yielding assets

    Q3 2010 Earnings Presentation Redemptions in Q3 2010 channeled into higher yielding assets Securities Portfolio (a) (TRY billion) Composition of Securities HTM AFS Trading 20.3 21.4 21.6 21.8 20.7 0.3% 0.2% 0.3% 0.4% 0.4% 4.0 3.4 3.5 4.3 3.2 19.3% 22.3% 23.7% 26.5% 31.4% FX 19% 16% 16% 21% 15% For t

  8. Slide 8: Share of FRNs are decreasing as they are redeemed

    Q3 2010 Earnings Presentation Share of FRNs are decreasing as they are redeemed Total Securities Portfolio (a) (%) TRY Securities Portfolio (a) (%) FIX 21 25 23 23 33 FIX 35 38 35 35 43 CPI-linkers constitute 10.9% of total 65 62 65 65 57 FRNs 79 75 77 77 67 securities. FRNs Sep-09 2009 Mar-10 Jun-1

  9. Slide 9: Loan growth target for 2010 has already been beaten

    Q3 2010 Earnings Presentation Loan growth target for 2010 has already been beaten (TRY billion) (a) 34.3% 25.9% TOTAL LOANS 6.3% HALKBANK B. SECTOR (b) Fund Loans 39.9 up 1.4% YtD YtD 25.9% YtD 21.4% 37.5 1.2 up 1.8% QoQ QoQ 6.3% QoQ 4.5% 34.2 1.2 3.3 31.7 Cooperative Loans 1.1 3.4 1.2 up 0.5% YtD 2

  10. Slide 10: TRY-denominated loans on the rise; the share of retail continues to escalate

    Q3 2010 Earnings Presentation TRY-denominated loans on the rise; the share of retail continues to escalate Loans by Currency (a) (TRY million) Loans by Types Commercial 63% FX 8,291 8,847 10,082 10,798 10,205 Funds 3% 27.9% 25.6% Cooperatives 8% TRY 21,415 22,819 24,092 26,726 29,677 72.1% 74.4% Ret

  11. Slide 11: Growth in retail loans sustains higher than sector averages

    Q3 2010 Earnings Presentation Growth in retail loans sustains higher than sector averages (TRY million) (a) 61.6% 39.7% 10.3% HALKBANK 10,234 YtD 39.7% 9,277 QoQ 10.3% 8,213 5,941 Consumer Loans 7,327 5,227 up 43.5% YtD 6,332 up 13.7% QoQ 4,567 B. SECTOR 4,140 Share in total 58.1% YtD 21.1% (b) 3,76

  12. Slide 12: Targeting more on foreign trade-oriented companies

    Q3 2010 Earnings Presentation Targeting more on foreign trade-oriented companies Breakdown of Non-cash Loans (a) Non-cash Loans (a) (TRY billion) (Sep-10) 43.3% 73.6% 28.1% Letters of Guarantee 8.3% 11.9 23.6% 11.0 Letters of 10.1 Credit 9.3 Bank Loans 8.3 and Other 2.8% (Sep-09) 76.9% Letters of Gu

  13. Slide 13: NPL ratio down 20 bps further; CoR at 90 bps

    Q3 2010 Earnings Presentation NPL ratio down 20 bps further; CoR at 90 bps NPL Portfolio (TRY million) NPL Coverage (%) 1,586 1,668 1,702 1,704 1,718 (a) 84.4 89.0 90.2 90.5 89.4 Since 2002 81.1 81.4 82.7 83.0 82.8 Legacy of 604 600 603 593 577 year 2001 and before Sep-09 2009 Mar-10 Jun-10 Sep-10 S

  14. Slide 14: Steady improvement in asset quality; NPL ratio at 4.1%

    Q3 2010 Earnings Presentation Steady improvement in asset quality; NPL ratio at 4.1% NPL/Total Loans (a) (%) Consumer Loans (b) (%) Halkbank Sector (a,b) 5.2 5.2 5.4 5.1 5.1 4.6 4.8 4.3 5.0 4.9 4.7 2.6 2.7 4.3 2.4 4.2 2.1 1.9 4.3 4.1 Sep-09 2009 Mar-10 Jun-10 Sep-10 Sep-09 2009 Mar-10 Jun-10 Sep-10

  15. Slide 15: Strong funding base; TRY deposits up 23.5% YtD, demand deposits up 37% YoY

    Q3 2010 Earnings Presentation Strong funding base; TRY deposits up 23.5% YtD, demand deposits up 37% YoY TRY Deposits by Types (a) Total Deposits by Currency (a) Demand Deposits (TRY billion) (TRY billion) (TRY billion) Other Institutions Public Sector 17.5% Demand Deposits/ TOTAL DEPOSITS Interbank

  16. Slide 16: 20.3% YoY growth in net fees and commissions income

    Q3 2010 Earnings Presentation 20.3% YoY growth in net fees and commissions income Net Fees & Commissions Income (TRY million) 11.0% 20.3% 393 134 134 136 327 123 111 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Sep-09 Sep-10 Breakdown of Fees & Commissions Income Net Fees & Commissions Income/Total Operating Reven

  17. Slide 17: Still one of the lowest C/I ratio among peers

    Q3 2010 Earnings Presentation Still one of the lowest C/I ratio among peers Operating Expenses (TRY million) Operating Expenses/Average Assets (%) 21.6% 22.3% 1,067 2.2 2.2 2.2 2.2 2.1 873 308 321 334 359 374 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Sep-09 Sep-10 Sep-09 2009 Mar-10 Jun-10 Sep-10 Cost/Income (%

  18. Slide 18: NII down 14% QoQ mainly due to lower securities income

    Q3 2010 Earnings Presentation NII down 14% QoQ mainly due to lower securities income Net Interest Income (TRY million) Breakdown of Interest Income 6.2% 66% on Loans 2,369 2,231 (a) 878 796 840 824 784 706 32% on Securities Other 2% Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Sep-09 Sep-10 Interest Income (TRY mi

  19. Slide 19: Cost-Yield-Spread

    Q3 2010 Earnings Presentation Cost-Yield-Spread (a) Cost of Deposits (%) Spreads (%) On Loans On Securities 7.9 8.2 7.2 7.2 6.4 5.6 5.4 5.5 5.6 5.7 5.0 4.8 4.1 4.4 4.0 (c) 2.4 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Yield on Loans (b) (%) Yield on Securities (%) (c) 15.1 11.3 9.6

  20. Slide 20: Net Income - Key Ratios

    Q3 2010 Earnings Presentation Net Income - Key Ratios Net Income (TRY million) ROE (%) Quarterly YtD 13.2% 25.1% 34.7 34.2 1,511 33.4 32.5 34.7 1,208 31.7 32.5 32.8 424 515 520 476 30.2 420 28.1 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Sep-09 Sep-10 Sep-09 2009 Mar-10 Jun-10 Sep-10 Capital Ratios (%) Tier 1 CA

  21. Slide 21: Branch Network – Human Resources

    Q3 2010 Earnings Presentation Branch Network – Human Resources • Branch network has been strengthened with 31 new branches opened in 9M of 2010. The total figure climbs up to 699. • 1,781 new employees have been recruited since the end of 2009. Total Branches (a) Human Resources 688 699 12,505 12,99

  22. Slide 22: Balance Sheet

    Q3 2010 Earnings Presentation Balance Sheet In TRY million Sep-09 2009 Jun-10 Sep-10 QoQ YtD YoY Change % Change % Change % Cash and Balances Held with the Central Bank (a) 3,318 3,416 3,412 4,026 18 18 21 Banks & Money Market (b) 851 1,136 2,100 1,515 (28) 33 78 Securities (b) 20,280 21,373 21,770

  23. Slide 23: Income Statement

    Q3 2010 Earnings Presentation Income Statement In TRY million Sep-09 Sep-10 YoY (%) Q4 09 Q1 10 Q2 10 Q3 10 QoQ (%) Interest Income 5,191 4,704 (9) 1,626 1,565 1,596 1,543 (3) On Loans 3,191 3,117 (2) 1,035 1,002 1,036 1,080 4 On Securities 1,880 1,512 (20) 563 540 535 437 (18) Interest Expense 2,96

  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

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