Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB

Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.Ş. — H1 2022 Earnings Presentation

24 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2022

  1. Slide 1: H1 2022 Earnings Presentation

    H1 2022 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

    H1 2022 Earnings Presentation Total FX liquid assets outpaced the total FX wholesale debt due > FX LCR is at 342%, well above within 12 months the regulatory limit of 80%. Asset Mix (%) Asset Growth Loans Securities Bank Placements CBRT Receivables Cash YoY 52.1% QoQ 12.9% Liq. Assets Other Assets T

  4. Slide 4: Securities portfolio and CPI-linkers income

    H1 2022 Earnings Presentation Well performing CPI-linkers income due to both its valuation adjustment and growing portfolio Total Securities Portfolio (TRY billion) Securities Classification (TRY billion)(*) Total Securities / Total Assets (%) 26.8 26.8 Fixed Rate (FX) Other Floating Rate CPI Linker

  5. Slide 5: Moderate QoQ loan growth with a resilient market share

    H1 2022 Earnings Presentation Moderate QoQ loan growth with a resilient market share CGF Utilisation (TRY bn) Mar-22 Jun-22 Current loan amount 39.9 38.5 (TRY billion)(a) 43.4% Total Loans 13.3% HALKBANK B. Sector(b) YoY YoY 632.3 43.4% 60.3% QoQ QoQ 558.3 13.3% 14.1% 514.6 Business Loans TRY Loans

  6. Slide 6: TRY loans increased its weight within the total loan book

    H1 2022 Earnings Presentation TRY loans increased its weight within the total loan book with the help of the ongoing contraction on FX loans Loans by Currency (%)(a) Loans by Customer Segmentation (%)(a) Commercial 3% FX SME 7% Commercial 2% 25.6% SME 42% Corporate 91% Corporate 39% CGF 10% TRY 74.4

  7. Slide 7: NPL ratio continued to stay at a limited 2.8%

    H1 2022 Earnings Presentation NPL ratio continued to stay at a limited 2.8% NPL Portfolio (TRY million) NPL Coverage (%) 17,073 18,332 72.9 74.5 73.6 16,297 15,849 15,751 59.1 60.1 Jun-21 Sep-21 2021 Mar-22 Jun-22 Jun-21 Sep-21 2021 Mar-22 Jun-22 Loans under Close Watch (TRY million) NPL/Total Loans

  8. Slide 8: NPL ratio by segments

    H1 2022 Earnings Presentation NPL ratio by segments Halkbank NPL Sector NPL (*) Corporate - Commercial (%) Consumer Loans (%) 3.3 3.3 4.5 4.6 4.2 2.6 3.6 3.6 3.9 2.2 2.5 2.6 2.9 2.9 3.5 2.0 2.9 2.0 1.9 1.8 Jun-21 Sep-21 2021 Mar-22 Jun-22 Jun-21 Sep-21 2021 Mar-22 Jun-22 SME Loans (%) Credit Cards (

  9. Slide 9: Provisioning on all segments gained momentum

    H1 2022 Earnings Presentation Provisioning on all segments gained momentum, S1 & S2 coverage has increased from the 1Q22 levels Provisions and Reversals (TRY million) Net Cost of Risk (bps) (Cumulative) Total Specific Quarterly 315 (TRY million) Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 168 S1 Provisions -124 1

  10. Slide 10: Funding through interbank money market amid marginal decline in deposit share

    H1 2022 Earnings Presentation An increase in funding through interbank money market amid a marginal decline in the share of deposits Loan to Deposit (%) Composition of IBLs(a) Liabilities Mix (%) (b) Halkbank L/D Sector L/D 89.1% 88.9% 89.8% 87.0% 88.3% Deposits Marketable Funds Borrowed Securities

  11. Slide 11: Steady increase in the share of public sector deposits

    8 -6.36 3 H1 2022 Earnings Presentation A steady increase in the share of public sector deposits HALKBANK B. Sector(b) within TRY deposit base YoY 55.7% 82.5% HALKBANK B. Sector(b) HALKBANK B. Sector(b) QoQ 12.7% 12.6% YoY 46.9% 77.0% YoY 38.4% 70.0% in USD YoY -18.9% -4.9% QoQ 10.7% 14.5% QoQ 8.5%

  12. Slide 12: Decreasing cost of TRY deposits

    H1 2022 Earnings Presentation Decreasing cost of TRY deposits Demand Deposits (TRY billion)(a) Time Deposits (TRY billion)(a) Deposits by Currency (%)(b) Demand Deposits/Total Deposits (%) Time Deposits/Total Deposits (%) 25.0% 24.6% 24.5% 18.6% 19.4% 81.4% 80.6% 75.0% 75.4% 75.5% FX 52% 83.6% 29.3%

  13. Slide 13: Cost – Yield – Spread

    H1 2022 Earnings Presentation Cost – Yield – Spread Blended Cost - Yield - Spread (%) Spreads (%) Yield on Loans Cost of Deposits(*) Spread TRY Core FX Core Blended Core 8.0 5.1 5.4 5.6 13.2 12.5 12.8 4.4 6.6 12.5 5.2 11.1 5.0 4.1 6.6 5.0 5.2 2.1 4.1 2.1 0.6 1.1 -1.0 -0.4 (6.6) (7.6) (7.5) (9.0) (8.

  14. Slide 14: Swap adj. NIM widened by 93 bps QoQ, F&C income soared

    H1 2022 Earnings Presentation Swap adj. NIM widened by 93 bps QoQ, F&C income soared by 28.6% QoQ Net Interest Income (TRY million) NIM (%) Interest Income Interest Expenses YtD Quarterly 11.9 Swap adj. (QoQ) 4.8 5.8 36.6% Swap adj. (YtD) 4.1 4.8 5.3 19,907 12,388 10.7 5.2 9,067 2.8 1,084 4,269 0.7

  15. Slide 15: Core business performance compensates for higher provision expenses

    H1 2022 Earnings Presentation Eye-catching performance from the core business compensates for higher provision expenses Total Operating Revenues (TRY million)(a) Q2-22 Revenue Walk (TRY million) 731% 1,155 36.3% 12,388 1,843 14,602 13,703 (1,543) 10,050 (3,781) 2,575 3,201 1,649 (7,487) NII Net F&C

  16. Slide 16: Cost/Income Ratio improved further to 29.3%

    H1 2022 Earnings Presentation Cost/Income Ratio improved further to 29.3% Operating Expenses (TRY million) Operating Expenses / Average Assets (%) 81.2% 18.7% 1.48 1.46 1.38 3,781 1.31 3,186 1.19 2,998 2,387 2,086 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Cost/Income (%) Breakdown

  17. Slide 17: Solvency Ratios

    H1 2022 Earnings Presentation Solvency Ratios CAR (%) Details on Capital Ratio Tier-I CAR Details on Capital Ratio Cons. Basel III Uncons. Basel III 17.6 (TRY mn) Jun-22 Jun-22 14.5 14.7 Credit Risk Base Amount (CRBA) 634,432 610,218 13.7 13.4 15.3 Market Risk Base Amount (MRBA) 23,486 18,230 11.6 1

  18. Slide 18: Continuous improvement in the digital transformation

    H1 2022 Earnings Presentation Continuous improvement in the digital transformation Active Digital Customers by Types (Million) # of Total Active Digital Customers(a) 17% 4.5 4.9 4.2 # of active digital banking customers increased 17% YoY, and reached 4.9 million Jun-21 Dec-21 Jun-22 Total Digital Tr

  19. Slide 19: Branch Network – Human Resources

    H1 2022 Earnings Presentation Branch Network – Human Resources Loans and Deposits per Branch (TRY million) Breakdown of Banking Transactions (%) Loans/Branches Deposits/Branches ATM 20% 726.7 Call Center 5% Automatic 659.4 Payment 4% Internet 614.8 Banking 6% Branch 3% 528.9 613.6 502.7 549.3 Mobile

  20. Slide 20: Annex

    H1 2022 Earnings Presentation Annex TRY Market Banking Halkbank Million Share (%) Sector Metrics(b) H1-21 H1-22 Total Assets 1,089,907 9.3 Loan Growth (YtD, %) 9.5 28.1 Loans (a) 632,335 10.1 Deposit Growth (YtD, %)(c) 11.2 28.8 TRY Loans 470,715 12.2 LDR (%) 101.1 90.4 FC Loans 161.621 6.7 NPL (%)

  21. Slide 21: Balance Sheet

    H1 2022 Earnings Presentation Balance Sheet In TRY million H1-21 2021 Mar-22 H1-22 QoQ (%) YtD (%) YoY (%) Cash and Balances Held with the Central Bank(a) 71,107 123,424 103,861 122,063 17.5 (1.1) 71.7 Banks & Money Market(b) 3,063 3,534 5,000 9,147 82.9 158.8 198.6 Securities(b) 167,683 223,301 259

  22. Slide 22: Income Statement

    H1 2022 Earnings Presentation Income Statement In TRY million H1-21 H1-22 YoY (%) Q2-21 Q1-22 Q2-22 QoQ (%) YoY (%) Interest Income 33,171 58,041 75.0 17,999 26,422 31,619 19.7 75.7 On Loans 23,763 36,286 52.7 12,478 16,876 19,410 15.0 55.6 On Securities 8,809 21,152 140.1 5,153 9,186 11,966 30.3 13

  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. — H1 2022 Earnings Presentation on 6ix