19 slides from Icbc Turkey Bank Anonim Sirketi's earnings presentation, Mar 31, 2012
Slide 1: Earnings Presentation March 31, 2012 / BRSA Bank-Only
Earnings Presentation March 31, 2012 / BRSA Bank-Only 1
Slide 2: Macroeconomic environment in 1Q 2012
Macroeconomic environment in 1Q 2012... An unexpectedly positive mood dominated first two months of the year, boosted by second LTRO of ECB, and Fed’s commitment to keep rates low until 2014 Turkish economy continued to cut pace, following another strong growth rate of 8.5%, recorded in 2011 E
Slide 3: Preserving margins under high uncertainty environment
Preserving margins under high uncertainty environment... Highlights of Q1 2012: After achieving a solid balance sheet growth in 2011, Tekstilbank preferred to stay out of intensive competition in 1Q 2012 under slowing growth environment, which resulted in: – a modest contraction in loans and depos
Slide 4: Looking into 2012
Looking into 2012... Macroeconomy Banking Sector Tekstilbank Weak global growth, due to A modest loan growth of Preserving cautious growth high uncertainty and low around 15%, vs. 29.5% at the policy demand originating from Euro- end of 2011 Increasing cross-selling zone Marginal decline i
Slide 5: A modest balance sheet contraction to avoid lower margins
A modest balance sheet contraction in order to avoid lower margins, and TL’s appreciation... Composition of Assets Total Assets (TLmn) CAGR 04-07: 3,489 YoY: 22% 3,292 35% 3,199 2,976 2,693 -6% 15.8% 13.7% 15.1% 18.5% 16.4% 4.0% 2.8% 3.1% 2.0% 10.0% 2.5% 10.7% 10.6% 9.5% 12.9% 72.1% 71.6% 70.5% Q1 2
Slide 6: ... hence lower loan portfolio
... hence lower loan portfolio Total Cash Loans (TLmn) TL Cash Loans* (TLmn) YoY: 17% YoY: 16% 2,461 2,261 1,638 1,553 2,144 2,222 1,486 1,929 1,468 -8% 1,339 -5% Loans / Customer Deposits Q1 2011 Q2 2011 Q3 2011 2011 Q1 2012 Q1 2011 Q2 2011 Q3 2011 2011 Q1 2012 101% 104% 100% 101% 98% Currency Brea
Slide 7: ...along with decline in deposits
...along with decline in deposits Composition of Liabilities Total Deposits* (TLmn) TL Deposits* (TLmn) & SHE YoY: 17% YoY: 18% 1,330 1,359 2,463 1,214 1,262 2,262 2,242 2,062 1,066 -7% 4% 3% 4% 1,916 3% 4% -9% 19% 17% 16% 15% 16% 7% 9% 11% 10% 12% Q1 2011 Q2 2011 Q3 2011 2011 Q1 2012 Q1 2011 Q2 201
Slide 8: Stronger CAR at 17.4%
Stronger CAR at 17.4%... Capital Adequacy Ratio (CAR) Free Equity (TLmn) Free Equity / Equity 74.1% 18.8% 73.5% 72.3% 71.9% 17.6% 70.7% 17.0% 17.4% 15.9% 369 376 379 360 364 Q1 2011 Q2 2011 Q3 2011 2011 Q1 2012 Q1 2011 Q2 2011 Q3 2011 2011 Q1 2012 Free Equity: SHE-subsidiaries-property & equipment-i
Slide 9: Higher cost of risk, reflecting both higher provisions and lower loan portfolio
Higher cost of risk, reflecting both higher provisions and lower loan portfolio... NPL Ratio NPL Ratio (including non-cash loans) Tekstilbank Market Average Tekstilbank Market Average 4.0% 4.2% 4.6% 3.1% 3.1% 4.5% 3.8% 2.7% 2.8% 2.5% 3.2% 2.9% 2.8% 2.7% 2.5% 2.3% 2.1% 2.1% 2.1% 2.7% Q1 2011 Q2 2011
Slide 10: Retail loans moved upwards
Retail loans moved upwards... Breakdown of Loan Portfolio Breakdown of Retail Loans (TLmn) 355 YoY: 30% 337 5% 315 1.4% 1.3% 1.2% 1.1% 1.2% 293 28 12.7% 12.3% 273 28 12.9% 12.6% 14.4% 28 29 28 143 136 127 114 86.4% 86.3% 103 7 85.9% 85.9% 7 84.4% 7 8 7 177 166 153 142 135 Q1 2011 Q2 2011 Q3 2011 201
Slide 11: Non-cash loans contracted
Non-cash loans contracted... Total Non-Cash Loans (TLmn) TL Non-Cash Loans (TLmn) Non-Cash / Cash Loans YoY: 24% YoY: 20% 1,225 1,154 542 503 1,061 1,118 483 502 932 -6% 418 -7% 48.3% 49.5% 50.3% 49.8% 51.0% Q1 2011 Q2 2011 Q3 2011 2011 Q1 2012 Q1 2011 Q2 2011 Q3 2011 2011 Q1 2011 Currency Breakdown
Slide 12: Higher interest expense, due to higher reserve requirement
Higher interest expense, due to higher reserve requirement... Interest Income (TLmn) Composition of Interest Income 85 0.7% 0.4% 71% 9.1% 12.9% 0.3 50 Other 11.0 Securities 86.7% 0.3 90.2% Loans 4.5 73.7 45.0 Q1 2011 Q1 2012 Q1 2011 Q1 2012 Interest Expense (TLmn) Composition of Interest Expense 53
Slide 13: Slight decline in NIM vs. unusually high 4Q
Slight decline in NIM vs. unusually high 4Q elevated by CPI- linkers, but still above 2011 average of 4.3%... Banking Income (TLmn) Adjusted Net Interest Margin* (Quarterly) 47 35% 35 6.7 4.8 5.1% 4.5 4.7% 4.2% 4.2% 5.4 3.8% 35.4 Q111 Q211 Q311 Q411 Q112 24.9 Q1 2011 Q1 2012 Adj.NII (by FX and tradi
Slide 14: No real rise in OPEX
No real rise in OPEX... Operating Expenses (TLmn) Composition of Operating Expenses 26 11% 23 23% 24% 6.1 10% 12% 5.4 4% 4% 3.0 2.3 0.9 1.0 62% 61% 15.8 14.4 Q1 2011 Q1 2012 Q1 2011 Q1 2012 Personnel Depr.& Amort. Personnel Depr.& Amort. Operational Leasing Other Opex Operational Leasing Other Opex
Slide 15: Summary Balance Sheet
Summary Balance Sheet... TL million Mar 2011 Dec 2011 Mar 2012 Cash & Banks 304 411 375 Total Securities 289 370 425 Total Cash Loans 1,929 2,461 2,261 Fixed Assets & Subsidiaries 105 108 108 Other 66 139 123 Total Assets 2,693 3,489 3,292 Deposits* 1,916 2,463 2,242 Interbank Money Market* 76 126 2
Slide 16: Summary Income Statement
Summary Income Statement... TL million Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Interest Income 49.8 58.4 66.8 80.9 85.0 Loans 45 51.6 61.1 69.1 73.7 Securities 4.5 6.4 5.2 11.3 11.0 Other 0.3 0.4 0.5 0.5 0.3 Interest Expense 27.5 35.3 44.4 47.3 53.1 Deposits 25.6 29.2 39.2 40.7 44.6 Other Borrowings
Slide 17: Summary Income Statement (Consolidated)
Summary Income Statement (Consolidated)... TL million Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Interest Income 50.1 58.7 67.2 81.4 85.6 Loans 45.2 52.0 61.5 69.5 74.1 Securities 4.5 6.3 5.2 11.4 11.1 Other 0.4 0.4 0.5 0.5 0.4 Interest Expense 27.5 35.1 44.4 47.2 53.1 Deposits 25.5 29.2 39.1 40.6 44.6
Slide 18: 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 19: For further information please contact
For further information please contact: Investor Relations Phone: +90-212-335-5159 investorrelations@tekstilbank.com.tr www.tekstilbank.com.tr 19