20 slides from Icbc Turkey Bank Anonim Sirketi's earnings presentation, Jun 30, 2010
Slide 1: Earnings Presentation June 30, 2010 / BRSA Bank-Only
Earnings Presentation June 30, 2010 / BRSA Bank-Only 1
Slide 2: Highlights of Q2 2010
Highlights of Q2 2010... Expansion in balance sheet Improvement in net interest margin • Further redemption in lower yielding loans Strong capital adequacy ratio at 22.3% Significant improvement in cost of risk Expanded focus on retail banking 12.4% YoY increase in consolidated net income
Slide 3: Looking into 2010
Looking into 2010... Macro Banking Sector Tekstilbank More encouraging Volume growth gaining pace: Better collection performance macroeconomic environment: • 20-25% loan growth Cost of risk to come down to GDP Growth of 5.0%, pre-cirisis levels (around 2%) • 10-15% deposit growth following a
Slide 4: Increasing share of securities
Increasing share of securities... Composition of Assets Total Assets (TRY mn) CAGR 04-07: YoY: 2.5% 35% 10.7% 8.8% 9.1% 8.7% 2,133 2,083 2,033 1,952 8.6% 6.8% 10.1% 15.6% 7% 10.7% 13.4% 15.2% 10.9% Q2 2009 2009 Q1 2010 Q2 2010 71.9% 70.7% 66.0% Currency Composition of Assets 62.8% 38.9% 32.8% 30.1%
Slide 5: Redemption of lower yielding loans to continue
Redemption of lower yielding loans to continue... Total Cash Loans (TRY mn) TL Cash Loans (TRY mn) YoY: 8% YoY: 5% 1,534 1,381 1,276 1,375 1,062 -0.4% 902 855 Loans / Customer Deposits 811 -5% Q2 2009 2009 Q1 2010 Q2 2010 Q2 2009 2009 Q1 2010 Q2 2010 111% 115% 106% 103% Currency Breakdown of FX Cash
Slide 6: Higher TL deposits
Higher TL deposits... Composition of Liabilities Total Deposits* (TRY mn) TL Deposits* (TRY mn) & SHE YoY: 16% YoY: 22% 1,447 3% 3% 3% 3% 1,186 766 1,150 1,337 726 631 663 23% 13% 22% 24% 16% 23% 7% 10% 17% 12% Q2 2009 2009 Q1 2010 Q2 2010 Q2 2009 2009 Q1 2010 Q2 2010 68% FX Deposits* (US$ mn) Curre
Slide 7: Capital adequacy at 22.3%
Capital adequacy at 22.3% Capital Adequacy Ratio (CAR) Free Equity (TRY mn) Free Equity / Equity 70.5% 71.1% 22.0% 22.3% 69.3% 21.7% 64.8% 20.8% 338 324 334 301 Q2 2009 2009 Q1 2010 Q2 2010 Q2 2009 2009 Q1 2010 Q2 2010 Free Equity: SHE-subsidiaries-property & equipment-intangible assets- property &
Slide 8: Further decline in cost of risk
Further decline in cost of risk... NPL Ratio NPL Ratio (including non-cash loans) Tekstilbank Market Average Tekstilbank Market Average 6.7% 6.7% 6.8% 6.0% 4.9% 4.9% 4.4% 4.3% 4.1% 4.4% 4.5% 5.3% 4.0% 3.7% 3.4% 3.6% Q2 2009 2009 Q1 2010 Q2 2010 Q2 2009 2009 Q1 2010 Q2 2010 Source: BRSA Source: BRSA
Slide 9: Higher concentration on retail banking
Higher consantration on retail banking... Breakdown of Loan Portfolio Breakdown of Retail Loans (TRY mn) YoY: 17% 3.1% 2.3% 2.3% 2.3% 239 13.1% 13% 13.0% 11.1% 15.1% 213 206 205 31 32 39 35 82.6% 90 86.6% 65 83.9% 74 81 84.6% 8 15 11 10 90 110 86 86 Q2 2009 2009 Q1 2010 Q2 2010 Q2 2009 2009 Q1 2010
Slide 10: End of temporary rise in group loans
End of temporary rise in group loans... Group Total Risk / Total Risk Tekstilbank Market Average* 3.3% 2.9% 2.3% 1.6% 2.4% 2.2% 2.5% Q2 2009 2009 Q1 2010 Q2 2010 Cash + Non-cash risk, due from group banks are included Group Cash Loans / Cash Loans Group Non-Cash Loans / Non-Cash Loans Increase in ca
Slide 11: Non-cash loans
Non-cash loans... Total Non-Cash Loans (TRY mn) TL Non-Cash Loans (TRY mn) Non-Cash / Cash Loans YoY: -8% YoY: -9% 797 753 748 730 387 373 373 351 -2% -6% 62.5% 54.2% Q2 2009 2009 Q1 2010 Q2 2010 Q2 2009 2009 Q1 2010 Q2 2010 49.1% 53.1% Currency Breakdown of FX Non-Cash Loans (US$ mn) Non-Cash Loans
Slide 12: Interest Income & Expense
Interest Income & Expense... Interest Income (TRY mn) Composition of Interest Income 7% 2% 143 -35% 13% 13% Other 92 Securities 10 Loans 85% 18 2 80% 12 115 78 H1 2009 H1 2010 H1 2009 H1 2010 Interest Expense (TRY mn) Composition of Interest Expense 79 -44% 1% 6% 1 Interbank & Other 44 20% 9% 16 Fun
Slide 13: No margin compression, due to high level of focus
No margin compression, due to high level of focus... Banking Income (TRY mn) Adjusted Net Interest Margin* 96.3 69.4 6.9 10.8 6.8% 6.4% 6.2% 8.9 5.9% 5.4% 5.6% 5.3% 5.3% 8.4 4.3% 4.6% 78.6 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 52.1 H1 2009 H1 2010 * Adjusted by FX gain / loss Adj.NII (by
Slide 14: Strict cost measures continues
Strict cost measures continues... Operating Expenses (TRY mn) Composition of Operating Expenses 54 -13% 47 27% 25% 13.1 12.3 9% 9% 5.1 5% 5% 2.6 4.2 2.4 61% 59% 33.1 27.7 H1 2009 H1 2010 H1 2009 H1 2010 Personnel Depr.& Amort. Personnel Depr.& Amort. Operational Leasing Other Opex Operational Leasin
Slide 15: Strong NPL Recovery
Strong NPL Recovery... TRY mn Q1 2010 Q2 2010 Recoveries 3.4 3.5 New NPL Formation 4.4 3.1 * Bank deposits are included in Interbank & Money Market rather than Deposits 15
Slide 16: Summary Balance Sheet
Summary Balance Sheet... TRY mn Q2 2009 2009 Q1 2010 Q2 2010 Cash & Banks 335 201 148 226 Total Securities 221 229 262 317 Total Cash Loans 1,276 1,534 1,381 1,375 Fixed Assets & Subsidiaries 119 102 98 97 Other 82 67 63 68 Total Assets 2,033 2,133 1,952 2,083 Deposits* 1,150 1,447 1,186 1,337 Inter
Slide 17: Summary Income Statement
Summary Income Statement... TRY mn Q1 2010 Q2 2010 H1 2009 H1 2010 Interest Income 46.2 46.1 142.9 92.4 Loans 40.0 37.9 115.4 77.9 Securities 5.2 7.0 17.7 12.3 Other 1.0 1.2 9.8 2.2 Interest Expense 22.1 21.6 78.7 43.8 Deposits 18.8 18.3 62.2 37.1 Funds Borrowed 2.6 1.4 15.8 4.0 Interbank & Other 0.
Slide 18: Summary Income Statement (Consolidated)
Summary Income Statement (Consolidated)... TRY mn Q1 2010 Q2 2010 H1 2009 H1 2010 Interest Income 46.6 46.4 144.7 93.0 Loans 40.2 38.0 117.0 78.2 Securities 5.4 7.2 18.0 12.6 Other 1.0 1.2 9.7 2.2 Interest Expense 22.2 21.6 80.4 43.8 Deposits 18.9 18.3 64.5 37.2 Funds Borrowed 2.6 1.4 15.2 4.0 Inter
Slide 19: 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 20: 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 20