Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB

Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.S. — FY2019 Earnings Presentation

24 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2020

  1. Slide 1: 2019 Earnings Presentation

    2019 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

    2019 Earnings Presentation Gradual asset growth with well-diversified structure FX LCR is at 362%, well above regulatory limit of 80%. Asset Mix (%) Asset Growth Loans Securities Bank Placements CBRT Receivables Cash YoY 20.8% QoQ 3.1% Liq. Assets Other Assets Total Asset Growth (TRY billion) 20.8%

  4. Slide 4: TL heavy portfolio dominated by fixed rate securities

    2019 Earnings Presentation TL heavy portfolio dominated by fixed rate securities Total Securities Portfolio (TRY billion) Securities Classification (TRY billion)(*) Total Securities / Total Assets (%) Other Floating Rate CPI Linkers Fixed Rate (TRY) 23.1 21.7 22.5 Fixed Rate (FX) 86.6 19.7 81.2 82.0

  5. Slide 5: Prudent loan growth with robust market share

    2019 Earnings Presentation Prudent loan growth with robust market share CGF Utilization (TRY Bn) Current loan amount Sep-19 24.6 Dec-19 21.8 (TRY billion)(a) 16.7% Total Loans 0.8% HALKBANK B. Sector(b) YoY YoY 16.7% 11.0% 285.3 287.7 QoQ QoQ 270.3 0.8% 4.9% 246.4 Business Loans TRY Loans 125.9 123.

  6. Slide 6: Solid loan portfolio with well diversified segmentation

    2019 Earnings Presentation Solid loan portfolio with well diversified segmentation Loans by Currency (%)(a) Loans by Customer Segmentation (%)(a) Commercial 6% FX SME 11% Commercial 4% 29.1% SME 40% Corporate 85% Corporate 37% CGF 15% TRY 70.9% Cooperative 36%(b) Retail 18% Sectoral Breakdown of Loa

  7. Slide 7: Below sector NPL ratio without any sale or write-off

    2019 Earnings Presentation Below sector NPL ratio without any sale or write-off NPL Portfolio (TRY million)(a) NPL Coverage (%)(a) 15,920 13,910 73.7 73.4 11,524 63.4 9,230 56.5 55.8 8,528 2018 Mar-19 Jun-19 Sep-19 2019 2018 Mar-19 Jun-19 Sep-19 2019 Loans under Close Watch (TRY million) NPL/Total L

  8. Slide 8: NPL ratio by segments

    2019 Earnings Presentation NPL ratio by segments Halkbank NPL Sector NPL (a) Corporate - Commercial (%) Consumer Loans (%) 5.0 5.1 5.0 4.5 4.9 4.4 4.0 3.5 4.5 2.7 2.7 3.9 2.7 2.7 2.8 2.8 2.8 3.1 2.6 2.5 2018 Mar-19 Jun-19 Sep-19 2019 2018 Mar-19 Jun-19 Sep-19 2019 SME Loans (%) Credit Cards (%) 9.2

  9. Slide 9: Asset quality dynamics on quarterly basis

    2019 Earnings Presentation Asset quality dynamics on quarterly basis Provisions and Reversals (TRY million) Net Total Cost of Risk (bps)(a) Provision Reversals S1 Provisions S2 Provisions S3 Provisions YtD Quarterly 156 143 66 353 23 1,369 54 1,301 105 747 671 702 88 86 105 84 101 (6) (89) (55) (TRY

  10. Slide 10: TL LDR improvement gains momentum

    2019 Earnings Presentation TL LDR improvement gains momentum Loan to Deposit (%) Composition of IBLs(a) Liabilities Mix (%) (b) Halkbank L/D Sector L/D Deposits Marketable 84.7% 86.1% 86.3% 85.8% Funds Borrowed Securities Issued Interbank Money Market Shareholders’ Equity 117.6 FX 43.1% 45.5% 44.4%

  11. Slide 11: TL driven deposit growth

    8 -6.36 3 2019 Earnings Presentation TL driven deposit growth HALKBANK B. Sector(b) YoY 20.8% 28.7% HALKBANK B. Sector(b) HALKBANK B. Sector(b) QoQ -4.7% 6.0% YoY 19.9% 24.7% YoY 19.3% 20.6% in USD YoY 7.9% 15.0% QoQ 5.0% 8.4% QoQ 14.3% 11.0% terms QoQ -8.8% 1.4% Total Deposits TRY Deposits FX Depos

  12. Slide 12: Cost of TL deposits declined significantly

    2019 Earnings Presentation Cost of TL deposits declined significantly Demand Deposits (TRY billion)(a) Time Deposits (TRY billion)(a) Deposits by Currency (%) Demand Deposits/Total Deposits (%) Time Deposits/Total Deposits (%) 14.7% 17.6% 17.3% 17.3% 85.3% 82.7% 82.7% 82.4% FX 44% 46.2% 20.5% 4.7% 4

  13. Slide 13: CPI adjustment more than compensated by core spread boost

    2019 Earnings Presentation CPI adjustment more than compensated by core spread boost Cost of Deposits (%) Spreads (%) On Loans On Securities 11.6 8.5 9.8 6.2 9.0 8.8 6.7 4.8 4.7 3.6 4.4 4.3 3.3 2.0 1.1 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Yield on Loans (%)(a) Yield on Securit

  14. Slide 14: Tremendous core revenue performance

    2019 Earnings Presentation Tremendous core revenue performance Net Interest Income (TRY million) NIM (%) Interest Income Interest Expenses YtD Quarterly 94.4% 31.3% 4.0 34.7% 10,612 3.0 1,953 2,268 2,819 3,797 8,080 2.8 1,728 2.6 3.0 36,671 46,730 2.1 2.6 11,793 10,743 12,149 12,512 11,327 2.4 2.4 (

  15. Slide 15: Return enhancement driven by core business

    2019 Earnings Presentation Return enhancement driven by core business Core Operating Revenues (TRY million)(a) Net Income (TRY million) 79.9% 797 28.1% 4,526 3,532 2,988 317 310 308 305 2,516 2,344 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 RoE (%) RoA (%) YtD Quarterly 10.1 0.7 9.3

  16. Slide 16: Disciplined cost management reflected on moderate metrics

    2019 Earnings Presentation Disciplined cost management reflected on moderate metrics Operating Expenses (TRY million) Operating Expenses / Average Assets (%) 6.0% 15.1% 1,669 1,705 6,286 1.6 1.6 1.5 1.5 1,609 1.4 1,527 1,385 5,460 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 2018 2019 2018 Mar-19 Jun-19 Sep-19 201

  17. Slide 17: Solvency Ratios

    2019 Earnings Presentation Solvency Ratios CAR (%) Details on Capital Ratio Tier-I CAR Basel III 14.6 14.2 14.3 (TRY mn) Dec-19 13.8 13.0 Credit Risk Base Amount (CRBA) 294,639 11.8 11.4 11.7 Market Risk Base Amount (MRBA) 11,483 10.7 10.0 Operational Risk Base Amount (ORBA) 18,626 Total Risk Weight

  18. Slide 18: Branch Network – Human Resources

    2019 Earnings Presentation Branch Network – Human Resources Loans and Deposits per Branch (TRY million) Breakdown of Banking Transactions (%) Loans/Branch Deposits/Branch Internet Automatic Banking 10% Payment 5% 296.6 297.8 279.9 297.7 286.3 ATM 29% 253.7 266.2 Mobile 251.9 Banking 41% Call Center

  19. Slide 19: Annex

    2019 Earnings Presentation Annex TRY Market Banking Halkbank Million Share (%) Sector Metrics(b) 2018 2019 Total Assets 457,045 10.2 Loan Growth (YoY, %) 14.1 11.0 Loans (a) 287,703 10.8 Deposit Growth (YoY, %) (c) 19.6 24.7 TRY Loans 203,996 12.4 LDR (%) 117.6 103.5 FC Loans 83,707 8.2 NPL (%) 3.9

  20. Slide 20: Balance Sheet

    2019 Earnings Presentation Balance Sheet QoQ YoY In TRY million 2018 Sep-19 2019 Change% Change% Cash and Balances Held with the Central Bank(a) 34,957 32,642 34,489 5.7 (1.3) Banks & Money Market(b) 5,141 3,646 3,750 2.9 (27.0) Securities(b) 74,557 96,383 102,734 6.6 37.8 Net Loans(b) 250,624 294,1

  21. Slide 21: Income Statement

    2019 Earnings Presentation Income Statement QoQ YoY Change Change In TRY million 2018 2019 YoY% Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 % % Interest Income 36,671 46,730 27.4 11,793 10,743 12,149 12,512 11,327 (9.5) (4.0) On Loans 28,812 37,070 28.7 8,529 8,440 9,297 9,701 9,632 (0.7) 12.9 On Securities 7,045

  22. Slide 22: Notes

    2019 Earnings Presentation Notes Investor Relations 20 www.halkbank.com.tr

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  24. Slide 24: For further information please contact

    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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