Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB

Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.Ş. — Q1 2019 Earnings Presentation

24 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2019

  1. Slide 1: 1Q 2019 Earnings Presentation

    1Q 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

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  3. Slide 3: Asset Growth

    1Q 2019 Earnings Presentation Comfortable and well-diversified FX liquidity Limit 30.03.2019 FX LCR 80% 176% Asset Mix (%) Asset Growth Loans Securities(a) Bank Placements CBRT Receivables Cash YoY 27.1% QoQ 7.6% Liq. Assets Other Assets Total Asset Growth (TRY billion) 27.1% 67.0% 87.8% 4.8% 7.6% 7

  4. Slide 4: Interest income backed up by other securities despite declining CPI linkers' gain

    1Q 2019 Earnings Presentation Interest income backed up by other securities despite declining CPI linkers' gain Total Securities Portfolio (TRY billion)(a) Securities Classification (TRY billion) Total Securities / Total Assets (%) Other Floating Rate CPI Linkers Fixed Rate (TRY) Fixed Rate (FX) 19.

  5. Slide 5: SME-driven loan growth results in 10.6% total market share

    1Q 2019 Earnings Presentation SME-driven loan growth results in 10.6% total market share CGF Utilization (TRY Bn) Living Loan Amount Dec-18 22.2 Mar-19 23.3 (TRY billion)(a) 25.9% Total Loans 8.6% HALKBANK B. Sector(b) The definition of YoY YoY 25.9% 14.6% 267.6 SMEs has been QoQ QoQ 14.7 Commercial

  6. Slide 6: TRY and SME dominated loan book

    1Q 2019 Earnings Presentation TRY and SME dominated loan book Loans by Currency (%)(a) Loans by Customer Segmentation (%)(a) SME 4.7% Commercial 5% Commercial 1.3% Corporate 37% SME 41% Corporate 26.7% TRY 67.4% FX 32.6% Retail 17% Cooperative 15%(b) Sectoral Breakdown of Loans (%)(a) Retail Loans b

  7. Slide 7: NPL ratio improved further, NPL coverage up

    1Q 2019 Earnings Presentation NPL ratio improved further, NPL coverage up Total NPL Coverage is ~105%.(a) NPL Portfolio(*) (TRY million) NPL Coverage(*) (%) 8,694 79.5 79.9 78.7 78.0 8,159 77.0 7,175 6,522 6,265 Mar-18 Jun-18 Sep-18 2018 Mar-19 Mar-18 Jun-18 Sep-18 2018 Mar-19 Loans under Close Watc

  8. Slide 8: NPL ratio by segments

    1Q 2019 Earnings Presentation NPL ratio by segments Halkbank NPL Sector NPL (a) Corporate - Commercial (%) Consumer Loans (%) 4.9 5.0 4.7 4.5 4.7 2.8 2.7 2.7 2.7 2.7 2.7 2.5 2.4 1.9 2.1 2.6 2.2 2.1 2.4 2.2 Mar-18 Jun-18 Sep-18 2018 Mar-19 Mar-18 Jun-18 Sep-18 2018 Mar-19 SME Loans (%) Credit Cards (

  9. Slide 9: CoR performance mirrors stellar asset quality

    1Q 2019 Earnings Presentation CoR performance mirrors stellar asset quality Cost of Risk (bps)(a) Net Cost of Risk (bps) YtD Quarterly Provision Reversals S1 Provisions S2 Provisions S3 Provisions 117 140 106 134 83 18 81 56 106 80 83 39 39 4 54 6 53 19 34 117 64 4 83 106 54 53 54 53 (12) (6) (1) (b

  10. Slide 10: Growing share of deposits, low reliance on FX wholesale funding

    1Q 2019 Earnings Presentation Growing share of deposits, low reliance on FX wholesale funding Loan to Deposit (%) Composition of IBLs(a) Liabilities Mix (%) (b) Halkbank L/D Sector L/D Deposits Marketable 84.8% 85.6% 85.9% Funds Borrowed Securities Issued Interbank Money Market Shareholders’ Equity

  11. Slide 11: Opportunistic shift in deposit strategy, increasing share of public sector deposits

    8 -6.36 3 1Q 2019 Earnings Presentation Opportunistic shift in deposit strategy, increasing share of public HALKBANK B. Sector(b) sector deposits YoY 73.3% 48.4% HALKBANK B. Sector(b) HALKBANK B. Sector(b) QoQ 24.4% 19.3% YoY 34.5% 25.0% YoY 9.6% 5.2% in USD YoY 22.8% 5.1% QoQ 8.4% 8.9% QoQ -4.1% -1

  12. Slide 12: Notable drop in cost of TRY deposits coupled with increasing share of demand deposits

    1Q 2019 Earnings Presentation Notable drop in cost of TRY deposits coupled with increasing share of demand deposits Demand Deposits (TRY billion)(a) Time Deposits (TRY billion)(a) Deposits by Currency (%) Demand Deposits/Total Deposits (%) Time Deposits/Total Deposits (%) 14.3% 14.7% 16.5% 85.7% 85.

  13. Slide 13: Cost – Yield – Spread

    1Q 2019 Earnings Presentation Cost – Yield – Spread (a) Cost of Deposits (%) Spreads (%) On Loans On Securities 11.6 9.8 9.3 4.5 4.1 7.7 7.8 3.7 3.6 3.3 2.0 2.0 1.0 1.2 1.2 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Yield on Loans (%)(b) Yield on Securities (%) 13.6 13.1 16.1 12.9 1

  14. Slide 14: Details on profitability metrics

    1Q 2019 Earnings Presentation Details on profitability metrics Total Operating Revenues (TRY million) Net Income (TRY million) 2,877 1,113 2,654 2,812 2,461 2,345 790 303 317 305 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 RoE (%) RoA (%) 1.0 1.2 12.4 14.3 0.9 0.7 11.0 9.3 0.3 4.3 Ma

  15. Slide 15: Eye-catching performance from F&C, NIM successfully absorbs declining CPI linkers' gain

    1Q 2019 Earnings Presentation Eye-catching performance from F&C, NIM successfully absorbs declining CPI linkers’ gain Net Interest Income (TRY million) NIM (%) Interest Income Interest Expenses YtD Quarterly -12.3% -11.5% Lower contribution from CPI linked 3.2 Securities: 3.1 2.9 2.8 2,002 1,953 1,7

  16. Slide 16: Disciplined OPEX management, down 5.1% QoQ

    1Q 2019 Earnings Presentation Disciplined OPEX management, down 5.1% QoQ Operating Expenses (TRY million) Operating Expenses / Average Assets (%) -5.1% 1,609 1,527 1.6 1.6 1.6 1,345 1,308 1,198 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Mar-18 2018 Mar-19 Cost/Income (%) Breakdown of Operating Expenses (%) 62.7

  17. Slide 17: Solvency Ratios

    1Q 2019 Earnings Presentation Solvency Ratios CAR (%) Details on Capital Ratio Tier-I CAR Basel III 14.9 13.8 (TRY mn) Mar-19 13.4 13.2 13.0 Credit Risk Base Amount (CRBA) 260,135 11.4 10.7 Market Risk Base Amount (MRBA) 9,858 12.0 11.9 10.0 Operational Risk Base Amount (ORBA) 18,626 Total Risk Weig

  18. Slide 18: Branch Network – Human Resources

    1Q 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 14% Payment 5% 275.9 253.7 272.7 ATM 32% 223.0 251.9 211.3 Mobile Banking 34% 200.7 207.3 Call Cent

  19. Slide 19: Annex

    1Q 2019 Earnings Presentation Annex TRY Market Banking Halkbank Million Share (%) Sector Metrics(b) 1Q-18 1Q-19 Total Assets 407,034 9.8 Loan Growth (YtD, %) 4.7 5.2 Loans (a) 267,580 10.6 Deposit Growth (YtD, %) (c) 4.2 8.9 TRY Loans 180,269 12.0 LDR (%) 123.6 114.1 FC Loans 87,311 8.6 NPL (%) 2.9

  20. Slide 20: Balance Sheet

    1Q 2019 Earnings Presentation Balance Sheet QoQ YoY In TRY million Q1-18 2018 Q1-19 Change % Change% Cash and Balances Held with the Central Bank(a) 35,384 34,957 34,024 (2.7) (3.8) Banks & Money Market(b) 9,133 5,141 2,565 (50.1) (71.9) Securities(b) 49,910 74,557 83,895 12.5 68.1 Net Loans(b) 215,

  21. Slide 21: Income Statement

    1Q 2019 Earnings Presentation Income Statement QoQ YoY In TRY million Q1-18 Q4-18 Q1-19 Change% Change % Interest Income 6,926 11,793 10,743 (8.9) 55.1 On Loans 5,730 8,529 8,440 (1.0) 47.3 On Securities 1,056 2,977 2,127 (28.5) 101.4 Interest Expense 4,957 9,840 9,015 (8.4) 81.9 On Deposits 3,790 7

  22. Slide 22: Notes

    1Q 2019 Earnings Presentation Notes Financial Institutions and 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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