Turkiye Is Bankasi Anonim Sirketi · BIST:ISBTR

Turkiye Is Bankasi Anonim Sirketi — Türkiye İş Bankası A.Ş. — FY2012 Earnings Presentation

21 slides from Turkiye Is Bankasi Anonim Sirketi's earnings presentation, Dec 31, 2012

  1. Slide 1: Isbank Earnings Presentation 2012

    ISBANK EARNINGS PRESENTATION 2012

  2. Slide 2: Recent Macro Developments

    Recent Macro Developments “Soft landing” in the economy Improving current account deficit GDP growth (quarterly, % yoy ) $ billion Current account deficit and energy imports 16 (12 months cumulative) 90 8 5,0 CAD Energy Imports CAD (MTP) Energy Imports (MTP) 75 0 (8) 60 (16) GDP Growth MTP Forecast

  3. Slide 3: Period's Highlights

    Period’s Highlights Loans & Asset Quality • Loan growth picked up in Q4 as expected; both 8.7% QoQ and 16.5% YoY growth rates are above sector averages. • Steady growth in retail and SME loans has been maintained throughout the year. • Share of loans in total assets exceeded 60%. • Amount of net NPL

  4. Slide 4: Market Shares

    Market Shares Largest Private Bank… Market Shares (%) (1) Rank (2) 2011 2012 2011 2012 Total Assets 13.9 13.5 1st 1st Total Loans 14.1 14.2 1st 1st TL Loans 13.0 13.1 1st 1st FX Loans 16.6 17.2 2nd 1st Consumer Loans(3) 11.6 12.0 1st 1st Total Deposits 14.2 13.7 1st 1st TL Deposits 13.4 12.9 1st 1st

  5. Slide 5: Asset Structure

    Asset Structure Assets (TL mn.) 2011 2012 Q3 2012 ∆ QoQ ∆ YtD Cash & Banks 16,034 18,600 17,391 -6.5% 8.5% Securities (Net) 42,778 37,829 38,055 0.6% -11.0% Loans 91,621 98,185 106,716 8.7% 16.5% Participations (Net) 6,275 7,101 7,700 8.4% 22.7% Fixed Assets (Net) 1,983 1,937 1,999 3.2% 0.8% Other A

  6. Slide 6: Loan Portfolio

    Loan Portfolio Loans 16.5% 8.7% 21.4% 106.7 9.5% 98.2 98.2 91.6 93.0 7.6% 71.4 66.3 65.2 13.3% 58.8 60.4 7.0% 7.5% 32.8 32.6 32.0 33.0 35.3 17.5 18.3 17.8 18.4 19.8 (1) TL Loans (TL bn.) FX Loans (TL bn.) FX Loans (USD bn.) Total Loans (TL bn.) 2011 2012 Q1 2012 Q2 2012 Q3 2012 Loans/Deposits • Mark

  7. Slide 7: Loan Portfolio

    Loan Portfolio Loans (TL mn.) 2011 2012 Q3 2012 ∆ QoQ ∆ YtD Total Loans 91,621 98,185 106,716 8.7% 16.5% TL Loans 58,804 65,203 71,415 9.5% 21.4% Retail Loans 25,457 29,075 30,491 4.9% 19.8% Housing Loans 7,943 8,809 9,539 8.3% 20.1% Auto Loans 1,149 1,258 1,317 4.7% 14.6% GPLs(1) 9,741 11,225 11,52

  8. Slide 8: Loan Composition

    Loan Composition Currency Mix Loan Composition - Total Loans 35.8% 33.6% 33.1% 20.6% 21.7% 21.0% 7.2% 7.9% 7.6% 21.6% 22.9% 22.3% 64.2% 66.4% 66.9% 50.6% 47.5% 49.1% 2011 2012 Q3 2012 2011 2012 Q3 2012 (1) (2) (3) TL FX Corporate & Commercial SME Credit Cards Consumer Loan Composition - TL Loans Loa

  9. Slide 9: Asset Quality

    Asset Quality NPL Ratio -26 bps • Quarterly decline in net NPL formation -25 bps • Coverage ratio is 79%. 2.1% 2.1% 1.9% 2.1% 1.9% • 24% collection rate(1) in 2012 2011 12 Q1 12 Q2 12 Q3 12 Q4 NPL Trends(2) NPL Sales (TL thousand) Period Amount Revenue 0.7% 0.6% 11 Q4 221,701 42,055 0.0% 0.2% 0.1% 1

  10. Slide 10: Securities Portfolio

    Securities Portfolio Securities (TL mn.) 2011 2012 Q3 2012 ∆ QoQ ∆YtD Total Securities 42,778 37,829 38,055 0.6% -11.0% TL Securities 32,452 31,416 31,703 0.9% -2.3% FX Securities 10,326 6,414 6,351 -1.0% -38.5% FX Securities (USD mn.) 5,492 3,577 3,558 -0.5% -35.2% Composition of Securities Portfol

  11. Slide 11: Liabilities Structure

    Liabilities Structure Liabilities (TL mn.) 2011 2012 Q3 2012 ∆ QoQ ∆ YtD Deposits 98,313 101,628 105,383 3.7% 7.2% REPOs & Money Market 19,461 14,997 13,519 -9.9% -30.5% Funds Borrowed 11,148 11,093 10,748 -3.1% -3.6% Securities Issued 3,781 5,538 6,364 14.9% 68.3% (1) Other 11,043 12,665 16,711 32.

  12. Slide 12: Deposits

    Deposits Deposits (TL mn.) 2011 2012 Q3 2012 ∆ QoQ ∆ YtD Total Deposits 98,313 101,628 105,383 3.7% 7.2% TL Deposits 60,332 62,762 64,990 3.5% 7.7% TL Saving Deposits 40,664 41,635 41,453 -0.4% 1.9% TL Commercial Deposits 11,678 11,879 14,200 19.5% 21.6% Other TL Deposits 7,991 9,249 9,337 1.0% 16.8

  13. Slide 13: Sufficient Capitalization

    Sufficient Capitalization Capital Adequacy Ratio Basel II • Capital adequacy ratio is well above the regulatory limit. 16.3% 14.2% 14.2% 14.1% 13.9% 13.0% 13.0% 12.6% 12.5% 12.4% 2011 12 Q1 12 Q2 12 Q3 12 Q4 CAR Tier I Ratio Free Equity vs. Total Shareholders’ Equity (TL mn.) 22,719 20,925 19,761 19

  14. Slide 14: Income Statement Highlights

    Income Statement Highlights (TL mn.) 2012 Q3 2012 Q4 ∆ QoQ 2011 2012 ∆ YoY Interest Income 3,404 3,318 -2.5% 10,898 13,390 22.9% • Significant QoQ & annual Interest Expense 1,888 1,646 -12.9% 6,337 7,462 17.8% growth in NII and net fees Net Interest Income 1,515 1,672 10.4% 4,562 5,928 29.9% & commi

  15. Slide 15: Commissions Income Performance

    Commissions Income Performance (TL thousand) 2011 2012 ∆ YoY Non-Cash Loans 134,307 183,830 36.9% • Solid growth in all items except for mutual fund management fees Credit Appraisal 192,909 248,521 28.8% Mutual Fund Man. & Other Inv. Acc. 244,360 138,334 -43.4% • Higher contribution to profitability

  16. Slide 16: Margins

    Margins NIM (Cumulative) (1) • NIM continued to improve in Q4. 4.53% 4.69% 4.30% 4.42% 4.24% 4.02% 4.11% 3.85% 3.90% • Further decline in cost of funding 3.50% 2011 12 Q1 12 Q2 12 Q3 2012 NIM NIM exc. reserves at Central Bank Adjusted NIM (Cumulative)(1) (2) 5.30% 5.54% 5.25% 5.01% 4.80% 4.83% 4.77%

  17. Slide 17: Profitability and Efficiency Ratios

    Profitability and Efficiency Ratios(*) ROAE ROAA 23.9% 23.1% 20.4% 2.0% 2.0% 1.8% 1.8% 1.8% 16.8% 16.5% 15.2% 1.5% 2011 2012 Q3 2012 2011 2012 Q3 2012 (1) (1) ROAA ROAA ROAE ROAE (1) On banking business (excluding equity participations portfolio) Cost / Income Cost vs. Assets 2.9% 2.6% 2.7% 2.7% 45.

  18. Slide 18: 2013 Expectations

    2013 Expectations 2012 2013 Expectations Macro Assumptions (1) GDP Growth 3% ~4.5% CPI Inflation (annual) 6.2% ~6.0% Exchange Rate (USD/TL, year-end) 1.78 → Isbank Loan Growth 16% 16%-18% Deposits Growth 7% 8%-10% Share of Securities in Total Assets 22% ↓ NPL Ratio 1.9% ~2% NIM 4.2% <4.2% Net Fees &

  19. Slide 19: Appendix – Quarterly Income Statement Highlights

    Appendix – Quarterly Income Statement Highlights (TL mn.) 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 ∆ QoQ Interest Income 3,103 3,291 3,378 3,404 3,318 -2.5% Interest Expense 1,788 1,979 1,949 1,888 1,646 -12.9% Net Interest Income 1,315 1,312 1,429 1,515 1,672 10.4% Net Fees & Commissions 403 370 429

  20. Slide 20: iISBANK ~

    iISBANK ~

  21. Slide 21: Disclaimer

    Disclaimer The information in this document has been obtained by Türkiye İş Bankası A.Ş. (“Isbank”) from sources believed to be reliable, however, Isbank cannot guarantee the accuracy, completeness, or correctness of such information. This document has been issued for information purposes only. The

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