Turkiye Halk Bankasi Anonim Sirketi · BIST:HALKB
Turkiye Halk Bankasi Anonim Sirketi — Türkiye Halk Bankası A.S. — H1 2010 Earnings Presentation
26 slides from Turkiye Halk Bankasi Anonim Sirketi's earnings presentation, 2010
Slide 1: H1 2010 Earnings Presentation
H1 2010 Earnings Presentation BRSA Bank Only
Slide 2: Macro Outlook
H1 2010 Earnings Presentation Macro Outlook > GDP at 11.7% YoY in Q1 is the highest figure among OECD countries. > Industrial Production Index up 15.6% YoY, signaling high single-digit GDP growth in Q2 2010. > Turkey in better shape with respect to Public Debt Stock / GDP and Budget Deficit / GDP ra
Slide 3: Banking Sector Outlook
H1 2010 Earnings Presentation Banking Sector Outlook > Appetite to borrow and also to lend surges thanks to sharp recovery and increased optimism. > Loans up 9.4% QoQ bringing industry-wide YtD growth to 16.1%. TRY loans increased 15.8% while FX loans rose 11.0% in USD terms. > Deposits up 10.4% YtD
Slide 4: H1 2010 Highlights
H1 2010 Earnings Presentation H1 2010 Highlights High growth figures supported by sustainable profitability > Brilliant net income performance with 31.5% YoY increase to TRY 1,035 mn. > 6th consecutive quarter over 32% ROE; annualized ROE of H1 2010: 34.2%. > 12.3% YtD rise in total assets driven ma
Slide 5: Uninterrupted growth in assets well supported by loan expansion
H1 2010 Earnings Presentation Uninterrupted growth in assets well supported by loan expansion ASSET GROWTH IEA Asset Mix (%) YoY 22.3% YTD 12.3% 94.2% Loans Securities Other Assets Total Asset Growth (TRY billion) Composition of IEAs (a) 22.3% 93.9% 93.9% 94.2% 94.2% 12.3% 7.3% FX 26.4% 26.6% 27.3%
Slide 6: L/D ratio tolerates strong growth in lending
H1 2010 Earnings Presentation L/D ratio tolerates strong growth in lending Loan to Deposit (%) Composition of IBLs (a) Liabilities Mix (%) Total L/D Deposits Other Liabilities Funds Borrowed Shareholder’s Equity Interbank Money Market 73.9 74.5 74.7 85.7% 85.5% 85.3% 85.3% 69.6 FX 31.5% 32.8% 32.6%
Slide 7: Securities redemption will be redeployed in higher yielding assets
H1 2010 Earnings Presentation Securities redemption will be redeployed in higher yielding assets Securities Portfolio (a) (TRY billion) Composition of Securities HTM AFS Trading 21.4 21.6 21.8 20.3 0.2% 0.2% 0.3% 0.4% 4.0 3.4 3.5 16% 16% 20.2% 22.3% 23.7% 26.5% 4.1 19% FX 20% For the rest of the 16.
Slide 8: Securities portfolio still dominated by FRNs
H1 2010 Earnings Presentation Securities portfolio still dominated by FRNs Total Securities Portfolio (a) (%) TRY Securities Portfolio (a) (%) FIX 22 25 23 23 FIX 36 38 35 35 CPI-linkers constitute 11.2% of total 64 62 65 65 FRNs 78 75 77 77 securities. FRNs Jun-09 2009 Mar-10 Jun-10 Jun-09 2009 Mar
Slide 9: Strengthening our presence all around the country
H1 2010 Earnings Presentation Strengthening our presence all around the country Loans Q1 2010 (a) Loans 2008 (a) Kırklareli Kırklareli Bartın Sinop Bartın Sinop Edirne Zonguldak Kastamonu Edirne Zonguldak Kastamonu Tekirdağ İstanbul Artvin Tekirdağ İstanbul Artvin Ardahan Ardahan Karabük Samsun Kara
Slide 10: Primary contributors to growth have been the retail and commercial segments
H1 2010 Earnings Presentation Primary contributors to growth have been the retail and commercial segments (TRY billion) (a) 35.8% 18.5% 9.8% TOTAL LOANS 37.5 YTD Change (%) HALKBANK B. SECTOR (b) Fund Loans 1.2 down -0.3% 34.2 YTD 18.5% YTD 16.1% 3.4 31.7 1.1 Cooperative Loans 1.2 3.3 up 1.9% 27.6 3
Slide 11: Consumer loans and mortgages are the main drivers of solid growth
H1 2010 Earnings Presentation Consumer loans and mortgages are the main drivers of solid growth (TRY million) (a) 56.6% 26.6% HALKBANK 13.0% 9,277 YTD Change (%) YTD 26.6% 8,213 5,227 7,327 Consumer Loans B. SECTOR 5,923 4,567 up 26.3% YTD 13.4% (b) 4,140 Share in total 56.3% 3,494 Housing Loans 3,4
Slide 12: Retail lending gets bigger share of total loan book
H1 2010 Earnings Presentation Retail lending gets bigger share of total loan book Loans by Currency (a) (TRY million) Loans By Types Commercial 63% FX 7,301 8,847 10,082 10,798 Funds 3% 26.4% 28.8% Cooperatives 9% TRY 20,336 22,819 24,092 26,726 73.6% 71.2% Retail 25% Jun-09 2009 Mar-10 Jun-10 Marke
Slide 13: Increased market share in non-cash lending
H1 2010 Earnings Presentation Increased market share in non-cash lending Breakdown of Non-cash Loans (a) Non-cash Loans (a) (TRY billion) (Jun-10) 46.6% 70.1% 18.3% Letters of 8.9% Guarantee 11.0 10.1 27.4% 9.3 Letters of 7.5 Credit Bank Loans and Other 2.5% (Jun-09) 77.3% Jun-09 2009 Mar-10 Jun-10
Slide 14: NPLs stay flat while CoR continues to decline
H1 2010 Earnings Presentation NPLs stay flat while CoR continues to decline NPL Portfolio (TRY million) NPL Coverage (%) 1,668 1,702 1,704 82.6 89.0 90.2 90.5 1,502 (a) Since 2002 80.1 81.4 82.7 83.0 Legacy of 609 600 603 593 year 2001 and before Jun-09 2009 Mar-10 Jun-10 Jun-09 2009 Mar-10 Jun-10 N
Slide 15: Asset quality well-preserved across all segments
H1 2010 Earnings Presentation Asset quality well-preserved across all segments NPL/Total Loans (a) (%) Consumer Loans (b) (%) Halkbank Sector (a,b) 5.2 5.2 5.4 5.1 5.1 5.1 4.6 4.8 4.3 5.0 4.9 4.7 4.7 2.6 2.7 4.3 2.5 2.4 4.3 2.1 Jun-09 Sep-09 2009 Mar-10 Jun-10 Jun-09 Sep-09 2009 Mar-10 Jun-10 SME Lo
Slide 16: Demand deposits surge along with increased market share in deposits
H1 2010 Earnings Presentation Demand deposits surge along with increased market share in deposits TRY Deposits by Types (a) Total Deposits by Currency (a) Demand Deposits (TRY billion) (TRY billion) (TRY billion) Other Institutions Interbank Public Sector Savings 25.5% Demand Deposits/ TOTAL DEPOSIT
Slide 17: Fees and commissions income continues to grow
H1 2010 Earnings Presentation Fees and commissions income continues to grow: more than 25% YoY Net Fees & Commissions Income (TRY million) 19.6% 25.1% 270 216 134 134 136 114 111 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 H1-09 H1-10 Breakdown of Fees & Commissions Income Net Fees & Commissions Income/Total Oper
Slide 18: Controlled rise in operating expenses after focusing more on core banking activities
H1 2010 Earnings Presentation Controlled rise in operating expenses after focusing more on core banking activities Operating Expenses (TRY million) Operating Expenses/Average Assets (%) 22.2% 22.6% 693 2.1 2.1 2.2 2.2 565 321 334 359 294 308 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 H1-09 H1-10 Jun-09 2009 Mar-
Slide 19: Net interest income increased by 14.9% YoY
H1 2010 Earnings Presentation Net interest income increased by 14.9% YoY Net Interest Income (TRY million) Breakdown of Interest Income 7.1% 14.9% 64% on Loans 1.663 1.447 784 878 840 824 769 34% on Securities Other 2% Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 H1-09 H1-10 Interest Income (TRY million) On Securi
Slide 20: Cost-Yield-Spread
H1 2010 Earnings Presentation Cost-Yield-Spread (a) Cost of Deposits (%) Spreads (%) On Loans On Securities 8.0 8.2 7.9 8.1 7.2 7.2 6.4 5.6 5.4 5.5 5.0 4.8 4.4 4.4 4.1 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Yield on Loans (b) (%) Yield on Securities (%) 16.1 12.6 15.1 11.3 10.6
Slide 21: Net Income - Key Ratios
H1 2010 Earnings Presentation Net Income - Key Ratios Net Income (TRY million) ROE (%) 23.0% 31.5% 0.8% 1.035 34.6 34.7 34.2 32.5 787 515 520 423 420 424 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 H1-09 H1-10 Jun-09 2009 Mar-10 Jun-10 ROA (%) CAR (%) 3.4 16.0 15.4 15.1 3.0 3.2 14.7 2.9 Jun-09 2009 Mar-10 Jun-10
Slide 22: Branch Network – Human Resources
H1 2010 Earnings Presentation Branch Network – Human Resources • Branch network strengthened with 20 new branches opened in the H1 2010. The total number reaches 688. • 1,687 new employees recruited in H1 2010. Total Branches (a) Human Resources 688 12,998 13,832 668 679 12,521 12,505 644 Jun-09 200
Slide 23: Appendix
H1 2010 Earnings Presentation Appendix Financial Institutions and Investor Relations 22 www.halkbank.com.tr
Slide 24: Balance Sheet
H1 2010 Earnings Presentation Balance Sheet QoQ YTD YoY In TRY million H1-09 2009 Q1-10 H1-10 Change (%) Change (%) Change (%) Cash and Balances Held with the Central Bank (a) 3,158 3,416 3,049 3,412 12 0 8 Banks & Money Market (b) 1,664 1,136 1,586 2,100 32 85 26 Securities (b) 20,321 21,373 21,573
Slide 25: Income Statement
H1 2010 Earnings Presentation Income Statement In TRY million H1-09 H1-10 YoY (%) Q4 09 Q1 10 Q2 10 QoQ (%) Interest Income 3,526 3,161 (10) 1,626 1,565 1,596 2 On Loans 2,137 2,038 (5) 1,035 1,002 1,036 3 On Securities 1,301 1,075 (17) 563 540 535 (1) Interest Expense 2,079 1,497 (28) 748 725 772 6
Slide 26: 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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