investor presentation brsa bank-only q108 · 2014-01-21 · 3 investor relations investor...
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Investor PresentationBrsa Bank-Only Q108July 2008
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INVESTOR RELATIONS Investor Presentation_Bank Only Q108
www.vakifbank.com.tr
Leading franchise in the fast growing Turkish market;
Strong presence in all key growth segments;
Extensive nationwide branch and 3rd largest ATM network with particular strengths in Ankara and East region;
Retail franchise of over 7,5 mio total customers with leading position among middle-class population segment;
Leading long-lasting SME franchise and strong project finance expertise;
Unique access and understanding of State and State related companies thanks to long standing relationship and loyalty of the segment;
Significant recent investment is unlocking important cross-selling potential in both Retail and SME Banking;
Solid balance sheet with diversified sources of funding, strong YTL funding base;
Cost conscious culture with focus on profitability instead of market share;
Investor-friendly corporate governance fully supported by key shareholders;
VakifBank at a glance
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INVESTOR RELATIONS Investor Presentation_Bank Only Q108
www.vakifbank.com.tr
GDF
General Directorate of Foundations manages foundations owning58,45% (43,0% Class A, 15,45% Class B) of the shares in thebank. The GDF was established in 1924 to administer andregulate Turkish charitable foundations as a state entity directlyreporting to the Prime Minister.
VB Pension Fund*
The VakifBank Pension Fund has a 16,10% stake in the Bank’scapital as a Class C shareholder. All the Bank’s employeescontribute to the Vakifbank Pension Fund as opposed to themandatory social security coverage by the state Social InsuranceInstitution
Free Float
Listed in IMKB as VAKBN and mainly held by internationalinstitutional investors.
Other
Non-affiliated foundations with seperate board of trustees & individual or legal entities.
Ownership StructureOwnership Structure
*As of, 29.05.2008 the actuarial report indicates that Vakifbank Pension Fund has a surplus with real interest rate of %9,8
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INVESTOR RELATIONS Investor Presentation_Bank Only Q108
www.vakifbank.com.tr
Subsidiaries & AffiliatesFinancial Subsidiaries Share (%)
Güneş Insurance 36,35
Vakıf Pension Funds 53,90
Vakıf Leasing 58,71
Vakıf Deniz Leasing 68,55
Vakıf Finance Factoring 78,39
Vakıf Investment 99,00
Vakıfbank International AG 90,00
World Vakif Offshore Banking Ltd. 82,00
Vakıf Portfolio Management 99,99
Vakıf Real Estate Investment Fund 28,00
Vakif Investment Fund 12,00
Cyprus Foundations Bank Ltd. 15,00
Other Financial Subsidiaries Share (%)
Takasbank 4,90
BKM (Card Centre of Banks) 9,70
KKB (Credit Registration Bureau) 9,10
TSKB 8,40
Non-Financial Subsidiaries Share (%)
Vakif System Corp. 73,00
Vakif Energy 66,00
Taksim Hotels 51,00
Ataköy Trade Corp. 46,00
İşkur Corp. 25,00
Vakif Expertise Corp. 20,00
Roketsan Rockets 10,00
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INVESTOR RELATIONS Investor Presentation_Bank Only Q108
www.vakifbank.com.tr
Work Under Progress Vakifbank expands itsgeographic presence all overTurkey with focus on Istanbuland Marmara region.Two important projects in credit cards; Vakif World & Vakif Rail&Miles.Upgrade of IT system tosupport the growth of theBank in all business lines.HQ will move to capital of financial sector, Istanbul.New corporate identity, new logo & new colours.
workunder
progress
branchnetwork
expansion
IT transform
ation
HQ moveto
Istanbul
New Corporateidentity
stepsforward in
creditcard
business
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INVESTOR RELATIONS Investor Presentation_Bank Only Q108
www.vakifbank.com.tr
Vakif World and Vakif Rail&Miles rises Vakif World;As a first step, Vakifbank aims to include its one million inactive credit card customers into active customer pool of one million.
Vakif Rail & Miles;Aiming to access upper classes due to implementation of high speed train services.
Boost to Net F&C Income and doublingof market share by 2010
Vakif Rail & Miles Card Project, specialcredit card to be used in intercityrailways launched in March 2008.
Vakif World, the co-branded credit cardwith leading brand in this business linewill be the biggest of its kind in Turkey.
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INVESTOR RELATIONS Investor Presentation_Bank Only Q108
www.vakifbank.com.tr
Heavier usage of technology, higher the market share
ATM
www.vakifbank.com.tr
GSM
DOKUNMATIK
Extensive use of alternative distribution channels contribute strong general purpose consumer loan growth
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INVESTOR RELATIONS Investor Presentation_Bank Only Q108
www.vakifbank.com.tr
A Technological Step From Vakifbank
Restructuringprogram startedin early 2005 with McKinsey
Front Office, CRM, MIS andData Warehouseapplications willbe implemented
Higher cross-selling ratios, fee & commissions & revenues,Increased IT capacity enabling faster and higher quality customerservice, necessary database and reporting standards for Vakifbank’sroadmap in transition to Basel II.
IBM & Cisco started to work on IT Transformation project in 2007
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INVESTOR RELATIONS Investor Presentation_Bank Only Q108
www.vakifbank.com.tr
Growth in consumer lending, market share increase on both retail and
mortgage
Higher lending in every segment
# 1 in payroll business with increasing market share
Accelerated momentum in fees & commissions
Sustainable spreads and margins
Improving asset quality
New products and diversified channels continue to contribute growth
25 new branch openings
Operating expenses are under control
2008 Q1 Highlights
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INVESTOR RELATIONS Investor Presentation_Bank Only Q108
www.vakifbank.com.tr
Diversification of Asset Mix Towards IEATotal Assets (TRY bio)
Interest Earning Assets (TRY bio)
Breakdown of Assets (TRY bio)
Asset Growth;Ytd
%10YoY +22,8 %
Ytd +9,2 %
YoY +22,2%
Ytd +10,0 %
IEA33,6
IEA37,9
IEA41,4
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INVESTOR RELATIONS Investor Presentation_Bank Only Q108
www.vakifbank.com.tr
Expansion of Loan Portfolio ContinuedTotal Loans (TRY bio)
Loan/Deposits (%)
Breakdown of Loans (TRY bio)
YoY +967 bps
Ytd +4 bps
YoY +41,3%
Ytd +11,1% Total Loans growth;
Ytd
%11,1FX Loans Growth in USD;
Ytd
%14,9
*Includes credit cards and overdrafts.
13,2
16,7
18,65,2
6,7
7,5
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INVESTOR RELATIONS Investor Presentation_Bank Only Q108
www.vakifbank.com.tr
Strong Retail Loan GrowthGeneral Purpose Consumer Residential Mortgages1
Retail Cross-Selling RatioTotal Retail2
YoY +73,5%
Ytd +10,6%
YoY +39,5
Ytd +15,4%
YoY +51,1%
Ytd +12,2%
YoY +37 bps
Market Share Gain in;
Total Retail 32 bps,Mortgage 45 bps.
1 Includes TOKI.2 Excludes credit cards and overdrafts.
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INVESTOR RELATIONS Investor Presentation_Bank Only Q108
www.vakifbank.com.tr
Commercial, Corporate and SME EvolutionCommercial & Corporate SME (Commercial Installments)
SME Cross-Selling RatioGuarantees
YoY +47,1%
Ytd +14,5
YoY +25,5%
Ytd +2,4%
YoY +42,7%
Ytd +21,3%
YoY +61 bps
Commercial & Corporate Loan Growth;
Ytd
%14,5
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INVESTOR RELATIONS Investor Presentation_Bank Only Q108
www.vakifbank.com.tr
Market Shares (%)Deposits and Funding Loans
# 1 in payroll
# 1 in debit card #
Distribution #
Market shares are calculated using weekly BRSA reports.1 Vakifbank estimates. 2 Includes home, auto and other, credit card loans and overdrafts not included.
Payroll 1 Total Deposits YTL Deposits
Branch ATM Debit Card
Total Loans Retail Loans 2 SME Installment
+2 +0,3 +0,1+0,3 -0,7
+0,1+0,2
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INVESTOR RELATIONS Investor Presentation_Bank Only Q108
www.vakifbank.com.tr
Deposit EvolutionBreakdown of Liabilities (%)Loans and Deposits (TRY,bio)
Loan/Deposit
Total Deposits Growth;
Ytd
%11
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INVESTOR RELATIONS Investor Presentation_Bank Only Q108
www.vakifbank.com.tr
Strong Deposit GrowthBreakdown of deposits (%)Deposit Composition (TRY,bio)*
*Total deposits do not include interbank deposits and accrued interests for deposits.1Represents deposits taken from retail customers. 2Represents deposits taken from government related companies, SME’s and other entities.
FX Deposits Growth in USD;
Ytd
%12,2TRY
%75,8
TRY%78,3
TRY%75,5
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INVESTOR RELATIONS Investor Presentation_Bank Only Q108
www.vakifbank.com.tr
Focus on Retail DepositsRetail Deposits (TRY, bio) Demand Deposits (%)
State Deposits (TRY, mio)
YoY +14,5 %
Ytd +11,4 %
YoY +10,1%
Ytd +1,5%
YoY +38,9%
Ytd +9,1%
Retail Deposits Growth;
Ytd
%11,4State Deposit Share in Total;
%32 in YE05%24 in Q108
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INVESTOR RELATIONS Investor Presentation_Bank Only Q108
www.vakifbank.com.tr
Securities Portfolio EvolutionTotal Securities (TRY, mio) Portfolio Structure
YoY +%1,1
Ytd +%6,0 YTL
FX
FX Securities Fixed Rate share;
in Q107,
%55,5in Q108,
%73,5FX margins up thanks to Fed Rate Cuts
11520
10986
11641
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INVESTOR RELATIONS Investor Presentation_Bank Only Q108
www.vakifbank.com.tr
Asset Quality Continue to ImproveNPL Ratio & Provisions Coverage Loan / Assets (%)
YoY -88 bps
Ytd -20 bps
YoY +754 bps
Ytd +54 bps
No write-offs &
No asset sale on NPL
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INVESTOR RELATIONS Investor Presentation_Bank Only Q108
www.vakifbank.com.tr
Capital Position & CAR(TRY-mio) YE2006 YE2007 Q12008
Paid in Capital 2.500 2.500 2.500
Share Premium 724 724 724
Reserves 255 624 1.521
Net Profit 762 1.031 196
Prepaid Expense (-) 49 204 227
Intangible Assets 5 13 16
Core Capital 4.313 4.887 4.941
Supplementary Capital 227 362 313
General Provisions 130 174 224
Bonus Shares of Sub.&Aff.
35 64 64
%45 of Sec.value inc. 61 124 25
Capital 4.540 5.249 5.254
Deductions FromCapital
219 449 420
Total ShareholdersEquity
4.320 4.780 4.834
(TRY-mio) YE2006 YE2007 Q12008
Total RWA 20.841 31.268 35.899
Total Credit RWA 20.626 26.976 30.361
%20 Risk Weighted 747 913 671
%50 Risk Weighted 2.311 2.605 2.668
%100 Risk Weighted 17.565 23.458 27.002
%150 Risk Weighted1 N.A. N.A. 20
%200 Risk Weighted1 N.A. N.A. 0,05
Value at Market Risk2 215 650 1.407
Value at Operational Risk3 N.A. 3.642 4.131
CAR %20,73 %15,35 %13,47
1New regulation imposed by BRSA for long term credit card exposure. 2AFS securities portfolio is added to the computations.3Added to the CAR calculations fter 2H07.
TRY 9.572 mio worth AFS Securities are added to Value at Market Risk Computations in 2008 imposed by BRSA
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INVESTOR RELATIONS Investor Presentation_Bank Only Q108
www.vakifbank.com.tr
Earnings Summary(TRY-mio, %) Q12007 Q12008 Growth
Net Interest Income 407.8 482.2 18.3%
Net F&C Income 67.4 107.2 59.0%
Net Trading Income 48.7 -17.9 n.a.
Divident Income 19.9 2.3 -88.6%
Other Operating Income
96.5 103.0 6.7%
Total OperatingIncome
640.3 676.8 5.7%
Total OperatingExpenses (-)
241.5 277.5 14.9%
Operating Profit 398.9 399.3 0.1%
Provisions (-) 125.4 146.4 16.7%
Tax Provisions (-) 54.4 56.5 3.8%
Income frominvestments
0 0 n.a.
Net MonetaryGain/Loss
0 0 n. a.
Net Income 219.0 196.4 -10.3%
Net Banking Income Composition
YoY +8,7 %
QoQ +3,8 %
New Branch # New Employee #
YoY 61 YoY +1000
Ytd 25 Ytd +130
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INVESTOR RELATIONS Investor Presentation_Bank Only Q108
www.vakifbank.com.tr
P & L ParticipantsInterest Income (TRY, mio) Net Interest Income
Net F & C Income/Op. IncomeNet F & C Income (TRY, mio)
YoY +14,4%
QoQ +5,6%
YoY +18,3%
QoQ +6,9%
YoY +59%
QoQ -6,4%YoY +532 bps
QoQ +210 bps
Net Interest Income Growth;
Ytd
%6,9Net F&C Income Growth;
YoY
%59
23
INVESTOR RELATIONS Investor Presentation_Bank Only Q108
www.vakifbank.com.tr
Earnings RatiosROA1 ROE1
Earnings Per Share (EPS)
*Tax return of TRY 125 mio in 3Q 2007 and one-off divident of TRY 19,5 mio in Q1 2007 are excluded on 2007 income items.1Ratios are calculated on quarterly participants.
Cost / Income (%)
Cost / Income ratio
% 41
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INVESTOR RELATIONS Investor Presentation_Bank Only Q108
www.vakifbank.com.tr
Yield, spread, cost of deposits, NIM (%)Yield on Loans & Securities Cost of Deposits
NIMSpreads
Cost of YTL Deposits Decrease;
Ytd
116 bps
NIM Increase;
Ytd
9 bpsDespite FX assets share increased %2,5
yoy +9 bps
YTL Loans YTL Securities
FX Loans FX Securities
YTL Loans YTL Securities
FX Loans FX Securities
YTL Deposits
FX Deposits
-0,4
+0,5
-0,3
-0,2
+0,7 +0,8
+0,5 -0,3
-1,16
+0,03
25
INVESTOR RELATIONS Investor Presentation_Bank Only Q108
www.vakifbank.com.tr
APPENDIX
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INVESTOR RELATIONS Investor Presentation_Bank Only Q108
www.vakifbank.com.tr
Vakif with numbersDistribution Channels & Customer Base (#)
Q12008
Branches 385
ATMs 2.041
Personnel 8.833
POS Terminals 90.600
Outstanding Credit Cards 1,96 mn
Debit Cards 13,0 mn
Total Customers 7,5 mn
Total Payroll Customers 2,0 mn
Internet Banking Customers 1,0 mn
Active Mutual Fund Customers 0,92 mn
Efficiency (‘000 TRY) Q12008
Assets per Employee 5.279,8
Assets per Branch 121.133,3
Loans per Employee 2.950,6
Loans per Branch 67.694,7
Deposits per Employee 3.626,6
Deposits per Branch 83.204,4
Most efficient bank in Turkey
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INVESTOR RELATIONS Investor Presentation_Bank Only Q108
www.vakifbank.com.tr
Balance Sheet(TRY-mio, %) Q12007 YE2007 Q12008
YoYGrowth
YtdGrowth
Cash & Balances with Central Bank 2.548 2.490 3.259 27.9% 30.9%
Interbank 3.743 3.462 3.684 -1.6% 6.4%
Securities 11.520 10.987 11.641 1.1% 6.0%
Loans 18.444 23.470 26.062 41.3% 11.1%
Subsidiaries & Investments 439 521 423 -3.6% -18.8%
Property & Equipment 895 906 928 3.7% 2.4%
Other 564 573 640 13.4% 11.6%
Total Assets 38.151 42.408 46.636 22.2% 10.0%
Deposits 25.726 28.863 32.034 24.5% 11.0%
Funds Borrowed 4.757 4.693 5.334 12.1% 13.7%
Other 2.977 3.128 3.681 23.7% 17.7%
Provisions 409 499 527 28.7% 5.6%
Shareholders Equity 4.282 5.226 5.061 18.2% -3.2%
Guarantees 4.965 5.841 7.085 42.7% 21.3%
Commitments 2.920 6.029 6.863 135.1% 13.8%
Derivatives 1.226 1.464 816 -33.4% -44.3
Ass
ets
Liab
ilities
& S
HE
Off
-B.S
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INVESTOR RELATIONS Investor Presentation_Bank Only Q108
www.vakifbank.com.tr
Income Statement(TRY-Thousand, %) Q12007 Q42007 Q12008
∆{Q108Q407}
∆{Q108Q107}
Net Interest Income 407.758 451.188 482.156 6.9% 18.3%
Net Fee & Com. Income 67.426 114.529 107.234 -6.4% 59.0%
Divident Income 19.941 0 2.279 - -88.6%
Net Trading Income 48.733 33.284 -17.895 n.a. n.a.
Other Income 96.480 50.924 102.978 102.2% 6.7%
Total Revenues 640.338 649.925 676.752 4.1% 5.7%
Operating Expense 241.456 275.331 277.497 0.8% 14.9%
Provisions 125.429 86.056 146.350 70.1% 16.7%
Tax Provisions 54.426 66.519 56.508 -15.1% 3.8%
Net Income 219.027 222.019 196.397 -11.5% -10.3%
Investor Relations Çamlık Cad. Çayır Çimen Sok. No:2 Kat:534330 1. Levent-İstanbul / Turkey E-mail: [email protected] (90-212) 316 7120Fax (90-212) 316 7126www.vakifbank.com.tr