Yap ı Kr e di 1Q 2007 E ar nings Pr e se ntation (31 Mar c h 2007, BRSA Bank- only Re sults) İ stanbul, 11 May 2007 1
1Q 2007 Ke y Highlights: “E nhanc e d pr o fitability & impr o ve d o pe r atio nal e ffic ie nc y” owth of 76% YoY (1) and 60% (1) QoQ (highe st among pe e r 188 mln of ne t inc ome ; gr of 22% (+7 � YT L s); ROE ppts up YoY N) � CAR up to 12.97% (+0.66 ppts) due to controlled RWA trend and improved profitability owth of 15% YoY (1) (20% (2) expected at YKB Gr oup le ve l) in a subdued market � He althy r e ve nue gr � No 1 position in the highe st yie lding c r d business further e nhanc e d through mar e dit c ar ke t shar e gains in il notwithstanding the solidifie d market positions (25.6 % in outstanding balance, +1.2 ppts vs March 06). Apr e ading position in mutual funds (#2) (20% market share) L � Additional ~182 e mploye e s shifted to br ont offic e during 1Q07, leading to an improvement in F anc h fr r ont atio of +3ppts vs YE06 ( up to 57% ); 7 ne w br anc h openings (total # of branches 615). Offic e r e Non-HR c osts down 9% YoY; Cost/ Inc ome down to 60% (-3 ppts YoY) ( 51% if cost base adjusted for � Cor IFRS) atio at 7.0% excluding the new regulation impact (7.5% including) with 81% NPL � NPL r pr ovisioning c ove r age � Upgrade by Moody’s of YKB’s BF ating to D+ (2 notc he s up), confirming quick post-merger recovery SR r � Start of KF oc e ss announced to br e lla with an aim to S r e str uc tur ing pr ing all financ ial subs unde r YKB umbr eliminate cross-ownership between YKB and KFS; more simplified structure, full transparency for the market and more efficient capital allocation. Comple tion of the pr oc e ss , subject to regulatory approvals, e xpe c te d within 2007 (1) In comparison with 1Q 2006 YKB merged bank figures normalized for the financial cost of stake increase and sub-loan as well as some minor accounting policy applications. 2 4Q 2006 normalized for some minor accounting policy applications (2) Management estimate based on consolidated IFRS figures
E nhanc e d pr o fitability and tighte r c o st c o ntr o l le ad to str o ng ne t inc o me gr o wth Ne t Inc ome (mln YT L ) ROE 76% +7 ppts 32% on tangible +5 ppts 60% 188 e quity 22% 140 20% 107 118 15% 17% 1Q06 1Q06 N 4Q06 N 1Q07 1Q06 1Q06 N 4Q06 N 1Q07 Cost / Inc ome Ne t Inc ome / Av.RWA -16 ppts -3 ppts 76% +76 bps 63% 58% 60% +86 bps 2.32% 65% (1) 2.04% 54% (1) 1.56% 51% (1) 1.46% 50% (1) 4Q06 N 1Q06 1Q06 N 1Q07 1Q06 1Q06 N 4Q06 N 1Q07 Throughout the presentation, “1Q06 N” refers to 1Q 06 YKB merged bank figures normalized for the financial cost of stake increase and sub-loan as well as 3 some minor accounting policy applications. “4Q06 N” refers to normalization for some minor accounting policy applications. (1) Cost base adjusted by provision expenses of pension fund and Worldcard points for comparison with IFRS guidance
Pr o c e ss o f making c apital ade quac y r atio mo r e so lid c o ntinue d No major impac t on e quity due 12 months ahe ad of Me r ge r with to May-June 2006 mar ke t Sub- loan of the or iginal plan Koç bank tur moil. De c r e ase in CAR mainly €500 mln (1) 13.0% dr ive n by one -off de fe r r e d tax 12.3% e ffe c t due to de c r e ase in T r ansfe r fr om c or por ate tax fr om 30% to 20% . 12.0% T ur kc e ll gain to T ie r 1 11.7% 10.5% Ac quisition 9.3% and ope ning 7.2% adjustme nts (2) 2,291 4,150 4,037 3.6% CAR 2,168 3,785 2,385 2,304 1,415 Capital 803 Base (mln YT L ) 4Q06 1Q07 3Q05 4Q05 1Q06 2Q06 3Q06 3Q06 Pr e -me r ge r YKB stand alone YKB + KB Post-me r ge r Yap ı Kr Pr o-for ma e di (1) Additional €350 mln sub-loan added to Koçbank’s Tier 2 Capital in April 2006 4 (2) Excluding deferred tax effect
Sustaine d r e ve nue gr o wth (+15% Yo Y) and c o st c o ntr o l (+9% Yo Y, -9% c o r e no n-HR c o sts ) in line with the budge t (3) 1Q06 1Q06 YoY % 1Q07 YoY % +20% (mln YT L ) malize d (1) Nor Nor malize d At YKB Group level including 684 T otal Re ve nue s 744 786 +6% +15% contributions 338 Net Interest Income 398 464 +16% +37% from the subs 345 Non-Interest Income 345 323 -7% -7% 194 +9% 211 o/w Fees & Comm. 194 +9% Ope r ating Costs (434) (434) (473) +9% +9% (148) HR costs (148) (184) +24% +24% (286) Non-HR costs (286) (289) +1% +1% (195) (195) (177) -9% -9%. Core Non-HR (2) 249 +26% Ope r ating Inc ome 309 313 +1% (75) Provisions (94) (84) -10% +12% 174 +32% Pr e -tax Inc ome 215 229 +6% 107 +76% Ne t Inc ome 140 188 +34% (1) YKB merged bank figures normalized for the financial cost of stake increase and sub-loan as well as some minor accounting policy applications 5 (2) Including depreciation and excluding HR related costs (such as management bonuses, ETB, and vacation rights ) and pension fund and bonus point provisions (3) Management estimate based on consolidated IFRS figures
He althy e ar nings str uc tur e dr ive n by c omme r c ial str ate gy foc use d on inc r e asing r e ve nue mar ke t shar e e (%, Yearly) Re ve nue (1) Mar ke t Shar Composition of Re ve nue s (mln YT L ) 9.8 (2) Ne t F e e s & 9.7 Commissions (mln YT L ) 786 211 15% 194 26% Cards and 684 10% cash loans - 23% 2005 2006 4% Other Oper. Inc. 16% - 2% Net Trading Inc. 7% Other fees - 34% 2006YE Re ve nue Composition + FX gain/(loss) 27% YKB vs Pe e r s & Se c tor Net Fees & 28% 1Q06 N 1Q07 Commissions 9% Other Oper. Inc. 10% 13% Net Trading Inc. 18% 1% + FX gain/(loss) Net Interest Net Fees & 26% 25% 20% 59% 49% Income Commissions 37% Net Interest 60% 61% 63% Income 1Q06 N 1Q07 - 1% Se c tor YKB Pe e r s e up to 9.8% in 2006 � Re ve nue mar ke t shar e st inc ome and 26% YoY inc r � 37% YoY inc r e ase in ne t inte r e ase in fe e & c ommission fr om c ar ds and c ash loans � Other fees down by 2% YoY mainly due to lower average AUM (1) System revenues excluding dividends and all asset sales (2) Excluding acquisition costs 6
Shar e o f IE As inc r e ase d to 92% (+3 ppts) dr ive n by e ffe c tive balanc e she e t r e str uc tur ing, no n-c o r e asse t dispo sal str ate gy and gr o wth in high yie lding asse ts � Continued de c r e ase in Composition Of Asse ts (mln YT L ) T L / F C Br e akdown of Asse ts (mln YT L ) As ; shr non-IE inkage of 3 ppts vs 1Q06 4% YT D 26% 46,744 � Shar e of loans in total asse ts 26% at 48% while 67% of total 46,744 loans constituted by higher 8% 37,082 37,082 - 27% margin YTL loans 13% 42% Non IE As 11% 30% 130% � YT L IE As c onstitute 55% of 9% F C 41% As driving higher Othe r IE As total IE 31% margins 41% Se c ur itie s (1) 29% 92% � F ur the r r oom for 89% impr ove me nt in 18% 23% 48% 58% atio (77%) L oans 51% YT L 59% loans/ de posits r � Since the acquisition at end-2005, se c ur e d 3.2 bln of c ash inflow , of which YT L 1Q06 1Q07 1Q06 1Q07 om the sale of 1.6 bln YT Lfr non-core assets and 1Q07 1Q06 2006 collection of receivables 67% 66% 68% T L L oans/ L oans (Turkcell, A-tel, 55% 59% 53% Fintur/Digiturk and T L IE As/ IE As Fiskobirlik) 77% 74% 72% L oans/ De posits (1) Securities including derivative accruals. 7
95% o f se c ur itie s po r tfo lio inve ste d in He ld-to -Matur ity, aime d at stable r e ve nue ge ne r atio n and limite d c apital at r isk Se c ur itie s Composition Se c ur itie s Composition by T ype (mln YT L ) by Curre nc y (mln YT L ) 11% YT D 14,654 14,654 38% 3% 2% 10,628 10,628 52% Available For Sale 5% - 41% 44% Trading (20% 6% 51% FLOATING) FC (42% - 42% 95% 96% FLOATING) 37% 48% 89% 46% 48% Held-to- 49% YTL (54% maturity (39% FLOATING) FLOATING) 1Q06 1Q07 1Q06 1Q07 � Strong focus on e ffe c tive r isk manage me nt pose ; options allowed only for client-driven transactions � De r ivative s allowe d only for he dging pur immediately fully hedged X spe c ulative ope n positions allowed ; VaR limits, stop loss, max ope n position monitor � No F e d on a daily basis � Securities de c line d by 11% YT itie s in total assets D due to r e de mptions of shor t te r m bonds; shar e of se c ur shr unk by 3 ppts to 31% YT D 8
Recommend
More recommend
