Embed Size (px)
Citation preview
2014 Q1 Earnings PresentationPresentation
AgendaAgenda
1. Macro Economic / Banking Outlook
2. Q1 2014 Financial Results
3. Market Comparison
4. Appendix
Macro Economic / Banking Outlook
Global Economy
• Portfolio flows to emerging economies remained weak in the first quarter of 2014 because of the continuing global uncertainty about monetary policies.
• Markets have started to discuss the timing and pace of interest rate hikes of FED.
• Economic activities in European countries are still not at the desired
Macroeconomic Outlook
• Economic activities in European countries are still not at the desired level and it is expected that ECB will be introduced monetary easing.
• Political tensions between Russia and western countries put pressure on global economy.
Turkish Economy
• After the huge interest rate hike of CBRTdollar has been under controlled.
• Apart from the positive affects of the interest rate increase, economic activity will be slowdown in the first quarter.
• Price stability was deteriorated and core inflation reached double digit because of the secondary effects of the depreciation in TRL.because of the secondary effects of the depreciation in TRL.
• Tension in the local political arena calm down but not eliminatethe local elections.
3
Portfolio flows to emerging economies remained weak in the first quarter of 2014 because of the continuing global uncertainty about monetary policies.
Markets have started to discuss the timing and pace of interest rate
Economic activities in European countries are still not at the desired Economic activities in European countries are still not at the desired level and it is expected that ECB will be introduced monetary easing.
Political tensions between Russia and western countries put pressure on
interest rate hike of CBRT, depreciation in TRL against under controlled.
Apart from the positive affects of the interest rate increase, economic activity will be slowdown in the first quarter.
Price stability was deteriorated and core inflation reached double digit cause of the secondary effects of the depreciation in TRL.cause of the secondary effects of the depreciation in TRL.
Tension in the local political arena calm down but not eliminated after the local elections.
Banking Industry
• In the first quarter of 2014, net profit of banking sector decreased by 13.9% year on year basis.
• At the same period, credit growth rate reached 3.4% while NPL amount raised 5.8%.
• Increase in interest rates depressed credit demand and lowered
Banking Industry and Participation Banks
• Increase in interest rates depressed credit demand and lowered banks profitability.
• Sector continued to rollover the amount of syndication and issued new debt instrument.
Participation Banks
• In the first quarter of 2014, participation banks grew under the baking sector .
• Continuing branch network expansion.
• Sukuk issuances will continue in 2014.
• New participation banks would not be realized in 2014.• New participation banks would not be realized in 2014.
4
In the first quarter of 2014, net profit of banking sector decreased by 13.9% year on year basis.
At the same period, credit growth rate reached 3.4% while NPL amount raised 5.8%.
Increase in interest rates depressed credit demand and lowered Increase in interest rates depressed credit demand and lowered banks profitability.
Sector continued to rollover the amount of syndication and issued new debt instrument.
In the first quarter of 2014, participation banks grew under the baking sector .
Continuing branch network expansion.
Sukuk issuances will continue in 2014.
New participation banks would not be realized in 2014.New participation banks would not be realized in 2014.
AgendaAgenda
1. Macro Economic / Banking Outlook
2. Q1 2014 Financial Results
3. Market Comparison
4. Appendix
Macro Economic / Banking Outlook
Financial Results
17.21717.810
Total assets (million TRL)
3.4%
YtD Growth: 3.4 %in TRL terms YtD Growth: 3.4 in USD terms
Growth in total assets
11.54212.328
13.38314.177
15.424
6.4306.926
7.477 7.426 7.658 8.045 8.322
Sep'12 Dec'12 Mar.13 June'13 Sep'13 Dec'13 Mar'14
TRL USD*
*USD equivalent of total assets
L/D (Q1) = 96%
6
Asset Segmentation (Q1’14) (%)
22
7
68
3
Liquid Assets
Securities PortfolioFunded Credits
Other Assets
12.16612.06011.188
10.3899.401
TRL
YtD Growth: 0.9 %in TRL terms YtD Growth: 0.9 in USD terms
Total Funded Credits* (million)
0.9%
Growth in funded credits
5.6855.6355.5555.4425.252
Mar'14Dec'13Sep'13June.13Mar.13
TRL
USD*
Credit Yields(1) (%)
*USD equivalent of total funded credits
12,4612,8013,21
14,1514,7114,8314,85
14,0213,4113,08
11,7211,7811,93
(1) Profit share income received from credits for the last 12M/12M average credits
6,677,176,877,127,277,097,237,257,297,22
10,1410,5410,66
11,3211,7211,7811,93
11,4811,1510,89
Mar.14Dec'13Sep'13June.13Mar.13Dec'12Sep'12Jun.12Mar.12Dec.11
LC Credits Yields FC Credits Yields Total Yields
729
Held to Maturity
Available for sale
7
Total Securities Portfolio (TRL million)
747 744
935991
1.259
530
246196159160
745739
585587
Mar'14Dec'13Sep'13June.13Mar.13
Securities Yield(2) (%)
9,7310,1010,25
9,95
(2) Profit share income received from securities for the last 12M/12M average securities
6,486,436,396,57
6,76
8,53
Mar.14Dec'13Sep'13June.13Mar.13Dec'12Sep'12Jun.12Mar.12Dec.11
Securities Yield (%)
Q2’13 Q3’13 Q4’13 Q1’14
Corporate Credits 37.6 39.4 38.8 40.0
SME Credits 51.2 48.7 48.9 48.1
Composition of Total Funded Credits* (%)
Funded Credits Portfolio
SME Credits 51.2 48.7 48.9 48.1
Retail Credits 11.2 11.9 12.3 11.9
Total 100.0 100.0 100.0 100.0
Total Retail credits *(TRL million)
*According to BRSA definition
60
6466 58
74
8896 97
Other
* *Excluding installment based commercial credits and corporate credit cards
45 56 73 78 87
89
1
96
3
1.0
86
1.1
52
1.1
87
50607074
Q1'13 Q2'13 Q3'13 Q4'13 Q1'14
Other
Credit Cards
Housing
Vehicle
Consumer
8
12
TRL
Currency Composition of Total Funded Credits (Q1’14, %)
• Retail credits (excluding installment based commercial credits and corporate credit cards) grew to 1,437million TRL in
6028
TRL
USD*
EUR*
*Including USD & EUR indexed credits
credit cards) grew to 1,437million TRL in March 31, 2014 up from 1,398 million TRL in Q4 2013
• Housing finance is primary segment among retail credits
Non-performing Loans (TRL million)
Asset quality
282280285263
210
247253239
212
176
210224
270261
223
NPL Specific Provisions Collateral
NPL Ratio*
Q1'14Q4'13Q3'13Q2'13Q1'13
2,54%2,53%
2,45%
* Including financial leasing & accruals and rediscounts
2,32%
2,32%
2,23%
2,27%
2,18%
2,35%
Mar'14Dec'13Sep'13June'13Mar'13Dec'12Sep'12June'12Mar'12
9
Composition of NPL (Q1’14) (%)
36
6
Depositor's Share in P.Pools
From Bank's Own
58
From Bank's Own Equity
Bank's Share in P.Pools
Cost of Risk** (bps)
104
136
151148
116
100
88
** Specific provisions for credits for last 4Q/4Q average credits
7267
88
Mar'14Dec'13Sep'13June'13Mar'13Dec'12Sep'12June'12Mar'12
Composition of Total Liabilities (Q1’14, %) Composition of Funding Base (TRL million)
Total Liabilities
17%
15%
69%
71
14
96
Fund Collected Wholesale Funding
Shareholders Equity Other Liabilities
12,013
• Participation accounts are still main source of funded credits
• Alternative funding (murabaha syndication and wakala) helps to diversify funding sources
Shareholders Equity Other Liabilities
10
Composition of Funding Base (TRL million)
14,995 15,168
17%17%17%18%17%
14%17%16%15%15%
69%66%
67%68%69%
Q1
'14
Q4
'13
Q3
'13
Q2
'13
Q1
'13
Participation Accounts
Current Accounts
Funds Borrowed
12,01312,308
13,174
14,995
Participation accounts are still main source of funded credits
yndication and wakala) helps to diversify funding sources
Total Funds Collected (million)
14.8%
Total Funds Collected
12.64212.526
10.90710.14710.096
9.225
5.9075.8535.4165.3155.640
5.183TRL
YtD Growth: 0.9 %in TRL termsYtD Growth: 0.9 in USD terms
11%3%
*USD equivalent of total funded credits
Currency Composition of Participation Accounts (Q1’14)
5.9075.8535.4165.3155.640
5.183
Mar'14Dec'13Sep'13June'13Mar'13Dec'12
USD*
62%
24%
TRL
USD
EUR
GOLD
11
Cost of Funds Collected (1)
6,926,777,06
7,68
8,398,888,83
8,32
7,71
5,405,355,61
6,09
6,677,117,15
6,856,45
LC FC Total
1732 7
Current Acc.
Maturity Composition of Funds Collected (Q1’14, %)
(1) Profit share expense to depositors for the last 4Q/4Q average participation accounts
3,013,093,273,58
3,964,264,364,254,08
Mar'14Dec'13Sep'13June'13Mar'13Dec'12Sep'12June'12Mar'12
51
20
Current Acc.
Up to 1 month
Up to 3 months
Up to 6 months
Up to 1 year
>1year
Off Balance Sheet Composition
Off balance sheet growth
7%6%7%8%8%
25%25%22%21%20%
Others*
Off Balance Sheet (TRL million)
68%69%71%70%71%
Mar'14Dec'13Sep'13June'13Mar'13
Others*
LC
LG
Q1 ’13 Q2 ’1
Letter of Guarantee 4,594 4,694
Letter of Credit 541 559
Others* 1,317 1,423
Total: 6,452 6,676
*Revocable credit limits not included.
12
LGs-to-Total Assets
29%30%32%33%34%
37%
40%43%
45%
Growth (%)
Mar'14Dec'13Sep'13June'13Mar'13Dec'12Sep'12June'12Mar'12
’13 Q3 ’13 Q4 ’13 Q1 ’14 Q-Q YtD
4,694 4,944 5,232 5,242 0.2 0.2
559 519 482 514 6.6 6.6
1,423 1,519 1,917 1,955 1.9 1.9
6,676 6,983 7,631 7,710 1.0 1.0
(000 TRL)Year on Year Change Quarterly Change
Q1’13 Q1’14 % Q4’13 Q1’14
Net Profit Share Income
150.799 146.309 -3,0 173.426 146.309
Income-Cost Dynamics
Share Income
Net FeeIncome
25.688 29.592 15,2 29.955
Net Trading Income
7.965 17.002 113,5 15.743
Other Income 58.809 41.107 -30,1 38.950
Provisioning 85.091 24.698 -71,0 26.871Provisioning 85.091 24.698 -71,0 26.871
Other Costs 90.233 128.781 42,7 124.756 128.781
Tax 14.227 18.953 33,2 16.725
Net Profits 53.710 61.578 14,6 89.722
13
Change Notes
Q1’14 %
146.309 -15,6
Profit share expense increased by 39.6% while PSI raised by 16.2% yoy basis. Quarterly decrease in NPSI stems from the difference of joint venture projects returns which are TRL 14.9 mln and TRL 36.6 mln for Q114 and Q413, TRL 14.9 mln and TRL 36.6 mln for Q114 and Q413, respectively.
29.592 -1,2 There is no significant change in fee income trend.
17.002 8,0 High FX trading income was earned on YoY basis.
41.107 5,5YoY decline was arised from base affect of the one-off NPL collection in Q113. Cancellation of provision in Q4’13 for bonus payment supported QoQ growth.
24.698 -8,1 Specific provisioning cost is in line with our projections.24.698 -8,1
128.781 3,2Yoy increase in other costs can be attributable to staffcost, new branch openings and transformation project. (2new branches in Q1’14)
18.953 13,3 -
61.578 -31,4 -
Branch and staff size
Total Employees Size
3.1403.057
2.7582.601
2.175
1.9341.799
Total Number of Branches
1.477
1.156
909739
1Q'142013201220112010200920082007200620052004
169167
137
123
109101100
80
1Q'142013201220112010200920082007
14
Albaraka Türk Branches
İstanbul 67 Hatay 2 Aksaray 1 Çankırı 1 Şanlıurfa 1
Ankara 16 Kütahya 2 Elazığ 1 Malatya 1 Balıkesir 1
İzmir 6 Manisa 2 Erzurum 1 Aydın 1 Tokat 1
Bursa 6 Tekirdağ 2 Eskişehir 1 Maraş 1 Trabzon 2
Current Branches
Bursa 6 Tekirdağ 2 Eskişehir 1 Maraş 1 Trabzon 2
Adana 5 Samsun 2 Giresun 1 Nevşehir 1 Van 1
Konya 5 Batman 1 Afyon 1 Ordu 1 Yalova 1
Kocaeli 5 Bolu 1 Isparta 1 Osmaniye 1 Zonguldak 1
Kayseri 3 Çanakkale 1 Mersin 1 Rize 1 Mardin 1
Antalya 4 Çorum 1 Karaman 1 Sakarya 1 Erbil* 1
Diyarbakır 2 Denizli 1 Karabük 1 Adıyaman 1
Gaziantep 2 Düzce 1 Kastamonu 1 Sivas 1
AgendaAgenda
1. Macro Economic / Banking Outlook
2. Q1 2014 Financial Results
3. Market Comparison
4. Appendix
Macro Economic / Banking Outlook
Total growth – 2014/03
Percent 2013 (12 Months)
AlbarakaTürk
ParticipationBanks
Asset Size 39.7 35.7
Total Credits 32.2 35.0Deposits/CollectedFunds 35.5 27.9
16
2014 (3 Months)
Banking Sector
AlbarakaTürk
ParticipationBanks
Banking Sector
26.4 3.4 -0.6 3.7
32.1 0.7 -3.4 3.4
22.5 0.9 -3.9 1.5
Market Share– 2014/03
Percent 2013 (12 Months)
Albaraka Türk/ AlbarakaTürk/ ParticipationAlbaraka Türk/Participation
Banks
AlbarakaTürk/BankingSector
ParticipationBanks/Banking
Sector
Asset Size 17.9 1.0 5.6
Total Credits 17.7 1.1 6.3
Deposits/CollectedFunds
20.3 1.3 6.5
17
2014 (3 Months)
Participation Albaraka Türk/ ParticipationParticipationBankingSector
Albaraka Türk/Participation
Banks
AlbarakaTürk/Banking Sector
ParticipationBanks/Banking
Sector
5.6 18.6 1.0 5.3
6.3 18.5 1.1 5.9
6.5 21.4 1.3 6.1
Percent 2013 (12 Months)
Albaraka TürkParticipation
Banks
CAR 14.86 14.00
NPL Ratio 2.32 3.29
Ratios
Provisioning Ratio 90.62 64.23
ROAA (IBT) 1.99 1.58
ROAE (NI) 17.72 13.06
Yield 8.89 8.54
Spread 4.95 4.76
Net Profit Share Margin 4.92 4.76
Net Fee Income / Avg. Assets 1.52 1.35
Op Costs / Avg. Assets 2.97 3.13
Cost/Income* 45.14 49.82Cost/Income* 45.14 49.82
Credits / Branches (000 ‘TRL) 72,215 70,425
Staff / Branches 18.31 17.41
CA / Deposits** 20.40 24.54
*Cost: Operating Costs, Income: NII/NPSI, Net Fees and Commissions Income, Other Income
**Accruals and rediscounts excluded
2014 (03 Months)
BankingSector
Albaraka Türk
ParticipationBanks
BankingSector
15.30 15.18 14.45 15.75
2.75 2.32 3.65 2.82
76.39 87.33 62.25 76.71
2.03 1.93 1.52 1.82
13.14 17.46 13.05 12.46
8.51 8.62 8.32 8.40
4.30 4.62 4.52 4.05
4.53 4.57 4.54 4.25
1.22 1.41 1.25 1.17
2.70 2.70 3.07 2.61
45.73 55.03 51.16 47.2645.73 55.03 51.16 47.26
89,682 71,697 66,935 92,335
17.88 18.58 17.55 17.89
18.73 16.97 21.71 18.09
Cost: Operating Costs, Income: NII/NPSI, Net Fees and Commissions Income, Other Income
AgendaAgenda
1. Macro Economic / Banking Outlook
2. Q1 2014 Financial Results
3. Market Comparison
4. Appendix
Macro Economic / Banking Outlook
Summary Balance Sheet
(Thousand TRL)
Cash and Banks
Financial Assets
Funds Utilized
Cash Credits
NPL
Provisions
Net Financial Leasing Receivables
Investments Held to Maturity (Net)
Associates
Fixed Assets
Assets Held For Sale and Investment
Other Assets (inc. Tax Assets)
Total Assets
Funds Collected
Funds Borrowed
Debts (inc. Taxes)
Provisions
Tier II SukukTier II Sukuk
Shareholders’ Equity
Capital
Capital Reserves (inc. Premium)
Profit Reserves
Profits
Past Periods
Current Year
Total Liabilities
20
Dec'13 Mar'14 Growth (%)
3.661.389 3.830.520 4.6
245.681 537.947 119.0
12.059.901 12.166.320 0.9
11.961.340 12.037.927 0.6
279.668 282.310 0.9
253.428 246.533 -2.7
72.321 92.616 28.1
745.390 728.589 -2.3
9.961 14.961 50.2
396.543 406.072 2.4
28.407 22.963 -19.2
69.281 102.519 48.0
17.216.553 17.809.891 3.4
12.526.212 12.641.768 0.9
2.035.816 2.084.718 2.4
522.821 913.000 74.6
201.463 197.875 -1.8
432.973 441.236 0.0432.973 441.236 0.0
1.497.268 1.531.294 2.3
900.000 900.000 0.0
92.780 96.603 4.1
261.645 470.272 79.7
242.843 64.419 -73.5
1.434 2.841 98.1
241.409 61.578 -74.5
17.216.553 17.809.891 3.4
Summary Income Statement
(Thousand TRL)
Profit Share Income
Profit Share Expense
Net Profit Share IncomeNet Profit Share Income
Net Fees and Commissions Income
Fees and Commissions Recvd
Fees and Commissions Paid
Net Trading Income
Other Operating Income
Total Operating Profit
Provisions for Loan LossesProvisions for Loan Losses
Other Operating Expenses
Net Operating Profit
Tax Provision
Net Profits
21
Mar ’13 Mar ’14 Growth (%)
274,166 318,539 16.2
123,367 172,230 39.6
150,799 146,309 -3.0150,799 146,309 -3.0
25,688 29,592 15.2
32,164 36,114 12.3
6,476 6,522 0.7
7,965 17,002 113.5
58,809 41,107 -30.1
243,261 234,010 -3.8
85,091 24,698 -71.085,091 24,698 -71.0
90,233 128,781 42.7
67,937 80,531 18.5
14,227 18,953 33.2
53,710 61,578 14.6
THANK YOUTHANK YOU
Disclaimer
THIS PRESENTATION AND THE INFORMATION CONTAINED HEREIN IS CONFIDENTIAL AND MAY NOT BE REPRODUCED, CIRCULATED, DISTRIBUTED OR
RECIPIENTS TO ANY OTHER PARTY. BY VIEWING THIS PRESENTATION, YOU AGREE TO BE BOUND BY THE FOREGOING LIMITATIONS.
This presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any of
any part of it form part of or be relied on in connection with any contract or investment decision relating thereto, nor does
information contained in this document is published for the assistance of recipients, but is not to be relied upon authoritat
The Bank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this document The Bank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this document
the basis of sound financial analysis on the part of the investor, with no liabilities arising against the Bank.
The information used in preparing these materials was obtained from or through the Bank or the Bank’s representatives or from
believed to be reliable, no reliance may be placed for any purposes whatsoever on the information contained in this presentat
presentation is subject to verification, completion and change.
The projections, forecasts and estimates of the Bank contained herein are for illustrative purposes only and are based on man
estimates involve known and unknown risks and uncertainties that may cause actual results, performance or events to differ ma
disclaims any obligation or undertaking to update or revise any projections, forecasts or estimates contained in this present
circumstances on which any such statements are based unless so required by applicable law. Investors should note many differe
of the plans and projections described herein. As a result, you are cautioned not to place undue reliance on any forward
members, directors, officers and employees disclaim any liability in case projections and plans given in this document are no
23
THIS PRESENTATION AND THE INFORMATION CONTAINED HEREIN IS CONFIDENTIAL AND MAY NOT BE REPRODUCED, CIRCULATED, DISTRIBUTED OR PUBLISHED (IN WHOLE OR IN PART) OR DISCLOSED BY
RECIPIENTS TO ANY OTHER PARTY. BY VIEWING THIS PRESENTATION, YOU AGREE TO BE BOUND BY THE FOREGOING LIMITATIONS.
This presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase any securities of Albaraka Türk Katılım Bankası A.Ş., nor shall
any part of it form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of the Bank. The
information contained in this document is published for the assistance of recipients, but is not to be relied upon authoritative or taken in substitution for the exercise of judgment by any recipient.
The Bank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this document or its content. Any purchase of shares of the Bank should be made solely on The Bank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this document or its content. Any purchase of shares of the Bank should be made solely on
the basis of sound financial analysis on the part of the investor, with no liabilities arising against the Bank.
The information used in preparing these materials was obtained from or through the Bank or the Bank’s representatives or from public sources. Although prepared in good faith and from sources
believed to be reliable, no reliance may be placed for any purposes whatsoever on the information contained in this presentation or on its accuracy, completeness or fairness. The information in this
The projections, forecasts and estimates of the Bank contained herein are for illustrative purposes only and are based on management’s current views and assumptions. Such projections, forecasts and
estimates involve known and unknown risks and uncertainties that may cause actual results, performance or events to differ materially from those anticipated in this presentation. The Bank expressly
disclaims any obligation or undertaking to update or revise any projections, forecasts or estimates contained in this presentation to reflect any change in events, conditions, assumptions or
circumstances on which any such statements are based unless so required by applicable law. Investors should note many different risk factors could adversely affect the outcome and financial effects
of the plans and projections described herein. As a result, you are cautioned not to place undue reliance on any forward-looking statements. The Bank, its advisers and each of their respective
members, directors, officers and employees disclaim any liability in case projections and plans given in this document are not realised.
Contact us
Investor Relations Department
Address : Saray Mahallesi Dr.Adnan Büyükdeniz Caddesi No:6 34768 Ümraniye/ İSTANBULE-mail : [email protected] : +90 216 666 03 03Tel : +90 216 666 03 03Fax : +90 216 666 16 20 Internet : www.albarakaturk.com.tr
24
: Saray Mahallesi Dr.Adnan Büyükdeniz Caddesi No:6 34768 Ümraniye/ İSTANBUL
