Investor Presentation Brsa Bank-Only Q108 July 2008

Transcription

1 Investor Presentation Brsa Bank-Only Q108 July 2008

2 VakifBank at a glance 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 middleclass 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; 2

3 Ownership Structure Ownership Structure GDF General Directorate of Foundations manages foundations owning 58,45% (43,0% Class A, 15,45% Class B) of the shares in the bank. The GDF was established in 1924 to administer and regulate Turkish charitable foundations as a state entity directly reporting to the Prime Minister. VB Pension Fund* The VakifBank Pension Fund has a 16,10% stake in the Bank s capital as a Class C shareholder. All the Bank s employees contribute to the Vakifbank Pension Fund as opposed to the mandatory social security coverage by the state Social Insurance Institution Free Float Listed in IMKB as VAKBN and mainly held by international institutional investors. Other Non-affiliated foundations with seperate board of trustees & individual or legal entities. *As of, the actuarial report indicates that Vakifbank Pension Fund has a surplus with real interest rate of %9,8 3

4 Subsidiaries & Affiliates Financial 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 4

5 Work Under Progress steps forward in credit card business New Corporate identity branch network expansion work under progress HQ move to Istanbul IT transform ation Vakifbank expands its geographic presence all over Turkey with focus on Istanbul and Marmara region. Two important projects in credit cards; Vakif World & Vakif Rail&Miles. Upgrade of IT system to support the growth of the Bank in all business lines. HQ will move to capital of financial sector, Istanbul. New corporate identity, new logo & new colours. 5

6 Vakif World and Vakif Rail&Miles rises Vakif World, the co-branded credit card with leading brand in this business line will be the biggest of its kind in Turkey. Vakif Rail & Miles Card Project, special credit card to be used in intercity railways launched in March Boost to Net F&C Income and doubling of market share by 2010 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. 6

7 Heavier usage of technology, higher the market share ATM GSM DOKUNMATIK Extensive use of alternative distribution channels contribute strong general purpose consumer loan growth 7

8 A Technological Step From Vakifbank Restructuring program started in early 2005 with McKinsey IBM & Cisco started to work on IT Transformation project in 2007 Front Office, CRM, MIS and Data Warehouse applications will be implemented Higher cross-selling ratios, fee & commissions & revenues, Increased IT capacity enabling faster and higher quality customer service, necessary database and reporting standards for Vakifbank s roadmap in transition to Basel II. 8

9 2008 Q1 Highlights 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 9

10 Diversification of Asset Mix Towards IEA Total Assets (TRY bio) Breakdown of Assets (TRY bio) YoY +22,2% Ytd +10,0 % IEA 33,6 IEA 37,9 IEA 41,4 Asset Growth; Ytd Interest Earning Assets (TRY bio) YoY +22,8 % Ytd +9,2 % %10 10

11 Expansion of Loan Portfolio Continued Total Loans (TRY bio) Breakdown of Loans (TRY bio) YoY +41,3% Ytd +11,1% 6,7 7,5 Total Loans growth; Ytd 5,2 16,7 18,6 Loan/Deposits (%) YoY +967 bps 13,2 %11,1 FX Loans Growth in USD; Ytd Ytd +4 bps %14,9 *Includes credit cards and overdrafts. 11

12 Strong Retail Loan Growth General Purpose Consumer Residential Mortgages 1 YoY +73,5% Ytd +10,6% YoY +39,5 Ytd +15,4% Market Share Gain in; Total Retail Total Retail 2 YoY +51,1% Ytd +12,2% Retail Cross-Selling Ratio YoY +37 bps 32 bps, Mortgage 45 bps. 1 Includes TOKI. 2 Excludes credit cards and overdrafts. 12

13 Commercial, Corporate and SME Evolution Commercial & Corporate YoY +47,1% Ytd +14,5 SME (Commercial Installments) YoY +25,5% Ytd +2,4% Guarantees YoY +42,7% Ytd +21,3% SME Cross-Selling Ratio YoY +61 bps Commercial & Corporate Loan Growth; Ytd %14,5 13

14 Market Shares (%) Deposits and Funding Loans Payroll 1 Total Deposits YTL Deposits Total Loans Retail Loans 2 SME Installment +2 +0,3 +0,1 +0,3-0,7 Distribution # Branch ATM Debit Card # 1 in payroll +0,1 +0,2 # 1 in debit card # Market shares are calculated using weekly BRSA reports. 1 Vakifbank estimates. 2 Includes home, auto and other, credit card loans and overdrafts not included. 14

15 Deposit Evolution Loans and Deposits (TRY,bio) Breakdown of Liabilities (%) Total Deposits Growth; Ytd %11 Loan/Deposit 15

16 Strong Deposit Growth Deposit Composition (TRY,bio)* Breakdown of deposits (%) TRY %75,8 TRY %78,3 TRY %75,5 FX Deposits Growth in USD; Ytd %12,2 *Total deposits do not include interbank deposits and accrued interests for deposits. 1 Represents deposits taken from retail customers. 2 Represents deposits taken from government related companies, SME s and other entities. 16

17 Focus on Retail Deposits Retail Deposits (TRY, bio) Demand Deposits (%) YoY +14,5 % YoY +10,1% Ytd +11,4 % Ytd +1,5% Retail Deposits Growth; Ytd %11,4 State Deposits (TRY, mio) YoY +38,9% Ytd +9,1% State Deposit Share in Total; %32 in YE05 %24 in Q108 17

18 Securities Portfolio Evolution Total Securities (TRY, mio) YoY +%1,1 Ytd +%6, Portfolio Structure YTL FX FX Securities Fixed Rate share; in Q107, %55,5 in Q108, %73,5 FX margins up thanks to Fed Rate Cuts 18

19 Asset Quality Continue to Improve NPL 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 19

20 Capital Position & CAR (TRY-mio) YE2006 YE2007 Q12008 (TRY-mio) YE2006 YE2007 Q12008 Paid in Capital Share Premium Reserves Net Profit Prepaid Expense (-) Intangible Assets Core Capital Supplementary Capital General Provisions Bonus Shares of Sub.&Aff %45 of Sec.value inc Capital Deductions From Capital Total Shareholders Equity Total RWA Total Credit RWA %20 Risk Weighted %50 Risk Weighted %100 Risk Weighted %150 Risk Weighted 1 N.A. N.A. 20 %200 Risk Weighted 1 N.A. N.A. 0,05 Value at Market Risk Value at Operational Risk 3 N.A CAR %20,73 %15,35 %13,47 TRY mio worth AFS Securities are added to Value at Market Risk Computations in 2008 imposed by BRSA 1 New regulation imposed by BRSA for long term credit card exposure. 2 AFS securities portfolio is added to the computations. 3 Added to the CAR calculations fter 2H07. 20

21 Earnings Summary (TRY-mio, %) Q12007 Q12008 Growth Net Interest Income % Net F&C Income % Net Trading Income n.a. Divident Income % Other Operating Income Total Operating Income Total Operating Expenses (-) % % % Operating Profit % Provisions (-) % Tax Provisions (-) % Income from investments Net Monetary Gain/Loss 0 0 n.a. 0 0 n. a. Net Income % Net Banking Income Composition YoY +8,7 % QoQ +3,8 % New Branch # New Employee # YoY 61 YoY Ytd 25 Ytd

22 P & L Participants Interest Income (TRY, mio) Net Interest Income YoY +14,4% QoQ +5,6% YoY +18,3% QoQ +6,9% Net Interest Income Growth; Ytd %6,9 Net F & C Income (TRY, mio) YoY +59% QoQ -6,4% Net F & C Income/Op. Income YoY +532 bps QoQ +210 bps Net F&C Income Growth; YoY %59 22

23 Earnings Ratios ROA 1 ROE 1 Cost / Income (%) Earnings Per Share (EPS) Cost / Income ratio % 41 *Tax return of TRY 125 mio in 3Q 2007 and one-off divident of TRY 19,5 mio in Q are excluded on 2007 income items. 1 Ratios are calculated on quarterly participants. 23

24 Yield, spread, cost of deposits, NIM (%) Yield on Loans & Securities YTL Loans -0,4 YTL Securities -0,3 Cost of Deposits YTL Deposits -1,16 Cost of YTL Deposits Decrease; Ytd FX Loans +0,5 FX Securities -0,2 FX Deposits +0, bps Spreads YTL Loans YTL Securities +0,7 +0,8 NIM yoy +9 bps NIM Increase; Ytd FX Loans +0,5 FX Securities -0,3 9 bps Despite FX assets share increased %2,5 24

25 APPENDIX 25

26 Vakif with numbers Distribution Channels & Customer Base (#) Q12008 Branches 385 ATMs Personnel POS Terminals Outstanding Credit Cards Debit Cards Total Customers Total Payroll Customers Internet Banking Customers Active Mutual Fund Customers 1,96 mn 13,0 mn 7,5 mn 2,0 mn 1,0 mn 0,92 mn Efficiency ( 000 TRY) Q12008 Assets per Employee 5.279,8 Assets per Branch ,3 Loans per Employee 2.950,6 Loans per Branch ,7 Deposits per Employee 3.626,6 Deposits per Branch ,4 Most efficient bank in Turkey 26

27 Off-B.S Liabilities & SHE Assets INVESTOR RELATIONS Balance Sheet (TRY-mio, %) Q12007 YE2007 Q12008 YoY Growth Ytd Growth Cash & Balances with Central Bank % 30.9% Interbank % 6.4% Securities % 6.0% Loans % 11.1% Subsidiaries & Investments % -18.8% Property & Equipment % 2.4% Other % 11.6% Total Assets % 10.0% Deposits % 11.0% Funds Borrowed % 13.7% Other % 17.7% Provisions % 5.6% Shareholders Equity % -3.2% Guarantees % 21.3% Commitments % 13.8% Derivatives %

28 Income Statement (TRY-Thousand, %) Q12007 Q42007 Q12008 {Q108 Q407} {Q108 Q107} Net Interest Income % 18.3% Net Fee & Com. Income % 59.0% Divident Income % Net Trading Income n.a. n.a. Other Income % 6.7% Total Revenues % 5.7% Operating Expense % 14.9% Provisions % 16.7% Tax Provisions % 3.8% Net Income % -10.3% 28

29 Investor Relations Çamlık Cad. Çayır Çimen Sok. No:2 Kat: Levent-İstanbul / Turkey investor.relations@vakifbank.com.tr Tel (90-212) Fax (90-212)