Akbank Presentation. October 2011

Transkript

1 Akbank Presentation October 0

2 Agenda Turkish economy & banking sector Akbank Strategy 8 Financial performance 7 Annex

3 Turkish Economy The economy was only partly affected from the global crisis Turkey has many strengths: Robust medium/long term growth potential Favorable demographics and unsaturated markets that support growth Rising per capita income Strong fiscal discipline Lower exposure to the EU Banking sector remains resilient Underlying fundamentals justify the recent credit upgrades by agencies; Turkey is on the verge of becoming investment grade With shifting global balances, EM s will now be the drivers of global growth. Turkey will be in the forefront

4 The banking sector remained resilient due to... Absence of sub-prime exposure Low penetration of derivative products Healthy balance sheets Robust capital base, high capital adequacy ratio of 7% Robust risk management Low loans to deposit ratio Low leverage ratio of 8x, well below international averages of 0-40x Efficient regulation and supervision 4

5 Akbank

6 Akbank is Turkey s Leading Bank First or second most valuable company in Turkey Mostly # to # institution in profit and market value in the last 0 years Stable shareholder base with long term vision Long-term strategic management with successful implementations Strong management track record in best in class risk management Pioneer in good governance and CSR practices The innovative power of Turkey with countless firsts in the sector Assigned a higher rating than the sovereign by Fitch and Moody s Ownership Structure Free Float Sabancı Holding, affiliated institutions and individuals Citigroup Approx. % of the outstanding shares is held by foreign investors 6

7 Akbank differenciated itself in the current banking environment Strong liquidity Loan-to-deposit ratio 9.8% (peer group 97.8%) Leverage 7.X (peer group 8.8x) Robust capital structure CAR 7.% (peer group 6.4 %) Tier I Ratio 6.4% (peer group. %) Strong free equity Effective asset liability management Interest rate risk is well managed Duration gap -. months CPI linkers - hedge against inflation Diversified funding base High borrowing capability to support leverage Diversified deposit base Superior asset quality NPL ratio.7% (peer group.6%) 00% specific provisioning (peer group 8.8%) 7

8 Our strategy 8

9 Strategy Customer Oriented Growth Increased sales effectiveness Innovative products&services Best customer experience Operational Excellence Excellence in distribution Excellence in IT Prudent Management Strong balance sheet structure Strong corporate governance Sustainable Profitable Growth 9

10 Increased sales effectiveness Improved CRM capability Integrated customer management Customized offers in all channels Real time marketing Increased branch sales effectiveness SME branch network re-structured Standardized sales approach Regional sales strategies Every branch personnel as a sales person Enhanced monitoring and reporting 0

11 Innovative products and services Money transfer via GSM Bundled products Prepaid pricing Money conveniently transferred from an Akbank account or credit card to: any Akbank account, any credit card, Akbank ATM through all GSM operators in 0 seconds Menu Products: Consumer Loan Bundle - loan, credit card, utility payments Mortgage Bundle - mortgage, credit card, life insurance Private Pension Bundle - private pension, credit card Saving Bundle - credit card, time deposit Packaged pricing: Money transfers Check transactions Statements

12 Excellence in distribution and IT Excellence in branches Extensive & strategically well-positioned branch network Customer prioritization Customer satisfaction KPI Decreased waiting time to 7 minutes Excellence in non-branch channels 6% of transactions non-branch nd biggest ATM chain New Internet Branch Pioneering applications in Mobile Banking Award winning call center ATM / BTM Internet Branch Mobile Banking Telephone Banking SMS Banking

13 Improving cross-sell ratio Cross-sell ratio for average customer By product Mortgage Loans.8x General Purposes Loans.6x Investment Products.x By segment Consumer.0x SME 4.9x Corporate 4.9x

14 Increasing trend in branch efficiency Loan / Branch (TL mn) Commission / Branch (TL mn) 4

15 Extensive & strategically well-positioned branch network Akbank with its 90 branches spans throughout Turkey Adana 9 Adıyaman Afyon 7 Ağrı Aksaray Amasya Ankara 8 Antalya Ardahan Artvin Aydın 0 Balıkesir 6 Bartın Batman Bayburt Bilecik Bingöl Bolu Burdur Bursa 4 Çanakkale Çankırı Çorum 4 Denizli 9 Diyarbakır Zonguldak Edirne 6 Elazığ Erzincan Erzurum 4 Eskişehir 8 Gaziantep Giresun Hatay 9 Iğdır Isparta Mersin 9 İstanbul 76 İzmir 77 Kahraman maraş Karabük Karaman Kars Kastamonu Kayseri Kırıkkale Kırklareli 4 Kırşehir Kocaeli Konya 7 Kütahya 6 Malatya Manisa Mardin Muğla Muş Nevşehir Niğde Ordu Osmaniye Rize Sakarya 0 Samsun 0 Siirt Sinop Sivas Şanlıurfa Şırnak Tekirdağ 6 Tokat 6 Trabzon 9 Uşak Van Yozgat Yalova Adana 9 Adıyaman Afyon 7 Ağrı Aksaray Amasya Ankara 8 Antalya Ardahan Artvin Aydın 0 Balıkesir 6 Bartın Batman Bayburt Bilecik Bingöl Bolu Burdur Bursa 4 Çanakkale Çankırı Çorum 4 Denizli 9 Diyarbakır Zonguldak Edirne 6 Elazığ Erzincan Erzurum 4 Eskişehir 8 Gaziantep Giresun Hatay 9 Iğdır Isparta Mersin 9 İstanbul 76 İzmir 77 Kahraman maraş Karabük Karaman Kars Kastamonu Kayseri Kırıkkale Kırklareli 4 Kırşehir Kocaeli Konya 7 Kütahya 6 Malatya Manisa Mardin Muğla Muş Nevşehir Niğde Ordu Osmaniye Rize Sakarya 0 Samsun 0 Siirt Sinop Sivas Şanlıurfa Şırnak Tekirdağ 6 Tokat 6 Trabzon 9 Uşak Van Yozgat Yalova Adana 9 Adıyaman Afyon 7 Ağrı Aksaray Amasya Ankara 8 Antalya Ardahan Artvin Aydın 0 Balıkesir 6 Bartın Batman Bayburt Bilecik Bingöl Bolu Burdur Bursa 4 Çanakkale Çankırı Çorum 4 Denizli 9 Diyarbakır Zonguldak Edirne 6 Elazığ Erzincan Erzurum 4 Eskişehir 8 Gaziantep Giresun Hatay 9 Iğdır Isparta Mersin 9 İstanbul 76 İzmir 77 Kahraman maraş Karabük Karaman Kars Kastamonu Kayseri Kırıkkale Kırklareli 4 Kırşehir Kocaeli Konya 7 Kütahya 6 Malatya Manisa Mardin Muğla Muş Nevşehir Niğde Ordu Osmaniye Rize Sakarya 0 Samsun 0 Siirt Sinop Sivas Şanlıurfa Şırnak Tekirdağ 6 Tokat 6 Trabzon 9 Uşak Van Yozgat Yalova Adana 8 Adıyaman Afyon 6 Ağrı Aksaray Amasya Ankara 8 Antalya Ardahan Artvin Aydın 0 Balıkesir 6 Bartın Batman Bayburt Bilecik Bingöl Bolu 4 Burdur Bursa 4 Çanakkale Çankırı Çorum 4 Denizli 8 Diyarbakır Zonguldak Edirne 6 Elazığ Erzincan Erzurum 4 Eskişehir 7 Gaziantep 4 Giresun Hatay 0 Iğdır Isparta 4 Mersin 8 İstanbul 9 İzmir 78 Kahraman maraş Karabük Karaman Kars Kastamonu Kayseri Kırıkkale Kırklareli 4 Kırşehir Kocaeli Konya 7 Kütahya 6 Malatya Manisa Mardin Muğla Muş Nevşehir Niğde Ordu Osmaniye Rize Sakarya Samsun 0 Siirt Sinop Sivas Şanlıurfa Şırnak Tekirdağ Tokat 6 Trabzon 9 Uşak Van Yozgat Yalova Bitlis Kilis Gümüşhane

16 Improving presence in the SME market New SME banking unit with increased number of branches Responsibility Corporate Banking Unit SME Banking Unit Consumer Banking Unit Private Banking Unit Center/Branch Corporate Centers 9 SME & Consumer Banking Branches 887 Private Banking Centers 9 Number of Customers,600 9,000 8,00,000,00 Customer Segment Corporate Commercial Small Business Micro Personal Private 6

17 Financial performance 7

18 H financial results We are beginning to see the impact of transformation Solid loan growth of 9.8%, 40bps market share gain Strong growth of.8% in TL loans, 60bps market share gain Balanced growth of 9.% in consumer loans 0.9% increase in mortgage loans 4.% increase in auto loans 8% increase in general purpose loans 6.% growth in SME loans and 7.% growth in corporate loans, 70bps increase in market share Leverage increased to 7.x from 6.7x 0 bps reduction in NPL ratio with aid of strong risk management Strong fee income growth of 9.% y-o-y Efficient cost control with % cost/asset ratio Sector comparisons based on weekly BRSA unconsolidated figures. 8

19 H Highlights strong shift from securities to loans YE0 H Loans / assets increased to.4% from 48.% Securities / assets decreased to.% from 4.% Loans Securities Liquid assets Other Reserve Requirement Total Assets: TL 0,070 mn Total Assets: TL 9,6 mn CAR 7.% Tier I Ratio 6.4% Leverage 7.X Loans to Deposit 9.8% Deposits Funds Borrowed Repo Equity Other 9

20 Key financial indicators Total assets (TL bn) 6.8% 7.9% Total loans (TL bn) 9.% 9.8% Total deposits (TL bn) Total securities (TL bn) 7.6%.9% 8.% -7.% 0

21 Akbank s market shares Assets Loans Consumer loans Mortgage Auto GPL s Credit cards Deposits* in sector (%) in private banks (%) Sector comparisons based on monthly BRSA unconsolidated figures. * Excluding bank deposits

22 Improving operational fundamentals while cyclical pressure on NIM (TL mn.) H0 Q Q H Net Profit, ,99 ROAE 4.0% 6.6%.4%.9% ROAA.4%.4%.%.% NIM 4.8%.%.0%.% Cost of Risk -0.4% -0.% 0.0% -0.% Cost to Asset.%.0%.0%.0% Fees to Cost 8.% 60.0% 7.% 66.7% CIR.7% 6.4% 4.% 8.6%

23 Loans superior asset quality continued (TL billion) NPL ratios Akbank Sector 00 Q 00 Q Corporate SME.6% 0.0%.7% 0.0%.8%.%.8%.4% Consumer.%.8%.7%.0% Credit Cards 4.6% 4.% 8.% 7.% Total.%.7%.6%.9% 00% specific provisioning; strong buffer and hidden reserve of around TL 4 mn 6% coverage ratio including general provisions

24 Positive P&L contribution from cost of risk Akbank s NPL ratio versus banking sector (%) (TL mn.) Cost of risk (*) Excluding NPL Sales 4

25 Loans - diversified book with high collateral Petroleum, 6% Iron & Steel, % Metals, % Other, 4% Food and Beverage, % Automotive, % Textile, % Tourism, % Transportation, % Energy, 4% Financial Institutions, 7% Trade, 0% Construction, 7% Telecommunication, 4% Cement & Construction materials, % Consumer & Credit Card loans, 7% Collateral Corporate SME Mortgage Auto 4% 84% 00% 00%

26 Strong Capital Base Excess Capital (USD Mn) CAR (%) Tier + Tier Capital,89,77,44 Regulatory capital () Additional capital to cover other risks Economic capital ,768 Excess capital () June' Mar'June' A very small portion of the Bank s equity is tied down in fixed investments with free equity capital standing at high levels and invested in interest-earning assets. Akbank s capital adequacy ratio stands significantly above both the minimum (8%) set by legislation and the minimum (%) targeted by BRSA. We would like to keep a strong CAR for organic and inorganic growth purposes. () Minimum capital to cover credit, market and operational risks; () Excess capital is available for investment and other purposes since economic capital is sufficient to cover all economic risks 6

27 Pioneering position in bond issuance A landmark transaction, creating a precedent as the first direct non-sovereign Eurobond from Turkey USD billion Eurobond issuance with a year maturity in July 00 Akbank ranked in the FTSE Global Markets 0/0 All Stars list as the only Turkish institution in 00 First domestic TL denominated bond issued by a deposit bank of TL billion with a maturity of 6 months in December 00 The second Eurobond issuance of USD 00 million with a 7 year maturity in March 0 TL denominated bond issuance of TL billion in June 0 and 00 million in July 0 with a maturity of 6 months 7

28 Strong fee and commission growth (TL mn.) 9.% y-o-y.8%.% 6% q-o-q fee and commission growth excluding account maintenance fee in Q Growth is mainly due to credit card, bancassurance and other banking commissions Bancassurance 46% and money transfer fees 44% y-o-y growth Improving fee/income to.8% and fee/cost ratios to 66.7% H0 H Money transfer fees Asset management fees Commercial loans Consumer loans Money transfer fees Asset management fees Commercial loans Consumer loans Bancassurance Bancassurance Other Other Credit cards commissions Merchant commissions Credit cards commissions Merchant commissions 8

29 Efficiency maintained Cost/average assets (%) Cost/income (%) Cost to asset and cost to income ratios well under control Low cost / asset ratio has a positive impact on ROA 9

30 Highest transaction capacity operations center of Turkey 4,000 sqm. closed area and,00 personnel call center, back offices, quality & process management, IT operations State-of-the-art technology 96% of Akbank s operations are held under one roof Over 0 million transactions in 00 Call Center: Total 40 million calls 400,000 credit card sales TL 70 million insurance sales Akbank Call Center won awards in The Best Call Center with More Than 00 Seats and The Best Customer Representative categories at Istanbul Call Center Awards 00 organized by IMI Conferences * Currently,000 seats 0

31 Annex

32 Full financial service subsidiaries Since 00 Located in Amsterdam, with branches in Essen (Germany) and a fully owned subsidiary Akbank AG in Germany Provides competitive corporate banking activities & trade finance for mainly Trade operations between Turkey & EU, as well as savings products for the Dutch, British & German private market Akbank NV; assets EUR,96 mn. Akbank AG; assets EUR,8 mn. (Ak Investment) Since 996 Ranking 7 h among the 86 brokerage houses trading on the market (Ak Asset Management) Since 000 st in pension fund management business rd in asset management AK B Tipi Yatırım Ortaklığı (Ak Type-B Investment Trust) Since rth in size of portfolio (Ak Leasing) Founded in 988 Raised its market share to 9.% after becoming 00% subsidiary of Akbank, with the aid of the extensive branch network of Akbank

33 Balance sheet highlights Consolidated (TL mn.) Shares (%) 00 H 00 H Change (%) Cash and Due from Banks 8, 4, Securities 0,4 4, Loans 7,7 69, Other,7, TOTAL ASSETS 0,070 9,6 8 Deposits 7,708 74, Funds Borrowed,497, Repo,797 4, Other 7,0 8, Equity 7,948 7, TOTAL LIABILITIES 0,070 9,6 8

34 Income statement highlights Consolidated (TL mn.) Q0 Q Change (%) Interest Income 4,78 4,99-7 Interest Expense (,0) (,409) 9 Net Interest Income,6,990 - Trading Gain (Loss), Net 7 Provision for Loan Losses, net of collections Net Interest Income after Trading Gain/Loss & NPL Prov.,70,49-0 Fees and Commissions (Net) Operating Expense (,8) (,) 4 Other Income 7-7 Other Provisions () (90) Income Before Tax,8,766 - Tax (474) (67) - Net Income,808,99-4

35 Disclaimer Statement The information and opinions contained in this document have been compiled or arrived at by Akbank from sources believed to be reliable and in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or correctness. All opinions and estimates contained in this document constitute the Company s judgement as of the date of this document and are subject to change without notice. The information contained in this document is published for the assistance of recipients, but is not to be relied upon as authoritative or taken in substitution for the exercise of judgement by any recipient. The Company does not accept any liability whatsoever for any direct or consequential loss arising from any use of this document or its contents. This document is strictly confidential and may not be reproduced, distributed or published for any purpose.