1Q13 Consolidated Financial Results 24 April 2013 1Q13 Results - PowerPoint PPT Presentation

1Q13 Consolidated Financial Results 24 April 2013

1Q13 Results  Strong operational profitability  Reported net profit of TL 873 mn with ROA at 2.1%, ROE at 15.6%  Operational net profit increased by 88.9% y-o-y reaching TL1,002mn, ROA 2.4%, ROE 17.9%, (adj. for Comp. Board penalty)  Strong operational profit driven by:  NIM improvement of 50bps after swap costs  Loan/deposit NIM improvement of 14bps  Fee Income growth of 39.4% y-o-y  Net profit exc. securities trading gains & one-off items continued to grow by 80% y-o-y  Market share gains achieved in TL Lending with profitability  6.5% growth in TL lending with market share gain of 10bps  9% increase in consumer loans with 30bps market share gain  11.6% growth in mortgage loans with market share gain of 50bps  6.3% increase in TL SME & Corporate Loans  Strong Basel II ratio of 17.3% & Leverage of 7.4x continue to support strong growth 2

Strong growth in net interest income and fee income 1Q12 4Q12 1Q13 (TL mn.) 1,612 1,180 1,540 Net interest income 560 402 486 Net fee income 873 531 1,098 Net Profit 1,002 531 1,022 Net Profit (exc. one off) 17.9%* 11.5% 20.4% ROAE 2.4%* 1.5% 2.7% ROAA 3.84% 3.23% 3.99% NIM 0.86% 0.30% 0.58% Cost of Risk 2.1%* 1.9% 2.0% Cost to Asset 66.2%* 58.9% 60.8% Fees to Cost 36.6%* 44.2% 35.0% CIR * Excluding Competition Board penalty of TL129mn 3

Increasing customer driven profitability Net profit excluding securities trading gains & one-off items (TL mn) 80% growth Y-o-Y ** 667 635 * 497 414 371 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013 One-off items: * 4Q 2012 Net profit from NPL sale of TL76mn ** 1Q 2013 Competition Board penalty of TL 129mn 4

Focus on profitable products: Market share gains in TL loans Change bps 2012 1Q2013 Total Loans 10.9% 10.8% -10 TL 9.9% 10.0% 10 FX 13.7% 13.2% -50 Consumer Loans 10.8% 11.1% 30 Mortgage 11.3% 11.8% 50 General Purpose 10.2% 10.3% 10 Credit Cards 18.3% 18.0% -30 Total Deposits 10.5% 10.4% -10 TL 9.6% 9.5% -10 FX 12.4% 12.1% -30 FX Time 14.3% 13.3% -100 FX Demand 10.0% 12.1% 210 Sector comparisons based on weekly BRSA unconsolidated figures. 5

Liquid & flexible balance sheet : securities to assets down to 25% 2012 1Q13 3.0% 2.8% 2.9% 3.7% 10.1%  Loans / assets 9.3% increased to 59%  Securities / assets 56.5% 24.7% 28.3% 58.6% decreased to 25% Loans Securities Reserve Requirement Other Liquid assets 12.3% 11.6%  CAR 17.3%* 6.5% 6.4%  Tier I Ratio 16.0%* 12.2% 12.0% 55.5%  Leverage 7.4x 56.1%  Loans to Deposit 105% 13.7% 13.6% Deposits Equity Repo Funds Borrowed Other 6 * According to Basel II

Strong NIM expansion NIM After Swaps (Cumulative) NIM Cumulative* NIM Quarterly* 5.1 4.1 4.0 3.8 3.8 3.7 3.6 3.6 3.5 3.2 3.3 3.0 2.8 2.6 2.5 1Q12 2Q12 3Q12 4Q12 1Q13 2009 2010 2011 2012 1Q13 1Q12 2Q12 3Q12 4Q12 1Q13 NIM impact (TL mn., $ mn.) 2Q12 3Q12 4Q12 1Q13 4Q12-1Q13 3Q12-4Q12 TL Loans -8 7 11.49% 11.52% 11.17% 10.62% TL Deposits 45 7 7.91% 8.53% 6.66% 6.05% FX Loans 1 -4 4.92% 5.13% 4.97% 4.77% FX Deposits 15 4 2.85% 2.88% 2.20% 1.98% Loan-Deposit impact 53 14 TL Securities -25 -48 10.76% 9.58% 9.02% 8.31% FX Securities 5 -6 4.43% 4.04% 4.16% 3.44% Securities impact -20 -54 Other -6 25 Total 27 -15 *Adjusted for BRSA classification, Reserve requirements included in interest earning assets 7

TL loans major contributor to growth 1Q12 2Q12 3Q12 YE12 1Q13 y-o-y y-t-d (TL mn., $ mn.) 34.9% 6.5% 46,455 49,897 56,667 58,890 62,711 TL loans 4.8% -1.3% 17,728 18,267 18,228 18,829 18,582 FX loans ($ mn) 23.7% 4.3% 77,884 82,897 89,199 92,360 96,320 Total loans y-o-y y-t-d (TL mn., $ mn.)* 1Q12 2Q12 3Q12 YE12 1Q13 8.0% 5,972 5,094 7,537 5,964 6,452 8.2% TL Corporate -0.8% -2.9% 13,191 13,603 13,078 13,473 13,085 FX Corporate ($ mn) 51.2% 5.7% 11,893 12,972 15,493 17,015 17,985 TL SME 26.7% 5.9% 5,065 5,250 5,783 6,061 6,419 FX SME ($ mn) 39.9% 9.2% 16,245 17,855 19,071 20,808 22,732 Consumer 22.9% 0.4% 10,462 11,971 12,357 12,812 12,858 Credit Cards (*) Excluding accrued interest on loans 8

Share of higher yielding loans is increasing while maintaining strong asset quality and high coverage NPL ratios (TL billion) Akbank Sector 82.9 92.4 96.3 77.9 89.2 2012 1Q13 2012 1Q13 32% 33% 36% 35% Corporate 0.0% 0.0% 38% 2.4% 2.5% 0.8% 0.8% 1.6% 1.7% SME 31% 30% 27% 29% 27% Consumer 1.2% 1.3% 2.1% 2.2% 22% 23% 24% 22% 21% Credit Cards 2.4% 3.1% 5.1% 5.6% 15% 14% 14% 14% 13% 1.2% 1.3% 2.8% 2.9% Total March'12 June'12 Sep'12 2012 March'13 Credit Cards Consumer SME Corporate  The share of SME & consumer loans increased to 68%  193% coverage ratio including general provisions 9

Well managed asset quality NPL ratio 3.6 3.2 2.9 2.7 2.7 2.9 2.9 2.6 2.6 2.8 2.2 1.9 1.7 1.6 1.7 1.6 1.6 1.6 1.2 1.3 2010 1Q11 2Q11 3Q11 2011 1Q12 2Q12 3Q12 2012 1Q13 (TL mn.) Akbank Banking Sector Cost of risk 298 294 242 181 166 161 131 119 104 100 98 92 91 85 76 76 73 69 67 63 0.86 0.20 0.50 0.30 0.40 0.48 -0.10 -0.10 -0.21 -0.27 Dec'10 Mar'11 June'11 Sep'11 Dec'11 Mar'12 June'12 Sep'12 Dec'12 Mar'13 New NPL Collections (*) Cost of risk (cumulative) (*) Including NPL Sales Proceeds of TL95mn in 4Q12 10

12% increase in mortgage loans and 8% in GPLs (TL mn.) 9.0% y-t-d 10.8 11.1 10.4 25,000 10.0 22,832 9.5 10  GPLs grew 7.6% y-t-d, 10bps increase in market 20,944 19,251 20,000 17,954 8 16,333 10,890 share 9,754 15,000 8,907 8,495 6 7,772 975 999  Strong benefit from GPLs through high spread and 10,000 929 878 4 840 10,967 cross sell 5,000 10,191 9,415 2 8,581 7,722 0 0  Mortgage loans grew 11.6% y-t-d, 50bps increase Mar'12 June'12 Sep'12 Dec'12 Mar'13 in market share General purpose Auto loans Mortgage Market share (%) 46.3% 46.6% 47.6% 47.3% 47.7% Cross-sell ratio Mortgage Loans 6.4x 4.8% 4.8% 4.3% 4.9% 5.1% General Purposes Loans 5.9x 47.8% 48.9% 48.7% 48.0% 47.3% Auto Loans 5.3x Mar'12 June'12 Sep'12 Dec'12 Mar'13 General purpose Auto loans Mortgage 11

Solidifying our strong position in credit card business Credit Card Loans (TL mn) 2.2% y-t-d 18.2 19.1 18.8 18.3 18.0 15,000 20.0 14,000 12,884 13,163 12,636 15.0 13,000 12,034 10.0 12,000 10,512 5.0 11,000 Higher quality portfolio with; 10,000 0.0 9,000 -5.0 8,000  Credit card loans increased by 2.2% y-t-d -10.0 7,000 -15.0 6,000 5,000 -20.0  10bps market share gain in issuing volume Mar'12 June'12 Sep'12 Dec'12 Mar'13  Highest fee generating bank in payment systems*  Highest issuance volume per card in the peer group Credit Cards Issuing Volume 1% q-o-q by 33% 16.3 16.2 17,000 16.1 16.1 15.2 15,793 15,634 15.0 16,000 15,035 14,624  Low NPL ratio of 3.1% vs 5.6% for the sector 15,000 10.0 14,000 5.0 12,215 13,000 12,000 0.0 11,000 -5.0 10,000 9,000 -10.0 8,000 -15.0 7,000 6,000 -20.0 1Q12 2Q12 3Q12 4Q12 1Q13 * According to 4Q12 12

SME loans – continued strong momentum with risk focus TL Loans (TL bn) 5.7% y-t-d 18.0 17.0 15.5  Growth in SME loans through enhanced marketing 13.0 11.9 capability and improved risk management  Bundled product packages for different sectors i.e.tourism, wholesale and foreign trade support Mar'12 June'12 Sep'12 Dec'12 Mar'13  Loan packages with loyalty and support FX Loans (USD bn) programmes for Merchants and Small Businesses 5.9% y-t-d 6.4 6.1 5.8 5.3 5.1 Mar'12 June'12 Sep'12 Dec'12 Mar'13 13 SME loans given to companies with sales turnover <TL 100 mn

Corporate loans – will continue to grow with profitability focus TL Loans (TL bn) 8.2% y-t-d 7.5 6.5 6.0 6.0 5.1  High quality portfolio with zero credit losses Mar'12 June'12 Sep'12 Dec'12 Mar'13  Strong pipeline for project finance in 2013  Levering synergies across different business units  Proactive and customer-focused approach and an FX Loans (USD bn) emphasis on customer satisfaction -2.9% y-t-d 13.6 13.5 13.2 13.1 13.1 Mar'12 June'12 Sep'12 Dec'12 Mar'13 14

Loans – continued increase in share of TL loans Total (TL bio) Total (TL bio) TL (TL bio) FX ($ bio) 92.4 96.3 58.9 62.7 92.4 96.3 18.8 18.6 35% 36% 49% 53% 58% 59% 63% 63% 65% 64% 51% 47% 42% 41% 37% 37% 2012 1Q13 2012 1Q13 2012 1Q13 2012 1Q13 Floating Fixed TL FX Floating Fixed Floating Fixed  6.5% increase in TL loans, 10bps market share gain 15

Securities – well managed to optimize profitability and liquidity FX ($ bio) Total (TL bio) Total (TL bio) TL (TL bio) 39.9 45.6 6.4 45.6 39.9 34.0 28.2 6.5 25% 24% 29% 31% 45% 47% 24% 19% 95% 95% 19% 16% 75% 71% 52% 50% 37% 37% 5% 5% 2012 1Q13 2012 1Q13 2012 1Q13 2012 1Q13 CPI Floating Fixed CPI Floating Fixed TL FX Floating Fixed  Strong unrealized gain of TL 1.4 bn  TL 0.4 bn of trading gain  Available for sale 91% (2012: 92%), held-to-maturity 9% (2012: 8%) According to bank only financials 16