yap kredi 1q19 earnings presentation
play

Yap Kredi 1Q19 Earnings Presentation 2 May 2019 A strong start to - PowerPoint PPT Presentation

Yap Kredi 1Q19 Earnings Presentation 2 May 2019 A strong start to the year, characterized by strong core performance along with prudent asset quality approach Summary Net Profit (TL mln) RoTE Yearly Cumulative Quarterly Quarterly


  1. Yapı Kredi 1Q19 Earnings Presentation 2 May 2019

  2. A strong start to the year, characterized by strong core performance along with prudent asset quality approach Summary Net Profit (TL mln) RoTE Yearly Cumulative Quarterly Quarterly -88bps +193bps Stable +15% 1,244 1,241 14.2% 1,241 13.3% 13.3% 1,081 11.4% 4Q18 1Q19 1Q18 1Q19 2018 1Q19 4Q18 1Q19 Pre-Provision Profit 2 (TL mln) CoR 1 Quarterly Cumulative Quarterly Yearly Highest growth -229bps +40% among peers +16% -37bps 3,959 4.48% 3,193 3,193 CPI linker adj. 3 2,274 2,749 2.56% 2.19% 2.19% 4Q18 1Q19 1Q18 1Q19 4Q18 1Q19 2018 1Q19 Notes: 1. Adjusted for hedged FX impact. Stated CoR: 4Q18: 3.88%; 1Q19: 2.52%; 2018: 2.74% 2 2. Pre-Provision Profit figures exclude ECL collection income, trading income to hedge FC ECL and pension fund provisions reserved in 4Q18 3. Adjusted for the CPI linker income’s 9 months impact of inflation revision from 16% to 25.2% (1,268 mln TL). Peers include private banks that have released their financials as of 2 May 2019

  3. Further improvement in liquidity, higher than committed capital buffers despite the market volatility Summary Liquidity LCR 2 LDR 1 TL LDR 163% 129% 134% FC LCR 245% 226% 382% 114% 152% 104% 103% 136% 120% Short term FX Liquidity: ~11 bln USD TL Duration Gap 2.9 2.3 2.3 (months) 2019 run- off’s: 4.0 bln USD 2017 2018 1Q19 2017 2018 1Q19 Capital +19bps Tier 1 Ratio CAR CET1 Ratio +73bps -42bps 15.0% 14.8% 13.4% 12.1% 11.4% 11.4% 11.0% 10.0% 9.9% 2017 2018 1Q19 2017 2018 1Q19 2017 2018 1Q19 Notes: 3 1. LDR= Loans / (Deposits + TL Bonds) 2. Based on past three months averages

  4. Loans: growth driven by TL originations in 1Q19 Lending Loan volumes (TL bln) Private Banks 1 Yapı Kredi 5% total loan growth on a ytd basis 1Q19 y/y ytd y/y ytd supported by 6.9 bln TL CGF utilization in 1Q19 Cash+Non-cash Loans 2 322.4 12% 5% 6% 3% TL 3 152.3 4% 4% -2% 2% FC ($) 3 -2% contraction in FC cash loans 30.2 -16% 0% -18% -3% Cash Loans 2 230.5 12% 4% 5% 3% TL 3 125.5 6% 4% -2% 3% FC ($) 3 18.6 -15% -2% -17% -2% +1% FX adjusted cash loan growth Cash Loans (FX adjusted) 230.5 -5% 1% -9% 0% Sectoral Breakdown of Cash and Non-Cash Loans - bank only Real Estate Real Estate Tourism Other Business 3% 3% 3% 20% Health-Education 3% Transportation / Individual Lending Communication 17% 4% Wholesale and Retail Trade 4% Metals 5% Energy Energy 13% 13% Finance 5% Textiles Infrastructure & other 6% Foods Notes: construction 1. Private banks based on BRSA weekly data as of 29 March 2019 6% 12% 4 2. Cash Loans indicate performing loans excluding factoring and leasing receivables 3. TL and FC loans are adjusted for the FX indexed loans

  5. Deposits: quarter marked by dollarization, ongoing market share gain in local currency small ticket and demand deposits Funding Deposit volumes (TL bln) Deposit Breakdown (FX adjusted) 2 Private Banks 1 YKB 1Q19 y/y ytd y/y ytd Corporate & Customer Deposits 215.4 29% 8% 19% 6% 31% Commercial 32% Time Deposits TL 86.6 6% 0% 2% -5% FC ($) 22.9 6% 7% -4% 8% Customer Deposits (FX adjusted) 215.4 6% 4% -2% 2% Retail 53% Time Deposits 50% Deposit market share 1 2018 1Q19 chg ytd Customer Deposits 15.9% 16.0% 11bps o/w Individual TL Time 13.8% 14.2% 47bps Demand 19% 18% Deposits o/w Individual TL demand 14.1% 15.0% 89bps 1Q18 1Q19 Notes: 1. Private banks based on BRSA weekly data as of 29 March 2019 5 2. Based on MIS data (weekly average)

  6. Strong revenue generation thanks to wider core spread and fee growth Revenues Revenues 1;2 (TL mln) Core Revenue Margin 3 Quarterly 2;3 Cumulative +32% +9% +41bps -55bps 4,906 4,518 5.4% 4.8% 4.8% 3,724 4.4% 4,449 4,145 3,577 Core 2 4Q18 1Q19 2018 1Q19 456 373 147 Other 1 1Q18 4Q18 1Q19 21 bps ytd improvement with the same CPI-inflation assumption Notes: 1. Revenues and other revenues exclude ECL collection income and trading income to hedge FC ECL 6 2. Core Revenues = NII + swap costs + Net fee income; 4Q18 core revenues are adjusted for the CPI linker income’s 9 months impac t of inflation revision from 16% to 25.2% (1,268 mln TL). 3. Core Revenue Margin= Core Revenues / average IEAs, Based on bank-only financials; Stated Core Revenue Margin in 4Q18: 5.8%

  7. Widening NIM thanks to strong recovery in core spreads Revenues - NIM Swap Adjusted NIM Quarterly Cumulative -75bps +15bps CPI for 1Q19 valuation: 12% +14bps (2018: 25.2%) 4.0% 3.3% 1 3.2% 3.3% 3.1% 1Q18 4Q18 1Q19 2018 1Q19 Quarterly NIM up 81bps, on a homogeneous basis +20 bps higher NIM adjusted for CPI linkers 2 when calculated with the same CPI-inflation assumption at 12% Notes: Based on Bank-Only financials 1. 4Q18 NIM is adjusted for the CPI linker income’s 9 months impact of inflation revision from 16% to 25.2% (1,268 mln TL ). Stated 4Q18 NIM: 4.6% 7 2. Based on MIS Daily averages

  8. A normalisation in loan-deposit spreads in 1Q19 with ease in deposit costs and ongoing loan repricing Loan-Deposit Spread Loan – Deposit Spread Evolution Loan Yields 1 Deposit Costs Loan-Deposit Spread (Quarterly) (Quarterly) (Quarterly) 210bps increase in total loan Sharp decline in total cost of yields on a quarterly basis vs. deposits (-130 bps, q/q) driven by Normalisation in Loan-Deposit 4Q18 thanks to ongoing loan the ease in TL cost of deposits spread already evident in 1Q19 repricing efforts (-191bps q/q) Cum. TL yield Cum. TL cost Cum. TL spread TL TL TL+FX 2018: 15.0% 2018 : 13.5% 2018 : 1.4% TL+FX TL+FX TL 17.8% 17.3% 15.9% 4.6% 4.6% 4.3% 16.3% 4.5% 13.4% 15.4% 11.2% 2.5% 2.6% 13.7% 10.6% 2.1% 9.8% 13.1% 12.9% 8.5% 12.2% 1.1% 1.4% 7.6% 11.0% 6.4% 10.8% 6.1% 10.5% -1.6% 1Q18 2Q18 3Q18 4Q18 1Q19 1Q18 2Q18 3Q18 4Q18 1Q19 1Q18 2Q18 3Q18 4Q18 1Q19 Notes: Based on Bank-Only financials 1. Performing Loan yields 8

  9. Strong fee growth driven by both transactional banking and payment systems Revenues - Fees Net Fee Income (TL mln) Fees Received Composition Asset Mngmt Other Bancassurance 1% 2% 6% +29% Money Transfer 8% +20% 1,337 Payment Systems 1,116 53% 1,034 Lending Related 30% • Payment systems: +51% y/y (-4% q/q) 1Q18 4Q18 1Q19 • Lending Related: +29% y/y (+35% q/q)  Non-cash: 48% y/y (+6% q/q) • Money Transfer: +69% y/y (+24% q/q) • Bancassurance: +129% q/q 9

  10. Cost growth below inflation, thanks to continuous efficiency actions and cost discipline Costs Cost 1 / Income 2 (TL mln) Costs 1 (TL mln) Quarterly 3 Cumulative +18% -3% -4.8 pp 1,768 1,712 39.7% 1,450 +69 bps 34.9% 34.9% 34.2% 1Q18 4Q18 1Q19 4Q18 1Q19 2018 1Q19 Notes: 1. Excluding pension fund provision (4Q18: TL 230 mln). Reported cost growth (including pension fund provisions ) at-14% q/q 10 2. 2018 Income adjusted for trading income to hedge FC ECL and collections 3. 4Q18 income adjusted for 9 months impact of inflation revision from 16% to 25.2% (1,268 mln TL).

  11. Digital transformation: ongoing focus with increase in customer base Number of Digital Customers (mln) +0.2 mln +1.1 mln 7.00 70% 64% 61% 6.00 60% 51% 5.00 50% Transaction 3 per channel Penetration 40% 4.00 40% 3.00 30% 5.68 5.44 4.35 2.00 20% 3.30 +10% y/y 1.00 10% 0.00 0% 2016 2017 2018 1Q19 8% Branch -10% Share of digital in main products 2 sold 10% +5% 11% Automatic Payments 11% +3pp 39% 38% +11% ATM 34% 31% 26% 42% +14% Digital 41% 20% 1Q18 1Q19 2016 2017 2018 1Q19 Notes: Based on MIS data 1. Total Cost to Serve and Cost to Serve per channel are calculated based on direct costs of each sales channels 11 11 2. Main Products; GPL, CC, Time Deposit, and Flexible Account 3. Transactions include, Money Transfers, Payments, Deposit, Cash Loans, Non-cash Loans, Insurance, Money withdrawal, Investment products, Credit Cards

  12. Ongoing prudent approach on asset quality… CoR improves thanks to strong collections and up-fronted provisions in 2018 Asset Quality Total Cost of Risk 1 Quarterly Cumulative -229bps -37bps 2 4.48% 2 2 2.56% 2 2.19% 2.19% 4Q18 1Q19 2018 1Q19 Specific CoR 1.88% 1.88% 3.31% 1.88% Specific CoR Cost of Risk composition (1Q19) 221bps 33bps 252bps 219bps -53bps 51bps Stage I & II Stage III Collections CoR TL Depr. CoR (reported) 12 Notes: 1. Cost of Risk = (Total Expected Credit Loss- Collections)/Total Gross Loans 2. Adjusted for hedged FX impact. Stated CoR - 4Q18: 3.88%; 1Q19: 2.52% - 2018: 2.74%

Recommend


More recommend