BRSA Bank-only Earnings Presentation, March 31, 2012

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Türkiye Garanti Bankası A.Ş. announced its unconsolidated financial statements dated March 31st, 2012. In the first quarter of 2012, the Bank posted an unconsolidated net profit of TL861 million 714 thousand. While Garanti's unconsolidated total assets reached TL 148.5 billion, its contribution to economy through cash and non-cash lending totaled TL 103.7 billion. The Bank delivered an ROAE (Return on Average Equity) of 19.1% and ROAA (Return on Average Assets) of 2.3%.

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BRSA Bank-only Earnings Presentation, March 31, 2012

  1. 1. March 31, 2012BRSA Bank-only Earnings Presentation
  2. 2. Investor Relations / BRSA Bank-only Earnings Presentation 3M121Q 2012 Macro Highlights Improving liquidity • Mixed messages from the US and the Eurozone economic indicators and risk appetite • Weak import demand from all three major regions in the global economy followed by doubts about the strength • Uncertainty around further easing by FED and ECB gained ground and sustainability of • Commodity prices are on the rise -- Gold was up by 7% & oil by ~20%. growth • Y-o-Y GDP growth rate in 4Q11 fell to 5.2% from 8.4% in 3Q11 -- An encouraging rebalancing is occurring within GDP o In 4Q11, highest positive contribution from foreign demand since 2Q09Economy heading for a o Private consumption & investments decelerated significantly in 4Q11 soft landing • Current account deficit ended the year at a decelerated level at US$ 77.2bn & improved financing quality • Annual CPI at the end of 1Q12 was 10.43% -- Even though core inflation started to come down, energy prices keep the headline CPI high • The policy interest rate was unchanged at 5.75% and the upper band of interest rate corridor was lowered from 12.5% to 11.5% o Interest rate corridor has been actively used since the end of 2011 o Average CBT funding rate surged in CBT’s effort to fight the inflationary pressures due to currency pass through o Taking the liquidity projections into account, the ranges for weekly and monthly Turkish lira funding were revised. Additionally, fraction of TL required reserves that can be held in gold were increased from 10% to 20%. This action alone released TL 6.1bn of reserves and increased banks’ liquidity • During 1Q12, TL appreciated by 1.6% and 1.5% against USD and Euro, respectively while benchmark bond yield was at 9.4% on a monthly average at the end of 1Q12 • Liquidity conversion ratio of issued bonds was reduced from 100% to 50% upon BRSA’s amendment in February • Effective as of January 1st, 2012, liquid fund management fee cap was decreased to 1.10% from 2.73% 2
  3. 3. Investor Relations / BRSA Bank-only Earnings Presentation 3M121Q 2012 Highlights Customer-oriented, liquid, low-risk and well-capitalized balance sheetBalance sheet Maintained focus on profitable growth – selective lending continues on high margin productsstrength: TL lending growth 1.7% q-o-q, at a slower pace vs. sector • Healthy market share gains in high margin retail products with no pricing competitiondistinguishing (Mortgage: 1.7% q-o-q vs. sector’s 0.8%; GPL: 4.6% q-o-q vs. sector’s 3.6%)feature of Garanti... • Intentional market share loss in TL commercial lending to maintain rational pricing and defend margins FX lending growth 1.8% q-o-q, driven by commercial lending FRN heavy securities book remain as a hedge -- FRN in total slightly down to 56% in 1Q 12 vs. 58% at YE 11, due to redemptions replaced with favorable fixed rate TL securities Asset quality remained intact • Slight pick-up in NPL ratio (1Q 12: 1.9%) -- as expected, across the board, at a lower pace vs. sector • Collections -- still strong, however at a normalizing pace • Comfortable provisioning level -- Gross CoR <100 bps, in line with budget guidance Solid funding mix -- Actively managed and diversified • Deposit heavy funding remains with emphasis on sustainable and lower cost mass deposits • Opportunistic utilization of repos & money market funding to support margins • Sustained high demand deposit levels -- demand deposits / total deposits: 19% • Loans to Deposits @ 100%, LTD:77% when mortgages, project finance & invesment loans (mat.>4 years) are excluded Strong capitalization bolstered by high internal capital generation capacity: CAR: 17%, Leverage:7x...leads to consistent Strong profitability backed by well-defended margins, sustainable income sources & efficiently managed costsdelivery of strong ROAE: 19%; ROAA: 2.3%results Margins holding-up well -- almost flattish when quarterly fluctuating CPI book is excluded • Ongoing positive effect of timely and proactive loan re-pricing on loan yields • Managed lending growth with higher weight in lucrative products and rational pricing Net fees and commissions -- Sustained double digit growth momentum on a comparable basis via highly diversified fee sources Commitment to strict cost discipline - single digit growth in real terms • Opex/ Avg assets: 2.2% in 3M12 vs. 2.3% in 3M11 • Fees/OPEX: 71% on adjusted basis1 vs. 61% on reported basis • Investment in distribution network continued (avg branch additions: ~50 y-o-y) 31 Adjusted with the effect of decreased cap on fund management fees and accounting methodology change for cash loan origination fees
  4. 4. Investor Relations / BRSA Bank-only Earnings Presentation 3M12Strategically and actively managed balance sheet leading to strong levels ofcore banking revenues & ROAE of 19% +3% q-o-qQuarterly net income (TL million) Improving Core Banking Other Revenues Inc. on income CPI-linkers Coll’n 50 25 1% 33 1,297 Regulatory (TL million) 488 effects on 9% 862 Net prov. 825 855 ROAE: 21% 19% Fees&Comm. 65 Trading 89 791 ROAA: 2.3% Prov.adj.* 1Q12 Net income 507 NII-exc. inc. Sustained high on CPI-linkers OPEX 228 Net Income profitability Other Provisions & Tax 1Q11 4Q11 1Q12 854 862 • Ongoing positive effect of timely loan-repricing Inc. on Other income limited the pressure of increasing funding costs CPI-linkers Coll’n 26 108 123 • Robust & growing fee base (TL million) 1,255 Regulatory& 666 One-off effects despite negative effects of decreased cap on fund Net on prov. 1,027 management fees & accounting methodology Fees&Comm. Trading 117 74 change on cash loan origination fees 4Q11 Net income Prov.adj.* NII-exc. inc. 480 • Although lower, still strong contribution from on CPI-linkers OPEX 218 CPI-linkers Net Income Other • Normalizing collections, as expected Provisions & Tax 891 791* 1Q 12 and 4Q 11 provisions are adjusted for the effects of BRSA’s recent regulations on general reserves -- TL 33mn in 1Q 12, TL 17 mn in 4Q11 4 4Q 11 provisions are adjusted for the one-off effect on specific provisions resulting from NPL inflows of TL 91mn , which are related to a few commercial files with strong collateralization
  5. 5. Investor Relations / BRSA Bank-only Earnings Presentation 3M12Customer-oriented asset mix -- Loans/Assets back to pre-crisis levelsTotal Assets (TL/USD billion) Composition of Assets1 1Q12 Other IEAs Growth-1Q12 Reserve req. 7.3% Non-IEAs 20% 1% 6.1% 13.5% Others 146.6 148.6 7.3% In line with economic Loans slowdown, moderating lending 55.1% growth 124.3 Securities Loans3 -1% 24.2% Securities 12% 93.9 87.2 IEA / Assets: 87% 80.3 Loans/Assets 2011 Other IEAs 9.8% Non-IEAs Reserve req. 4.9% 55% 12.3% Others vs. 56% at YE 11 7.4% Loans 28.7 31.9 31.1 56.1% Securities Liquidity Ratio2 21.8% 1Q 11 1Q 11 TL FC (USD) 2011 2011 2012 1Q12 Total Assets (TL) 32% IEA / Assets: 88%1 Accrued interest on B/S items are shown in non-IEAs 52 (Cash and banks + Trading securities + AFS)/Total Assets3 Performing cash loans
  6. 6. Investor Relations / BRSA Bank-only Earnings Presentation 3M12FRN heavy securities book continues to serve as a hedge -- redemptionsreplaced with favourable fixed rate TL securitiesTotal Securities (TL billion) TL Securities (TL billion) Securities2/Assets 15% 13%33.7 9% 34.7 11% 37.2 13% 34.6 11% 38.8 10% 30.7 30.9 32.5 30.7 34.7 24% 12% 3% 7% (7%) 1% 5% (6%) 13% up from 22% at YE 11 89% 90% CPI: CPI: CPI: CPI: 89% 87% CPI: 91% 30% 32% 30% 32% 29% FRNs: FRNs: FRNs: FRNs: FRNs: 36% 36% 30% 29% 30% 1Q 11 2Q 11 3Q 11 2011 1Q12 FRN mix in total1Q 11 2Q 11 3Q 11 2011 1Q12 TL FCTotal Securities Composition FC Securities (USD billion) 17% 56% 2.6 from 58% at YE 11 AFS 88.1% 2.3 2.3 Trading 4.0% 2.0 2.1 10% (18%) 9% HTM 7.9% 19% FRNs: 42% FRNs: FRNs: FRNs: FRNs: Unrealized gain 29% 32% 31% 30% as of Mar 30,2012 ~TL 420 mn1 1Q 11 2Q 11 3Q 11 2011 1Q121 Based on bank-only MIS data2 Excluding accruals 6Note: Fixed / Floating breakdown of securities portfolio is based on bank-only MIS data
  7. 7. Investor Relations / BRSA Bank-only Earnings Presentation 3M12 Moderating loan growth in line with economic slow down -- Retail lending remains as the growth driver Total Loan1 Growth & Loans by LOB2 (TL million) TL Loan Growth3: Q-o-Q (1%) 18% 80.9 3% 83.5 83.0 1.7% vs. Sector’s 4.1% 74.6  Mainly driven by lucrative 18.2% 16.3% Total 70.1 retail loans 18.5% 18.4%  Refraining from pricing Corporate 20.1% competition in commercial lending to defend margins 39.5% 39.4% 39.0% 38.0% 37.7% market share: 11.0% in 1Q12 vs. 11.3% at YE 11 Commercial 11.8% 12.8% 12.8% SME 12.6% 13.1% FC Loan Growth3: Q-o-Q and US$ based 11.9% 12.2% 11.9% 1.8% 11.6%Credit Cards 11.5% vs. Sector’s 2.2% 18.5% 19.3% Consumer 18.0% 18.4% 18.1%  Healthy growth without sacrifying loan yields 1Q 11 1H 11 9M 11 2011 1Q12TL (% in total) 58% 58% 59% 59% 60% market share: 18.4% in 1Q12FC (% in total) 42% 42% 41% 41% 40% vs. 18.5% at YE 11US$/TL 1.530 1.600 1.820 1.865 1.760 1 Performing cash loans 7 2 Based on bank-only MIS data 3 Sector data is based on BRSA weekly data for commercial banks only
  8. 8. Investor Relations / BRSA Bank-only Earnings Presentation 3M12Sustained upward trend in loan yields -- positive result of selective growthstrategy and timely re-pricingTL Loans1 (TL billion) Interest Income on loans (quarterly – TL billion) 24% 49.3 50.2 1,998 47.4 40.6 43.6 1,885 1,752 2% 4% 1,443 1,514 9% 7% 11.63% Total Yield2 16.05% TL Yield2 15.17% 10.72% 14.47% 14.33% 14.75% 9.93% 9.92% 10.26% 1Q 11 2Q 11 3Q 11 2011 1Q12 1Q 11 2Q 11 3Q 11 2011 1Q12FC Loans1 (US$ billion) (3%) Ongoing positive effect of 19.3 19.4 18.7 18.4 18.3 timely loan re-pricing & selective 0% (5%) (0%) 2% growth in high-yielding loans bolstered the yields 5.55% FC Yield2 4.75% 5.12% 4.50% 4.51% 1Q 11 2Q 11 3Q 11 2011 1Q121 Performing cash loans 82 Based on MIS data and calculated using daily averages
  9. 9. Investor Relations / BRSA Bank-only Earnings Presentation 3M12Selective growth focus -- Healthy market share gains in high-margin retail loans Retail Loans1 (TL billion) Mortgage Loan (TL billion) GPL & Mortgage 23% 37.5 38.6 10% Market Share 36.0 34.2 9.9 (qoq) 31.4 10.2 8.9 9.2 9.5 9.7 , 9.8 0.6 0.6 0.6 9.7 0.6 8.5 9.4 4% 3% 0.6 2% 2% 2% +10 bps in GPL 9% 5% 3% 22.9 24.8 26.3 27.7 28.4 8.4 8.7 8.9 9.1 9.3 +12 bps in Mortgage 1Q 11 2Q 11 3Q 11 2011 1Q 12 1Q 11 2Q 11 3Q 11 2011 1Q 12 Consumer Loans Commercial Installment LoansAuto Loan (TL billion) General Purpose Loan5 (TL billion) Market Shares2,3 QtD Mar 12 Rank4 23% 2.8 31% 15.2 15.9 Mortgage 13.4% #1 14.6 13.5 12.1 7.4 Auto 15.0% #3 2.6 2.8 2.8 7.1 7.1 2.5 6.8 2.3 6.1 General 1.7 1.7 4% 5% 10.8% #2 1.6 1.6 12% 8% Purpose5 1.5 7% 1% 7.5 8.0 8.4 3% 6.0 6.8 10% 1.1 1.1 Retail1 12.9% #2 0.8 0.9 1.0 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 1Q 11 2Q 11 3Q 11 2011 1Q 121 Including consumer, commercial installment, overdraft accounts, credit cards and other 4 As of 2011 among private banks 92 Including consumer and commercial installment loans 5 Including other loans and verdrafts3 Sector figures are based on bank-only BRSA weekly data, commercial banks only
  10. 10. Investor Relations / BRSA Bank-only Earnings Presentation 3M12Strength in card business – a good contributor to sustainable revenuesIssuing Volume (TL billion) Acquiring Volume (TL billion) #1 in card business 20% 14.7 17% 15.1 Per Debit Card Spending 12.3 13.0 ~2.5x the sector ... with the ultimate aim of creating cashless society Per Card Spending (TL, Mar 122) 6,750 6,183 1Q11 1Q12 1Q11 1Q12 Garanti SectorNo. of Credit Cards (thousand) Credit Card Balances (TL billion) Market Shares 717 24% YTD ∆ Mar 12 Rank 262 9.9 10.0 8,806 9.3 Acquiring -115 bps 18.8% #2 8,544 8.1 8.9 8,089 Issuing -56 bps 18.4% #1 6% 2% 5% # of 10% +24bps 16.9% #1 Credit Cards POS1 +75 bps 18.3% #1 1Q11 2011 1Q12 1Q 11 2Q 11 3Q 11 2011 1Q 12 ATM -4 bps 10.0% #3 101 Including shared POS2 Annualized
  11. 11. Investor Relations / BRSA Bank-only Earnings Presentation 3M12 Asset quality remained intact… NPL Ratio1 Net Quarterly NPLs (TL billion) 352 2 67 4.4% 22 100 3.9% 3.7% 3.7% -408 -56 3.3% 3.8% 172 New NPL 81 83 112 101 2.9% 2.7% 2.6% 2.7% 2.9% 2.6% 2.4% 2.4% 2.5% -90 -105 Collections -139 -166 2.1% 1.9% 1.8% 1.8% 1.9% -289 Write-offs 1Q 11 2Q 11 3Q 11 2011 1Q12 3 Garanti Sector Garanti excld.NPL sales & write-offs* Sector w/ no NPL sales & write-offs* -200 NPL sale* Adjusted with write-offs in 2008,2009,2010 and 2011. 2010 and 2011 sector NPL sales & write-offs total: TL ~2.7 bn and ~TL 1.9 bn, respectively. Garanti sold NPLs in 1Q 11 amounting to TL 484mn, of which TL 200mn relates to the NPL portfolio with 100% coverage 1Q11 2Q11 3Q11 4Q11 1Q12 and the rest being from previously written-off NPLs. Gross income booked amounts TL 54mn. NPL Categorisation1Retail Banking Credit Cards Business Banking Normalizing but still(Consumer & SME Personal) (Including SME Business)22% of total loans 12% of total loans 66% of total loans strong collections 7.7% Nominal NPLs 2.4% 2.0% 7.0% 6.3% 3.0% 2.7% 2.4% 2.1% 1.9% 2.1% 1.8% 1.9% 6.9% 6.3% 5.8% 5.7% 5.8% 2.5% 2.5% Slight deteoriation -- 4% 1.6% 1.6% 1.6% 5.7% 5.8% 1.4% 1.2% 1.2% 1.2% 1.3%  as expected1Q11 2Q11 3Q11 2011 1Q12 1Q11 2Q11 3Q11 2011 1Q12 1Q11 2Q11 3Q11 2011 1Q12  accross the board  at a lower pace than sector Garanti Sector 1 NPL categorisation for Garanti and sector figures are per BRSA bank-only data for fair comparison. 2 Including NPL inflows in 4Q 2011, amounting to ~TL100 mn, which are related to a few commercial files with strong collateralization 11 3 Garanti NPL sale amounts TL484 mn, of which TL200 mn relates to NPL portfolio with 100% coverage and the remaining TL284 mn being from the previously written-off NPLs. Source: BRSA, TBA & CBT
  12. 12. Investor Relations / BRSA Bank-only Earnings Presentation 3M12 …with comfortable levels of coverage and provisioning Quarterly Loan-Loss Provisions (TL million)Coverage Ratio Mar 11 Jun 11 Sept 11 Dec 11 Mar 12Sector1 86% 87% 83% 82% 82%Garanti 82% 82% 82% 82% 81% Coverage Ratio 81% remained strong 225 194 168 913 45 109 64 98 Specific Gross CoR 2 56 52 90 22 2 17 2 98 47bps 82 Slightly up from 42bps in 2011 57 58 60 2 Regulatory effect on 33 General Provisioning Lower Gen. Prov. due to -33 change in B/S mix 1Q11 2Q11 3Q11 4Q11 1Q12 General Specific 1 Sector figures are per BRSA weekly data, commercial banks only 2 The effect of BRSA’s recent regulations on general reserve rates for extended loans and GPLs. Regulatory effect on General Provisions in Cost of Risk was 26bps in 1H11, 21bps in 9M11, 18bps in 2011 and 16bps in 3M12. 12 3 TL91mn of provisions resulting from NPL inflows in 4Q 11, which are related to a few commercial files with strong collateralization
  13. 13. Investor Relations / BRSA Bank-only Earnings Presentation 3M12 Solid funding mix – well diversified and actively managed Composition of Liabilities Total Deposits (TL billion)Bonds Issued 0.7% 2.5% 2.6%Funds Borrowed 15.2% 14.5% 14.2% 12% (1.5%)Repos 5.4% 7.5% 8.7% 84.5 80.5 83.3 74.5 76.9 IBL: 43% 44% 43% 43%Time Deposits IBL: IBL: 44% FC 49.2% 45.5% 71% 2.5%2 71% 70% 45.3% (5.0%)2 1.0%2 (3.6%)2 (0.2)% 5.1% 2.0% 6.3% TLDemand Deposits 10.6% 11.9% 10.4% 56% 57% 56% 57% 57%SHE 13.0% 12.0% 12.6%Other 5.9% 6.1% 6.3% 1Q 11 2Q 11 3Q 11 2011 1Q 12 Loans / 94% 97% 100% 99% 100% 1Q 11 2011 1Q12 Deposits Cost of Deposits1 (Quarterly Averages) 8.8% 8.8% 9.1% 10.5% Loans/Deposits8.7% 8.4% 8.2% 8.8% • Opportunistic and timely 7.7% utilization of alternative 99.7% 9.0%7.8% 7.8% 7.8% 7.7% funding sources to support 7.4% 7.4% 6.6% 7.0% margins 2.9% 3.1% 3.1% 3.5% 2.6% 2.1% 2.6% 2.1% 2.6% 2.3% 2.4% 2.6% or 77% when • Deposit costs rising as expected, however at a 2.1% 2.1% 2.4%1.8% 2.1% 1.8% mortgages, project finance contained manner due to 1Q 10 2Q 10 3Q 10 2010 1Q 11 2Q 11 3Q 11 2011 1Q 12 & investment loans focus on lower cost mass TL Time TL Blended (mat.>4yrs) are excluded deposits FC Time FC Blended 13 1 Based on bank-only MIS data 2 Growth in USD terms
  14. 14. Investor Relations / BRSA Bank-only Earnings Presentation 3M12Robust deposit base with further emphasis placed on mass deposits andsustained high weight of demand deposits Deposits by LOB1 (Excluding bank deposits) Demand Deposits (TL billion) 17% 17.5 Corporate 13.7% 15.7 0.7 15.5 16.4% 16.3% 14.6 13.2 0.4 0.4 0.4 0.3 16.7 15.1 15.4 14.2 21.4% 12.9 Commercial 20.9% 23.6% 16.4% SME 16.0% 1Q 11 2Q 11 3Q 11 2011 1Q 12 15.4% Bank Deposits Customer Deposits Demand Deposits / Customer Demand Consumer 44.6% 46.8% 48.5% Total Deposits Deposits2 Solid presence in demand 19% vs. sector’s 16% deposits maintained 1Q11 2011 1Q12 Sizeable demand deposit Market share: 14.5% level maintained 141 Based on bank-only MIS data2 Sector data is based on BRSA weekly data for commercial banks only
  15. 15. Investor Relations / BRSA Bank-only Earnings Presentation 3M12High internal capital generation capability bolsters strong capitalization ratiosCAR Free Funds TL Billion Free Funds/IEAs (Free funds=Free Equity + Demand Deposits) 24.0 21.3 17% Free Equity w/o reserve 17.5 15.5 Demand Deposits growth: 16.9% 16.9% TIER I 9% q-o-q TIER I Increasing free equity and 15.7% sizeable demand deposits 15.0% continued to support free funds Recommended 12% 14.9 13.7 Free Equity including Reserve Requirements Required Leverage Ratio 8% 2011 -7.2 1Q12 -9.1 Reserve Requirements 7x 2011 1Q12 2011 1Q12 15Free Equity = SHE - ( Net NPL+ Investment in Associates and Subsidiaries + Tangible and Intangible Assets+ AHR+ Reserve Requirem ents)
  16. 16. Investor Relations / BRSA Bank-only Earnings Presentation 3M12Margins held up well, despite the negative quarterly fluctuation of the CPI bookand the duration mismatch Quarterly NIM (Net Interest Income / Average IEAs) NIM Adjusted NIM 4.7% 4.1% 4.2% 4.2% 4.0% 3.6% 3.8% 3.3% 3.3% Quarterly NIM: 2.6% (62bps) (19bps) ~Flattish when volatility from CPI linkers are excluded  Ongoing positive effect of 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 timely and proactive loan re- pricing on loan yields  Managed lending growth Q-o-Q Evolution of Margin Components (in bps) with higher weight in lucrative products and +39 -55 +21 +2 -59 rational pricing Loans Other Inc. Securities Securities Items -10 407 469 -30 +27 404 CPI exc. CPI Deposits Other Exp. Squeeze in Adj. NIM was limited Items Provisions FX&Trading due to relief in general provisions 4Q 11 1Q 12 1Q 12 NIM NIM Adj NIM 16Adjustments to NIM: Net Interest Income/ Average IEA adjusted by FX gain/loss, provision for loans and securities, and net trading income/loss
  17. 17. Investor Relations / BRSA Bank-only Earnings Presentation 3M12 Healthy Fees & Commissions income supported by strong customer penetration and cross-sell Ordinary Banking Income1 Generation Net fees and comm. Garanti Peers • Leader in interbank money transfer market share % 18% market share vs. the peer’s average ~10%25% • Highest payment systems commissions per volume20% 1.6% vs the peer’s average 1.3%5 6.3 4.115% 4.8 • #1 in bancassurrance 5.110% • Strong presence in brokerage 3.9 ~6% market share5% 2.7 Ordinary banking income (TL Billion)0% - 2,000 4,000 6,000 8,000 Net Fees & Commissions Breakdown 3,4 Net Fees & Commissions TL Million 11% 3M11 Cash Loans 3M12 Effect of accounting 18.6% Cash Loans methodology change 21.0% on loan orig. fees & decreased cap onPayment (3%) 2 fund managementSystems Non Cash Payment 525 507 Non Cash 31.4% Loans Systems Net fees & Comm. Loans 8.8% 39.4% 5.6% Money Money 3M11 3M12 Transfer Transfer 7.7% Money transfer4 14% Other 8.3% Insurance Insurance 14.9% 6.8% Brokerage 5.0% Cash Loans4 19% Asset Mgt Other 4.6% Asset Mgt Brokerage 7.4% 15.2% Payment Systems4 32% 1.7% 3.9% 1 Defined as; net interest income adjusted with provisions for loans and securities, net FX and trading gains + net fees and commissions. Based on bank-only financials for fair comparison as of 2011 17 2 3M12 cash loan origination fees are accounted for on an accrual basis per methodolgy change 3 Breakdown is on a comparable basis to same period last year 4 Bank-only MIS data 5 Peer average as of 2011
  18. 18. Investor Relations / BRSA Bank-only Earnings Presentation 3M12Differentiated business model leading to consistent delivery of outstandingresults (TL Million) 1Q 11 1Q 12 % Change (+) NII- excl. inc on CPIs 839 854 2% (+) Net fees and commissions 525 507 -3% OPEX/Avg. Assets Specific LLP & General Prov. -- exc. Double-digit growth (-) in Net Fees & = regulatory effects & one-offs CORE BANKING REVENUES -109 1,256 1,297 -65 -40% 3% Commissions sustained on a comparable basis* 2.2% (+) Income on CPI linkers 163 488 200% Regulatory&One-off effects1 on Increase in OPEX (-) provisions 0 -33 n.m. mainly stemming Fees/OPEX from: (+) (+) Trading & FX gains Collections 264 205 89 50 -66% -76%  ~50 average new branch openings 71% on adjusted basis* y-o-y (+) Other income -before one-offs 18 25 37%  Low OPEX base in vs. 61% on reported basis 1Q11, due to larger (-) OPEX -715 -825 15% implementation of (-) Taxation and other provisions -289 -228 -21% the efficiency Cost/Income improvement (+) One-offs (post -tax) -47 0 n.m. project hitting the (+) -NPL sale 43 0 n.m. period  Double-digit 41% (-) -Free provisions -90 0 n.m. inflation readings y-o-y = NET INCOME 855 862 1% 18* Adjusted with the effect of decreased cap on fund management fees and accounting methodology change on cash loan origination fees
  19. 19. Investor Relations / BRSA Bank-only Earnings Presentation 3M12Appendix
  20. 20. Investor Relations / BRSA Bank-only Earnings Presentation 3M12Balance Sheet - Summary (TL million) Mar-11 Dec-11 Mar-12 YTD Change ASSETS Cash &Banks1 84,543 15,420 11,791 -24% Reserve Requirements 10,955 7,185 9,101 27% Securities 3,704 34,592 38,770 12% Performing Loans 21,605 83,533 83,034 -1% Fixed Assets & Subsidiaries 8,259 3,488 3,459 -1% Other 17,577 2,425 2,446 1% TOTAL ASSETS 146,642 146,642 148,601 1% LIABILITIES & SHE Deposits 74,534 84,543 83,253 -2% Repos & Interbank 6,762 10,955 12,894 18% Bonds Issued 866 3,704 3,801 3% Funds Borrowed2 19,084 21,605 21,221 -2% Other 6,869 8,259 8,729 6% SHE 16,150 17,577 18,703 6% TOTAL LIABILITIES & SHE 124,265 146,642 148,601 1% 201 Includes banks, interbank, other financial institutions2 Includes funds borrowed and sub-debt

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