Yapı Kredi

9M23 EARNINGS PRESENTATION

24 October 2023

Timely and pioneer ALM strategies resulted in top notch bottom line

Cumulative

+38%

48.7

35.3

9M22

9M23

Net Profit (TL bln)

Quarterly

Normalized

+19

%

18.3

with

linkers1

%

15.0

+3

15.4

+114%

24.6

12.6

11.5

1Q23

2Q23

3Q23

RoTE RoA

Pre-provision Profit2

(TL bln)

Cumulative

Quarterly

Normalized

+33%

+17%

25.2

with

linkers1

21.6

+10%

66.4

19.7

+114%

34.2

49.9

16.3

15.9

9M22

9M23

1Q23

2Q23

3Q23

46%4.5%

Notes:

- 2 -

1. CPI reading: 9M23: 60%, 1H23: 40%; 1Q23: 45%; 2. PPP (Pre-Provision Profit): NII+ Fees + Opex + Net Trading + Subsidiary & Dividend income - ECL hedge - collections

Robust fundamentals preserved and utilized for exceptional profitability

Enhanced liquidity

LDR1

TL

104%

93%

87%

Total

85%

78%

76%

2022 1H23 9M23

LCR2

~430%

~200%

recent

recent

408%

197%

Total LCR

FC LCR

Resilient capital

Tier-1w/o forbearance

16.2%

15.0%

15.8%

Tier-1

Capital Buffer

628bps

2022 1H23 9M23

Conservative Loan Loss Provisioning3

152%

5.2%

Total Coverage

NPL coverage

Notes:

1.LDR= Loans / (Deposits + TL Bonds)

2. 3 months average

- 3 -

3.Based on Bank-only BRSA financials

Lucrative lending strategy pays off with ongoing loan yield improvement

TL Performing Loans1 (TL bln)

30%

12%

FC Performing Loans1 (US$ bln)

-10%

-4%

395

458

515

10.1

8.8

9.5

8.1

9.1

7.7

2022 1H23 9M23

Best in class TL Loan Yield2 among Peers

Peer3

2Q23

Peer 2

Peer 1

Yapı Kredi

Yapı Kredi (3Q23)

Notes:

  1. Loans exclude loans provided to financial institutions
  2. Credit card related differences adjusted
  3. Based on 2020 FX rate and MIS data, Retail loans include individuals, SME and credit cards.

Bank-only

Bank-only

Bank-only

2022

1H23

9M23

Loan Breakdown (FX adjusted3)

Retail Loans

Corporate & Commercial Loans

9M23

65%

35%

2022

59%

41%

2021

49%

51%

- 4 -

Strong demand deposit growth in a higher rate era thanks to intact customer base

TL Customer Deposits (TL bln)

Customer Demand Deposits

500

Retail

Corporate & Commercial

0

49%

5%

537

562

377

73%

73%

68%

32%

27%

27%

2022

1H23

9M23

500

0

TL Demand

32%

170

17%

93

105

123

2022

1H23

9M23

Share of Demand

TL: 22%

+238 bps q/q

Total: 43%

Market share1 gains via small ticket focus

FC Demand (USD bln)

25

+164 bps q/q

Demand DepositIndividual TL Demand Deposit

+15 bps

+134 bps

q/q

q/q

+37 bps

+58 bps

Share

in 60%

Total FC

10

71%

11

72%

11

20

15

10

5

0

ytd

ytd

2022 1H23 9M23

1. Market share among private banks as based on 29 September 2023 BRSA weekly sector data

- 5 -

Sustainable core revenue generation supporting the top-line

Revenues1;2 (TL bln)

Core Revenue Margin Evolution4

Cumulative

Cumulative

+55%

98.6

-253bps

63.8

10.81%

79.5

8.28%

Core

-108bps

-60bps

-85bps

56.8

Other

19.1

7.0

9M22

9M23

Quarterly (normalized with linkers)3

+15%

+12%

32.4

37.2

28.9

24.7

23.6

31.2

4.2

8.8

6.0

1Q23

2Q23

3Q23

2022

Core Revenues

Securities

Other

9M23

Quarterly (normalized with linkers)

+98bps

7.58%

+44bps

+49bps

+5bps

8.56%

2Q23

Core Revenues

Securities

Other

3Q23

Notes:

1.Revenues and other revenues exclude ECL collection income and trading income to hedge FC ECL 2. Core Revenues = NII + swap costs + net fee income 3. Reported 1Q23: 25.6 billion TL 2Q23: 26.8 billion TL 3Q23: 46.2 billion TL 4. Based on Bank-Only financials - 6 -

Remarkable spread expansion

Pioneer ALM strategy: ~200bps below sector average pricing for TL deposits during quarter

NIM Evolution

Cumulative

Quarterly (normalized with linkers)

-328bps

+33bps

9.10%

5.25%

+49bps

+27bps

5.58%

+137bps

+12bps

5.82%

-22bps

-183bps

-21bps

-97bps

-197bps

2022

Core NIM

CPI linkers

Securities

Repo &

Other

9M23

2Q23

Core NIM

Securities

Repo &

Other

3Q23

Borrowings

Borrowings

TL Loan - Deposit Spread (quarterly)

Blended Loan - Deposit Spread (quarterly)

+208bps q/q

+110bps q/q

TL Loan - Deposit spread expansion

Loan - Deposit spread expansion

21.3%

Loan

16.0%

17.6%

TL Loan

17.7%

18.0%

Yield 14.5%

14.1%

Yield

16.5%

16.9%

18.1%

Deposit

11.1%

TL Deposit

10.6%

14.8%

Cost

9.2%

Cost

12.8%

7.2%

4Q22

1Q23

2Q23

3Q23

4Q22

1Q23

2Q23

3Q23

Notes: Based on bank only financials

- 7 -

Stellar fee performance continues with an eye-catching 49% q/q increase

Net Fee & Commision Income (TL mln)

Net Fee & Commisions Composition1

Cumulative

128%

Bancassurance

Investment Products

24,226

6.1%

6.7%

90%y/y

135%y/y

10,609

Money Transfers

8.5%

139%y/y

9M22

9M23

Quarterly

49%

11,037

Lending Related

7,401

34.7%

146%y/y

2Q23

3Q23

Payments System

44.3%

114%y/y

Notes:

1. Based on Bank-Only financials

- 8 -

Inflation driven cost growth, best-in-class efficiency

Operating Costs (TL mln)

Cost Breakdown1,3

127%

Adj. for earthquake

related costs

11%

%

131

32,197

10,868

12,073

13,916

9M22

9M23

2Q23

3Q23

Strong efficiency KPIs

Regulatory

Business Growth2

Running

HR

6%

37%

20%

37%

9M23

y/y

+122%

+248%

+67%

+99%

Fees / Opex

Cost / Avg. Assets

75%3.0%

Notes:

  1. Based on Bank-only financials, MIS data
  2. Including customer acquisition costs, World points and advertisement
  3. Earthquake related costs are excluded

Cost / Income

28%

- 9 -

Sound collections resulting in negative net NPL inflows supporting CoR

Quarterly Net NPL Formation1;2 (TL mln)

Cost of Risk (cumulative)

Collections

Inflows

216bps

CoR excluding collections

-2,684

3Q23

2,657

168bps

Net CoR

-1,442

2Q23

8,908

147bps

118bps

-1,507

1Q23

1,363

111bps

110bps

-1,154

4Q22

3,166

87bps

-930

3Q22

1,352

38bps

33bps

31bps

3Q22

4Q22

1Q23

2Q23

3Q23

Net NPL Inflow

422

2,012

-144

7,466

-27

9M22

2022

1Q23

1H23

9M23

NPL Ratio

3.4%

3.4%

3.2%

3.7%

3.4%

9M23 Net NPL Inflow Breakdown

9M23 Net CoR Composition

Corporate & Commercial

SME

Consumer & CC

4,194

-49bps

Stage I & II

141

Stage III

159bps

-79bps

Specific Collections

Fully hedged

Currency

100bps

679

865

1,416

2,960

1Q23

2Q23

3Q23

Notes:

1.

Based on Bank-only BRSA financials

- 10 -

2.

Excluding the positive impact of NPL sales & write-offs ; 2Q23 NPL Sale amount: 1,756 million TL which was fully covered

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Disclaimer

Yapi ve Kredi Bankasi AS published this content on 24 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 October 2023 07:09:41 UTC.