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 |
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:
- Loans exclude loans provided to financial institutions
- Credit card related differences adjusted
- 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 |
Notes:
- Based on Bank-only financials, MIS data
- Including customer acquisition costs, World points and advertisement
- 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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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.