Yapı Kredi posted TL 838 mln net income in the first half of 2012 with acceleration in customer business and solid expansion in net interest margin
On 2 August 2012, Yapı Kredi announced its consolidated 1H12 results based on Turkish accounting standards (BRSA), reporting TL 838 mln net income. Return on average tangible equity was at 14.3% (18.4% excluding regulatory impacts1). On a quarterly basis, the Bank recorded net income of TL 424 mln (+2% q/q). Capital adequacy ratio stood at 14.4% at Group level and 14.5% at Bank level.
In 1H12, Yapı Kredi posted TL 3,244 mln in revenues (+1% y/y). The Bank achieved strong core revenue performance (+16% y/y) driven by solid net interest margin expansion and focus on value generating growth. Cumulative net interest margin was at 3.8% indicating significant expansion of 32 bps vs full year 2011 on the back of continuing positive effect of upward loan repricing, focus on quality growth and declining deposit costs. Disciplined cost management continued with 13% y/y growth and cost/income ratio of 48.9%.(1))
Yapı Kredi recorded 5% ytd loan growth in 1H12 with acceleration in 2Q (5% q/q vs stable in 1Q12) through focus on TL lending. Loans/assets ratio was at 59% while securities/assets ratio declined further to 17% (vs 18% at YE11) confirming Yapı Kredi’s customer business focus.
Deposit growth was in line with sector in 1H12 (4% ytd) with significant acceleration in 2Q (7% vs -3% in 1Q) driven by continuing solid growth in local currency deposits (9% ytd) and focused efforts on low-cost foreign currency deposit collection. Loans/(deposits+TL bonds) ratio improved to 104% (-2 pp q/q).
Yapı Kredi continued diversification of wholesale funding via syndications and bond issuances in 2Q12. Borrowings secured in 2Q12 include a dual-tranche one-year syndication of US$264 mln and €865 mln with 104% rollover at Libor+1.45% in April 2012 and gross TL 1,017 mln local currency bond issuances in April 2012 and May 2012.
In 2Q12, the Bank showed a resilient trend in asset quality. NPL ratio was at 3.3% (vs 3.2% in 1Q) and specific coverage was at 67% (vs 65% at YE11, 67% in 1Q12).
In 2Q12 Yapı Kredi maintained strong market presence in credit cards (#1 with 19.1% acquiring volume market share, 13.6% number of cardholders market share), leasing (#1 with 17.8% market share), factoring (#1 with 15.1% market share), asset management (#2 with 17.7% market share), brokerage (#2 with 6.6% market share), private pension funds (#4 with 16.1% market share) and life and non-life insurance (#4 with 7.1% and #5 with 6.3% market shares, respectively).
As of the end of June 2012, Yapı Kredi has the fifth largest branch network in Turkey with 918 branches (9.2% market share). In addition, the Bank has the sixth largest ATM network (2,684 ATMs), a leading mobile banking channel, an award winning internet bank and two call centers. In 2Q12, Yapı Kredi further increased total banking transactions completed through non-branch channels to 80% (vs 77% in 1H11).
Istanbul, 2 August 2012
Enquiries: Yapı Kredi Investor Relations
Tel: +90 212 339 7323
Email: yapikredi_investorrelations@yapikredi.com.tr
Yapı Kredi / 02 Aug 2012