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1H13 Earnings IR Release

Customer-Oriented Sustainable Results in 1H 2013

On 1 August 2013, Yapı Kredi announced its consolidated 1H13 results based on Turkish accounting standards (BRSA), reporting TL 1,296 mln net income (+55% y/y, 64% y/y on a comparable basis1) and 19.2%1 return on average tangible equity. Bank capital adequacy ratio was at 15.8%.

Yapı Kredi recorded strong and sustainable growth of 30% y/y (31% y/y on a comparable basis1) in total revenues up to TL 3,975 mln on the back of solid core revenue performance (+20% y/y, 22% y/y on a comparable basis1) and supported by other income. Net interest margin evolved positively on an annual basis (+20 bps y/y to 4.0%) with relatively stable quarterly trend thanks to disciplined pricing ensuring significant decline in deposit costs. Solid fee performance (+20% y/y) was mainly driven by consumer lending, account maintenance fees and asset management. Cost growth was realised at 12% y/y (9% y/y on a comparable basis2) driven by organic growth in Turkey and expansion of retail business in Azerbaijan.

In terms of lending, Yapı Kredi recorded 12% ytd growth with acceleration in 2Q driven by credit cards, mortgages, GPL and project finance. Loans to assets ratio increased further to 61% (vs 59% at YE12) confirming the Bank’s customer-oriented strategy. The Bank reinforced its leadership position in credit cards by market share gains in all parameters including outstanding volume (20.2% market share), acquiring volume (19.3% market share), issuing volume (17.6% market share), number of credit cards (17.2% market share) and commercial card outstanding volume (32.5% market share).

In terms of deposits, Yapı Kredi achieved above sector growth of 10% ytd with acceleration in 2Q. Deposit growth was mainly driven by local currency deposits. Yapı Kredi recorded 15 bps ytd gain in TL deposit market share up to 8.4% accompanied by better than sector evolution in TL deposit costs, also thanks to the Bank’s one-to-one deposit pricing approach.

Asset quality evolution was in line with expectations and NPL ratio was registered at 3.5% (vs 3.4% in 1Q13) driven by solid evolution in all segments. Cost of risk (net of collections) was at 1.14% while specific coverage increased to 66% (vs 64% at 1Q13).

As of 12 July 2013, Yapı Kredi finalised the sale of its insurance businesses3 to Allianz while entering into a 15-year exclusive bancassurance agreement. Accordingly, a capital gain of TL 1,243 mln4 will be booked in 3Q13 and will have a positive CAR impact of ~80bps on a solo basis and ~90bps on a consolidated basis vs December 2012.

Istanbul, 1 August 2013
Enquiries: Yapı Kredi Investor Relations
Email: yapikredi_investorrelations@yapikredi.com.tr

  1. Comparable basis: 1H13 adjusted for sub-debt early repayment penalty in net interest income and competition board fine in other provisions, for comparability purposes. ROAE excludes mtm impact of transfer to AFS from HTM in 4Q12
  2. Excluding impact of retail business expansion in Azerbaijan and regulatory costs, including increase in SDIF premiums
  3. For details please refer to IR release dated 12 July 2013
  4. Before tax, bank-only
 
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