1H11 Earnings Release
During the first 6 months of 2011, Yapı Kredi reported TL 1,101 mln net income and 21% ROAE driven by positive revenue performance, contained costs and improving asset quality
On 3 August 2011, Yapı Kredi announced its consolidated 1H11 results based on Turkish accounting standards (BRSA), reporting TL 1,101 mln net income in the first 6 months of 2011. On a quarterly basis, net income was recorded as 569 mln TL indicating 7% q/q increase. Return on Average Equity (ROAE) was recorded as 21%. Solid capital adequacy ratios were maintained (14.1% at Bank level, 13.8% at Group level).
The Bank posted TL 3,218 mln revenues (+3% y/y) on the back of solid fee growth (11% y/y) and sustained collections (despite net interest margin pressure). Net interest margin was recorded at 3.5% in 1H11 with considerable slowdown in pace of compression on a quarterly basis on the back of positive effect of early repricing actions on loans despite continuing pressure on deposit costs. Cost growth was recorded at 7% y/y on the back of continued tight cost management and efficiency initiatives. Cost/income ratio was recorded as 43.5%.
Yapı Kredi continued its customer business focus and recorded 17% loan growth ytd, in line with budget path, driven mainly by higher margin general purpose (34% ytd) and SME loans (20% ytd) in local currency retail lending and project finance loans in foreign currency corporate/commercial lending (9% ytd). As the leading bank in financing of energy projects, Yapı Kredi reached a total of USD 3 billion of financing for this sector as of 1H11. In credit cards, Yapı Kredi maintained its leadership position with 18.2% outstanding volume market share.
Yapı Kredi continued its #2 position in assets under management with 17.4% market share. The Bank also maintains leading positions in leasing (#1) and factoring (#1).
The Bank’s healthy funding base was further strengthened and diversified in 2011. In terms of deposits, Yapı Kredi recorded 6% deposit growth ytd, with acceleration in 2Q11, mainly driven by foreign currency deposits (+10% ytd in USD terms). Demand deposit to total deposits ratio was further improved to 18% (vs sector 15%) driven by above sector demand deposit growth (+9% vs 6% sector). In April 2011, the Bank successfully secured a USD 1,450 mln one-year syndication with 145% rollover ratio at Libor+1.1% (40 bps improvement vs 2010). The Bank also successfully finalised a local currency bond in domestic capital markets of TL 1 bln with 175 days maturity and 8.86% compounded cost.
In 1H11, the Bank recorded continuation of improvement in asset quality driven by decelerating NPL inflows, strong collections and loan growth. NPL ratio decreased to 2.9% (vs 3.4% at YE10). Specific coverage of NPLs was realised at 76% (vs 77% at YE10).
As of the end of June 2011, Yapı Kredi increased its branch network to 887 branches (+19 net new branches vs 868 at YE10), thereby maintaining the fifth largest branch network in Turkey with 9.1% market share.
In 1H11, Yapı Kredi was recognised as the Best Bank in Turkey by World Finance for the second year in a row as well as numerous awards in internet banking (Golden Spider - Best Internet Bank), credit cards (Visa Europe -Most Innovative Application) and corporate social responsibility (Golden Compass).
Istanbul, 3 August 2011
Enquiries: Yapı Kredi Investor Relations
Tel: +90 212 339 7647
Email: yapikredi_investorrelations@yapikredi.com.tr
Yapı Kredi / 03 Aug 2011