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
- 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
- Excluding impact of retail business expansion in Azerbaijan and regulatory costs, including increase in SDIF premiums
- For details please refer to IR release dated 12 July 2013
- Before tax, bank-only