2011 YE Earnings Release
Yapı Kredi posted TL 2.3 bln net income and 21.7% ROAE, confirming continuously strong customer business focus, healthy core revenue growth, disciplined cost control and positive asset quality
For the full year 2011, Yapı Kredi posted TL 2.3 bln net income and 21.7% ROAE, confirming continuously strong customer business focus, healthy core revenue growth, disciplined cost control and positive asset quality
On 23 February 2012, Yapı Kredi announced its consolidated 2011 results based on Turkish accounting standards (BRSA), reporting TL 2.3 bln net income (+2% y/y). Return on Average Equity (ROAE) was at 21.7%, a leading level among private banks. On a quarterly basis, the Bank posted net income of 639 mln TL (+16% q/q). Capital adequacy ratio was 14.9% at Group level and 14.7% at Bank level, incorporating positive impact of ~US$ 585 mln sub-loan(1)
Yapı Kredi sustained its revenue base at TL 6,648 mln driven by healthy core revenue performance. In 2011, the Bank recorded solid fee growth (13% y/y) and increasing net interest income (+5% y/y) on the back of disciplined net interest margin management. Cost growth was below inflation at 8% y/y including investments for growth. Cost/income ratio was recorded at 44%. Fees/costs ratio, the highest in the sector, further increased to 68% (vs 65% in 2010).
Yapı Kredi posted a healthy loan growth of 28% driven by strong emphasis on high margin local currency retail loans including general purpose (63% y/y) and SME loans (50% y/y) as well as foreign currency project finance lending (61% y/y).
Yapı Kredi maintained strong market presence in credit cards (#1 with 18.3% market share in outstanding volume, 20.3% market share in acquiring volume and 13.6% market share in number of credit cardholders), leasing (#1 with 19.6% market share), factoring (#1 with 17.7% market share), asset management (#2 with 17.4% market share), brokerage (#3 with 5.7% market share), private pension funds (#4 with 16.1% market share) and life and non-life insurance (#5 with 6.4% and #5 with 6.7% market shares, respectively).
Deposit base was strengthened with significantly above sector deposit growth of 20% (+56bps market share gain up to 9.2%). The Bank improved its deposit mix through increasing share of retail deposits in total deposits (63% vs 60% in 2010), as well as maintaining strong weight of demand deposits in total deposits (17%). Maturity profile of deposits also improved with increasing share of deposits longer than 3 months (15% vs 5% in 2010).
Diversification of funding remained a key focus area in 2011. In terms of international funding, the Bank successfully renewed its syndications totalling US$2.7 bln with improved pricing and obtained a new long-term securitisation of US$510 mln. In terms of domestic funding, the Bank issued a total of TL 1.2 bln bonds.
In 2011, the Bank maintained a positive trend in asset quality driven by decelerating non-performing loan (NPL) inflows, solid collections and dynamic portfolio management including sale of 290 mln TL credit card and individual NPL portfolio. NPL ratio improved to 3.0% (vs 3.4% at YE10).
Yapı Kredi continued to progress in commercial effectiveness in 2011. Loans per employee increased 25% and core revenues per employee increased 6%. Deposits per employee increased 17%, resulting in the Bank’s one notch improvement vs 2010 to #5 ranking.
As of the end of 2011, Yapı Kredi had the fifth largest branch network in Turkey with 907 branches (+39 net new branches vs 2010) and 9.2% market share. In addition, Yapı Kredi has strong non-branch channels including the fifth largest ATM network (2,697 ATMs), award winning internet banking customised for retail and corporate clients and 2 call centers. In mobile banking, an area which is becoming an integral part of the service network, Yapı Kredi launched new initiatives in 2011 and became a leading player in this sector with 15.3% market share. As a result of strong focus on non-branch channels, 78% of total banking transactions are realised through these channels.
In 2011, Yapı Kredi’s received many awards including Bank of the Year in Turkey (The Banker) and Turkey’s Best Bank (World Finance) .
(1)A sub-loan agreement was signed with UniCredit Bank Austria AG of USD 585 million (10NC5) at a rate of 3-months Libor+8.30%. This sub-loan has been utilised as Tier-II in the calculation of 2011 CAR by the authorisation of BRSA dated February 20, 2012.
Istanbul, 23 February 2012
Enquiries: Yapı Kredi Investor Relations
Tel: +90 212 339 7323
Email: yapikredi_investorrelations@yapikredi.com.tr
Yapı Kredi / 23 Feb 2012