2012 YE Earnings Release
Yapı Kredi recorded TL 2.1 bln consolidated net income in 2012 driven by solid revenue performance thanks to continuous focus on customer business. Tangible ROAE was 17.5% while bank capital adequacy ratio reached 16.3%
On 14 February 2013, Yapı Kredi announced its consolidated 2012 results based on Turkish accounting standards (BRSA), reporting TL 2.1 bln net income and 17.5% return on tangible average equity. Capital adequacy ratio under Basel II increased to 16.3% at Bank level (15.2% at Group level) driven by capital strengthening actions.
Yapı Kredi recorded TL 7,401 mln revenues (+11% y/y) driven by solid core revenue growth (+18% y/y). Cumulative net interest margin reached 4.1% (+55 bps vs YE11) on the back of upward loan repricing in 1H12 and declining deposit costs in 2H12. Cost growth was 13% y/y with core cost growth at 10% y/y1 incorporating ongoing branch expansion with 21 net branch openings. Cost/income ratio remained at 44%.
In terms of lending, YKB recorded 12% total loan growth in 2012 driven by above sector growth in local currency lending (22%). The Bank maintained strong focus on value generating local currency retail segments and products and recorded above sector growth in general purpose loans (24% vs 16% sector) and credit cards (39% vs 31% sector).
In terms of asset gathering, YKB recorded deposit growth of 7% in 2012 driven by strong above sector performance in local currency deposits (17% vs 13% sector). In 2012, YKB rolled-out a new initiative allowing one-to-one customer based pricing which led to increase in local currency deposit market share with limited pressure on cost of deposits. Loans/(deposits+TL bonds) ratio was at 107%, within the comfortable range.
In 2012, YKB maintained its focus on funding diversification as a key strategic priority and further strengthened its funding base. The Bank secured US$ 500 mln Eurobond, US$ 1.6 bln subordinated debt (US$585 mln in Feb’12 and US$ 1 bln in Dec’12), TL 458 mln covered bond and TL 1.2 bln local currency bonds.
Asset quality evolved in line with soft landing of the economy driven by resilient performance in the corporate/commercial, outstanding performance in credit cards and continuous inflows in the retail segment. NPL ratio was at 3.2% in 2012 (vs 3.0% in 2011), also incorporating positive impact of TL 626 mln NPL portfolio sale in the fourth quarter. Specific coverage was at 62% (69% excluding NPL sale).
In 2012, Yapı Kredi reinforced its position in credit cards with leadership in almost all areas (#1 with 19.4% outstanding volume, 19.3% acquiring volume, 17.2% number of cards, 13.6% number of cardholders, 29.8% number of commercial cards market share). Meanwhile, the Bank maintained its leading position in leasing (#1 with 17.2% market share), factoring (#1 with 15.0% market share), asset management (#2 with 18.0% market share), brokerage (#2 with 7.0% market share), private pension funds (ranking up to #3 from #4 with 17.1% market share) and life and non-life insurance (#4 with 7.7% and #5 with 6.5% market shares, respectively).
As of the end of 2012, Yapı Kredi has the fifth largest branch network with 928 branches (+21 new branches compared with 907 in 2011) and 9.1% market share. In addition, the Group continued to invest in its alternative channels to improve customer satisfaction and efficiency. In internet banking, the Bank serves 2.4 million customers, indicating 17% increase from 2011. Yapı Kredi also has 2,819 advanced ATMs and two award winning call centers, realising 40 million customer contacts per year. In addition, having fully upgraded its mobile banking application in 2011, Yapı Kredi increased its market share in mobile banking to 15.5%. As a result, share of alternative delivery channels in Yapı Kredi’s total banking transactions reached 80% (vs 78% in 2011).
Istanbul, 14 February 2013
Enquiries: Yapı Kredi Investor Relations
Email: yapikredi_investorrelations@yapikredi.com.tr
Yapı Kredi / 14 Feb 2013