9M12 Earnings Release
Yapı Kredi posted TL 1,478 mln net income in the first nine months of 2012 with robust core revenue performance, cost discipline and strong customer focus
On 13 November 2012, Yapı Kredi announced its consolidated 9M12 results based on Turkish accounting standards (BRSA), reporting TL 1,478 mln net income and return on average tangible equity of 16.8%. Quarterly net income was at TL 639 mln (+51% q/q) mainly driven by strong net interest income and lower costs. Capital adequacy ratio under Basel II stood at 12.5% at Group level and 13.2% at Bank level.
Yapı Kredi posted TL 5,116 mln in revenues (+7% y/y) driven by solid above sector core revenue growth (+17% y/y). Cumulative net interest margin reached 3.9% (+39 bps vs YE11) on the back of dynamic loan and deposit pricing together with effective mix management. Cost growth was in line with average inflation at 10% y/y. Cost/income ratio was realised at 46%.
In the first nine months, balance sheet evolution confirmed customer business focus with loans/assets ratio at 58%. In line with its selective approach, Yapı Kredi recorded 7% ytd loan growth driven by value generating local currency lending (+14% ytd) mainly in general purpose loans (20% ytd vs 11% sector) and credit cards (+26% ytd vs 24% sector).
Solid asset gathering capability continued with 5% ytd deposit growth driven by local currency deposits (12% ytd vs 7% sector) and reinforced by one-to-one deposit pricing initiative. Loans/(deposits+TL bonds) ratio was at 105%, within the comfortable band. In addition, the Bank secured a syndication of US$322 mln and €618 mln with 100% rollover at Libor+1.35%, issued 200 mln TL local currency bonds in 3Q and continued the covered bond process.
Asset quality trend evolved in line with soft landing of the economy. NPL ratio was at 3.6% (vs 3.3% in 2Q) driven by retail with resilient performance in corporate/commercial. Total NPL coverage (specific and general) stable at 110%. Cost of risk (net of collections) below 100 bps excluding regulatory impacts.
In 3Q12, Yapı Kredi maintained strong market presence in credit cards (#1 with 19.1% acquiring volume market share and 13.6% number of cardholders market share), leasing (#1 with 17.2% market share), factoring (#1 with 14.3% market share), asset management (#2 with 18.0% market share), brokerage (#2 with 6.7% market share), private pension funds (#4 with 16.0% market share) and life and non-life insurance (#4 with 7.8% and #5 with 6.5% market shares, respectively).
Yapı Kredi has an extensive branch network of 922 branches with +15 net openings in 9M12 (9.1% market share). In addition, the Bank has a wide network of 2,742 ATMs (7.9% market share), a leading mobile banking channel (15.5% market share), award winning internet banking serving 2.4 million customers and two call centers realising 37 million customer contacts per year. Yapı Kredi carries out 80% of total banking transactions through non-branch channels (vs 77% in 9M11).
Istanbul, 13 November 2012
Enquiries: Yapı Kredi Investor Relations
Email: yapikredi_investorrelations@yapikredi.com.tr
Yapı Kredi / 13 Nov 2012