9M14 Earnings Release
Successful execution of growth strategy on track
On 27 October 2014, Yapı Kredi announced its consolidated 9M14 results based on Turkish accounting standards (BRSA), reporting TL 1,442 million net income and 11.2% cumulative return on average tangible equity. On a quarterly basis, net income was realised as TL 513 million, indicating 2% q/q growth.
In the first nine months of the year, the Bank was able to achieve solid growth while maintaining its fundamentals and further improving its profitability.
“Market share gains supported by 310 thousand new customers and strengthened distribution”
Yapı Kredi’s total loan book reached TL 115.8 billion with 17% ytd growth compared to sector growth of 13%. Accordingly, the Bank increased its market share in total loans by 40 bps up to 9.9%. Loan growth was driven by key value generating areas including TL company loans (+34% ytd), general purpose lending (+34% ytd) and mortgages (+11% ytd). During the same period, total deposit book reached TL 102.5 billion with significantly above sector growth of 16% (sector 7%). This resulted in market share gain of 70 bps in total deposits up to 9.8%.
Supported by the Yapı Kredi’s focused approach, customer acquisition and activation activities continued. Accordingly, Yapı Kredi increased the number of customers by 310 thousand in the first nine months to 10.4 million. In line with the Bank’s growth ambitions, distribution was further strengthened with total number of employees increasing by ~2,000 to 18,762. At the same time, 35 new branches were opened and 485 new ATMS were deployed and/or are under deployment.
“Resilient capital, well-managed liquidity and intact asset quality”
Capital adequacy ratio was realised as 15.0% incorporating strong loan growth. At the same time, through balanced volume evolution, the Bank’s loans to deposits plus TL bonds ratio remained stable compared to YE13 at 108%, versus 5pp increase in sector level to 113%. In terms of asset quality, NPL ratio decreased to 3.3% (-20 bps vs 1H14) supported by resilient performance in all segments as well as NPL portfolio sale of TL 282 million (~24 bps positive impact on NPL ratio).
“Solid revenue trend and disciplined cost control”
Total revenues increased by 6% y/y up to 6,288 million supported by solid NIM evolution and accelerating fee growth. Quarterly NIM was realised at 3.5% (-10 bps vs 2Q) due to seasonal impact of CPI linkers. On the other hand, the Bank recorded three consecutive quarters of increase in loan-deposit spread driven by commercial effectiveness. In fees, Yapı Kredi recorded acceleration vs the first half of the year (+9% y/y vs +7% in 1H14). Fee growth was driven by solid loan growth and improving contribution from credit cards. In terms of costs, despite significant investments for growth, cost/income ratio was realised at 47% as of 9M14, only 1 pp higher than sector level.
Istanbul, 27 October 2014
Enquiries: Yapı Kredi Investor Relations
Tel: (90) (212) 339 7323
Email: yapikredi_investorrelations@yapikredi.com.tr
Yapı Kredi / 27 Oct 2014