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Capital Markets Day

03 May 2018

 

Today, Yapı ve Kredi Bankası A.Ş. (the “Bank”) presented their Capital Markets Day to analysts and investors, formally unveiling their strategic plan, ‘YapiKredi 2020’ alongside their Q1’18 financial results.

 The “YapıKredi 2020” strategic plan is to become a customer centric commercial bank driven by cutting edge technology and committed workforce, delivering responsible growth with best-in-class profitability, backed by a strong balance sheet, resulting in enhanced and sustainable shareholder returns.

 The four strategic pillars supporting the “YapiKredi 2020” strategic plan will be:

 1. Strengthen and optimise capital position

  • Increase capital by approx. US$ 1.5 billion, via US$ 1.0 billion rights issue and approx. US$ 0.5 billion Additional Tier 1 (“AT1”) issuance1
  • Maintain a minimum CET1 buffer of 200 bps against regulatory requirements
  • Return to dividend payment in 2020 (based on 2019 results)2

2. Sustainable revenue generation

  • Focus on smaller tickets bothin lending and asset gathering
  • Increase house-bank customer penetration
  • Boost number of transactions to improve fee generation
  • Continue to acquire new customers

3. Well managed cost structure with efficiency gains

  • Accelerate digital banking to enhance customer experience
  • Achieve both operational and service-channel excellence

4. Asset quality optimisation

  • Maintain current prudent risk appetite
  • Tailor-made underwriting approach for companies and automated, model driven underwriting for individuals with centralised risk monitoring

YapıKredi’s CEO and Team are excited by this unique opportunity and are fully focused and dedicated on delivering the “YapıKredi 2020” strategic plan.

 The strategic plan is focused on delivering a number of key financial targets in 2020, including the following:

  •  CET1 ratio of ≥ 11.5%
  • Tier 1 ratio of ≥ 12.0%
  • Revenue margin ≥ 4.7%
  • Cost to income ratio ≤ 36%
  • Cost of risk ~1.0%
  • RoATE ≥ 17.0%
  • RoAA ≥ 1.7%

YapiKredi’s CEO and Team are focused on the achievement of these targets over time ensuring that the Bank achieves best in class profitability, backed by a strong balance sheet, resulting in enhanced and sustainable shareholder returns.

Today, BofA Merrill Lynch (“BofAML”), Citigroup Global Markets Limited (“Citi”) and UniCredit Corporate & Investment Banking (“UniCredit CIB”) have been appointed by YapiKredi to act as financial advisors to the Bank on the proposed Rights Issue.

In addition, on 26 April 2018, BofAML, Citi and UniCredit CIB were appointed by the Bank to act as Global Coordinators and Book Runners for the planned AT1 issuance supported by J.P. Morgan Securities PLC and Société Générale SA as additional Book Runners.

1. Subject to regulatory approvals and market conditions.

2. Subject to Shareholders and regulatory approvals and pay-out ratio is assumed as 20%.

 

London, 3 May 2018

Enquiries: Yapı Kredi Investor Relations

Tel: (90) (212) 339 6770

Email: yapikredi_investorrelations@yapikredi.com.tr  

 

Disclaimer:

This communication is not being made in and copies of it may not be sent, released, published or distributed, or sent, directly or indirectly, in or into the United States, Canada, Australia or Japan.

This communication is not an offer for sale of securities in the United States. The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended Yapı ve Kredi Bankası A.Ş. does not intend to register any securities in the United States or to conduct a public offering of securities in the United States. Accordingly, any offer or sale of securities may be made only in a transaction exempt from the registration requirements of the U.S. Securities Act of 1933, as amended.

This communication does not constitute an offer of the securities referred to herein to the public in the United Kingdom. No prospectus has been or will be approved in the United Kingdom in respect of the securities. This communication is being distributed to and is directed only at (i) persons who are outside the United Kingdom or (ii) persons who are investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005, 1529) (the “Order”) or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “Relevant Persons”). Any investment activity to which this communication relates will only be available to and will only be engaged with, Relevant Persons. Any person who is not a Relevant Person should not act or rely on this document or any of its contents.

 If you do not understand the contents of this document you should consult an authorized financial adviser.

 This communication is for information purposes only and under no circumstances shall constitute an offer or invitation, or form the basis for a decision, to invest in any securities of the Company. The Turkish Prospectus (izahname) to be approved by the Capital Markets Board of Turkey (the “CMB”) and prepared in connection with the rights issue and the offer of the Company’s shares will be the sole legally binding document containing information about the Company and the rights issue in Turkey. Therefore, any investment decision with respect to the securities publicly offered in Turkey should be made following the publication of, and based on such investor’s review of, the Turkish Prospectus (izahname), that is expected to be approved by the CMB pursuant to the Capital Markets Law no. 6362 and the relevant capital markets legislation. The final Turkish Prospectus (izahname) has not yet been approved by the CMB, and upon approval, will be disclosed as per Turkish capital markets legislation.

Yapı Kredi / 03 May 2018

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