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1H14 Earnings Release

Profitable growth with solid base confirmed

On 24 July 2014, Yapı Kredi announced its consolidated 1H14 results based on Turkish accounting standards (BRSA), reporting TL 929 mln net income and 10.8% cumulative return on average tangible equity. On a quarterly basis, net income was realised as TL 501 mln, indicating 17% q/q growth.

“Resilient capital, effectively managed liquidity and improving asset quality” 

In 1H14, Yapı Kredi recorded 15.4% capital adequacy ratio, one of the highest levels in the sector. At the same time, through balanced volume growth, Bank’s loans to deposits plus TL bonds ratio decreased to 108% (vs 110% in 1Q14). In terms of asset quality, NPL ratio decreased to 3.48% (vs 3.50% in 1Q14) supported by resilient performance in all segments. Specific coverage increased to 72% (vs 67% at YE13) while cost of risk decreased to 1.10% (vs 1.27% at 2013) supported by collections and intact asset quality.

“Expanding net interest margin, accelerating fee growth and disciplined cost management”

Yapı Kredi generated TL 4,087 million total revenues (+2% y/y) mainly driven by solid core revenue performance. Quarterly net interest margin was realised at 3.6% with progressive increase on a quarterly basis (+13bps in 1Q and +24bps in 2Q) supported by an effective pricing approach. Cumulative net interest margin reached 3.5% (-10bps vs YE13) confirming the Bank’s ability to effectively manage the changing rate environment. In fees, Yapı Kredi recorded acceleration vs 1Q (+7% y/y vs +3% in 1Q14) driven by lending related fees in line with solid loan growth and improving contribution from credit cards. Costs grew 15% y/y, relatively aligned with sector level of 14% y/y, including investments for growth.

“Successful implementation of growth strategy with market share gains, strengthened distribution and customer acquisition

In 1H14, Yapı Kredi’s loan book reached TL 108.7 billion with above sector growth of 9% ytd (vs 7% sector). Growth was driven by market share gains in key value generating areas including company loans (+55bps to 9.2%), general purpose lending (+64bps to 7.0%) and foreign currency lending (+44bps to 10.6%). The Bank maintained its leadership position in credit cards. During the same period, total deposits reached TL 96.1 billion with above sector growth of 9% ytd (vs 3% sector).

In line with Yapı Kredi’s growth ambitions, distribution was strengthened with total number of employees increasing by ~2,000 to 18,796. At the same time, 25 new branches were opened and 150 branches were renovated. The Bank also continued to develop its alternative delivery channels by deploying 150 ATMs with an additional 65 ATMs currently under deployment and launch of its direct banking application. As of Jun’14, the Bank handles 83% of transactions through its ADCs, one of the highest levels in the sector.

Supported by the Bank’s focused approach, customer acquisition and activation activities were accelerated. Accordingly, Yapı Kredi increased its number of customers by 260 thousand in the first half of the year up to 10.2 mln.       


Istanbul, 24 July 2014;
Inquiries:Yapı Kredi Investor Relations
Tel: (90) (212) 339 7323
Email: yapikredi_investorrelations@yapikredi.com.tr

Yapı Kredi / 24 Jul 2014