Disciplined execution: Resilient performance and step-up in ranking
On 8 May 2015, Yapı Kredi announced its consolidated 1Q15 results based on Turkish accounting standards (BRSA), reporting TL 501 million net income, indicating 17% y/y growth and 10.3% return on average tangible equity.
“Above sector growth leading to step up in rankings”
Yapı Kredi continued to increase its market shares in both loans and deposits in 1Q15. Total loan book reached TL 135.5 billion with 8% ytd growth. Accordingly, the Bank increased its market share in total loans by 15 bps to 10.4% and increased its ranking by one notch to become the 3rd largest private bank in total loans. Remixing of loan book continued towards more profitable segments including TL company (+9% ytd), general purpose loans (+8% ytd) and SME loans (+10% ytd). Leadership in credit cards was maintained. During the same period, total deposit book reached TL 119.7 billion with 11% ytd growth. This resulted in a gain of 45 bps in total deposit market share to 10.5%. Accordingly, Yapı Kredi increased its ranking by one notch in customer deposits to 3rd position and Turkish Lira deposits by one notch to 2nd position among private banks.
“Growth and digital approach confirmed”
In line with Yapı Kredi’s growth strategy, investments continued in 1Q15. Accordingly, total numbers of employees increased by ~725 to 19,260 and 5 new branches were opened, bringing total number of branches to 1,007. Additionally, 125 new ATMs were deployed and ATM network reached 3,730 with market share of 8.1% (+20bps ytd). Supported by growth investments made in 2014 and so far in 1Q15, Yapı Kredi increased its customer base by ~100 thousand ytd and total number of customers reached 10.7 million.
“Solid balance sheet structure and ongoing focus on maintaining strong fundamentals”
Capital adequacy ratio was realised at 14.3% incorporating above sector loan growth and negative impact of currency depreciation. At the same time, the Bank maintained its strong liquidity position and loan to deposit+TL bond ratio declined by 4pp ytd to 108% (vs 115% in the sector).
“Resilient asset quality”
In terms of asset quality, NPL ratio increased by 10 bps to 3.5% impacted by a one-off transfer of a few corporate files from restructured loans to NPL. Excluding these files, NPL ratio remained stable ytd at 3.4%. On the other hand, total NPL and restructured loan ratio decreased by 10bps ytd compared to 4bps increase at peers.
Total revenues increased by 24% y/y to 2,409 million supported by strong fee growth and better contribution from trading and other income compensating pressure on net interest margin. NIM was realised as 3.1% (-50 bps vs 4Q14) impacted by lower contribution of CPI-linkers and pricing competition, especially on deposits. Fees increased by 24% y/y despite ongoing impact of regulation, supported by above sector lending growth. Cost growth of 27% y/y incorporates base effect of growth investments as well as booking of fee rebates with improving trend expected in upcoming quarters. Cost growth was limited at 1% vs 4Q14 which is more indicative due to similar base of investments. Cost/Income ratio was realised as 49% vs 48% in 4Q14.
Istanbul, 08 May 2015
Inquiries:Yapı Kredi Investor Relations
Tel: (90) (212) 339 7323