YE07 Consolidated Financial Results
February 15, 2008
1
Highlights
Total assets increased 20% y-o-y Growth in loan portfolio is 32% y-o-y versus 26% sector’s loan growth Growth in deposits is 21% y-o-y versus 20% growth in sector deposits Net commission income grew 23% y-o-y, driven by the strong growth in credit card and other banking transaction commissions Net profit reached TRY 2,041mn (USD 1,760mn), ROAE of 22%
2
Highlights
Total Assets (TRY billion)
67.9 60.3 72.1
50
Loans (TRY billion)
13.0% 13.0% 13.4%
40
39.9 35.9 30.3
10.0
30
20
10
0
0.0
2006
2006 Sept'07 2007
Sept'07
2007
Market share**
Volume (TRY Billion)
Deposits (TRY billion)
60.0
Net Profit* (TRY million)
11.6% 43.6
10.0
2,250 2,000 1,750 1,500 1,250 1,000
11.7% 11.0% 41.5 36.0
45.0
29%
1,580
2,041
30.0
15.0
750 500
0.0
0.0
250 0
2006
Sept'07
2007
Market share**
Volume (TRY Billion)
2006
2007
* Net profit figures include tax credit and gain on sale of investments of TRY 281mn as well as loss related with a tax dispute of TRY 57mn for 2007; totalling TRY 224mn as one off gains (TRY 182mn for 2006) ** Market shares are according to bank only figures due to unavailability of consolidated sector data
3
Profitability
Profitability performance (TRY mn.)
Interest on loans Interest on securities Net interest income Net fee income Net income* ROAA (%)* ROAE (%)*
2006
4,049 2,481 2,671 801 1,580 2.7% 24.1%
2007
5,319 3,029 3,376 984 2,041 3.0% 21.9%
change
31% 22% 26% 23% 29%
Higher yielding loan growth is the main contributor to strong growth in interest income
* For 2007, includes TRY 224mn of tax credit and gain on sale of investments as well as loss related with a tax dispute For 2006, includes gain on sale of investments of TRY 182mn
4
Ratios
Balance sheet performance 2007
2006
Loans / Total Assets Securities /Total Assets Loans / Deposits Deposits / Total Assets NPL NPL cost for the period Capital Adequacy Ratio (Basel II)
50.3% 35.2% 84.3% 59.6% 1.9% 1.1% 15.2%
55.3% 35.9% 91.4% 60.5% 2.5% 1.4% 19.1%
5
Consumer loan growth in 2007 is mainly driven by general purpose loans
Breakdown of Loans
31%
34%
85%
18% 21%
15% 19%
66% 15%
3% 4% 8% 2002 Consumer 30% 32%
2006 Small Business Commercial
2007 Corporate
6
Retail Banking - consumer loans
Consumer Loans1 (TRY mn.)
43%y-o-y
8,764 7,904 6,110
2,962 1,199 1,295 1,853 2006 3,031 3,394 4,029 3,674 1,341
Sept'07 Auto loans
2007 Mortgage
General purpose
General purpose loan growth of 83% y-o-y vis-a-vis sector’s loan growth of 67% and an increase in market share by 120bps to 11.6%, are a result of improved distribution capability Akbank’s market shares in consumer loans and mortgage loans are 13.2% and 12.9% respectively Market share in car loans increased to 22.4% from 20.0%
1 Numbers
represent direct lending to individuals, excluding credit cards
7
Retail Banking - credit cards
Credit Card Loans
4,000
Credit Cards Quarterly Issuing Volume
14.5 3,830
6,000 5,000
10 15
14.5
14.3
14.0%
14.2%
14.1%
15.0%
3,528
3,000
5,173 4,855
10.0%
3,121
4,000
3,815
2,000
3,000
5
2,000
5.0%
1,000
0 1,000
2006
Sept'07
2007
0
3Q06
3Q07
4Q07
0.0%
Volume (TRY mn.)
Market shares
22.7% growth in credit card loans y-o-y
8
Retail Banking - small business
Small Business Loans1 (TRY mn.)
27% y-o-y
7,568 6,785 5,959
Continues to provide the highest spread after credit cards Cross-sell ratio is 3.6x
2006
Excluding accrued interest
Sept'07
2007
Only 2% in FX
Special credit packages for; Certain sectors and regions (pharmaceuticals, agriculture, tourism etc.) Dealer networks of corporate clients (ie. Microsoft, IBM, Bosch, Arçelik)
1 Small
business loans given to companies with sales turnover