Yapı Kredi Investor Presentation Yapı Kredi Investor Presentation

Transcription

Yapı Kredi Investor Presentation
KDB Daewoo
ae oo Secu
Securities
t es a
and
d KRX Turkish
u s Corporate
Co po ate Days
ays
Seoul, 16-17 April 2012
Agenda

Yapı Kredi Overview

Turkish Economy
y and Banking
g Sector

Outlook

Annex
Note: Throughout
g
the p
presentation, US$/TL translation at 1.8417 has been made for convenience and illustrative purposes
p p
2
Yapıı Kredi
Operrating
Enviro
onment
Executive Summary

As the world’s 17th largest economy1 and a member of G20, Turkey is a dynamic country with a unique
ability to cope with change. The country stands out with favourable demographics, solid / improving
growth p
potential and low leverage
g
macroeconomic fundamentals, g

Turkish banking sector is highly underpenetrated and well regulated with solid capital, liquidity and funding
positions

Yapı Kredi
Y
K di iis th
the 4th llargestt private
i t b
bank
k iin T
Turkey;
k
operating
ti in
i retail
t il (individual
(i di id l and
d SME),
SME) private
i t and
d
corporate / commercial banking with leading positions in key segments and products supported by its
product factories

The Bank’s unique competitive advantages include:
-
(1)
3
Large network and leading brand
Strong and committed shareholders
Healthy, robust and customer business focused balance sheet
Strong liquidity and funding position with limited reliance on wholesale borrowing and proven access to
international funding
Solid risk profile with strong credit infrastructure and conservative credit policy
Focus on value generating segments with leadership in key products
Diversified, high quality revenue mix
Proven capability of cost control and efficiency improvements
Commitment to sustainable growth and commercial effectiveness
According to 2010 data published by the Turkish Statistical Institute and IMF
Yapı Kredi Highlights
1944
founding year
2006
Deep-rooted private bank with a nationwide
presence
Largest merger in the Turkish banking sector
US$ bln assets
38
US$ bln loans
62
6.2
branches
17,350
headcount
78%
share of ADC1
8.5
US$ bln
4
(1)
(2)
(3)
mcap2
56%
Fourth largest private bank with leading positions in
key segments / products
~10%
Strong loan book with focus on value generating
segments
>15%
L
Loyal
l customer
t
b
base
market share
market share
68%
fees/opex
mln customers
907
loans/assets
deposits/assets
merger year
64
59%
Fifth largest branch network created via
successfully executed branch expansion
(+49% since 2007)
Young, dynamic and highly qualified workforce
managed effectively (+3% since 2007)
Focus on technology
gy to improve
p
customer
satisfaction and decrease cost to serve
Among the top 30 stocks trading on the Istanbul
Stock Exchange; listed since 1987
1.2
US$ bln net income
22%
ROAE
111%
Total coverage3
14.9%
CAR
Share of alternative delivery channels (including ATMs, internet, call center and mobile banking) in total transactions
Market capitalisation as of 11 April 2012
(Specific + general provisions) / NPL
Highest in the sector due to customer-business focus.
Lowest securities / assets (18%)
Solid deposit base with high contribution of retail,
strong demand deposit share (17%) and lengthening
maturity
Natural market share level
(number of branches, assets, loans, deposits)
Strong market position in key segments / products
(credit cards, asset management, leasing, factoring,
private pension and health insurance)
Highest
g
in the sector driven by
y focus on efficiency
y
and sustainability
Strong net income evolution since 2007
(+22% CAGR vs 7% sector). Only bank to increase
net income in 2011 y/y
Highest among private peers in 2011 and
consistently above 20% since the merger
(highest tangible ROAE: 24%)
Solid provisioning level and sound asset quality
confirming conservative risk profile
(NPL ratio at 3.0%)
Sound capitalisation level
Yapı Kredi and its Major Shareholders
A very successful partnership model in the Turkish banking sector
Excellent
Combination of
Shareholders
Local
Approach

Koç Holding is one of the most deep-rooted companies in Turkey with solid
positions in energy, automotive, consumer durables, finance and 81 thousand
employees. The Group brings local expertise and access to a wide industrial base

UniCredit
U
iC dit operates
t iin 22 countries
t i with
ith over 160 th
thousand
d employees
l
via
i 9
thousand branches and has the largest network in CEE. The Group provides
international banking expertise and access to a large commercial banking network

Shareholding structure providing stability, ensuring sustainable / profitable growth

Local management / strong local relationships

Independent decision making process / Bank run at arm’s length
Shareholding Structure
50%
81.8%1
L

Product and
Management
Best Practices
Capital
Support

Strong inherent culture of core banking focus and value generation

Short “time to market” for flagship products / “in-house” investment banking
support

Leverage on UniCredit know-how and expertise in credit, market, liquidity risk
management and cost control / efficiency

Joint HR / training initiatives with Koç Holding and UniCredit including international
career opportunities

Shareholders capable and committed to supporting the capital base if and when
needed

No history of capital extraction (no dividend payments)

Limited reliance on UniCredit funding

Local regulators monitoring / avoiding any capital leakage between jurisdictions
(1) Remaining 18.2% held by minority shareholders
5
L = Listed
50%
Strong partnership with
committed shareholders is one
of Yapı Kredi’s key competitive
advantages:
-
Via Koç Holding, the
Bank has access to an
established industrial group
offering synergy and cross-sell
opportunities across sectors
-
Via UniCredit, the Bank
receives know-how and best
practice transfer from a
leading global banking group
Strategy
Clear and unique strategic guidelines aimed at profitable / sustainable growth and
customer satisfaction
Yapı Kredi’s medium-term objective is to
achieve above sector profitability performance on the back of
improvement in commercial effectiveness and continuation of investments for growth
Yapı Kredi’s strategy is based on:

6
Healthy and consistent growth via focus on core banking activities
–
Loan growth focused on value generating segments / products: high margin SME, consumer in TL and project
finance in FC lending
–
Deposit growth to ensure adequate levels of liquidity coupled with diversification of long-term funding through
recurring access to international markets
–
Continued branch expansion
Strong and sustainable profitability via customer business focus, strict cost control and efficiency gains
–
Revenues to be driven by emphasis on product penetration / innovation and fee generation in view of low
margin environment
–
Cost growth to remain in line with inflation also incorporating growth initiatives
Superior and long lasting customer satisfaction
–
Simplification of processes together with product and delivery channel improvements
–
Strengthening of customer centric business model
Divisionalised Organisational Structure
Coherent and customer focused service model supported by product factories
Revenues and Volumes
by Business Unit4
L
Retail Banking
Credit Cards
Individual
& SME
8.3 mln cards1
~432K POS
334 direct
767 branches
3,620 RMs
2,697 ATMs
merchants
Corporate /
Comm. Banking
Private Banking
31 branches
192 RMs
Corporate
Product Factories:
Mass
SME
#1 in Factoring2
#2 in Mutual Funds2
L
L
53%
Private
3%
Corporate
7%
Commercial
21%
37%
#1 in Leasing2
Mcap:
p US$ 1,046 mln
Treasury
and Other
Total
Assets
US$ 2.3 bln
US$ 182 mln
19%
20%
31%
16%
16%
US$ 243 mln
Revenues
7
50%
27%
International Operations
Insurance Subsidiaries
#5 in Non-life
Non life Insurance2
#1 in Health Insurance2
US$ 528 mln premiums
Mcap: US$676 mln
100 branches
568 RMs
Retail
(including
individual,
SME
and card
payment
systems)
Product Factories:
#3 in Brokerage2
#1 in ISE and TurkDEX
Volume3
Affluent
#4 iin P
Private
i t
Pension Funds2
#5 in Life
Insurance2
Commercial
3 branches
66 RMs
sales force
329K
(2011)
Loans
Note: Branch numbers by segment exclude 2 free zone, 1 off-shore and 3 mobile branches. Segment figures as of Dec’ 2011, market capitalisations as of 11 April 2012
(1) Including 1.4 mln virtual cards
(2) Rankings are based on: Capital Markets Board (for brokerage), Rasyonet (for asset management), Turkish Factoring Association (for factoring), Turkish Leasing Association
(for leasing), Pension Monitoring Center (for private pension funds) and Turkish Insurance and Reinsurers Association (for life, non-life and health insurance).
(3) Includes repo, reverse repo, treasury bill, government bond, equity and derivative transaction volumes. ISE indicates İstanbul Stock Exchange. TurkDEX indicates Turkish
Derivatives Exchange
(4) Based on MIS data. Credit card payment system revenues excluding POS revenues
Deposits
L = Listed
Recent History and Key Performance Indicators
Successful execution of strategy resulting in consistent delivery of strong results
2006
Merger and Integration
Legal merger of Yapı Kredi and Koçbank
Merger of the two banks’ core subsidiaries operating in the same sectors
(factoring, leasing, asset management and brokerage)
Restructuringg of the capital
p
base
Integration of information technology systems
2007
Restructuring
Launch of branch expansion
Completion of segment based service model
Streamlining governance through bringing subsidiaries under the Bank
Efficiency
Effi i
iinitiatives
iti ti
in
i systems
t
and
d processes
2008
Relaunch of Growth
Acceleration of branch expansion
Innovation in product, service and delivery channels
Tight cost management and emphasis on decreasing cost to serve
Strengthening of capital base via capital increase
2009
Global Crisis
Temporary suspension of branch expansion
Continuous support for customers
Tight cost management and efficiency efforts
Proactive credit risk management
2010
2011
Back to Growth
Re-launch of branch expansion
Innovation, new product development and customer acquisition
Above sector growth and cost discipline
Simplification of processes and improvement in efficiency
Flexible
Fl
ibl Approach
A
h
Continuation of branch expansion
Selective and continual growth in value generating segments and products
Sustainable revenue generation and tight cost control
Constant focus on asset quality
Diversification of funding and emphasis on liquidity
Key Performance Indicators
1,224
1,244
Tangible
ROAE: 24%
25.5% 25.7%
843
687
26.7%
22.5%
21.7%
553
2007
2008
Between 2007
and 2011:
2009
2010
2011
2007
2.2%
1.8%
2007
2008
2009
2010
2011
Cost / Income
59.0%
1.8%
2008
Revenues +14% CAGR
Costs +6% CAGR vs average annual inflation of 8%
Number of branches +49%, ATMs +60% vs headcount +3%
Return on Assets2
(1) Calculations based on the average of current period equity (excluding current period profit) and prior year equity. Annualised
(2) Calculations based on net income / end of period total assets. Annualised
8
Return on Average Equity1
Net Income (US$ mln)
2009
53.3%
41.3% 40.5% 43.8%
2.4%
2.0%
2010
2011
2007
2008
2009
2010
2011
Balance Sheet
Customer oriented balance sheet with solid liquidity, capital and funding position
Summary Balance Sheet,
2010
US$ bln
2011
December 2010
y/y
Key Ratios
Total Assets
50 4
50.4
63 8
63.8
27%
Loans
29.5
37.6
28%
TL
18.8
24.2
29%
FC
13 1
13.1
13 4
13.4
3%
Securities
10.8
11.6
7%
Deposits
30.0
35.9
20%
December 2011
58%
Loans / Assets
Securities / Assets
59%
21%
18%
98%
Loans / Deposits
105%
98%
Loans / (Deposits + TL Bonds)
TL
17.5
19.0
9%
FC
15.2
16.9
11%
Repo
1.7
3.2
84%
Borrowings
7.4
11.1
51%
TL
1.1
1.3
22%
FC
7.7
9.8
27%
Shareholders' Equity
5.8
1
Assets Under Management
9
4.9
6.9
4.4
Deposits / Assets
Leverage2
Borrowings3 / Liabilities
Group
p CAR4
103%
59%
56%
7.6x
8.3x
15%
17%
15.4%
14 9%
14.9%
18%
-10%
Group Tier I
Note: Loan figures indicate performing loans
(1) Management Information System data
(2) Leverage ratio: (Total assets – equity) / equity
(3) Includes funds borrowed, sub-loan and marketable securities issued
(4) A sub-loan agreement was signed with UniCredit Bank Austria AG of US$ 585 million (10NC5) at a rate of 3-months Libor+8.30%. This sub-loan has been
utilised as Tier-II in the calculation of 2011 CAR by the authorisation of BRSA dated February 20, 2012
11.7%
11.3%
Income Statement
Sound core revenue performance, controlled costs and asset quality improvement
US$ mln
2010
2011
y/y
3,610
3,609
0%
Net Interest Income
1,945
2,034
5%
Non-Interest Income
1,665
,
1,577
,
-5%
944
1,069
13%
1,462
1,581
8%
2,148
2,029
-6%
631
467
-26%
608
402
-34%
1,517
1,562
3%
1,224
1,244
2%
Total Revenues
1
o/w Fees & Comms.
Operating
p
g Costs
2
Operating Income
Provisions
o/w Loan Loss
Pre-tax Income
Net Income
10
4
3

Revenues stable y/y driven by
disciplined NIM management and
sound fee growth

Costs +8% y/y, below inflation, driven
by tight cost control

Provisions -26% y/y, driven by asset
quality improvement

Net income at US$ 1
1.2
2 bln (+2% y/y)
(1) Total revenues include net interest income, net fees and commissions, dividend income, trading income, other operating income and income from investments
accounted based on equity method as per BRSA footnotes
(2) Operating costs indicate the other operating expenses line as per BRSA footnotes
(3) Operating income indicates difference between total revenues and operating costs
(4) Indicates net income before minority
Risk Management
Strong inherent risk management culture allowing sustainable and profitable growth
Market
Risk
Credit
Risk
Operational
Risk

Effective hedging of interest rate risk via swap funding (US$1.9 bln cross currency IRS)

No structural FX position1 (net -US$132 mln as of YE11)

Low risk securities portfolio to mitigate P&L and capital volatility (60% of total in HTM securities)

Strong adherence to strict regulatory liquidity limits

Capitalisation level able to absorb potential Basel II impact (150 / 170bps on CAR). Official
p
of Basel II byy BRSA expected
p
in 2H12
implementation

Diversified lending book toward less risky sectors and avoidance of concentration (top 20 loans
account for 15% of book)

Limited intra-group exposure (13% of capital vs 20% regulatory limit)

Continuous focus on infrastructure enhancements and improvement of lending response times

Strong collections capability (both in-house and outsourced)

Dynamic portfolio management with NPL portfolio sales

Effective management of operational risk at Basel II standards in addition to ensuring of business
continuity and Basel II compliance

Project for compliance to Basel II advanced measurement approach (AMA) in progress

Implementation of AMA will ensure optimum capital allocation on operational risk
(1) Including off-balance sheet items
11
Agenda

Turkish Economy and Banking Sector

Outlook

Annex
Note: Throughout
g
the p
p p
12
Turkey
Young and dynamic with significant growth potential
Population (mln)
Avg. Age of Population
Turkey
EU
73
502
29
43
Population Growth1
15%
5%
% of Population <25 years
43%
28%
GDP (US$ bln)
773
17,081
10,341
33,993
Per Capita GDP (US$)
Source: Data as of 2011 for Turkey (source: Turkish Statistical Institute), 2010 for EU-17 (source: Eurostat)

8th2 largest
g
in Europe,
p , 17th2 largest
g
in the World

Favourable demographics (43% under 25 years vs
28% in EU) with a rapidly growing population
(15% vs 5% in EU)2

Sound relations with neighbouring countries, EU and
NATO

Solid political and economic prospects
Demographic Composition by Age (%)
Turkey
43
30
70
Romania
29
71
Poland
30
70
Hungary
27
73
Czech Republic
27
73
Bulgaria
26
74
28
Age 0-24

72
Age 25+
Source: Eurostat as of 2010
13
Stable political environment with single party
government since 2002 enabling fast and effective
decision making
-
Government focused on sustainable growth with
increased support for domestic investments in
competitive areas
57
Slovakia
EU (27 countries)
-
Note: EU indicates EU27 countries
(1) Nominal growth between 2000 and 2011 for Turkey and 2000-2010 for Eurozone
(2) According to 2010 data published by Turkish Statistical Institute, IMF and Eurostat
(3) In November 2011, Fitch Ratings revised the outlook of Turkey’s sovereign rating to stable from positive
Sovereign ratings of Ba2/BB/BB+ by
M d ’ /S&P/Fit h3. Local
Moody’s/S&P/Fitch
L
l currency sovereign
i rating
ti
upgraded to investment grade (BBB-) by S&P in
Sep’11
Macroeconomic Environment
Solid and improving macroeconomic fundamentals with soft-landing underway
2008
2009
2010
8.5%
9.2%
GDP
Growth
4Q11 / Recent Trend
2011
0.7%
Strong growth environment in 2011 with
Soft landing
confirmed
fi
d
start
t t off soft-landing
ft l di ffrom 4Q11 onwards
d
(y/y)
-4.8%
Inflation
(eop y/y)
(eop,
6 5%
6.5%
6.4%
10.0%
CAD /
GDP
2 2%
2.2%
Current account deficit at peak in Oct’11
but improving since Nov’11
((CAD at US$
$ 77.2 bln in 2011))
5.5%
Budget
Deficit /
GDP
1.4%
Unconventional / proactive CBRT policy mix
11.5%
10.5%
Corrid
dor
low budget deficit / GDP (1.4%)
12.5%
2010 average
8.9%
Strong fiscal discipline confirmed by
Strong trend
sustained
3.6%
1.8%
Weighted Avg TL RRR
Monetary
Policy
and increased taxes / prices on certain goods.
M ’12 iinflation
Mar’12
fl ti att 10
10.4%
4%
Under pressure
but improvement
expected
6.5%
5.7%
Pressure on inflation via TL depreciation
Increasing but
controlled
co
t o ed
10.4%
10.1%
10.5%
O/N Lending Rate
6.8%
5.75%
5.75%
5.0%
5.0%
Policy Rate
5.6%
5.4%
O/N Borrowing Rate
2010
14
Jan 11
Jan-11
Feb 11
Feb-11
Mar 11
Mar-11
Apr 11
Apr-11
May 11
May-11
Jun 11
Jun-11
Jul 11
Jul-11
Notes:
CAD: Current account deficit
RRR: Reserve requirement ratio
(1) Reserve requirement changes, interest rate corridor, repo / FX sale auctions
Aug 11
Aug-11
Sep 11
Sep-11
Oct 11
Oct-11
Nov 11
Nov-11
Dec 11
Dec-11
Jan 12
Jan-12
Feb 12
Feb-12
in 2011 (mainly through prudential measures1)
with differentiation among quarters to
manage current account deficit, growth, inflation
and currency depreciation
depreciation. Low policy rate
maintained (5.75%)
Narrowing of interest rate corridor in Feb’12
on the back of recent global expansionary
policy decisions, positive core inflation /
CAD evolution
Banking Sector
Underpenetrated with stability, profitability and high growth potential

Significant long-term growth potential on the back of positive
demographics and underpenetrated market

Highly resilient thanks to solid banking sector fundamentals
Penetration data
Loans / GDP
Deposits and AUM / GDP
Corporate
p
Loans / GDP
Retail Loans / GDP
– Low
L
consumer iindebtedness
d bt d
AUM / GDP
D
Deposits
it / GDP
– Healthy regulatory environment
– Robust profitability
136%
– Well capitalised system

51%
– Limited reliance on wholesale funding
34%
– Low short FX position risk
17%
30%
TR
CEE
Total assets at US$ 631 bln (20%), loans at US$ 353 bln
(30%) and deposits at US$
$ 375 bln (13%) in 2011
2%
4%
60%
55%
53%
EU
TR
CEE
39%
115%
EU
Source: ECB data as of 2011 for Turkey, 2010 for CEE and EU
Note: Total loan figures includes retail, corporate and other. Retail loans include total household
lending which covers housing loans, consumer lending and other household lending (including credit
cards, excluding SMEs). AUM: Asset Under Management
Comparison of Key Performance Indicators
Turkey (2011)
76%
69%
– Solid asset quality with well-developed credit culture
46%
CEE (2010)
EU (2010)
118%
102%
94%
15%
15%
16%
14.1%
14%
11%
5%
TR
3.5%
3.1%
TR
ROAE
15
6.3%
2.6%
1.9%
TR
NIM
TR
TR
CAR
NPL Ratio
Loans / Deposits
Note: EU indicates EU27 countries. Data as of 2011 for Turkey (source: balance sheet data based on BRSA weekly, profitability data based on BRSA monthly
financials), 2010 for CEE and EU (source: ECB, IMF and UniCredit). ROE used for CEE and EU instead of ROAE. CEE countries include Bulgaria, Czech Republic,
Estonia, Latvia, Lithuania, Hungary, Poland, Romania, Slovenia and Slovakia
Agenda

Outlook

Annex
Note: Throughout
g
the p
p p
16
2012 Outlook
YKB macro / sector scenario based on soft-landing and positive volume evolution
2012 Macro Expectations
GDP
Growth
4.4%
6.9%
9.5%
End of Year
inflation
Average
inflation
5.75%
Policy
Rate
Positive / moderated growth driven by
d
domestic
ti d
demand
d
Controlled inflation with decline from
2H12 onwards
Low / stable policy rate accompanied by
flexible monetary policy via interest rate
corridor
Sustained revenue performance...
Yapı Kredi
Y
- Flat NIM via positive loan yields but low visibility on funding costs
- Stable fees impacted by accounting change / regulation
Lean cost management…
- Cost growth in line with inflation
- Increasing efficiency, also by better leveraging on multi-channel focus
2012 Banking Sector Expectations
15%
12%
%
Loans
Positive volume evolution
Deposits
Flat
Net
Interest
Margin
Stable evolution with continuation of
upward loan repricing actions offsetting
pressure on cost of funding
p
g
<100
bps
Net
Cost of
Risk
Slight asset quality deterioration
...with continued focus on customer business
- Loans slightly above sector driven by high margin TL individual,
SME and FC project finance
- Deposits in line with loan growth with balanced composition
...with continuation of investments for growth
- Ordinary costs growing at low single digit
- Investments for growth including 50 / 60 branch openings,
credit card business strengthening
Asset quality intact…
- Slight / manageable deterioration in NPL ratio
- Net cost of risk in line with / below sector
...with disciplined approach
- Dynamic and proactive NPL portfolio management
- Continuous enhancements in credit granting, collection and
monitoring processes
Note: Macroeconomic expectations based on Yapı Kredi Economic Research estimates as of 5 April 2012
17
Areas of Focus
Continued emphasis on key long-term strategic pillars

18
Tactical above sector growth in
value generating segments
Increased commercial effectiveness
(customer penetration, activation,
cross-sell)

Organic expansion

Disciplined NIM management

Strong focus on fee generation

Lean costs and optimisation of cost
to serve
Growth /
Sustainability
Funding /
Li idit /
Liquidity
Capital
Profitability
Risk
M
Management
t

Optimisation of deposit pricing / mix

Accelerated focus on funding
diversification

Effective use of capital

Maintained focus on asset quality to
minimise pressure on cost of risk

Effective management of interest
rate / liquidity risk
Agenda

Yapı
p Kredi Overview

Outlook

Annex
-
Detailed 2011 Financials
Other Information
Note: Throughout
g
the p
p p
19
Yapı Kredi
Fourth largest private bank in Turkey with a large network, leading brand and
leadership in key segments / products
Financial Highlights
Market Positioning
(BRSA in US$, 31 Dec 2011)
(31 Dec 2011)
63 8
63.8
Total Assets (bln)
Loans (bln)
37.6
Deposits
p
((bln))
35.9
4.4
AUM (bln)1
No. of Credit Cards
(mln)2
8.3
Total
Rank
Assets
9.3%
5
Branches
9.2%
5
Deposits
9.2%
6
Loans
7
Consumer Loans
Retail
8
18.3%
Asset Management
9
Brokerage
17.4%
Cash Loans
6.2
907
17,350
No. of Employees5
Market Capitalisation

20
(bln)6
8.5
1
13.6%
Corporate
19.6%
Factoring
2,697
No. of ATMs
Life
17.7%
Non-Life
Health
1
1
5
6.4%
Private Pension
Insurance
2
4
10.0%
Leasing
1
3
5.7%
Non-Cash Loans
No. of Branches4
7
8.2%
10
No. of Active Customers (mln)3
5
10.3%
Credit Cards
AuM +
Brokerage
4th largest
among
private banks
p
4
16.1%
5
6.7%
20.7%
1
Yapı Kredi is rated as: i) Ba3 with a positive outlook by Moody’s, ii) BB with a positive outlook by S&P and iii) BBB- with a stable outlook by Fitch11
(1) Management Information Systems data
(2) Including 1.4 mln virtual cards
(3) Bank-only, MIS data
(4) Bank-only including 1 off-shore branch
(5) Bank: 14,859
(6) Market capitalisation as of 11 April 2012
(7) Including mortgages, general purpose and auto loans
(8) Credit card outstanding volume
(9) Equity trading volume
(10) Cash loans excluding credit card outstanding volume and consumer loans
(11) In Nov’11, Fitch revised the rating outlook of all Turkish banks, including Yapı Kredi, to stable from positive following the same revision in Turkey’s
sovereign rating
2011 Results
Yapı Kredi differentiating in many key areas
Among Top 4 Private Banks:
2010 Æ 2011
22%
Highest ROAE
24%
Highest
g
tangible
g
ROAE
18%
Highest growth in shareholders’ equity
2%
Only
y bank to increase net income (y
(y/y)
y)
7%
2011…
2010 Æ 2011
30%
Highest Fees/Revenues
68%
Highest Fees/Opex
50%
Strong growth in SME loans (Sector: 30%)
Highest growth in core revenues
63%
Highest growth in general purpose loans
(Sector: 38%)
2.1%
Highest
g
core NIM
40%
Highest growth in consumer loans
(Sector: 30%)
6.2%
Highest Revenues / Assets
20%
Above sector growth in deposits (Sector: 13%)
59%
Highest
g
Loans / Assets
18%
Lowest Securities / Assets
7%
Highest increase in Deposits / Employee
Continuing focus on Cost / Income (44%), Non
Non-Performing
Performing Loans (NPL ratio at 3.0%),
Demand Deposits / Total Deposits (17%) and branch openings (net 39 in 2011)
21
Asset Composition
High share of lending in balance sheet reflecting customer business focus
Total Assets
Loans
Mortgage
General Purpose
Auto
US$ 64 bln
Credit Cards
Comm. Installment3
By Product
8%
5%
2%
Company
Loans by Sector
By Currency
10%
8%
2%
23%
US$ 37.6 bln
Construction
Transport./
10%
Comm.
8%
Financial
Wholesale/
Institutions
Retail
12%
8%
15%
14%
9%
28%
3%
Textiles
7%
TL Companies
C
i
Sector: 56%
Loans
US$ 13.4 bln
US$ 29.5 bln
FC
US$ 10.7bln
(in US$)
36%
16%
21%
Utilities
7%
Other 4
33%
59%
FC Companies
36%
2007
64%
US$ 18.8 bln
Food
7%
35%
32%
US$ 24.2 bln
TL
Metals
6%
64%
29%
Peer Avg
62%
Ship Building/
Auto
Comp.3%
2011
2010
2011
Healthy loan composition with significant share of higher yielding TL lending
Significant presence in value generating loan segments such as SME, retail individual in TL and project finance in FC
Sector: 24%
Securities
S
Securities
iti
B C
By
Currency
2011
18%
B T
By
Type
Turkey sovereign
exposure in total
securities
portfolio: >99%
Trading
5%
3%
29%
37%
66%
60%
2010
2011
AFS
Other
IEAs1
19%
FC
51%
(1% FRN)
Other Assets2
(52% FRN)
HTM
4%
2011
22
TL
49%
Note: Loan figures indicate performing loans
(1) Other interest earning assets (IEAs) include cash and balances with the Central Bank of Turkey, trading financial assets, banks and other financial institutions,
money markets, available for sale financial assets, held to maturity securities, factoring receivables, financial lease receivables
(2) Other assets include other marketable securities, investments in associates, subsidiaries, joint ventures, hedging derivative financial assets, property and equipment, intangible assets, tax assets,
assets held for resale and related to discontinued operations (net) and other
(3) Proxy for SME loans as per BRSA reporting
(4) Other includes various sectors, all with less than 4% share (agriculture, tourism, chemical products, machinery, health and education, furniture, glass, rubber, etc.)
Liability Composition / Deposits
Healthy deposit base with increasing share of retail, high weight of demand deposits
and lengthening maturity
Total Liabilities and
Shareholders’ Equity
US$
$ 64 bln
Borrowings1
Deposit Composition
By Currency
Demand Deposit Volume
(US$ bln)
+16%
17%
FC
Repo
5%
TL
42%
47%
Share of
Retail2:47%
56%
58%
53%
Share of
Retail2:68%
Share of
Retail2:76%
2010
2011
2%
1%
2%
5%
5%
1%
9%
6-12M
3-6M
11%
SHE
11%
55%
57%
1-3M
<1M
2011
23
17%
15%
2%
98%
+16%
Customer
98%
2011
YKB
Sector
By Maturity
+12M
Other
Liabilities3
2%
Share of
Retail2:46%
2010
Deposits
6.0
5.2
Bank
Demand Deposits:
US$ 6 bln
(17% of total
deposits)
Demand / Total Deposits
15%
Deposits contributing 56% of total liabilities with
53% in local currency
Significant share of retail deposits (76% of TL
deposits, 46% of FC deposits)
Strong emphasis on demand deposits and
lengthening maturity
- Demand deposit / total deposits ratio of 17%
40%
2010
28%
- Share of deposits longer than 3 months up to
15% (vs 5% at YE10)
2011
(2) Retail includes SME, mass, affluent and private. Based on MIS data
(3) Other liabilities include trading derivative financial liabilities, miscellaneous payables, hedging derivative financial liabilities, provisions, tax liabilities and other
liabilities
Liability Composition / Borrowings
Continuous diversification of the funding base with increasing access to international
markets
Total Liabilities and
Shareholders’ Equity
US$ 64 bl
bln
Borrowings1
Repo
Deposits
17%
Composition of Borrowings
Securitisations
10%
Syndications
23%
5%
56%
Sub-loan
12%
FC Bonds
7%
Supranationals/
Multilaterals
8%
LC Bonds
5%
Other3
Other
Liabilities2
11%
SHE
11%
35%
~US$ 1,275 mln Securitisations
Dec 06 and Mar 07: ~US$ 305 mln, 6 wrapped notes, 7-8 years, Libor+18-35 bps
Aug 10: DPR Exchange: ~US$
S$ 460 mln, 5 unwrapped notes, 5 years
Aug 11: ~US$ 410 mln, 4 unwrapped notes, 5 years
Sep 11: ~€75 mln, 1 unwrapped note, 12 years
~USD 2.7 bln Syndications
Apr 11: ~US$ 1.45 bln, Libor +1.1% p.a. all-in cost, 1 year
Sept 11: US$ 285 mln and €687 mln,
mln Libor + 1
1.0%
0% p
p.a.
a all-in cost,
cost 1 year
€1,050 mln Sub-loan
Mar 06: €500 mln, 10NC5, Libor+2.00% p.a.
Apr 06: €350 mln, 10NC5, Libor+2.25% p.a.
Jun 07: €200 mln, 10NC5, Libor+1.85% p.a.
Additional sub-loan received
from UniCredit
Feb 12: US$ 585 mln, 10NC5,
3-month Libor+8.30%
US$ 750 mln Loan Participation Note (LPN)
Oct 10: 5.1875% (cost), 5 years
Eurobond
Feb 12: US$ 500 mln,
6.75% (coupon rate), 5 years
~€529 mln Supranationals / Multilaterals
EIB Loan - Jul 08-Dec 10: €380 mln, 5-15 years
IBRD (World Bank) Loan - Nov 08: US$ 25 mln, Libor+1.50% p.a, 6 years
Sace
S
L
Loan
- Jan
J 07
07: €100 mln,
l all-in
ll i E
Euribor+1.20%
ib +1 20% p.a, 5 years
EBRD Loan - Aug 11: €30 mln, 5 years
TL 1.15 bln Bond Issuance (~US$ 624 mln)
Oct 11: TL 150 mln, 9.08% compounded cost,
368 days maturity
Dec 11: TL 1 bln,
bln 10.92%
10 92% compounded cost,
cost
168 days maturity
Healthy liability composition with limited reliance on wholesale funding
2011
24
Limited reliance on UniCredit funding (EUR 770 mln4)
(2) Other liabilities include trading derivative financial liabilities, miscellaneous payables, hedging derivative financial liabilities, provisions,
tax liabilities and other liabilities
(3) Other includes foreign trade related borrowings and borrowings of subsidiaries
(4) Excluding sub-loan of US$ 585 mln received in Feb’12
Feb 12: TL 400 mln, 10.22%
compounded cost,161 days maturity;
TL 150 mln, 10.21% compounded
cost, 368 days maturity
Mar 12: TL 150 mln, 10.49%
compounded cost, 374 days maturity
Liability Composition / Capital
Capital base supporting business growth
Total Liabilities
Capital Evolution (US$ bln)
Capital Adequacy Ratio and Tier 1 Ratio
US$
$ 64 bln
2007-2011 CAGR
Borrowings1
17%
Tier 2
23%
Tier 1
15%
Share of FC:
63%
(sector:39%)
2.2
Tier 1 Ratio
CAR
1.6
3
14.9%
1.6
Repo
Deposits
5%
56%
15
1.5
1.3
3.8
2.8
3.0
2007
2008
2009
12 8%
12.8%
6.4
5.0
11.3%
10.9%
2010
2011
Risk Weighted Asset (RWA) Evolution (US$ bln)
RWA Growth
25%
3%
31%
31%
Loan Growth
35%
0%
40%
28%
2007
2008
2009
2010
2011
Capital adequacy ratio at 14.9% incorporating
positive impact of ~US$ 585 mln sub-loan3.
Capital evolution supported by:
– Retaining profits to finance future growth
Op Risk RWA
Market RWA
Other
Liabilities2
SHE
56.2
Credit RWA
11%
11%
43.0
31.7
32.8
2.7
0.3
22.4
3.5
0.5
27.7
42
4.2
1.0
27.6
2007
2008
2009
25.4
4.9
10
1.0
37.1
2010
5.3
2.1
48.8
2011
– Growth in value generating loan segments
Capitalisation level able to absorb potential Basel
II requirements (~150 / 170 bps impact on CAR)
– Basel II to be effective in Turkey from 2012.
Impact
p
to halve when Turkey
y becomes
investment grade
High share of foreign currency in Tier 2,
providing buffer in case of TL devaluation
2011
25
(2) Other liabilities include trading derivative financial liabilities, miscellaneous payables, hedging derivative financial liabilities, provisions, tax liabilities and other liabilities
(3) A sub-loan agreement was signed with UniCredit Bank Austria AG of US$ 585 million (10NC5) at a rate of 3-months Libor+8.30%. This sub-loan has been utilised as
Tier-II in the calculation of 2011 CAR by the authorisation of BRSA dated February 20, 2012
Asset and Liability Structure
Effective ALM management with well balanced currency structure and healthy liquidity
Asset and Liability Composition (US$ bln)
Duration Analysis1 (days)
Local Currency
Currency Matching (2011, US$ bln)
Foreign Currency
35
33
761
Borrowings
11.1
539
215
Repo
Loans
37.6
3.2
Demand
Deposits:
US$ 6 bln
(17% of total
deposits)
31
29
318
360
178
79
124
2007
2007
2011
TL Assets
TL Liabilities
2011
FC Assets
FC Liabilities
TL
Assets
FC
Liabilities
Loans / Deposits
p
Ratio
Deposits
35.9
105%
102%
Securities
Other IEAs
Other Assets
11 6
11.6
12.0
2.6
98%
Other
Liabilities
SHE
Assets
26
6.7
105%
YKB:
+7 pp
94%
Sector:
+12 pp
Effective management of duration
gap via utilisation of swap funding
Balanced currency composition
82%
6.9
2010
Liabilities
Solid balance sheet structure
focused on customer business
together with increasing
diversification of the funding base
2011
YKB
Sector
CEE
S
Sector
t converging
i to
t YKB levels
l
l iin
terms of Loans / Deposits Ratio
resulting from increasing focus on
core customer business vs
securities
Total Cost of Funding
Continuous focus on optimising cost of funding, also via diversification of funding sources
Cost of Borrowings
Cost of Deposits
(quarterly)
Repo
Sub-debt
Funds Borrowed
4.6%
4.2%
3.6%
3.3%
3
3%
3.3%
5.6%
5.2%
5.5%
4.7%
4.2%
5.2%
2Q11
3Q11
4Q11
1Q11
2Q11
3Q11
4Q11
1Q11
Total cost of funding (also including wholesale borrowings) at 4.7% as of 2011 vs 5.2% sector
Note: YKB data based on BRSA bank-only financials. Sector data based on BRSA monthly data
27
5.2%
5.2%
4.7%
4.7%
4.5%
5.0%
1Q11

4.0%
5.1%
Sector
6.0%
5.6%
3.6%
YKB
Sector
6.1%
4.6%
4.6%
4.3%
(quarterly)
YKB
4.8%
4.3%
Total Cost of Funding
(quarterly)
2Q11
3Q11
4Q11
Asset Quality
Capability to effectively manage asset quality in changing market conditions
Cost of Risk1 (net of collections)
NPL Ratio
NPL Ratio
excl. sales:
6.5%
5.3%
YKB
Sector
5.3%
4.1%
3.4%
3.3%
6.3%
3.72%
Sector2:
2.6%
4.3%
3.4%
3.14%
3.0%
Total Cost of Risk
1.39%
0.81%
S
Specific
ifi C
Costt off Risk
Ri k 1.09%
1 09%
NPL Volume
(US$ bln)
2008
2009
2010
0.9
1.4
1.0
-1%
50%
-27%
12%
Loan Growth
35%
0%
40%
28%
31%
40%
111%
94%
100%
-9% excluding
one-offs3
115% excluding
impact of NPL
sale
63%
2008
28
2009
77%
2010
2008
2009
2010
2011
25%
45%
28%
20%

NPL ratio at 3.0% (vs. 3.4% at YE10) impacted by continuing
collections loan growth and NPL sale (US$ 157 mln credit card and
collections,
individual NPL portfolio in Nov’11)

Total coverage of NPL volume at 111% (115% excluding NPL sale
impact)
46%
31%
84%
LLP / Operating
Income
0.23%
Sector4:
119%
Specific and Generic NPL Coverage
117%
0.68%
1.2
NPL Growth
115%
0.58%
2011
65%
2011
69% excluding
impact of NPL
sale
–

Specific coverage at 65% impacted by transfer of few corporate files
from watch loan category3 and NPL sale (excluding: 69%)
Total cost of risk (net off collections) at 0.58% (vs 0.81% at YE10)
(1) Cost of risk = (total loan loss provisions-collections) / total gross loans
(2) Sector data based on BRSA weekly data
(3) Excluding transfer of a few corporate files from watch loan category into NPL (US$162 mln in 2011; US$50 mln in 2010)
(4) As of Sep’11
Note: Specific coverage= specific provisions / NPL, Generic coverage= (Standard+watch provisions) / NPL
LLP indicates loan loss provisions
Asset Quality
Sound evolution supported by diversified lending book towards less risky sectors
NPLs by Sector (2011)
NPL Ratio by Segment
Consumer Loans¹
Credit Cards
SME²
Corporate & Comm.²
12.6%
NPL Composition of
Company Loans
NPL Ratio
4
Ship Building/Auto Comp.
10.0%
%
6.8%
6.3%
7.7%
4.3%
5.3%
5.1%
4.4%
1.9%
2.0%
2008
2009
3.9%
3.5%
2.6%
2.6%
3 4%
3.4%
3.0%
2.5%
2010
1Q11
2Q11
3Q11
Wholesale/
Retail
8%
5
Other
36%
2011
1,112
927
866
990
731
Net Inflows
(US$ mln)
Collections/
Inflows
29
(1)
(2)
(3)
(4)
(5)
2009
2010
2011
363
555
196
97
56%
63%
82%
88%
17.1%
3%
Transport/Comm.
3.3%
8%
Textile
3.7%
7%
Wholesale/Retail
3.1%
8%
Food
2 8%
2.8%
7%
Construction
2.0%
10%
Metals 1.6%
6%
Fin. Institutions 0.1%
12%
Utilities 0.2%
7%
Other 5 3.2%
33%

Credit card and consumer NPL ratio at 3.5% and 2.6%, respectively,
impacted by US$ 157 mln NPL sale in Nov’11

SME NPL ratio relatively stable at 3.9%

Corporate
p
/ commercial NPL ratio at 2.6%,, impacted
p
byy one-off transfer
of a few large files from watch category

Collections / NPL inflows at 88%3 on the back of lower NPL inflows and
solid collections performance
457
2008
Food
7%
Construction
6%
Financial
Utilities Institutions
0.4%
0.3%
NPL Inflows
Collections
1,483
5
Metals
3%
1.8% excluding
transferred files3
Asset Quality Flows (US$ mln)
l )
820
Ship
Building/
4
Auto Comp.
20%
5.2%
3.9%
Transport./
Comm.
9%
Textile
9%
Share in
Performing
Loans
Including cross default. If excluding, 4Q11: 2.0%
As per YKB’s internal segment definition, SMEs: companies with annual turnover <5 mln US$. Corporate & commercial: companies with annual turnover >5 mln US$
Excluding impact of a few commercial positions being transferred from watch loans category to NPL impacting 3Q10 (US$50 mln), 3Q11 (US$65 mln) and 4Q11 figures (US$97mln)
“Ship building / auto companies” include mainly ship building companies’ NPLs (~US$134 mln). Auto companies’ NPLs are immaterial (~US$8 mln)
Other includes various industries, all with less than 4% share (agriculture, tourism, chemical products, machinery, health and education, furniture, glass, rubber, etc.)
Revenues
Sustained performance with increasing contribution of core revenues
Revenue Composition
(US$ mln)
Composition of Bank
Fees & Commissions Received1
Y/Y
3 610
3,610
0%
3 609
3,609
Other
(Dividend, Trading
& Other)
Net Fees &
Comms.
20%
-30%
14%
Insurance
2%
Asset
Management
5%
Sector:
51%
68%
65%
Other²
16%
Credit
Cards
41%
Lending
Related
36%
30%
26%
Fees / Operating Costs
2010
13%
2011
Net Interest Margin (NIM) Evolution1
Cumulative
Core
NIM
1.6%
3.0%
2.5%
Quarterly
2.1%
2.0%
2.1%
2.1%
3.5%
3.6%
3.4%
3.3%
2011
1Q11
2Q11
3Q11
2.3%
5.7%
4.6%
4.5%
Net Interest
Income
54%
5%
56%
2008
2010
30
2009
2010
2011
(1) Based on BRSA unconsolidated financials as of 2011
(2) Other includes account maintenance, money transfers, equity trading, campaign fees, product bundle fees etc.
NIM: Net Interest Income / Average Interest Earning Assets
Core NIM: (Interest income on loans – interest expense on deposits) / Average (loans + deposits)
3.8%
4Q11
Costs
Below inflation confirming unique track record in cost discipline and proven capability
of profitable growth
Cost Growth
Cost Composition
y/y
19%
Non-HR
y/y Sector
HR
Other
15%
5%
13%
9%
11%
7%
6%
8%
-20%
1%
8%
15%
51%
8%
2011
CAGR*
41%
2009
2010
2011
Cost / Income Ratio Evolution
Cost / Income
2007
Branch and Headcount Increase
Branch
Cost / Income (Sector)
53%
∆
Headcount
* 2007-2011 CAGR
31

In 2011,
2011 total costs +8% y/y
despite impact of currency
depreciation and rising
inflation in 4Q
∆
-
HR costs +15% y
y/y.
y
Number of employees at
14,859 (+448 vs YE10)
-
Non-HR costs +4% y/y.
Number of branches at
907 (+39 net openings in
2011)
-
Other costs +1% y/y
11%
4%
45%
2008
Strong improvement in
cost/income, from 59% in
2007 down to 44%,
incorporating 47% increase
in branch network
2010-2011
27%
2007

4%
59%
45%
Successful execution of
growth strategy driven by
branch expansion
accompanied by effective
headcount management
8%
-2%
42%

44%
46%
5%
2008
Total
41%
41%
36%
42%
2009
2010
44%
6%
4%
-3%
4%
3%
1%
-3%
2011
2007
2008
2009
2010
2011
Commercial Effectiveness
Ongoing initiatives leading to improvement via productivity gains
Productivity
Loans / Employee
(US$ ths)
+25%
in 2011
Deposits / Employee
Core Revenues / Employee
(US$ ths)
(US$ ths)
+17%
in 2011
2,450
Retail Cross Sell Ratio1
4.00
+6%
in 2011
3.69
2,321
1,928
191
YKB
182
1,964
YKB
YKB
1,419
1,547
152
3.30
2011
2009
1,537
1,162
Sector
Sector
2009
162
Sector
2010
2011
2009
2010
2011
2009
2010
2010
2011
Yearly Progress
Retail
Private

Conversion of 441,000
441 000 credit card-only
card only
customers (112% of 2011 target)

48% increase in deposit per relationship
manager (~US$ 45 mln)

61% increase in project finance loans
(outstanding at US$ 5.8 bln)

38% increase in general purpose loan sales
(58 ths per month)

Strong focus on customer acquisition and
activation:

Strong focus on customer acquisition and
activation in commercial segment:

26% increase in overdraft accounts customer
(1 6 mln customers)
(1.6
-
1,600 customers activated
(5% of total private customer base)
-
2,000 customers activated
(7% of total commercial customer base)

58% increase in commercial overdraft
account customers (223 ths)
-
614 customers acquired
(2% of total private customer base)
-
870 customers acquired
(3% of total commercial customer base)

45% increase in weekly SME loan
applications (11 ths)
(1) Retail cross sell ratio: number of products used per customer (including card only and new customers)
32
Corporate / Commercial
Risk Management
Prudent risk management policies
Market Risk

Interest Rate
FX Position
Effective hedging of interest rate risk between medium and long term fixed
rate TL loans (e.g. mortgages) and TL deposits (structurally short term) via
swap funding (US$1.9 bln cross currency IRS as of YE11). TL duration gap
at 140 days
y and FC at 180 days
y 1

Sensitivity analysis for a scenario of yield curve shift of 4% in TL / 2% in
FX: profit/loss effect capped at <20% of capital (11% as of YE11)

Basis Point Value (BPV) analysis: (sensitivity to 1bps shift in interest rates).
As of YE11, BPV at €3.0 mln (vs max limit of €4.8 mln)

No structural FX position with FX position squared at the end of each day
by the treasury. FX position daily VaR €880K (38% limit usage)

Limited intra-day trading within limits set by the Board of Directors and
monitored on a daily basis

Total net FX position2 limited at -US$ 132 mln as of YE11

Lending:
Securities
Portfolio
Liquidity /
Capital

Income statement and capital volatility mitigated
through high portion of HTM (60% at YE11)

Increasing share of AFS portfolio (37% at YE11) to
manage liquidity risk arising from regulatory changes

High proportion of FC securities due to conservative
FC lending approach

Yapı Kredi maintains liquidity ratios above the strict
limits put in place by the Turkish regulator

Basel II parallel run initiated as of Jun’11; reporting
expected to start in 2H12
Credit Risk
– Limited intra-group exposure, significantly below BRSA limits (13% of capital as of YE11 vs BRSA limit of 20%)
– Diversified lending book toward less risky sectors and avoidance of concentration (top 20 loans account for 15% of book)
– Continuous focus on infrastructure improvements to enhance processes and lending response times
Lending Activities

Monitoring: Conservative loan classification approach, including booking of cross-defaults as NPL

Collections: Strong in-house capability with call center responsible for 90-120 days overdue; outsourced responsible for 120-150 days overdue; legal
follow-up after 150 days overdue

NPL Sales: Dynamic portfolio management with NPL portfolio sales (2010: US$ 760 mln, 2011: US$ 157 mln)

Ongoing Basel II advanced measurement approach (AMA) compliance project

Implementation of AMA will ensure optimum capital allocation on operational risk
Operational Risk
Basel-II Ops Risk
Project
(1) Duration gap includes both on and off-balance sheet items
33
Agenda

Yapı
p Kredi Overview

Outlook

Annex
-
Detailed 2011 Financials
Other Information
Note: Throughout
g
the p
p p
34
Largest conglomerate in Turkey with leading positions in energy, automotive, consumer
durables and finance
Established in 1926, Turkey's largest industrial and services group in
(in US$, 31 Dec 2011)
terms of turnover and exports with 81 thousand employees
Total Assets (bln)
52.2
248th largest company in the world1 and 71st largest publicly traded
Revenues (bln)
45.4
Leading positions with strong competitive advantages in energy,
Net Income (bln)
1.3
Largest distribution and after-sales network
Number of Employees
Total Sales / GDP
Ä 9%
Total Exports / Turkey’s Exports
Ä 11%
Total Share in Istanbul Stock Exchange Ä 15%
9.6
Revenue Composition (2011)
Other
Finance 5%
8%
Durables
11%
Energy
63%
(1) According to Fortune Global 500
Note: Market shares as of 2011; Market capitalisation as of 11 April 2012
35
automotive, consumer durables and finance sectors
80,987
Market Capitalisation (bln)
Automotive
13%
company in Europe
Market Positions

Only petroleum refiner in Turkey
#1 in LPG distribution (29% market share)
#3 in petroleum products distribution (19% market share)
#1 in total automotive (30% market share)
#1 in passenger cars (20% market share)
#1 in commercial vehicles (49% market share)
#1 in consumer durables (50% market share)

(refrigerators, washing machines, ovens, TVs, conditioners)
#4 in total banking assets among private banks (9.3% market share)
#1 in leasing and factoring; #2 in asset management
Systematically important financial institution in Europe with a widespread network and
broad customer base
UniCredit is the result of the merger of nine of Italy's largest banks and the
subsequent combination with the German HVB Group and the Italian
Capitalia Group. UniCredit is:
(in US$, 31 Dec 2011)
Total Assets (bln)
1,199
Loans (bln)
724
Deposits
p
and Debt Securities Issued (bln)
( )
726
Revenues (bln)
32.6
1
Net Income (bln)
1.4
A major international financial institution based in Italy with operations in 22
countries and 50 financial markets
-
Leader in Austria with 16% market share
#2 in Italy with 13% market share
#3 in Germany with 3% market share
#1 in CEE region with 7% market share
Largest international banking network in the CEE region with more than 4
thousand branches and outlets
- Leader in Poland, Croatia, Bosnia-H. and
Bulgaria
- In the Top 5 in Ukraine, Turkey, Czech
No. of Branches
No. of Employees
9,496
160,360
Tier 1 Ratio
9.32%
Capital Adequacy Ratio
12.37%
Market Capitalisation (bln)
36
Rep. and Kazakhstan
- In the Top 10 in Romania, Baltics, Russia,
Slovenia, Hungary and Serbia
Revenue Composition (%)

Azerbaijan
Bosnia-H.
Bulgaria
Croatia
Czech Republic
Estonia
Hungary
Kazakhstan
Kyrgyzstan
Branch Composition (%)
24.4
Note: Market capitalisation as of 11 April 2012
(1) Net of one-offs in US$ (-401 mln Greek bonds impairment ,-238 mln Severance, +114 mln Moscow Stock Exchange, -621 mln for Goodwill implicit in Strategic
Investments, -11,216 Goodwill impairment, -856 mln for Trademarks impairment and -129 mln for write-off in HVB-BA).
Including one-offs, net income/loss at US$ -11,910 mln

Latvia
Lithuania
Poland
Romania
Russia
Serbia
Slovakia
Slovenia
Turkey
Ukraine
Employee Composition (%)
Analyst Coverage
Autonomous Research
Bank of America Merrill Lynch
Barclays Capital
Citigroup
Credit Suisse
Deutsche Securities
Goldman Sachs
HSBC
JP Morgan
Morgan Stanley
UBS
Ak IInvestment
t
t
Ata Investment
BGC Partners
Bank of Singapore
Commerzbank
Eczacıbaşı Menkul Değerler
EFG Securities
Ekspres Yatırım
Equita
Erste Securities
Finans Invest
Fuh Hw a
Garanti Securities
Global Securities
ING
Investment Bank of Greece
İş Invest
KBW
Nomura
Oyak Securities
R
Renaissance
i
C
Capital
it l
Societe Generale
Standart Ünlü
Şeker Yatırım
TEB Investment
Tera Brokers
Yatırım Finansman
37
Equity
Fixed Income
Geoffrey Elliott
Ecem Nalbantgil
Cristina Marzea
Emre Izgi
Ateş Buldur
Kazım Andaç
Dmitry Trembovolsky
Tamer Şengün
Paul Formanko
Magdalena Stoklosa
Serhan Gök
H k A
Hakan
Aygün
ü
Nergis Kasabalı
Müge Dağıstan
Corinne Cunningham
Tolu Alamutu
Antoine Yacoub
Rodney Thomas
Bernhard Obenhuber
Tala Boulos
Pavel Mamai
Olga Fedotova
Anne-Marie Hendriks
Sait Erda
Kathleen Middlemiss
Natalia Smirnova
Marina Vlasenko
Sercan Soylu
Duygun Kutucu
Can Demir
Giovanni Razzoli
Sevda Sarp
Aykut Sarıbıyık
Ryan Chang
Recep Demir
Sevgi Onur
Başak Yeltekin
Konstantinos Manolopoulos
Bülent Şengönül
Ronny Rehn
Anna Marshall
Alpay Dinçkoç
Y
Yavuz
U
Uzay
Alan Webborn
Ercan Uysal
Derya Güzel
Mete Yüksel
Hasan Demir
ğ
Sadrettin Bağcı