SECOND MEETING OF TURKISH-RUSSIAN WORKING GROUP ON BANKING AND FINANCIAL COOPERATION. September 2011

Transcription

1 SECOND MEETING OF TURKISH-RUSSIAN WORKING GROUP ON BANKING AND FINANCIAL COOPERATION September 2011

2 TURKISH BANKING SECTOR WELL POSITIONED AGAINST GLOBAL HEADWINDS Volatility in Europe and US Global Imbalances Widening Sovereign Debt Well regulated, strictly monitored Liquid and well capitalized Low leverage ratios No balance sheet open position (+USD 0,96 bn) No toxic assets on/off balance sheet Sound asset quality Prospect of a sovereign rating upgrade to investment grade level Growth Oriented Economic Policies Global Inflation Rebounded Budget Consolidation Majors

3 TURKISH BANKING SYSTEM IS ONE OF THE LARGEST IN CEE Total Assets (1) (US$ bn) CAGR: 21% H Total Assets Number of Banks (exc. participation banks) Source: TBA, ECB and BRSA, commercial banks only; (1) BRSA bank-only monthly bulletin, commercial banks only

4 BANKING SYSTEM CONCENTRATION Top Private Banks by Asset Size 1H 2011 Source: TBA, ECB and BRSA, commercial banks only; ** Based on unconsolidated financials

5 OWNERSHIP STRUCTURE OF BANKS AND BANKING SYSTEM CONCENTRATION % share of total assets % share of deposits Foreign Control 14% Dev. and Inv. Banks 3% Public Sector 32% Private sector 51% Source: BRSA

6 BALANCE SHEET STRUCTURE OF TURKISH BANKING SECTOR : NO DEPENDANCE ON WHOLESALE FUNDING (% of Total Assets) Source: TBA, ECB and BRSA, commercial banks only

7 Source: TBA, ECB and BRSA, commercial banks only LOW BANKING PENETRATION WITH STRONG PROSPECTS FOR FUTURE GROWTH

8 AMONGST LARGER EMs, TURKEY CONTINUES TO BE MORE SOUNDLY CAPITALISED Tier 1 Regulatory Capital/Risk-Weighted Assets (as of the year end 2010)

9 STRONG PROFITABILITY CONTINUES Return on Average Equity (as of the year end 2010)

10 LOW COST OF RISK WHEN COMPARED TO OTHER EMs Cost of Risk (as of the year end 2010)

11 GARANTI : A LEADING BANKING GROUP IN TURKEY Summary Key Financials Incorporated in 1946, Garanti is Turkey s largest private banking group by net income and second largest by total assets as of 1H2011 Listed on the Istanbul Stock Exchange since 1990, Garanti also listed GDRs on the LSE since1993 Core banking activities include retail, private, corporate, commercial, Small/Medium Enterprise ( SME ), payment systems and treasury. In addition, Garanti operates as an integrated financial services company with its nine subsidiaries offering servicesin investment banking, pension, leasing, factoring, brokerage and portfolio management Solid Market Position Category Market Shares Rank (4) Assets Loans FC Loans Consumer Loans C.C. Issuing C.C. Acquiring Mortgage Cust. Deposits Cust. Demand Deposits FC Cust. Deposits Online Banking Check Collections 13.2% 13.3% 19.1% 12.6% 19.2% 20.3% 13.3% 12.1% 15.2% 16.6% 11.0% 25.4% #2 #2 #1 Assets Loans Deposits Net Income (5) Ratings (Moody s/s&p/fitch) #1 #1 #2 #1 #2 #2 #1 #1 #1 Balance Sheet 1H 2011 Income Statement 1H 2011 US$ 95.4 bn US$ 51.5 bn(54% of assets) US$ 52.8 bn(55% of liabilities) US$ 1.2 bn ROAE 21% ROAA 2.6% Capital1H 2011 CAR (total) 16.8% Core Tier I 14.9% Other Relevant Figures Ba3/BB/BBB- Employees 16,912 Customers Domestic Branches > 10 mn 884, covers 99% of the population ATM 3,144 Market Cap US$ 19.0 bn

12 TECHNOLOGICAL EDGE OF GARANTI INTEGRATED TO DAILY BUSINESS Cepbank the first application in the world that provides money transfer service by mobile phone (2005) Garanti Mortgage the first mortgage call center with IVVR system in the banking sector, enables customers to have a video call (2008) Bonus Card Turkey s first chip-based and multi-branded credit card (2000) Paperless banking World s first IDscanning application has created a paperless branch, which offers a shareable, easy-toaccess and soft branch environment (2006) Flexi Card World s first flexible credit card, which allows for the customization of all parameters including financial and visual (2005) CepŞubesi the mobile branch was launched (2007) Bonus Trink the PayPass featured credit card with contactless chip technology. (2006) 7/24 Central Monitoringand Management of branches, ATMs, POSs and PBXs

13 GARANTI & RUSSIA Garanti Bank Moscow (GBM), which began its operations in 1996, is one of the 78 foreign banks operating in Russia. Holding a full-scale banking license, GBM operates with 80 employees and has one branch in Moscow. Having defined its core businesses as corporate and commercial banking, GBM serves a clientele of Russian firms from various sectors and major Turkish companies active in the Russian market. GBM also offers service to largescale Turkish tourism establishments in Russia. Of the nearly 500 commercial customers in its portfolio, 83% is constituted by resident companies and 17% by non-residents. ISSUES RELATED TO RUBLE TRANSFERS BETWEEN TURKEY AND RUSSIA RUB payments sent by SWIFT (MT103 and MT202) are not compatible with Russian settlement system and need to be modified before sending. Risk of late payment to the customer arises. Outgoing MT103 s to Russian Federation have to be written in Russian language: misunderstandings and delays arise. Only several banks in Turkey able to provide services in Ruble. Some recommendations: The SWIFT formats used by the Russian Federation can be transformed into internationally acceptable formats Incoming and outgoing messages can be written in English

14 Thank you... Batuhan Tufan, Senior Vice President Financial Institutions T.Garanti Bankası A.Ş.