On 2 February 2015, Yapı Kredi announced its consolidated 2014 results based on Turkish accounting standards (BRSA), reporting TL 2,056 million net income and 12.0% return on average tangible equity. On a quarterly basis, net income was realised as TL 614 million, indicating 20% q/q growth.

“Accelerated growth targets achieved”

Yapı Kredi’s target of increasing «natural market share» to 10% was achieved in terms of loans and deposits. Total loan book reached TL 125.5 billion with 26% y/y growth compared to sector growth of 18%. Accordingly, the Bank increased its market share in total loans by 70 bps to 10.2%. Remixing of loan book continued towards more profitable segments including TL company (+50% y/y), general purpose loans (+46% y/y) and SME loans (+49% y/y). Leadership in credit cards was maintained. During the same period, total deposit book reached TL 107.6 billion with 22% y/y growth, more than twice the sector growth of 10%. This resulted in a gain of 90 bps in total deposit market share to 10.0%.

“Growth driven by significant investments in headcount, network and commercial effectiveness”

In line with Yapı Kredi’s growth strategy, distribution was further strengthened with total number of employees increasing by ~1,850 to 18,500 (+80 bps in market share to 8.7%). At the same time, with the opening of 60 new branches, total number of branches reached over 1,000 (+30 bps in market share to 8.9%, +2 in ranking to 3^rd position). Additionally, over 600 new ATMs were deployed increasing the total ATMs to 3,600 (+80 bps in market share to 7.9%, 5^th position maintained). In terms of innovation, Direct Banking model “Nuvo” was introduced, customer experience processes were redesigned, internet banking was enhanced and other commercial effectiveness related initiatives continued throughout the year. Supported by growth investments, Yapı Kredi increased its customer base by ~600 thousand, 2.7 times the increase compared to previous years. Accordingly, total number of customers reached 10.6 million.

“Solid profitability”

Total revenues increased by 9% y/y to 8,754 million supported by solid NIM evolution and accelerating fee growth. Cumulative NIM was realised as 3.5% (-10 bps y/y vs -20 bps sector) confirming Yapı Kredi’s effective pricing capability. Fees increased by 10% y/y despite impact of regulation. Cost growth of 17% y/y reflected the growth initiatives in 2014 with continued discipline in ordinary cost management. Cost/Income ratio is at 47%; below sector level of 45% excluding growth investments. In terms of net income, Yapı Kredi was able to achieve a consistently increasing trend in quarterly net income throughout the year.

“Strong capital base and liquidity; resilient asset quality”

Capital adequacy ratio was realised at 15.0% incorporating strong loan growth. At the same time, through balanced volume growth, the Bank’s loans to deposits ratio including TL bonds at 112% (vs 116% in sector). In terms of asset quality, evolution was better than sector with NPL ratio decreasing by 10 bps to 3.4% (+20 bps sector) supported by resilient performance in all segments.

Istanbul, 02 February 2015
Inquiries:Yapı Kredi Investor Relations
Tel: (90) (212) 339 7323
Email: yapikredi_investorrelations@yapikredi.com.tr