2019 FIRST HALF HIGHLIGHTS REPORT CONTENTS 2 CORPORATE PROFI LE 8 H I GHLI G H T S O F 22 CONTACTS BUSI NESS LI NES Profile of the Bank Shareholding Structure Corporate and Commercial Banking 4 KEY FI NANCI A L S O F Project and Cross Border Finance THE HALF YEAR OF ICBC Securities & 2019 Investment Banking Financial Institutions Business International Business (Trade Finance) Treasury Retail Banking Industrial and Commercial Bank of China ICBC TURKEY CORPORATE PROFILE PROFILE OF THE BANK Share transfer was realized on banking services through its retail SHAREHOLDING the date of May 22nd, 2015 by and corporate internet banking STRUCTURE ICBC Turkey Bank A.Ş. (formerly Extraordinary General Assembly. and mobile banking. 2019 FIRST HALF HIGHLIGHTS REPORT REPORT HIGHLIGHTS HALF 2019 FIRST named as Tekstil Bankası A.Ş.) Shareholding structure of our was incorporated as a privately The trade name of our Bank On the other hand, ICBC Turkey Bank as of the date of 30.06.2019 owned bank and authorized has been changed from “Tekstil Yatırım Menkul Değerler A.Ş., is mentioned below. to accept deposits, on April 29th, Bankası A.Ş.” to “ICBC Turkey Bank 99.998% of which is owned by the 1986 and started its operations A.Ş.” pursuant to the general Bank, provides capital markets Trade Name of the Shareholder Shareholding Amount (TL) Share (%) PROFILE CORPORATE on October 13th, 1986. assembly resolution taken on and investment banking services November 5th, 2015. out of the banking services. Industrial and Commercial Bank of China Limited (ICBC) 798,428,227 92.84 Shares of the Bank have started Tekstil Portföy Yönetimi A.Ş., Public 61,571,773 7.16 publicly traded and listed on ICBC has been incorporated in 100% of the share capital of which CORPORATE PROFILE CORPORATE Grand Total 860,000,000 100.00 Borsa İstanbul (İstanbul Stock the People’s Republic of China is held by ICBC Turkey Yatırım Exchange - BIST) as of in 1984 and it provides a broad A.Ş., has been incorporated on May 23rd, 1990. range of financial products and the date of April 21st, 2015 and services to its customers. By cross by the resolution taken at the The Bank belonged to GSD markets, an international and extraordinary general assembly REPORT HIGHLIGHTS HALF 2019 FIRST Group until May 21st, 2015. With integrated business model has meeting held on November its resolution dated April 2nd, 2015 been formed. Shares of ICBC 5th, 2015, its trade name has and numbered 6262, the Banking have been listed on Hong Kong been changed as “ICBC Turkey Regulation and Supervision Stock Exchange and Shanghai Portföy Yönetimi A.Ş.”. Main field Agency (the BRSA) authorized Stock Exchange concurrently, in of activities of the company the transfer of all of the shares October 2006. is to establish and manage owned by GSD Holding A.Ş. investment funds. corresponding to 75.5% of the Our Bank conducts its operations Tekstil Bankası A.Ş.’s shares, to through its Head Office located Industrial and Commercial Bank in İstanbul and 44 branches of China Limited (ICBC), domiciled nationwide. Aside from its at the People’s Republic of China. branches, the Bank also provides 2 3 Industrial and Commercial Bank of China ICBC TURKEY KEY FINANCIALS OF THE FINANCIAL INFORMATION SUMMARY FOR A HALF YEAR OF 2019 PERIOD OF FIVE YEARS (CONSOLIDATED): CONSOLIDATED SELECTED FINANCIAL INDICATORS TL Thousand 30 June 2019 31 December 2018 31 December 2017 31 December 2016 31 December 2015 Financial Indicators (TL Million) Total Assets 17,024,764 15,852,490 13,315,560 8,308,619 6,670,222 Total Deposits (1) 8,173,654 6,699,689 3,273,860 2,850,077 2,134,512 Total Assets Deposits(1) Loans 2019 FIRST HALF HIGHLIGHTS REPORT REPORT HIGHLIGHTS HALF 2019 FIRST 30.06.2019 30.06.2019 30.06.2019 Total Loans 8,551,051 7,874,592 7,680,821 5,098,106 4,150,620 17,025 8,174 8,551 Shareholders’ Equity 1,259,905 1,166,569 1,112,294 607,007 597,194 Net Profit 47,639 83,549 48,283 18,749 (13,542) 31.12.2018 31.12.2018 31.12.2018 FINANCIALS KEY 15,852 6,700 7,875 (1) Excluding deposits from banks 7% 22% 9% increase increase increase Shareholders’ Equity Net Profit ASSESSMENT OF THE • Total securities portfolio of • Total deposits and funds of KEY FINANCIALS KEY 30.06.2019 30.06.2019 BANK’S POSITION IN our Bank increased by 3.2% our Bank increased by 10.4% 1,260 47.6 THE SECTOR whereas the total securities whereas the total deposits portfolio of the sector and funds of the sector 31.12.2018 31.12.2018 2019 FIRST HALF HIGHLIGHTS REPORT REPORT HIGHLIGHTS HALF 2019 FIRST 1,167 83.5 Compared with the data (as of increased by 24.4%. increased by 13.7%. December 2018 and May 2019) 8% 43% increase decrease released by Banking Regulation • Total loans of our Bank • Non-cash loans of our Bank and Supervision Agency (BRSA) increased by 8.8% whereas increased by 92.5% whereas Financial Ratios % in its “Banking Sector Monthly the total loans of the sector the total non-cash loans of the Return on Assets Return on Equity Capital Adequacy Ratio Bulletin”, our Bank’s position in the increased by 6.8%. sector increased by 5.1%. 30.06.2019 30.06.2019 30.06.2019 sector is as follows: • Total non-performing loans 0.6 7.9 23.9 • The cash equivalents of (gross) of our Bank decreased 31.12.2018 31.12.2018 31.12.2018 our Bank increased by 8.0% by 2.0% whereas the total 0.3 3.3 30.2 whereas the CBRT and cash non-performing loans of the 30bp 460bp 630 bps equivalents of the sector sector increased by 21.3%. increase increase decrease increased by 15.6%. Cost/Income ratio Deposits/Total Assets (1) NPL Ratio 30.06.2019 30.06.2019 30.06.2019 50.2 48.0 1.1 31.12.2018 31.12.2018 31.12.2018 49.7 42.3 1.2 50bp 570bp 10bp increase increase decrease (1) Excluding deposits from banks 4 5 Industrial and Commercial Bank of China ICBC TURKEY TL Million 30 June 2019 31 December 2018 Change ICBC Turkey Sector¹ ICBC Turkey Sector¹ ICBC Turkey Sector¹ Cash Equivalents and the CBRT 1,952 258,826 1,807 223,971 8.0% 15.6% Placements with the Banks and Receivables 1,686 196,624 2,023 183,366 (16.6)% 7.2% from the Money Markets Securities Portfolio 3,985 588,788 3,860 473,219 3.2% 24.4% 2019 FIRST HALF HIGHLIGHTS REPORT REPORT HIGHLIGHTS HALF 2019 FIRST Loans 8,515 2,548,020 7,829 2,385,194 8.8% 6.8% Loans (Including Non-performing Loans) 8,528 2,582,950 7,844 2,413,211 8.7% 7.0% Non-performing Loans (Gross) 91 111,416 93 91,845 (2.0)% 21.3% KEY FINANCIALS KEY Special Provision for the Non-performing Loans 78 76,485 78 63,828 (0.6)% 19.8% Total of Deposits and Funds 9,059 2,268,835 8,208 1,995,199 10.4% 13.7% Non-Cash Loans 4,564 821,164 2,371 782,122 92.5% 5.1% KEY FINANCIALS KEY Total Assets 16,186 4,269,772 15,525 3,842,639 4.3% 11.1% ¹ Based on the data taken from BRSA’s May 2019 Monthly Sector Bulletin dated 4 July 2019. 2019 FIRST HALF HIGHLIGHTS REPORT REPORT HIGHLIGHTS HALF 2019 FIRST INFORMATION ON THE • Total consolidated loans were • The consolidated return on FINANCIAL POSITION, approximately TL 8.5 billion assets was 0.6% in this period 30 June 2019 31 December 2018 Change PROFITABILITY AND and constituted 50% of the whereas it was 0.3% at the SOLVENCY OF THE balance sheet. end of 2018; the consolidated ICBC Turkey Sector¹ ICBC Turkey Sector¹ ICBC Turkey Sector¹ BANK return on equity was 7.9% in Total Loans/Total Assets 53% 60% 50% 62% 4.3% (3.9)% • Total consolidated deposits this period whereas it was As of June 2019, based on were TL 8.9 billion. 3.3% at the end of 2018. Total Deposits/Total Liabilities 56% 53% 53% 52% 5.9% 2.3% the consolidated financial statements prepared in • The share of our consolidated • Consolidated capital Securities/Total Assets 25% 14% 25% 12% (1.0)% 12.0% accordance with the regulations deposits in consolidated total adequacy ratio was 23.9%. Non-performing Loans Ratio 1% 4% 1% 4% (9.8)% 13.0% of BRSA; assets is 52%. Liquid Assets/Total Assets 22% 11% 25% 11% (8.9)% 0.6% • The Bank’s consolidated asset • The consolidated net profit for Non-cash Loans/Total Cash Loans 54% 32% 30% 32% 77.0% (1.9)% size reached approximately the first six months of 2019 was TL 17 billion. TL 47.6 million. ¹ Assessments are on solo basis. 6 7 Industrial and Commercial Bank of China ICBC TURKEY CORPORATE AND COMMERCIAL BANKING In the first half of 2019, the main focus of ICBC Turkey Corporate Banking is long lasting, strong business relationship with the customer-oriented service approach. 2019 FIRST HALF HIGHLIGHTS REPORT REPORT HIGHLIGHTS HALF 2019 FIRST Net fees & commissions of ICBC Turkey, in Corporate Banking Cash Management Unit very important to support Chinese Business Segment, have adhered adopted dissemination policy enterprises in Turkish market and Corporate Banking increased to strong comprehensive as its priority goal in 2019 while become their main bank in Turkey.