Performance Highlights in 2Q18​

• TRY 88,2 million in net profits in the second quarter of 2018, translating in an ROAA of 1,1%
• 20.2% of capital adequacy ratio as per Basel III, of which 14,1% in CET1
• TRY 21.5 billion of loans funded by TRY 21.4 billion of deposits representing 100.5% loans to deposits ratio

In details:

• Net loans to customers contracted by 1.1% in 2Q18, from TRY 21.8 billion as at end-March 2018 to TRY 21.5 billion as at end-June 2018.
• In parallel, deposits decreased by TRY 904 million, reaching TRY 21.4 billion at end-June 2018. Deposits accounted for 65.3% of total funding while shareholders’ equity and subordinated debt’s share reached 16.4%.
• As a result, the loans to deposits ratio increased slightly from 97.5% at end-March 2018 to 100.5% as at end-June 2018. Subsequently, the Bank’s primary liquidity, consisting of cash and banks, Central Bank and Money Market placements continued to represent 24.1% of total deposits.
• In spite of the above, Odea Bank achieved, in the second quarter of 2018, TRY 88.2 million of net income after provisions and taxes, as compared to TRY 75.4 million in the first quarter of this year, corresponding to a growth by 17%. Accordingly, profitability ratio further improved with an ROAA of 1.1% and ROAE of 9.0% in 2Q18 as compared to 0.9% and 7.9% respectively in 1Q18.
• In fact, net interest income grew quarter-on-quarter by 16.1%, from TRY 288 million in 1Q18 to TRY 334.1 million in 2Q18, translating in the context of a limited quantity effect into a further widening of spreads on assets, from 3.5% in 1Q18 to 4.1% in 2Q18.
• Continuous cost control resulted in a sustained level of general operating expenses at TRY 143 million in 2Q18 as compared to TRY 145 million registered in 1Q18. When compared to 1H17, general operating expenses dropped by 20.6% year-on-year to reach TRY 288 million in 1H18, bringing the cost to income ratio to 41.1% as compared to 53.2% in 1H17.
• Net income in 1H18 net income reached TRY 163.7 million, rising by 8.9% relative to the corresponding period of 2017.
• In terms of loan quality, the NPLs ratio deteriorated from 4.9% as at end-March 2018 to 6.2% as at end-June 2018. The Bank took TRY 134 million of net loan loss provisions in 2Q18, as compared to TR 68.4 million in 1Q18 thereby raising NPLs coverage by specific provisions to 44.1% as at end-June 2018 from 40% in the previous quarter while the total coverage ratio including specific provisions, real estate collaterals and free provisions reached 103%.
• Capitalization remained solid with a total capital adequacy ratio standing at 20.2% as at end-June 2018, of which 14.1% in CET1 ratio.