NPL ageing to put pressure on earnings in 2H12…
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Bank Asya reported TL54mn
earnings in its 2Q12 BRSA bank-only financials, indicating a quarterly RoAE of 9.8%. The
results came slightly above both our estimate and the consensus estimate of
TL51mn. The deviation between our estimate and the actual results stemmed
mainly from the higher than expected fee income line.
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The highlights of
the quarter can be summarized as: i) 33Bps QoQ improvement in NIM thanks to the widening TL loan-deposit
spreads with the continued upward repricing in loan yields and QoQ flat deposit
costs. Cost of TL time deposits increased by 29bps QoQ to 8.9% due to the
increased profit sharing ratios and QoQ lower loan loss provisions recorded in
2Q12. FX time deposits decreased by 17bps QoQ to 4.1%, yet still well above the
sector, which explains the 10% QoQ growth in FX deposits in 2Q12. ii) loan to
deposit ratio increased by 2pps to 109% thanks to the above sector growth in TL
loans iii) market share