2. Investor Relations / BRSA Bank-only Earnings Presentation 2013
Outstanding performance in a challenging year
2013.. A Year of Two Different Periods
January – May 2013
Net Capital
Flows to Turkey
• Significant net capital inflows *
o High global risk appetite
o Expected rating upgrade
June 2013 Onwards
• Sharp contraction in net capital flows*
o FED’s tapering
o Gezi Protests in May
o Political distress
Garanti..
..stands out with its…
Above budget lending
growth with sound
asset quality
Sustained strong
capitalization level
Interest &
Exchange Rate
Dynamics
Banking Sector
Dynamics
• Benchmark bond rate
as low as 4.7%
• TL appreciation
• Expansion in banking sector NIM
(average 5.1%)
• High loan growth
* Based on CBRT weekly data
** Based on Real Effective Exchange Rate
• Benchmark bond rate reached
a maximum of 10.2%
• 8% depreciation of TL** compared
to January-May 2013
• Supression in banking sector NIM
• Loan growth lost pace
• Further regulatory
actions by BRSA
Comfortable liquidity
Increasing core banking
revenues
• Well-defended margins
• Significant Net F&C
growth
Preserved highest
branch efficiencies
2
3. Investor Relations / BRSA Bank-only Earnings Presentation 2013
Strategically managed asset/liability mix -- increasingly customer driven
Total Assets (TL/USD billion)
Composition of Assets1
2013
23%
4%
189.8
196.9
Loans
59.2%
Non-IEAs
18.0%
160.2
117.7
114.0
vs. 56% @ YE12
Reserve req.
9.6%
Others
8.4%
Growth
Securities
17.7%
101.5
IEA / Assets: 82%
2012
38.0
33.4
2012
2012
3Q13
3Q13
FC (USD)
Loans2 Securities
Non-IEAs
17.8%
Slight build-up of
securities preredemptions in 3Q13
-6%
Accelerated lending
growth
-3%
Security additions to
the portfolio fell
short of offsetting
the disposals &
redemptions
0%
Moderated lending
growth, additions to
securities book at
attractive rates
Reserve req.
8.3%
Others
9.5%
3Q13
+6%
Securities
21.0%
2013
2013
1 Accrued interest on B/S items are shown in non-IEAs
2 Performing cash loans
+4%
2Q13 +11%
Other
IEAs
4.8%
37.4
Total Assets (TL)
+5%
1Q13
Loans
56.4%
TL
Loans1,2/Assets: 59%
Other
IEAs
5.0%
IEA / Assets: 82%
4Q13
+5%
3
4. Investor Relations / BRSA Bank-only Earnings Presentation 2013
FRN-heavy securities portfolio serves as hedge against volatility
Total Securities (TL billion)
Currency
Adj.Growth*
(4%)
39.4
37.9
37.1
5%
5%
6%
(6%)
4%
YoY: (6%)
QoQ: (0%)
TL Securities (TL billion)
(8%)
36.3
36.2
7%
9%
35.1
Fixed:
37%
Fixed:
38%
0%
(3%)
37.6
36.2
33.7
Fixed:
35%
(7%)
4%
Securities1/Assets:
33.1
Fixed:
32%
Fixed:
38%
(4%)
(2%)
4Q12
94%
1Q13
2Q13
TL
93%
91%
3Q13
4Q13
CPI:
32%
CPI:
39%
Other
FRNs:
30%
95%
95%
CPI:
34%
Other
FRNs:
29%
Other
FRNs:
26%
Other
FRNs:
27%
1Q13
2Q13
3Q13
4Q13
CPI:
41%
CPI:
35%
FC
FC Securities (USD billion)
Total Securities Composition
Trading
1.8%
53%
1.5
HTM 38.6%
18%
Other
FRNs:
27%
4Q12
hovering around its
lowest levels …
AFS 59.6%
Fixed:
48%
Fixed:
49%
Fixed:
59%
Fixed:
61%
12%
7%
5%
Unrealized loss (pre-tax)
as of December-end ~TL 580mn
Fixed:
54%
66%
1.2
1.1
1.0
1.0
FRNs
weight
in total
22%
FRNs:
52%
FRNs:
51%
FRNs:
46%
FRNs:
39%
1Q13
2Q13
3Q13
> additions to CPI linkers portfolio
> redemptions from fixed rate securities
> additions to FC securities
FRNs:
41%
4Q12
up from
~60% in 3Q13
4Q13
1 Excluding accruals
Note: Fixed / Floating breakdown of securities portfolio is based on bank-only MIS data.
*YoY currency adj. growth is calculated with 2012 YE USD/TL exchange rate of 1.76. QoQ adj. growth is calculated with 3Q13 USD/TL exchange rate of 1.995.
4
5. Investor Relations / BRSA Bank-only Earnings Presentation 2013
Above budget customer-driven growth
Total Loans1 Breakdown (TL billion)
YoY: 21%
QoQ: 3%
5%
6%
11%
5%
118.2
112.5
106.2
63.1%
62.7%
63.1%
62.1%
12.9%
12.8%
12.8%
12.6%
24.0%
24.5%
24.4%
25.0%
4Q12
Consumer
(exc. credit cards)
13.0%
1Q13
2Q13
3Q13
4Q13
24.7%
TL (% in total)
63%
64%
63%
63%
62%
FC (% in total)
37%
36%
37%
37%
1.760
1.785
1.905
1.995
7%
61.0
67.0
10%
70.7
73.0
3%
5%
+
19.4
1%
4Q12 1Q13 2Q13 3Q13 4Q13
> Lucrative consumer loans
> TL business banking loans
19.6
5%
20.6
21.0
2%
21.3
2%
4Q12 1Q13 2Q13 3Q13 4Q13
> Project Finance loans
in energy & utilities
38%
US$/TL
10%
28%
62.5%
57.2
Credit Cards
FC Loans1 (in US$)
TL Loans1
96.0
91.4
Business
Banking
Lending growth cut pace in 4Q, in line with
volatile market outlook & recently
introduced regulations
Currency
Adj.Growth*
29%
2.120
1 Performing cash loans
*YtD adj. growth is calculated with 2012 YE USD/TL exchange rate of 1.76. QoQ adj. growth is calculated with 3Q13 USD/TL exchange rate of 1.995.
5
6. Investor Relations / BRSA Bank-only Earnings Presentation 2013
Lucrative consumer loans lead the growth
Consumer Loans1 (TL billion)
Mortgage (TL billion)
30%
5%
2012
1Q13
2Q13
3Q13
2013
2012
1Q13
2Q13
• Generating increasing
cross-sell & customer
retention
4%
7%
10%
7%
13.7
13.2
12.4
11.3
10.6
4%
9%
9%
43.0
41.4
38.1
34.9
33.1
• Rational pricing stance
support margins
30%
3Q13
2013
General Purpose Loans2 (TL billion)
Auto Loans (TL billion)
Market Shares3
YoY
2.8
2012
1Q13
2Q13
1.5
11%
11%
9%
5%
1%
5%
6%
2%
1.5
1.4
3Q13
2013
1 Including consumer credit cards, other and overdraft loans
2 Including other consumer loans and overdrafts
3 Sector figures are based on bank-only BRSA weekly data, commercial banks only
4 As of 9M13, among private banks
2012
1Q13
13.5%
#1
18.6%
#1
General
Purpose
11.0%
#2
13.6%
#1
12.1
10.9
10.0
Mortgage
Consumer
Loans1
15%
1.3
Rank4
Auto
14.0
13.4
1.3
Dec’13
40%
2Q13
3Q13
2013
6
7. Investor Relations / BRSA Bank-only Earnings Presentation 2013
Strength in cards business sustained
Issuing Volume (TL billion)
Acquiring Volume (TL billion)
13%
21%
73.1
64.6
84.4
Garanti debit card spending
69.9
>2x of the sector
2012
2013
2012
Credit Card Balances (TL billion)
Turkey’s largest
Credit Card
Platform:
Bonus Card
2013
Market Shares
Strong player
in the market with
the ultimate aim
of creating
cashless society
27%
YoY ∆
14.5
15.1
Dec’13
Rank
11.9
4%
9%
4%
2012
9%
1Q13
1 Excluding shared POS
*Among private banks
2Q13
3Q13
19.7%
#1
Issuing
-65bps
17.2%
#2
-68bps
17.1%
#1
ATM
12.3
Acquiring +58bps
(Cumulative)
POS1
13.4
-13bps
9.5%
#3*
(Cumulative)
2013
7
8. Investor Relations / BRSA Bank-only Earnings Presentation 2013
Sustained low-risk profile…
NPL Ratio1
Global Crisis &
Hard Landing
Recovery
Soft Landing
Solid
collection
performance
Macro-prudential
Measures
5.9%
4.6%
5.2%
3.0%
2.9%
2.6%
2.8%
2.6%
2.3%
2.1%
2011
2012
2013
3.4%
2.4%
3.6%
3.4%
3.8%
3.7%
4.8%
2.7%
4.1%
1.8%
3.9%
4.3%
2.9%
2.4%
2008
2009
2010
Below sector
NPL ratio
across all products
Garanti
Sector
Garanti excld.NPL sales & write-offs*
Sector w/ no NPL sales & write-offs*
NPL Categorisation1
Consumer Banking
Business Banking
Credit Cards
(Consumer & SME Personal)
24% of total loans
13% of total loans
5.2%
2.1%
1.8%
4Q12
2.2%
1.9%
1Q13
2.1%
1.6%
2Q13
(Including SME Business)
63% of total loans
2.1%
1.7%
3Q13
2.0%
4.9%
5.4%
5.3%
4.6%
3.7%
1.9%
4Q13
4Q12
Garanti
1Q13
2Q13
4.8%
3.7%
3Q13
5.0%
2.7%
2.8%
2.6%
1.8%
1.9%
1.7%
4Q12
1Q13
4.0%
4Q13
2Q13
2.5%
1.7%
3Q13
2.5%
1.7%
4Q13
Sector
1 NPL ratio and NPL categorisation for Garanti and sector figures are per BRSA bank-only data for fair comparison (as of 27 December 2013)
* Adjusted with write-offs in 2008, 2009, 2010, 2011, 2012, 2013
Source: BRSA, TBA & CBT
8
9. Investor Relations / BRSA Bank-only Earnings Presentation 2013
…and comfortable coverage and provisioning levels
Quarterly Specific Provisions (TL million)
Total Coverage3 :
**NPL inflows
resulting from bigticket items
*Additional provision
to preserve coverage
ratio at 81%
172%
274
205
222
110**
44*
Cumulative Gross Cost of Risk (bps)
153
205
177
153
147
164
134
1Q13
2Q13
3Q13
147
133
134
4Q13
Quarterly General Provisions (TL million)
*Effect of recent
regulations regarding
higher general provision
requirements for overdraft,
CCs and auto loans2
3M13
6M13
9M13
Cumulative Gross CoR
258
184
146
105
184
105
1Q13
2Q13
(excluding regulatory
effect on general prov.)
124
3Q13
Cumulative Gross CoR
134*
146
2013
4Q13
1 Sector figures are per BRSA weekly data as of 27 December 2013, commercial banks only
2 Additional general provisioning requirements for credit cards, overdraft and auto loans, which have been included in the «consumer loan definition» in line with the newly introduced regulation by the
BRSA, effective as of October 8 2013 . Accordingly, banks have to set aside at least 25% of the necessary provisioning by the end of FY13, at least 50% by the end of FY14 and 100% by the end of FY15.
3 Including cumulative specific allowance, general provisions and free reserves
9
10. Investor Relations / BRSA Bank-only Earnings Presentation 2013
Comfortable liquidity on the back of a solid deposit base…
Composition of Liabilities
Bonds Issued
Funds Borrowed
3.7%
13.4%
5.2%
Time Deposits
43.2% IBL:
69%
5.3%
12.8%
6.4%
8.4%
Repos
TL Deposits (TL billion)
15.0%
45.8%
19%
7.4%
IBL:
70%
42.6%
Demand Deposits
11.2%
11.2%
11.2%
SHE
13.3%
11.6%
11.5%
Other
6.8%
6.9%
3Q13
Intentional release of
deposits in 4Q,
due to elevated
pricing levels
7.0%
2012
IBL:
70%
50.0
3%
7%
14%
62.7
61.0
56.9
59.7
(5%)
2013
2012
Demand Deposits (TL billion)
1Q13
2Q13
18.0
0.8
17.3
17.7
2012
1Q13
2Q13
1.2
0.8
Bank
Demand
4%
6%
19.1
22.1
21.2
1.0
8%
3%
23.0
22.1
4%
20.0
0.8
2013
FC Deposits (USD billion)
23%
18.5
3Q13
20.4
3Q13
20.9
2013
Customer
Demand
~21%
of total
deposits
vs.
21.5
21.3
1%
21.2
(2%)
9%
(4%)
sector avg. 18%
2012
1Q13
2Q13
3Q13
2013
10
11. Investor Relations / BRSA Bank-only Earnings Presentation 2013
… and increasing contribution from other funding sources
Adjusted LtD ratio (TL Billion)
Comfortable
level of
LtD ratio:
79% exclud.
Loans funded via on B/S alternative funding sources
Diversified funding sources:
+
TL bond
Nominal TL 3.4bn bonds outstanding
+
Syndications w/110% roll-over ratio
+
Issuances under GMTN program
+
Securitization
+
Eurobond issuances
Nov’13: USD 1.2bn with a maturity of 1-yr at L+0.75%
May’13: EUR 1.1bn with a maturity of 1-yr at Euribor+1%
~USD 1.4bn with an avg. maturity of 1.4 years
Sector leader in GMTN issuances with 47% market share
USD 1.1bn with a maturity of 21 years
TL 750mn Eurobond issuance in 1Q13 with coupon
rate of 7.375%, yielding 7.5%
11
12. Investor Relations / BRSA Bank-only Earnings Presentation 2013
Sound solvency reinforced with healthy and profitable growth
CAR & Tier I ratio
Strong capitalization
Basel II CAR:
14.4%
18.1%
TIER I
16.3%
Low leverage
Regulations Impact:
(~50bps)
15.4%
TIER I
14.2%
Leverage:
7.7x
14.4%
TIER I
13.2%
Recommended
12%
Required
8%
Basel II
2012
Basel II
3Q13
High internal
capital
generation
supporting
long-term
sustainable
growth
No negative impact
expected under
Basel III
Basel II
2013
12
13. Investor Relations / BRSA Bank-only Earnings Presentation 2013
Slight improvement in loan-to-deposit spread, as upward loan repricing
became more apparent
Loan Yields1 (Quarterly Averages)
15.4%
14.4%
Deposit Costs1 (Quarterly Averages)
8.1%
13.3%
12.6%
12.9%
TL Yield
8.0%
7.2%
6.6%
6.1%
5.4%
5.3%
5.2%
5.1% FC Yield
7.1% TL Blended
6.8%
6.9%
5.7%
8.5% TL Time
5.5%
1Q 13
2Q 13
3Q 13
4Q 13
2.4%
2.2%
2.5%
2.3% FC Time
2.0%
4Q 12
2.7%
1.9%
1.7%
2.0%
1.8% FC Blended
1Q 13
2Q 13
3Q 13
4Q 13
4Q 12
Total Avg. Loan Yields
Avg. Time Deposit Costs
+13bps QoQ
+6bps QoQ
1 Based on bank-only MIS data and calculated using daily averages
Slight improvement in LtD
spread
+7bps QoQ
13
14. Investor Relations / BRSA Bank-only Earnings Presentation 2013
Security yields are on the rise
Yields on Securities
Interest Income on Total Securities (TL billion)
TL Securities*
1,107
Income
excl. CPIs
22%
983
881
824
477
13.6%
721
441
404
TL Sec. Yield
incl. CPIs
451
387
CPI effect
605
395
517
4Q12
305
1Q13
2Q13
3Q13
430
TL Sec. Yield
excl. CPIs
11.5%
9.5%
8.8%
8.0%
4Q13
4Q 12
1Q 13
10.4%
8.6%
8.4%
7.4%
7.6%
2Q 13
3Q13
4Q13
Drivers of the Yields* on CPI Linkers (% average per annum)
21.2%
FC Securities*
15.3%
15.0%
9.9%
9.7%
6.2% 5.6% 5.4%
4.1%
2.8%
Real Rate
4Q 12
* Based on bank-only MIS data
9.0%
5.4%
5.4%
5.3%
5.4%
2Q 13
3Q13
5.4% 4.8%
Inflation Impact
1Q 13
12.7%
10.8%
2Q 13
Yield
3Q 13
4Q 12
1Q 13
5.4%
4Q13
4Q 13
14
15. Investor Relations / BRSA Bank-only Earnings Presentation 2013
Result in quarterly margin expansion and flattish cumulative NIM
Quarterly NIM (Net Interest Income / Average IEAs)
Cumulative NIM (Net Interest Income / Average IEAs)
+25bps
5.2%
4.6%
3.5%
3.7%
Flattish
3.89%
1Q13
2Q13
3Q13
4.28%
4.22%
2012
2013
4Q13
Q-o-Q Evolution of Margin Components (in bps)
2011
346
3Q 13
NIM
-3
Loans
+1
Securities
exc. CPI
+31
CPI
linkers
0
Other
Income
Items
-15
+19
Deposits
Other
Expense
Items
371
4Q 13
NIM
15
16. Investor Relations / BRSA Bank-only Earnings Presentation 2013
Growing and further diversified fee sources…
Net Fees & Commissions1 (TL million)
Ordinary Banking Income3
2,615
30%*
% Market share
2,008
704 627
656 629
507 475 530 496
Garanti
9M13 14.2%
2006
11.4%
Peer 1
2012
9M13 13.1%
2006 13.2%
Peer 2
9M13 13.0%
2006 13.2%
2013
*Accounting of consumer loan fees were
revisited in the beginning of 2013 upon the
opinion of «Public Oversight» --Accounting
& Auditing Standards Authority
Peer 3
Cash Loans
28.0%
2013
Non-cash
loans
7.8%
Money
Other
Transfer
9.7%
Insurance 9.0%
Asset Mgt Brokerage 5.0%
1.7%
3.3%
+
Highest fee base among peers2
+
Payment
Systems
35.6%
Most preferred
pension company
+
#1 in bancassurrance
+
Leader in interbank
money transfer
+
9M13 9.4%
2006 10.3%
Strong presence in
brokerage
1 Net Fees and Commissions breakdown is based on Bank-only MIS data
2 As of 9M13
3 Defined as; net interest income adjusted with provisions for loans and securities, net FX and trading gains + net fees and commissions; for 9M13
Source: BRSA bank-only financials for fair comparison. Sector figure is based on BRSA monthly data.
16
17. Investor Relations / BRSA Bank-only Earnings Presentation 2013
… and maintained cost control alongside uninterrupted investments to
distribution network…
Operating Expenses (TL million)
Net
new branch
additions
4Q13: +24
2013: +65
4,206
50
295
Distribution network investments
Non-recurring items
Adjusted OPEX
9%
Total Non-recurring items
+Competition Board Fine
TL64mn
+Floor on expertise fees
2013
TL30mn
+GT&GOSAS organizational change
2012
TL24mn
+SDIF Expense
3,541
TL160mn
+Tax Penalty
3,861
TL295mn
TL 17mn
1,001 branches
in total
100% Geographical
coverage
ATM additions
4Q13: +253
2013: +495
4,003 ATMs in total
...preserving the highest efficiency ratios*
Ordinary Banking Income per Avg. Branch
Loans1 per Avg. Branch
Customer Deposits per Avg. Branch
3Q13 - TL million
3Q13 - TL million
3Q13 - TL million
6.4
150
5.7
4.4
4.3
109
138
131
Garanti Peer 1 Peer 2 Peer 3
*Figures are per bank-only financials for fair comparison
1 Total Loans=Cash+non-cash loans
94
91
85
133
Garanti Peer 1 Peer 2 Peer 3
Garanti Peer 1 Peer 2 Peer 3
17
18. Investor Relations / BRSA Bank-only Earnings Presentation 2013
…feeding through to sustainable core banking income generation
2013 Net Income
TL Million
Net Fees&
Comm. Provisions
214
IMPROVING CORE
BANKING REVENUES…
297
Inc. on
Trading CPI-linkers
4,709
13%
2013 Reported
Net Income:
3,861
Other
Non-recurring Provisions
OPEX
& Tax
Adjusted 295
50
Distribution 1,023
OPEX
Net Income
network
inv.
3,006
3,006
Regulatory
effects1:
252
Non-recurring
Items1:
181
2013 BaU*
Net Income:
1,646
1,546
NII-exc. 2,615
inc. on
CPI-linkers
299
Other
Coll’n income
3,439
5,779
5,098
2012
2013
2012 Net Income
TL Million
167
Net Fees&
Comm. Provisions
NII-exc.
2,008
inc. on
CPI-linkers
Coll’n
1,574
1,055
624
Inc. on
CPI-linkers
134
Other
income
3,541
Trading
OPEX
4,145
*Business as Usual = Excluding non-recurring items and the regulatory effects in the P&L
1 For datails please refer to Appendix page 21
979 Net Income
Other
Provisions
& Tax
3,077
18
19. Investor Relations / BRSA Bank-only Earnings Presentation 2013
Appendix
Pg. 20 Quarterly Net Income
Pg. 21 Details on regulatory actions and non-recurring items affecting 2013 P&L
Pg. 22 Summary Balance Sheet
Pg. 23 Key Financial Ratios
19
20. Investor Relations / BRSA Bank-only Earnings Presentation 2013
Quarterly Net Income
Quarterly Net Income (TL million)
645
(TL Million)
3Q 13 4Q 13
QoQ
excl . cap effect and
(+) NII-
1,082 1,127
4%
income on CPI linkers
(25%)
(+)
704
627
-11%
-299
-398
33%
305
430
41%
(+) Collections
32
47
49%
(+) Trading & FX gains
16
40
144%
(+) Dividend income
46
0
n.m
(+) Other income
485
26
(-)
Net fees and comm.
Specific & General Prov.
- excluding regulatory effects on gen. prov.
(+) Income on CPI linkers
-before one-offs
-995 -1,084
9%
(-) Other provisions & Taxation -before one-offs
-205
-186
-9%
-67
-147
n.m.
-33
-43
n.m.
0
-134
n.m.
(-) Saving Deposits Insurance Fund Expense
-12
-11
n.m.
(-) GT&GOSAS Organizational change
-17
-17
n.m.
-5
-5
n.m
-160
0
n.m.
160
0
n.m.
(+) Free Provision reversal
0
55
n.m.
(-) SDIF premium related other prov.
0
-16
n.m.
(-) Other provision reversal
0
24
n.m.
645
485
Better inflation outlook and strategic
additions to the portfolio to mitigate
the negative effect of redemptions
9%
(-) Higher general prov. req. for cons. loans
4Q13
28
(-) OPEX -excluding non-recurring items
3Q13
Slight uptick in loan-to-deposit spread,
mainly due to increase in loan yields
Shrinkage mainly due to timing of
account maintenance fees
-25%
(+) Regulatory & Non-recurring items
(-) Overdraft and comm. cards cap effect
(-) Floor on Expertise fees
(-) Competition Board fine expense
1
(+) Reversal of prov. for Competition Board fine1
= NET INCOME
1 The administrative fine by Competition Board, for which the Bank set aside provisions of TL 160mn in 2Q, has been paid in 3Q.
As a result the related provision is reversed and the amount paid has been recorded as operating expense
Front-loaded distribution network
investments. In 4Q, 24 net new branch
additions; 253 new ATMs
25% of the additional general provision
requirement due to new regulation hit
4Q
20
21. Investor Relations / BRSA Bank-only Earnings Presentation 2013
Non-recurring items & regulatory actions affecting 2013 P&L
2013 P&L Impact
(TL mn, Post-tax)
Sources of changes
Explanation
2013
Specific provisions
(35)
Other income
Additional provisions for alignment of coverage ratio to pre-NPL
NPL sale amounting to TL314mn -- TL310mn from current NPL
portfolio & remaining TL4mn from previously written-off NPLs
Other income
Free provision reversal
110
OPEX
GT&GOSAS organizational change
(51)
OPEX
Floor on expertise fees
(14)
OPEX
Tax penalty payment
(24)
OPEX
(160)
Other Provision
Competition Board Fine Payment
Other provision set aside for the SDIF premium debt related to
the investment fund accounts
Other Provision
Provision set aside for various tax penalties
(26)
Total non-recurring items affecting Net Income
35
Non-recurring Items
TL 181
+
(16)
Total Regulatory Effect:
TL 252
(181)
2013 P&L Impact
2013
=
(88)
TL 433
(TL mn, Post-tax)
Sources of changes
Net Interest Income
General Provisions
Opex
Explanation
CBRT introduced cap on interest rates charged on overdraft
accounts and commercial credit cards. In this regard, contractual
and overdue interest rates on the overdraft accounts and
commercial credit cards will be subject to the upper limits of
contractual and overdue monthly interest rates on consumer
credit card transactions.
General provisioning ratios for overdraft loans, credit cards and
auto loans were increased by 300bps to 4% for Group I and by
600bps to 8% for Group II. Banks have to set aside at least 25% of
additional provisioning requirement by the end of 2013; at least
50% by the end of 2014 and 1005 by the end of 2015
SDIF related additional expense
Total regulatory items affecting Net Income
(134)
(30)
(252)
21
