Turk Ekonomi Bankasi As Net Income surged on 30.0% in 2016
07 Feb 2017 • About Turk Ekonomi Bankasi As (
$TURA) • By InTwits
Turk Ekonomi Bankasi As reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Turk Ekonomi Bankasi As has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.4%. At the same time it's in pair with industry average of 10.0%.
- CAPEX is quite volatile: 56.0 in 2016, 63.3 in 2015, 82.2 in 2014, 146 in 2013, 74.6 in 2012
- The company has potentially unprofitable business model: ROIC is at 4.5%
- It operates with high leverage: Net Debt/EBITDA is 0.9x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Turk Ekonomi Bankasi As ($TURA) key annual financial indicators
| mln. TRY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 5,037 | 5,357 | 6,588 | 7,550 | 8,913 | 18.1% |
| Net Income | 476 | 569 | 642 | 726 | 944 | 30.0% |
Balance Sheet
|
|---|
| Cash | 4,449 | 6,812 | 8,467 | 9,916 | 11,667 | 17.7% |
| Short Term Debt | 6,251 | 9,353 | 12,130 | 10,370 | 12,045 | 16.2% |
| Long Term Debt | 2,247 | 2,774 | 2,424 | 4,719 | 5,578 | 18.2% |
Cash flow
|
|---|
| Capex | 75 | 146 | 82 | 63 | 56 | -11.6% |
Ratios
|
|---|
| Revenue growth | 34.8% | 6.3% | 23.0% | 14.6% | 18.1% | |
| Net Income Margin | 9.5% | 10.6% | 9.7% | 9.6% | 10.6% | 1.0% |
| CAPEX, % of revenue | 1.5% | 2.7% | 1.2% | 0.8% | 0.6% | -0.2% |
| ROIC | 4.3% | 4.5% | 3.9% | 3.3% | 4.5% | 1.1% |
| ROE | 10.1% | 10.8% | 10.9% | 11.0% | 12.7% | 1.7% |
Revenue and profitability
The company's Revenue jumped on 18.1% in 2016.
Net Income marign increased slightly on 0.97 pp from 9.6% to 10.6% in 2016.
Capital expenditures (CAPEX) and working capital investments
Turk Ekonomi Bankasi As's CAPEX/Revenue was 0.63% in 2016. CAPEX/Revenue decreased on 2.1 pp from 2.7% in 2013 to 0.63% in 2016. It's average CAPEX/Revenue for the last three years was 0.90%.
Return on investment
The company operates at good ROE (12.70%) while ROIC is low (4.47%). ROIC increased slightly on 1.1 pp from 3.3% to 4.5% in 2016. ROE increased slightly on 1.7 pp from 11.0% to 12.7% in 2016.
Leverage (Debt)
Debt jumped on 16.8% in 2016 while cash surged on 17.7% in 2016.
Appendix 1: Peers in Banks
Below we provide Turk Ekonomi Bankasi As benchmarking against other companies in Banks industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kazkommertsbank JSC ($KKB) | | 6.0% | 16.3% | 41.4% | |
| Sberbank Of Russia ($SBER) | 37.2% | 25.1% | 23.4% | 27.4% | |
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | | 23.7% | 18.9% | 26.8% | 27.0% |
| Yapi Ve Kredi Bankasi As ($YKBD) | | 4.8% | 19.7% | 25.3% | 17.8% |
| Mcb Bank Ltd ($MCBS) | 3.0% | -1.7% | 19.4% | 22.4% | |
| |
|---|
| Median (43 companies) | 8.5% | 4.2% | 11.5% | 4.2% | 7.7% |
|---|
| Turk Ekonomi Bankasi As ($TURA) | | 6.3% | 23.0% | 14.6% | 18.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Banque Marocaine Du Comm Exterieur ($69IR) | 3.7% | 9.7% | 4.3% | 26.8% | |
| Lloyds Banking Group ($LLPC) | 8.0% | 8.9% | 13.1% | 13.6% | 14.5% |
| Banco Santander Sa ($BNC) | 2.7% | 2.6% | 8.9% | 10.2% | 9.1% |
| Guaranty Trust Bank ($GRTB) | 6.7% | 6.1% | 6.8% | 7.7% | |
| Diamond Bank ($DBPA) | 8.2% | 7.9% | 6.0% | 6.7% | |
| |
|---|
| Median (41 companies) | 2.4% | 2.8% | 2.2% | 2.5% | 1.9% |
|---|
| Turk Ekonomi Bankasi As ($TURA) | 1.5% | 2.7% | 1.2% | 0.8% | 0.6% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 21.7% | 26.9% | 30.1% | 30.3% | 28.5% |
| Guaranty Trust Bank ($GRTB) | 19.8% | 18.9% | 17.8% | 16.0% | |
| Mcb Bank Ltd ($MCBS) | 15.0% | 14.4% | 15.8% | 14.9% | |
| United Bank Ltd ($UBLS) | 11.7% | 11.8% | 13.8% | 12.6% | |
| Zenith Bank ($ZENB) | 19.0% | 17.6% | 15.0% | 11.2% | |
| |
|---|
| Median (43 companies) | 6.4% | 5.7% | 4.5% | 3.5% | 4.3% |
|---|
| Turk Ekonomi Bankasi As ($TURA) | 4.3% | 4.5% | 3.9% | 3.3% | 4.5% |
