Prospectus - Notowania

69
>> Group Results
Central Eastern Europe
Individual and SME segments recorded a 17% y/y revenue growth driven by positive net interest income evolution due to
Central Bank already mentioned rate cuts. Retail banking contributed 28% of the Bank’s total revenues and 36% of total
customer business. YKB recorded a slight increase in consumer loans in M909 despite the low level of demand in the sector,
driven by mortgages (up by 12% ytd). The Bank continued to place strong emphasis on improving customer satisfaction and
supporting its clients in this segment. Credit cards, one of the key pillars of Yapı Kredi’s retail strategy, recorded a 34% y/y
growth in revenues in M909. As of M909, credit cards contribute 22% of the Bank’s total revenues and 8% of total customer
business. In Q309, Yapı Kredi’s credit card brand “World” increased in rank and became the sixth largest credit card platform
in Europe according to the September 2009 Nielsen Report.
In the commercial and corporate banking segments, Yapı Kredi maintained its conservative approach and focus on
profitability in M909. In terms of volumes, loans contracted by 8% ytd, driven mainly by Turkish Lira commercial loans (-11%
ytd). In terms of revenues, the commercial and corporate segment recorded an increase of 31% y/y driven by significant
upward repricing of cash and non-cash credits since Q108. The Bank maintains its focus on strengthening its structured sales
approach with client visits and product penetration targets. Commercial and corporate banking contributes 21% of the Bank’s
total revenues and 39% of total customer business.
In September 2009, YKB provided USD 350million of the USD 500million long-term financing to the Alkumru damn and hydro-
electric power plant project, one of the largest energy projects in Turkey. This plant will have the capacity to generate one billion
KWh when completed in 2011. Including this project, the total financing that Yapı Kredi has provided to energy projects in recent
years has reached USD 2.5 bln and 3,500 megawatt. This is the highest amount that a bank has provided for energy finance in
Turkey.
Russia
Following an over 10% y/y drop in real GDP in H109, the Russian economy is showing signs of stabilization and weak
recovery in the worst-hit sectors. Thus, investment demand has pulled back from the 23.1% y/y drop in May to stabilize at
around a 19% y/y decline. Coming on top of resilient exports this has helped to stabilize and trigger a notable rebound in
industrial output and cargo shipments, potentially indicating that the worst phase of the crisis might have passed indeed. On
the other hand, domestic consumer demand continues to deteriorate, with unemployment rate staying at 8.1% in August or at
its 8-year high in seasonally-adjusted terms. This has triggered deeper contraction of real wages and disposable incomes,
pushing retail sales deeper into nearly 10% y/y decline. Such weakness of consumer demand has continued to ease
inflationary pressures, pushing inflation to 2 year low of 10.7% y/y in September, down from the peak of 14% y/y in March. As
a result, we see real GDP recovering to a 4% y/y decline in Q409, up from the 10.9% y/y drop in Q 209. Positive news on
upcoming economic recovery has boosted the domestic financial markets, attracting a substantial inflow of capital, also
boosting the Russian ruble to another annual high.
Several trends we observe in the Russian banking sector in 2009: credit crunch due to the high level of credit risk induced by
a general worsening of asset quality; a fall in retail lending after the rapid contraction of households’ real disposable income;
and a sharp increase of loan loss reserves. Relative stabilization in some sectors of the Russian economy led to a
deceleration of past due loans in the corporate and retail segments. However, the level of total doubtful assets continues to
grow and as a result, problem assets reached 9% of total assets in August compared to 4.9% in January.
ZAO UniCredit Bank is one of Russia’s top universal banks. The Bank was the first international bank in Russia and
celebrates its 20 th anniversary in October. Through a continuously prudent risk and liquidity policy the Bank has proved its
reliable financial standing since its foundation even through times of market turmoil. With total assets of €11.6 billion ZAO
UniCredit Bank is the largest foreign and the 8 th largest bank in Russia by total assets. The bank currently maintains a
countrywide network of 111 outlets including a representative office in Minsk, Belarus, and serves around 700,000 individual
and SME clients and about 4,500 corporate clients with its comprehensive banking products and services.