BST:THB1

Stock Analysis Report

Türkiye Halk Bankasi

Executive Summary

Türkiye Halk Bankasi A.S., together with its subsidiaries, provides various banking products and services.


Snowflake Analysis

Very undervalued with high growth potential.

Share Price & News

How has Türkiye Halk Bankasi's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: THB1's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.6%

THB1

4.4%

DE Banks

9.9%

DE Market


1 Year Return

-32.8%

THB1

-37.7%

DE Banks

-17.5%

DE Market

Return vs Industry: THB1 exceeded the German Banks industry which returned -37.7% over the past year.

Return vs Market: THB1 underperformed the German Market which returned -17.5% over the past year.


Shareholder returns

THB1IndustryMarket
7 Day-3.6%4.4%9.9%
30 Day-26.7%-25.5%-16.6%
90 Day-33.9%-27.2%-24.8%
1 Year-32.8%-32.8%-35.7%-37.7%-15.0%-17.5%
3 Yearn/a-43.7%-46.4%-17.4%-24.5%
5 Yearn/a-41.2%-53.2%-16.6%-28.1%

Price Volatility Vs. Market

How volatile is Türkiye Halk Bankasi's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Türkiye Halk Bankasi undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: THB1 (€1.22) is trading below our estimate of fair value (€4.21)

Significantly Below Fair Value: THB1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: THB1 is good value based on its PE Ratio (3x) compared to the Banks industry average (15.1x).

PE vs Market: THB1 is good value based on its PE Ratio (3x) compared to the German market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: THB1 is good value based on its PEG Ratio (0.1x)


Price to Book Ratio

PB vs Industry: THB1 is good value based on its PB Ratio (0.2x) compared to the DE Banks industry average (0.8x).


Next Steps

Future Growth

How is Türkiye Halk Bankasi forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

23.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: THB1's forecast earnings growth (23.4% per year) is above the savings rate (-0.4%).

Earnings vs Market: THB1's earnings (23.4% per year) are forecast to grow faster than the German market (14.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: THB1's revenue (23% per year) is forecast to grow faster than the German market (4.1% per year).

High Growth Revenue: THB1's revenue (23% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: THB1's Return on Equity is forecast to be low in 3 years time (10.3%).


Next Steps

Past Performance

How has Türkiye Halk Bankasi performed over the past 5 years?

-0.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: THB1 has a high level of non-cash earnings.

Growing Profit Margin: THB1's current net profit margins (22.8%) are lower than last year (24.1%).


Past Earnings Growth Analysis

Earnings Trend: THB1's earnings have declined by -0.5% per year over the past 5 years.

Accelerating Growth: THB1's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: THB1 had negative earnings growth (-21.6%) over the past year, making it difficult to compare to the Banks industry average (0.7%).


Return on Equity

High ROE: THB1's Return on Equity (6.5%) is considered low.


Next Steps

Financial Health

How is Türkiye Halk Bankasi's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: THB1 has a low level of unsold assets or inventory.

Debt Coverage by Assets: THB1's debt is not covered by short term assets (assets are 0.7x debt).


Financial Institutions Analysis

Asset Level: THB1's level of assets compared to its equity is moderate.

Allowance for Bad Loans: THB1 has a low allowance for bad loans.

Low Risk Liabilities: THB1's liabilities are made up of primarily low risk sources of funding.

Loan Level: THB1 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: THB1's loans are broadly funded by customer deposits.

Level of Bad Loans: THB1 has a high level of bad loans (4.9%)


Next Steps

Dividend

What is Türkiye Halk Bankasi's current dividend yield, its reliability and sustainability?

0.91%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate THB1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate THB1's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if THB1's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if THB1's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: THB1 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of THB1's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure


CEO

Osman Arslan (48yo)

2.67s

Tenure

Mr. Osman Arslan serves as General Manager of Turkiye Halk Bankasi Anonim Sirketi since June 8, 2017 and also its Director. Mr. Arslan serves as Member of Supervisory Board at Halkbank AD Skopje since 2019 ...


Leadership Team

NamePositionTenureCompensationOwnership
Osman Arslan
GM & Director2.67yrsno datano data
Kemal Efe
Head of General Accounting Departmentno datano datano data
Semih Tufan
Head of Investor Relations Departmentno datano datano data
Elvan Öztabak
Head of Complianceno datano datano data
Mehmet Sevimli
Head of Legal Affairs1.17yrsno datano data
Yalçin Kaya
Head of Corporate Communications Departmentno datano datano data
Hasan Tuncay
Deputy General Manager of Corporate & Commercial Marketingno datano datano data
Ali Sargon
Chairman of the Board of Inspectors15.25yrsno datano data
Yusuf Ocak
Vice CEO & Deputy GM of Loan Policiesno datano datano data
Kadir Yaylak
Head of Inspection Boardno datano datano data

2.7yrs

Average Tenure

52yo

Average Age

Experienced Management: THB1's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Osman Arslan
GM & Director2.67yrsno datano data
Mehmet Özcan
Independent Board Member0.83yrno datano data
Faruk Özçelik
Member of Supervisory Board7yrsno datano data
Sadik Tiltak
Independent Director5.83yrsno datano data
Recep Özdil
Chairman of the Board4.58yrsno datano data
Maksut Serim
Director2.67yrsno datano data
Meltem Taylan Aydin
Director2.67yrsno datano data
Himmet Karadag
Independent Vice Chairman of Board1.58yrsno datano data
Sezai Uçarmak
Director1yrno datano data
Mevlüt Uysal
Director1.17yrsno datano data

2.7yrs

Average Tenure

53yo

Average Age

Experienced Board: THB1's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Türkiye Halk Bankasi A.S.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Türkiye Halk Bankasi A.S.
  • Ticker: THB1
  • Exchange: BST
  • Founded: 1933
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ₺6.175b
  • Listing Market Cap: ₺850.262m
  • Shares outstanding: 1.25b
  • Website: https://www.halkbank.com.tr

Number of Employees


Location

  • Türkiye Halk Bankasi A.S.
  • Barbaros Mahallesi
  • Sebboy Sokak No:4
  • Istanbul
  • 34746
  • Turkey

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HALKBIBSE (Borsa Istanbul (BIST))YesCommon StockTRTRYMay 2007
THBI.YOTCPK (Pink Sheets LLC)UNSP ADR EACH REPR 2 ORDUSUSDNov 2008
THB1BST (Boerse-Stuttgart)UNSP ADR EACH REPR 2 ORDDEEURNov 2008

Biography

Türkiye Halk Bankasi A.S., together with its subsidiaries, provides various banking products and services. The company offers various deposit products, including e-deposits, deposit accounts with investment fund, child accounts, accumulated deposit accounts, producing deposit accounts, current TL accounts, time deposit TL/FX accounts, current FX accounts, gold deposit accounts, and safety deposit boxes. It also provides personal, auto, mortgage, and overdraft loans; commercial and corporate loans; medium and long-term, and investment and project loans; loans from international financial institutions; and foreign trade loans. In addition, the company offers various cards and payment services; insurance products; derivative products; and investment products comprising investment funds, fon 24, domestic government bonds, bank bills and bonds, Eurobonds, repos, forwards, options, swaps, and secured options, as well as cash management services. Further, it provides Internet, mobile, SMS, and TV banking services. As of December 31, 2017, the company operated 969 branches consisting of 963 domestic branches; 6 foreign branches, including 5 in Cyprus and 1 in Bahrain; and 3 representative offices in England, Iran, and Singapore. Türkiye Halk Bankasi A.S. was founded in 1933 and is headquartered in Istanbul, Turkey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 00:38
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.