Turkiye Vakiflar Bankasi Turk Anonim Ortakligi · BIST:VAKBN
Turkiye Vakiflar Bankasi Turk Anonim Ortakligi — Türkiye Vakıflar Bankası T.A.O. (VakıfBank) — H1 2024 Earnings Presentation
25 slides from Turkiye Vakiflar Bankasi Turk Anonim Ortakligi's earnings presentation, Aug 8, 2024
Slide 1: Earnings Presentation BRSA Bank-Only 1H24
Earnings Presentation BRSA Bank-Only 1H24 August 8, 2024
Slide 2: 2Q24 Earnings and profitability
Earnings Presentation Bank-Only 1H24 2Q24 Earnings and profitability Net Income (TL billion) ROAE (%) 248% vs. 19.2 Sector avg. 27.0 of 25.5% 21.2 12.0 18.0 7.2 5.5 TL 8.5 billion 9.0 free provisions in the b/s as of 1H24 1H23 1Q24 2Q24 1H24 1H23 YE23 1Q24 1H24 Core Banking Revenues (TL billion) * T
Slide 3: Key highlights of 1H24
Earnings Presentation Bank-Only 1H24 Key highlights of 1H24 Profitability TL 19.2 Annual and quarterly net income materialized at TL 19.2 billion and billion TL 7.2 billion, respectively 21.2% 1H24 ROAE came at 21.2% vs YE 2023 ROAE of 18% 248% 1H24 net income is up by 248% YoY vs sector average of
Slide 4: 2Q24 P&L details
Earnings Presentation Bank-Only 1H24 2Q24 P&L details 2Q24 1H24 QoQ TL million vs. TL million YoY 5% Net Interest 36,328 342% 18,626 Income (1%) Net Fees and 21,135 129% TL 11 billion 10,506 Commissions free provision in the b/s as of 1Q24 8771% 113 Dividend 114 1111% Income Net Trading (10,598) (19
Slide 5: NIM, CPI linkers and money market funding
Earnings Presentation Bank-Only 1H24 NIM, CPI linkers and money market funding CPI Expectation NIM (%) 0.42% 5.30% 3.02% 3.03% NIM 3.95% Swap 0.31% 1.31% 1.25% Adj. NIM 2Q23 4Q23 1Q24 2Q24 ➢ Improvement on incremental ➢ Expected CPI income in 3Q24 TL core spreads will support is TL 21 billion with 4
Slide 6: Visible annual shift in fee composition in favor of payment system fees
Earnings Presentation Bank-Only 1H24 Visible annual shift in fee composition in favor of payment system fees Net Fee & Commission Income Breakdown (TL billion) Insurance 129% Insurance 9.8% 4.5% Cash Loans Cash Loans 35.0% 49.0% Payment Payment System 1H23 System 1H24 28.0% 21.1 50.5% 10.6 10.5 10.0
Slide 7: Seasonality impact on quarterly OPEX increase, yet still stick to full year cost/income ratio guidance
Earnings Presentation Bank-Only 1H24 Seasonality impact on quarterly OPEX increase, yet still stick to full year cost/income ratio guidance Opex (TL billion) Cost/Income Ratio (%) 84% Sector avg. vs. of 42.2% 39.7 37.2* 32.5 2024 guidance: ~ 30% cost/income ratio 17.6* 17.6 14.8 19% 1H23 1Q24 2Q24 1
Slide 8: Strategical shift in lending portfolio in favor of high quality business loans
Earnings Presentation Bank-Only 1H24 Strategical shift in lending portfolio in favor of high quality business loans Portfolio Breakdown VB Sector VB Sector QoQ Loan Growth QoQ (%) QoQ (%) YoY (%) YoY (%) YoY growth: 35% Total Loan Growth 6.2 7.1 34.4 38.4 2Q24 10% 56% Com.&Corp. TL Loan Growth 2.8 3
Slide 9: Breakdown of loan portfolio
Earnings Presentation Bank-Only 1H24 Breakdown of loan portfolio Currency Breakdown Loans by Interest Structure TL FC 65% 35% TL Loans FC Loans ($) 2Q24 29% 71% 38% 62% 12% 10% 6% QoQ Growth 4% 5% 4% 3% 1% 3Q23 4Q23 1Q24 2Q24 3Q23 4Q23 1Q24 2Q24 Fixed Rate Floating Rate Sectoral Breakdown of Cash Lo
Slide 10: Risks on asset quality faring, yet under control with healthy provisioning
Earnings Presentation Bank-Only 1H24 Risks on asset quality faring, yet under control with healthy provisioning NPL (TL million)* Stage II Loans Breakdown (TL billion) Share in total 7.8 7.9 loans (%) 6.9 7.5 4,826 9 1,590 24,321 21,085 134.3 Total Stage II Loans 116.4 119.8 56.0 55.2 54.1 Restructu
Slide 11: More granular deposit base with 45% share of retail deposit
Earnings Presentation Bank-Only 1H24 More granular deposit base with 45% share of retail deposit Total Deposits (TL billion) Breakdown of Deposits 53% 67% 63% 33% 37% 2,152 Sector 1,962 2,003 7% TL Deposits FC Deposits TL Deposits FC Deposits 779 702 708 1,402 $ 21.4 $ 23.9 FC Share of demand $ 24.0
Slide 12: YtD international funding amount: USD 7 billion
Earnings Presentation Bank-Only 1H24 YtD international funding amount: USD 7 billion Breakdown of International Funding Short term $5.8 billion Private Placement International Coverage Free FX liquidity Other 8.0% Eurobond Funding 1.1X ~$6.5 billion 1.5% 15.7% Repo & Long term Collateralized Funding
Slide 13: Solvency ratios
Earnings Presentation Bank-Only 1H24 Solvency ratios Capital Adequacy Ratio (%) Solvency ratios Including free (%) w/o BRSA provision impact forbearance Required CET1 CET I 11.33 11.37 11.73 10.52 10.54 level 8.5% CET I 9.53 9.96 Tier I 13.36 13.23 13.64 12.17 13.12 Required Tier I Tier I 11.91 12.3
Slide 14: Appendix
Earnings Presentation Bank-Only 1H24 Appendix Pg. 15 Sustainable banking approach Pg. 16 Sustainable loan products Pg. 17 Sustainable customer base thanks to enhanced digital platforms Pg. 18 Composition of assets & liabilities Pg. 19 Well positioned TL security portfolio Pg. 20 Breakdown of retail
Slide 15: Sustainable banking approach
Earnings Presentation Bank-Only 1H24 Sustainable banking approach Indices & initiatives Firsts in sustainable banking The first Turkish bank to have its targets validated by Science Based Targets initiative (SBTi) Scope 1 & Scope 2 51% Scope 3 Electricity Scope 3 Scope 3 generation with Electricit
Slide 16: Sustainable loan products
Earnings Presentation Bank-Only 1H24 Sustainable loan products Women in Business Loan Green Mortgage Loan For a business that is managed or Aiming to support the reduction of owned by women, having less than residential energy consumption 250 employees and completing the and greenhouse gas emissions
Slide 17: Sustainable customer base thanks to enhanced digital platforms
Earnings Presentation Bank-Only 1H24 Sustainable customer base thanks to enhanced digital platforms Branch 950 9% Branches # of active* digital Internet banking customers Banking reached 49% ~7.7 million ~7.7 mn Non-branch # of transaction made Mobile Digital transaction Banking through digital Bank
Slide 18: Composition of asset & liabilities
Earnings Presentation Bank-Only 1H24 Composition of asset & liabilities Breakdown of Assets (%) Currency Breakdown of Total Assets The biggest listed bank 2Q24 Other in terms of asset size with 22.2 Loans 12%* market share 52.7 38% Interbank 62% 2.1 2Q24 The share of IEA 78% Securities in total asse
Slide 19: Well positioned TL security portfolio
Earnings Presentation Bank-Only 1H24 Well positioned TL security portfolio Total Securities (TL billion) Portfolio Structure 57% 722.8 743.3 6% 659.8 3.0% 45% 1% 8.7% 53% 332.4 352.6 41% 55% 474.2 344.4 5.8 251.5 16.5 34.3 29.0 405.1 2Q23 2Q24 353.7 281.1 193.7 Trading AFS HTM Trading AFS HTM 2Q23 4
Slide 20: Breakdown of retail loan portfolio
Earnings Presentation Bank-Only 1H24 Breakdown of retail loan portfolio General Purpose Consumer (TL billion) Residential Mortgages (TL billion) Credit Card Loans (TL billion)* 14% (9%) 54% 156.4 151.5 135.3 91.7 85.7 (3.0%) 81.4 98.5 75.2 58.0 58.4 55.2 53.0 (6.5%) (4.0%) 2Q23 4Q23 1Q24 2Q24 2Q23 4
Slide 21: Diversified funding sources via non-deposit funding
Earnings Presentation Bank-Only 1H24 Diversified funding sources via non-deposit funding Sustainable-linked syndication Eurobonds and Private Placements USD 1.6 billion outstanding May’24: USD 915 million equivalent syndicated loan, SOFR +2.50%, Euribor +2.25% USD 2.8 billion outstanding Eurobonds a
Slide 22: Unconsolidated Key Financial Ratios
Earnings Presentation Bank-Only 1H24 Unconsolidated Key Financial Ratios 1H23 2023 1Q24 2Q24 1H24 Profitability ROAE 9.0% 18.0% 27.0% 15.3% 21.2% ROAA 0.6% 1.1% 1.7% 0.9% 1.3% Cost / Income 37.2%* 33.7%* 30.8% 52.5% 39.7% Cost / Assets 1.6%* 1.4%* 2.0% 2.2% 2.0% Fee / Cost 52.4%* 63.6%* 71.7% 59.5%
Slide 23: Unconsolidated Balance Sheet
Earnings Presentation Bank-Only 1H24 Unconsolidated Balance Sheet (TL thousand, %) 2Q23 1Q24 2Q24 TL USD USD USD USD TL TL TL YoY QoQ YoY QoQ equivalent equivalent equivalent Cash & Balances with Central 229,435,856 8,805,271 502,213,898 15,507,656 591,900,126 18,041,720 158.0% 17.9% 104.9% 16.3% Ba
Slide 24: Unconsolidated Income Statement
Earnings Presentation Bank-Only 1H24 Unconsolidated Income Statement (TL thousand, %) 1H23 1Q24 2Q24 1H24 YoY QoQ Net Interest Income 8,214,416 17,701,893 18,625,737 36,327,630 342.2% 5.2% Swap Cost -960,266 -10,038,011 -10,933,553 -20,971,564 2083.9% 8.9% Net Fee & Com. Income 9,234,264 10,629,030
Slide 25: For Earnings Presentations: Investor Relations
For Earnings Presentations: A member of BIST Sustainability Index Investor Relations Finanskent Mahallesi Finans Caddesi No:40/1 Ümraniye / İstanbul E-mail: investorrelations@vakifbank.com.tr Tel (90-216) 724 2685 Fax (90-216) 724 3941 www.vakifbank.com.tr Disclaimer Notice: This report has been pre
Türkiye Vakıflar Bankası T.A.O. (VakıfBank) — H1 2024 Earnings Presentation on 6ix