Turkiye Sinai Kalkinma Bankasi A.s. · BIST:TSKB
Turkiye Sinai Kalkinma Bankasi A.s — Türkiye Sınai Kalkınma Bankası (TSKB) — Q2 2022 Earnings Presentation
27 slides from Turkiye Sinai Kalkinma Bankasi A.s's earnings presentation, August 2022
Slide 1: Corporate Banking: FI&IR Presentation 2Q-22 Bank-only Results
Corporate Banking The Industrial Development Bank of Tiirkiye FI&IR Presentation 2Q-22 Bank-only Results ESG ESG ) REGIONAL INDUSTRY Best Bank for TOP RATED (TOP RATED Turkey's Most Sustainable Sustainable Bank Development Turkey Banking Advisory Services
Slide 2: TSKB at a Glance
TSKB at a Glance 4 Turke' als Bank Group 40.3% yyy yy esate Lyle oe Shareholding baae Z fakifban! AKG WM Fitch LTFC B- B Free Float* & Other Moody’sLTIR B3 B3 SAHA Corporate 9.59/10 Governance Rating YY Sustainalytics ESG 13.6 Low Risk As of August 15, 2022 Risk Rating y CORPORATE BANKING INVESTMENT
Slide 3: A Unique Business Model
A Unique Business Model = Long term tenor in liabilities: 11 years * Medium term in assets: 5 years = Diversified funding tools = Amortized loan book = Multi-disciplinary assessment during allocation = Sector specific research analysts during allocation and monitoring period = Strong collateralizati
Slide 4: Main Stakeholders of the Bank
Main Stakeholders of the Bank A trustworthy partner in; Large Corporates, MidCap Companies & SME's Its field experience Cooperation in various areas such as; corporate Its capacity to introduce innovative themes with respect to loans, investment banking activities and advisory investment projects se
Slide 5: Sustainability is Well Integrated into Our Business Model
Sustainability is Well Integrated into Our Business Model health and safety © Supporting less developed regions Support for employment in Turkey; ® Encouraging women participation to the economy ERB Support transition to low ye carbon economy © Providing financing to operational Environmental & Soci
Slide 6: 2022YE Guidances vs 2Q22 Results
2022YE Guidances vs 2Q22 Results Financial Guidance (Bank Only) 1H22 (%) Results 2022YE (%) Guidance 2022YE (%) Guidance Revision Growth FX Adjusted Loan Growth Profitability Net Interest Margin (*) Fees & Commissions Growth Return On Equity Efficiency OPEX Growth Cost/Income Ratio Solvency*** Capit
Slide 7: Strong core revenue contribution continues
Strong core revenue contribution continues Net Banking Income-TLmn Net Banking Income vs Provisions - TL mn 3,027 x3 1,406 “pe ED 1,603 times E YL 671 735 1,045 377 679 377 653 1,030 9 10-22 20-22 2 y ‘Net Banking income exc,cPi&Trading —1H-21 1H-22 Vy ONG Ate MMI PZ, ‘Trading Gain/Loss Provisions (
Slide 8: Banking Sector vs TSKB
Banking Sector vs TSKB CAR 18.0% 17.7% Banking Sector TSKB Cost to Income 21.1% 6.8% Banking Sector TSKB Repo 4 ic) ag Funds Deposit61% Borrowed g eposi wow 5 Securities Issued 0 iti z 3% x 2 Subordinated bonds ind loans (ATI + Ti o Equity ‘Other and loar san Tier Il) 9% ™% 40.4% Loans/Assets NPL 70
Slide 9: Comfortable FX Liquidity and Maturity Profile
Comfortable FX Liquidity and Maturity Profile Funding / Total Liabilities (exc. Equity & Oth.) - USD mn bl ™Guarenteed DFI Funding Unguarenteed DF! Funding 20% 20% 21% Securities Issued 10% 10% 10% = Subordinated Debt = Syndication & Other = Repo &Money Market 57% 58% ESG aligned 40-21 10-22 20-22 2
Slide 10: Long Term DFI Funding Base
Long Term DFI Funding Base Outstanding DFI Funding Base - 2Q-22 IBRD 43.4% Ny Yearly Multilateral Funding Agreements - USD mn Kfw New Loan Agreements in 2Q22 + EBRD|EUR 53.5 million 2017 2018 2019 2020 2021 1H22 CDB IDB AFD JBIC CEB IFC I 1.2% EBRD 2.0% OEB | 0.3%
Slide 11: Outstanding Project Themes Shaping Future Loan Book
11 Outstanding Project Themes Shaping Future Loan Book Energy and Resource Efficiency Women’s Employment and Equal Opportunity Renewable Energy Midcap Financing Supporting Exporters Regional Development Supporting Employment Sustainable Agriculture Industrial Development Sustainable Tourism Occupati
Slide 12: Resilient Asset Composition
Resilient Asset Composition Asset Composition - TL bn Total Loans - TL bn Currency Breakdown 69.6 63.9 64.2 rem > 5.8% 41 3.0 | 94.2% 4.6$ 4.28 4.0$ YY YH Yi 40-21 10-22 20-22 mLoans mSecurities =Cash&MM mNon EAs & Other =FXLoans($) = TRY Loans Remaining Average Maturity - 2Q-22 Loans by Currency &
Slide 13: Risk Management Pillars
Risk Management Pillars Credit Risk * Monitoring the clients individually with analysing the financials * Preparing monitoring reports for the clients at least once a year * Keeping track of internal and external (if it is done) ratings of the customers, reviewing the internal ratings annually = Act
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Slide 15: Loan Book by Sector
Electricity Generation 43.5% Finance 6.9% Other** 8.7% Electricity/Gas Distr. 6.9% Tourism 6.1% Metal & Machinery 5.5% Health & Education 6.0% Construction & Construction Materials 3.7% Logistics 4.0% • Non-Residential Real Estate 2.1% • Food & Beverage 2.5% • Chemistry & Plastics 2.4% Automotive 1.
Slide 16: Renewable Energy Loans by Source
1.6 bn 1.9 bn 1.9 bn 1.9 bn 1.9 bn 1.7 bn 4% 6% 6% 7% 8% 10% 5% 5% 5% 6% 9% 11% 35% 37% 35% 37% 39% 38% 17% 18% 19% 20% 19% 19% 37% 35% 35% 31% 24% 22% 2017 2018 2019 2020 2021 2Q-22 Hydro Geothermal Wind Biomass Solar • •
Slide 17: Asset quality remains intact, coverages further elevated
Asset quality remains intact, coverages futher elevated thanks to strong profitability @—* Coverage Ratio Stage | Loans 1.2% 1.2% oe 10-22 20-22 Gross Amount Provisions (mio TL) 57,986 667 Stage Il Loans Stage 2 Loans Sector % Tourism 26 Electricity/Gas Distribution 18 Health 16 Electricity Generati
Slide 18: Security Yields
Security Yields TRY Sec. Yield exc. CPI CPI 58.6% • 42.8% • 23.2% 19.6% • 13.0% 16.6% 11.9% 12.8% 13.3% 18.8% 16.4% 17.0% 17.3% 11.8% 13.6% 15.3% 11.9% 12.0% 2Q-20 3Q-20 4Q-20 1Q-21 2Q-21 3Q-21 4Q-21 1Q-22 2Q-22
Slide 19: Income Statement Highlights
Income Statement Highlights TLhmn 1H-21 1H-22 YoY 10-22 | 20-22 | QoQ t Strong Net Interest Income 941.4 2,527.3 168% 1,092.9! 1,434.4! 31% contribution of fees & Trading Income 161.7 591.9 266% 376.5 215.4 } -43% commissions Net Fees & Commissions 35.6 828 133% 316 } 51.2 | 62% Sustainable profitab
Slide 20: Increasing NIM performance trend above expectations
20 Increasing NIM performance trend above expectations Annualized NIM 50 bps 5.24% 70 3.94% 4Q-21 1Q-22 5.74% 3.94% 30 bps 3.18% 3.47% 2021 20-22 mCoreNIM =CPI Impact 5.74% 2Q-22 Robust margin expansion continues excluding CPI linkers 2022 October to October CPI valuation assumption is revised to 66
Slide 21: Strengthened Solvency Metrics above regulatory levels
21 Strengthened Solvency Metrics above regulatory levels Capital Ratios Without BRSA Temporary Measures 14.0% 14.5% 12.0% % mer 13.3% 8.5% 2021 19-22 20-22 mTier|Ratio = CAR With BRSA Temporary Measures ~ CAR: 17.7% | Tier t 16.5% | CET -1: 12.0% be oS Free Provision Stock Adjusted CAR: 15.3% Tier I
Slide 22: Sustainability Developments — 2Q22
Sustainability Developments — 2Q22 Pathway to Net Zero Climate Risks Evaluation Tool (CRET) 3'd Sustainability-linked Syndicated Loan = Developed in-house My = Quantification of physical and transition risks = Integrated into the credit evaluation criteria and started to submit to the committee = 8
Slide 23: 2S BS Q gf x
2S BS Q gf x
Slide 24: Balance Sheet
24 Balance Sheet 31/12/2021 31/03/2022 30/06/2022 mo Th PK TOTAL TL FX TOTAL, TL FX TOTAL Cash and Banks 1,526 3,715 5,241 3,552 6,851 10,403 2,280 5,457 7,738 Securities 5,896 6,730 12,626 6,283 8,493 14,776 7,159 12,711 19,870 Loans (Gross) 4,072 59,830 63,905 2,953 61,294 64,247 4,068 65,530 69,5
Slide 25: Detailed Income Statement
25 Detailed Income Statement TLmn Net Interest Income inc. Swap Cost Net Interest Income CPI Linkers Swap Costs (-) Net Commissions Other Income Dividends Other Trading & FX gains/losses FX gains/losses MtM gains/losses Trading gains/losses Banking Income OPEX (-) Net Banking Income ECL (-) Stage |
Slide 26: Key Performance Indicators
26 Key Performance Indicators 16.7% 8.9% YE-21 “When free provisions are adjusted, ROE reaches up to 47% ROEX = 40.4% 33.4% Tier-l** 12.8% 13.3% 1Q-22 2Q-22 Excluding BRSA temporary measures “Excluding FX Gains /Losses ROA 3.3% 2.8% 1.60% YE-21 1Q-22 2Q-22 CAR** 15.3% 14.5% 14.0% L YE-21 1Q-22 2Q-22
Slide 27: TSKB Financial Institutions & Investor Relations
27 ool Oe TSKB Financial Institutions & Investor Relations TSKB Financial Institutions & Investor Relations ir@tskb.com.tr www.tskb.com Meclisi Mebusan Cad. 81 Findikli 34427 istanbul
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