Albaraka Turk Katilim Bankasi A.s. · BIST:ALBRK
Albaraka Turk Katilim Bankasi A.s — Albaraka Türk Participation Bank — Investor Presentation (2024)
24 slides from Albaraka Turk Katilim Bankasi A.s's investor presentation, 2024
Slide 1: Investor Presentation 1H'24
Investor Presentation 1H’24 Albaraka Türk Participation Bank
Slide 2: Macroeconomics / Banking Outlook
Macroeconomics / Banking Outlook
Slide 3: Macroeconomic Outlook: High inflation remains key focus
Macroeconomic Outlook: High inflation remains key focus Early signs of easing monetary policies are emerged as ECB and BoE kicked off the easing cycle while inflation is closely monitored. In Turkiye, tightening policies and favourable base effects result in declining inflation. Global PMI Central B
Slide 4: Banking Sector Overview: Steady growth, yet profitability declines
6 Banking Sector Overview: Steady growth, yet profitability declines Due to the effects of tight monetay policy, asset growth in both the banking and participation banking sectors slowed YtD and profitability declined YoY. Net Profit Funded Credits* Total Assets* TL Billion TL Billion TL Billion FC
Slide 5: 1H'24 Financial Results
1H’24 Financial Results
Slide 6: Navigating challenges of operational environment with sustained profitability
Navigating challenges of operational enviroment with sustained profitability Growth remained moderate, asset quality was maintained, and profitability improved YoY in 1H’24. Income – Cost Dynamics Return on Avg. Equity & Assets* Net Profit TL Billion % TL Billion 1H’23 +54% +97% 1H’24 1H’23 +11.8% 4
Slide 7: Achieved net profit increase despite slow growth and rising funding costs
Achieved net profit increase despite slow growth and rising funding costs Net income increased by 25% YoY and 105% QoQ despite a net trading loss of TL 1.3 billion due to high swap costs. Net Profit Total Operational Income TL Billion TL Billion -4.5% +25.3% 7.21 1.87 0.97 6.89 +104.6% 0.76 1.56 1.4
Slide 8: Steady growth in total assets and changed asset composition
6 Steady growth in total assets and changed asset composition due to tight monetary policy Steady asset growth in H1’24 was due to higher required reserves and CBRT-Imposed credit utilization limits, resulting in a 400 bps increase in liquid assets YtD. Composition of Total Assets Currency Breakdown
Slide 9: Growth in total funded credits was moderated
7 Growth in total funded credits was moderated; FC credit growth surpassed TL credit growth Total funded credit portfolio increased by 9.1% YtD, with stage 1 credit share rising by 190bps. Total Funded Credits Currency Breakdown of Performing Credits* TL Billion - Inc. f.Leasing. TL million . excl.
Slide 10: Asset quality remained high while cost of risk decreased significantly
8 Asset quality remained high while cost of risk decreased significantly Provision ratios remained high, while annualized cost of risk decreased from 4.3% at year-end 2023 to 2.3% in 1H’24. Non Performing Credits Development NPL Ratio TL Billion % NPL Ratio Net NPL Ratio 0.09 1.98 2.5 1.81 0.28 0.02
Slide 11: Securities portfolio maintained, continuing to support profitability
6 Securities portfolio maintained, continuing to support profitability Despite flat growth in total securities YtD, the portfolio income increased by 101% YoY. Total Securities Portfolio Securities Yield* TL Billion % Available for Sale +3.0% 13.0 14 Marketable Securities 11.7 56.2 55.7 57.4 10.7 He
Slide 12: Collected funds remain primary source despite alternative products
10 Despite increased importance of alternative products, collected funds remain primary source While collected funds remain key, the significance of alternative funding sources grows due to rising market returns. Composition of Total Liabilities Currency Composition of Collected Funds TL Billion TL
Slide 13: TL funds collection increased, CA remain high and reduce cost of funding
TL funds collection increased, CA remain high and reduce cost of funding CA/Total Funds Collection stood at 45% as end of Q1’24 which helps reduce cost of funding. Current Accounts Participation Accounts TL Billion – Annual Growth % TL Billion – Annual Growth % 20.0% 2023 +4.9% 2023 1H’24 79.5 1H’24
Slide 14: Achieved growth in core banking revenue despite rising funding costs
86 Achieved growth in core banking revenue despite rising funding costs Despite rising cost of funding, net profit share income and fees & commission income increased by 54% and 105% YoY respectively. Profit Share Income Profit Share Expense Net Profit Share Income TL Billion TL Billion TL Billion +
Slide 15: Maintained sound income-cost dynamics against high inflation and funding costs
6 Maintained sound income-cost dynamics against a backdrop of high inflation and funding costs Operational income decreased by 4.5% YoY due to net trading loss in 1H’24, efficient cost management achieved with help of low risk cost. Income-Cost Dynamics Staff/Branches TL Billion -4.5% Banking Sector
Slide 16: Despite higher operational expenses, net income continues to be maintained
6 Despite higher operational expenses, net income continues to be maintained YoY QoQ Notes (TL Million) 1H’23 1H’24 % Q1’24 Q2’24 % Net Profit Share Income 3,063 4,715 54% 2,218 2,497 26% NPSI continued to increase due to higher credits and securities yields. Net Fees & Commission Net fee and commis
Slide 17: Capital levels adequate to maintain CAR
Capital levels adequate to maintain CAR CAR is at a sustainable level by moderate growth and sustainable internal capital generation. Capital Adequacy Ratio Capital Breakdown % % 18.1 AT-1 17.3 Tier-2 14.3 14.4 Core Capital 13.8 12.4 4.4% 3.9% 11.7 10.0 10.6 28.0% 26.3% 2023 1H’24 67.6% 69.8% Core C
Slide 18: Market Comparison
Market Comparison
Slide 19: Financial Ratios – Sector Comparison
6 Financial Ratios – Sector Comparison Percent (%) 2023 1H’24 Participation Participation Albaraka Turk Banking Sector Albaraka Turk Banking Sector Banks Banks CAR 17.3 21.4 18.8 14.4 18.6 17.1 NPL Ratio 1.7 0.9 1.5 1.7 0.9 1.5 Provisioning Ratio (Stage 3)* 98.5 99.8 82.0 98.9 95.8 79.0 Loan/Deposit
Slide 20: Appendix
Appendix
Slide 21: Summary Balance Sheet
6 Summary Balance Sheet (TL Million) 2023 1H’24 Growth (%) (TL Million) 2023 1H’24 Growth (%) Cash and Balances with Funds Collected 161,806 179,562 11.0% 49,084 59,438 21.1% Central Bank Funds Borrowed 30,536 45,841 50.1% Banks 14,585 23,807 63.2% Borrowings from Money Market Placements 0 0 0 1,007
Slide 22: Summary Income Statement
6 Summary Income Statement (TL Million) 1H’23 1H’24 Growth (%) Profit Share Income 6,933 18,265 163% Profit Share Expense 3,870 13,549 250% Net Profit Share Income 3,063 4,715 54% Net Fees and Commissions Income 764 1,565 105% Fees and Commissions Received 1,063 1,871 76% Fees and Commissions Paid 2
Slide 23: Thank You
THANK YOU...
Slide 24: Disclaimer
6 DISCLAIMER THIS PRESENTATION AND THE INFORMATION CONTAINED HEREIN IS CONFIDENTIAL AND MAY NOT BE REPRODUCED. CIRCULATED. DISTRIBUTED OR PUBLISHED (IN WHOLE OR IN PART) OR DISCLOSED BY RECIPIENTS TO ANY OTHER PARTY. BY VIEWING THIS PRESENTATION. YOU AGREE TO BE BOUND BY THE FOREGOING LIMITATIONS. T
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