Sekerbank T.a.s. · BIST:SKBNK
Sekerbank T.a.s — Q1 2022 Earnings Presentation
21 slides from Sekerbank T.a.s's earnings presentation, Mar 31, 2022
Slide 1: Consolidated Financial Results as of March 31, 2022
Şekerbank T.A.Ş. Consolidated Financial Results as of March 31, 2022
Slide 2: Macroeconomic Overview
Macroeconomic Overview GDP Growth1 (YoY, %) Current Account Balance 12m Rolling2 (Mn USD) GDP sustained its strong performance in Q421 and Due to the increase in global commodity prices, the declining trend on a 12mth completed the year at 11% YoY growth rolling C/A balance stopped, yet the non-ener
Slide 3: 68 years of Experience in Community Banking
68 years of Experience in Community Banking Şekerbank was founded 68 years ago to support rural development and the agricultural industry and has always preserved its principle of responsible banking. The Bank has been enhancing its founding mission of community banking to the perspective of sustain
Slide 4: Deep-rooted and Widespread Branch Network
Deep-rooted and Widespread Branch Network Broadbased deposit structure and strong customer base in SME & Agro Serving at the 238 same location for Branches over half of Deep expertise in SME & Agricultural 54% throughout Turkey SME Loan share a century Banking in total loan portfolio2 Trakya Region
Slide 5: Standing by SMEs and Farmers for 68 years
Standing by SMEs and Farmers for 68 years Family Farming Banking 13 billion TL1 financing EKOkredi, Turkey’s first support in 8 years to SME-backed Covered Bond energy efficiency product, prevent rural to urban The first of its kind in the 2009 migration, 2014 world, 2011 Micro Finance for Female SMEs,
Slide 6: The positive pace achieved in 2021 continues in the first quarter of 2022
✓ Prudent loan growth and TL dominated portfolio ✓ Significant recovery in asset quality The positive ➢ High performance in collections pace achieved ➢ Healthy inflow in loans through renewed risk infrastructure in 2021 ➢ Prudent Provisioning Policy continues also ✓ Solid, broad-based and liquid fun
Slide 7: Prudent and TL dominated loan growth
Prudent and TL dominated loan growth ➢ Şekerbank adopted a diversified, widespread and TL dominated growth strategy in 2021 and the first quarter of 2022 continued to decrease its FX loans. Staging Breakdown of Gross Loans2 Currency Breakdown of Gross Loans2 (Consolidated, accruals included) (Mn TL)
Slide 8: Considerable recovery in asset quality due also to high performance in collections
Considerable recovery in asset quality due also to high performance in collections ➢ With high concentration placed on increasing asset quality, the NPL has been improving steadily since the beginning of 2021. Thanks to its highly collateralized loan portfolio, the bank’s collection performance has
Slide 9: Prudent Provisioning Policy
Prudent Provisioning Policy ➢ Şekerbank, which has always adopted a prudent provisioning policy for its loan portfolio, also increased its free provision to 280 Mn TL in the first quarter of 2022. Stage-2 provision coverage ratio(1) NPLs coverage by NPL provision ratio(1) (Bank only, %) (Bank only,
Slide 10: Significant healthy inflow in loans through renewed underwriting infrastructure
Significant healthy inflow in loans through renewed underwriting infrastructure within the Transformation Program %91 of the total loan amount that was A Decision Support System «DSS» based on statistical analytical models for disbursed since Jun.19 was in the medium, low and very low risk profile c
Slide 11: Protected securities portfolio against interest and FX fluctuations
Protected securities portfolio against interest and FX fluctuations ➢ As of March 2022, Securities / Total Assets: 11,6% Composition by Classification1 TL denominated Securities1 FC denominated Securities1 Financial Assets Financial Assets at Fair Value Through at Fair Value Through 3.292 3.331 Comp
Slide 12: Solid, broad-based and liquid funding structure
Solid, broad-based and liquid funding structure ➢ Thanks to Şekerbank’s deep-rooted brand perception and long-term customer relationships, the Bank continued to experience a steady growth in its broad-based retail deposits in the first quarter of 2022. 77% of the total TL retail deposits are under 1
Slide 13: Diversified and sustainable development based foreign borrowings structure
Diversified and sustainable development based foreign borrowings structure ➢ The Bank has longstanding relationships with IFIs thanks to its sustainable banking know-how, which also reflects on its diversified and long-term foreign borrowing structure. Proven Access to Diversified Sources of Funding
Slide 14: Significant improvement in sustainable profitability
Significant improvement in sustainable profitability ➢ The Bank’s profitability figures have been improving steadily in line with the improvement in credit quality, high collection performance and satisfactory NIM levels based on surpassing funding costs and effective OPEX management. Net Profit/Los
Slide 15: Main determinants of the profitability
Main determinants of the profitability Cost of Risk has been decreasing The specific provisions of Net Interest Margin has increased mainly in line with the very limited transfer to NPL the majority of the NPL portfolio have based on surpassing the cost of deposits. reached almost 100% Loan Provisio
Slide 16: Improvement in capital adequacy ratios
Improvement in capital adequacy ratios ➢ The Bank managed to keep its capital ratios at satisfying levels in the first quarter of 2022 by generating diversified and TL dominated loan growth; additionaly enhancing its internal capital generation capacity via improving profitability performance. Capit
Slide 17: Digital banking infrastructure providing a competitive advantage during the pandemic
Digital banking infrastructure providing a competitive advantage during the pandemic Mobile Digital applications solutions that that expand surround the access to rural finance Instant credit allocation to small businesses and The 1st Bank The 1st Bank farmers in the field through the tablet channel
Slide 18: Enhancing sustainable development banking competencies
Enhancing sustainable development banking competencies Bank only, as of March 2022 Sustainable %9 %99 Agriculture Share of agricultural of the farmers that we provide loans in total cash loans services are small farming families %74 TL 16.3 Small Businesses billion and Employment Share of the MSME l
Slide 19: Contact Details
Contact Details Sekerbank T.A.Ş. Aybala Şimşek Executive Vice President Strategy, Transformation and Financial Institutions Financial Institutions & Investor Relations Oya Sarı Head of Financial Institutions and Investor Relations Tel: +90 212 319 71 58 oya.sari@sekerbank.com.tr Turhan Özdemir FI, S
Slide 20: Legal Notice For Investors
Legal Notice For Investors Legal Notice The information in this document has been obtained by Sekerbank T.A.Ş. (“Sekerbank”) from sources believed to be reliable. However, Sekerbank cannot guarantee the accuracy, completeness or correctness of such information. This document has been issued for info
Slide 21: Thank you...
J a Thank you... kg