Turkiye Sinai Kalkinma Bankasi A.s. · BIST:TSKB
Turkiye Sinai Kalkinma Bankasi A.s — Türkiye Sınai Kalkınma Bankası A.Ş. — Q4 2020 Earnings Presentation
29 slides from Turkiye Sinai Kalkinma Bankasi A.s's earnings presentation, March 2021
Slide 1: Created with a trial version of Syncfusion Essential PDF
Created with a trial version of Syncfusion Essential PDF
Slide 2: TSKB at a Glance
TSKB at a Glance Ratings TSKB Tiirkiye mis Bank Group 407 Shareholding Fitch LTFC B+ BB- mVakifbank Structure Moody’sLTIR B3 B2 Free Float & Other SAHA Corporate 9.56/10 Governance Rating = TRY 4,8bn MCAP Sustainalytics ESG 16,7 Risk Rating Low Risk As of 8 March, 2021 CORPORATE BANKING INVESTMENT B
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 Sa
Slide 5: Sustainability is Well Integrated into Our Business Model
Sustainability is Well Integrated into Our Business Model Support for employment in Turkey; ® Encouraging women participation to the economy ERB Support transition to low ye carbon economy © Providing financing to operational health and safety © Supporting less developed regions Environmental & Soci
Slide 6: Key Topics That Marked The Year 2020
Key Topics That Marked The Year 2020 streeien Climate Change USD 800 mio new fundingengagement EISSN ys Funding + Awareness Corporate / Y * Capacity building Banking USD 200 million COVID-19 Loan from AIIB MY ORME = First Eurobond issuance in 2020 with a record ff Zi ts i I Anal LCNOKbd Climate Impa
Slide 7: *Swap adjusted. **Excluding forbearance.
*Swap adjusted. **Excluding forbearance.
Slide 8: Banking Sector vs TSKB
Banking Sector vs TSKB CAR* 16.3% 16.6% Banking Sector TSKB "Excluding forebearence Cost to Income 34.2% 11.3% Banking Sector TSKB Repo & Depo 7% Deposit 59% BANKING SECTOR Equity Other 10% 6% BRSA data, as of 31 December 2020 Securities sued 4% Subordinated bonds and loans (ATI + Tier Il) 3% Loans/
Slide 9: Key Highlights of YE2020
Key Highlights of YE2020 Net Banking Income - TRY mn Net Banking Income vs Provisions - TRY mn Quarterly Cumulative 553 1,754 aii 1,319 1,273 1,169 208 eos 30-20 40-20 YE-19 YE-20 30-20 40-20 I Net Banking Income exc. CPI & Trading m= Net Banking Income I Trading Gain/Loss Ee CPI income Net Profit -
Slide 10: Funding Maturity Profile
-485 -526 -516 -300 * -350 -300 -2,256 -400 -300 2021 2022 2023 >=2024 Syndication&Other DFI Funding Eurobond Tier 2
Slide 11: Long Term DFI Funding Base
Long Term DFI Funding Base Outstanding DFI Funding Base - 4Q-20 IBRD 39.0% Wy Yearly Multilateral Funding Agreements - USD mn kKfw IDB 5.6% AFD 5.4% 733 AILB 4.0% i CEB 3.4% a | om pe ey 2015 2016 <a 2018 2019 2020 cDB 2.9% yy | | yy 2020 - New funding from AlIB as part of the EBRD | 1.0% Covid-19 C
Slide 12: Outstanding Project Themes Shaping Future Loan Book
12 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 13: Resilient Asset Composition
Ales Resilient Asset Composition Asset Composition - TRY bn 52.4 415 40-19 30-20 40-20 mloans mSecurities mCash&MM mNonIEAs & Other Average Maturity - Years Working Capital Loans NN 2.6 APEX Loans SN 3.9 ) investment Loans I 6.7 5.5 years Total Loans — TRY bn Currency Breakdown 39.9 39.1 35 48 ) 10.
Slide 14: Credit and Operational Risk Monitoring
▪ Monitoring the clients individually with analysing the financials ▪ Effective internal control systems to prevent, detect and ▪ Preparing monitoring reports for the clients at least once a manage the operational risks which results in a very low level year of losses in connection with operational
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Slide 16: Sustainability-Themed Loans Account for 74% of the Portfolio
Sustainability-Themed Loans Account for 74% of the Portfolio Loans by sector 40-20 Energy and Resource Efficiency 149 PROJECTS Sectors Tourism, Energy, Chemicals, Mining, Automotive, Steel, Cement, Textiles a 8 a < 68 2 2 Electricity Generation; 88% of which is Renewable Energy, Renewable Energy whe
Slide 17: Renewable Energy Loans by Source
1.5 bn 1.6 bn 1.9 bn 1.9 bn 1.9 bn 1.9 bn 6% 2% 4% 6% 6% 7% 6% 5% 5% 5% 6% 34% 32% 35% 37% 35% 37% 9% 14% 17% 18% 19% 20% 51% 46% 37% 35% 35% 31% 2015 2016 2017 2018 2019 2020 Hydro Geothermal Wind Biomass Solar • •
Slide 18: Asset Quality and Coverage
422 576 1,684 752 1,750 Coverage Coverage 14,0% 7,1% Coverage 10,4% Coverage 30,4% Coverage 8,4%
Slide 19: TRY Securities Yield
17.2% ▪ 13.7% 13.5% ▪ ▪ 4Q-19 3Q-20 4Q-20 ▪ TRY Sec. Yield exc. CPI
Slide 20: Takeaways from the Income Statement
20 Takeaways from the Income Statement TRY mn Net Interest Income Trading Income Net Commissions Dividend&Other Banking Income OPEX (-) Net Banking Income Provisions (-) Income From Participations Tax Provisions (-) Net Profit TMS 27 adjustments were applied for all given periods Based on MIS data 3
Slide 21: Quarterly FX Loan Spreads
21 Steady NIM throughout years Annualized NIM 45% 42% 2019 2020 Quarterly FX Loan Spreads Figures as Percentage 3.6 3.3 — 40-19 3-20 4Q-20 424 2019 YE 523 30-20 21 Net FX Loans 27 Net FX Loans NIM Evolution Yearly NetTLLoans TLSec.exc.cPl CPllinkers FXSecurities FXGains/Losses 2020 YE NIM Evolution
Slide 22: Strong Internal Capital Generation supports our Solvency Metrics
22 Strong Internal Capital Generation supports our Solvency Metrics Evolution of RWA and Equity - TRY bn = L. . 10.4% 11.3% /. L. 2019 30-20 2020 2019 30-20 2020 12.0% 8.5% mTier (CET1) == CAR Excluding forebearence =RWA =CoreEquity Total Capital Tier 1 (CET1) Evolution Solvency Limits (%) 2020 3s e
Slide 23: Key Performance Indicators
Key Performance Indicators ROE* 13.5% 13.0% 2019 2020 Tier-I** 10.4% Mae 2019 2020 *ROE: Annualized Net Income for the period / Average Total Equity. ROAA: Annualized Net Income for the period / Average Total Assets. ** Excluding forbearence Cost to Income 4.2% 13.4% 11.3% 2019 2020 NIM 45% 2019 202
Slide 24: 2021 Guidance and TSKB's priorities for the year
2021 Guidance and TSKB's priorities for the year Financial Guidance (Bank Only) Growth FX Adjusted Loan Growth Profitability Fees & Commissions Growth Net Interest Margin (adj*.) Return On Equity Efficiency OPEX Growth Cost/Income Ratio Solvency** Capital Adequacy Ratio Tier 1 Ratio Asset Quality St
Slide 25: 2S BS Q gf x
2S BS Q gf x
Slide 26: Balance Sheet
Balance Sheet 31/12/2019 30/09/2020 31/12/2020 eS A a a a Cash and Banks 1,408 1,330 1,212 2,542 1,481 1,191 2,672 Securities 4429 2,223 6,651 4,622 2,943 7,566 4,564 2,983 7,547 Loans (Gross) 2,974 28,441 31,415 3,474 36,473 39,947 4,136 34,984 39,120 Provisions -273 - 630 -903 -385 1,177 -1,562 52
Slide 27: Detailed Income Statement
Detailed Income Statement TRY mn 1Q-20 20-20 3Q-20 4Q-20 QoQ Net Interest Income inc. Swap Cost 370.2 427.6 496.2 507.2 2% Net Interest Income 397.4 467.3 544.2 597.5 10% CPI Linkers 82.5 69.3 1148 100.9 -12% Swap Costs (-) 27.2 39.8 48.0 90.3 88% Net Commissions 21.5 8.1 9.0 11.6 29% Other Income 5
Slide 28: A Long Award-Wining Track Record
28 A Long Award-Wining Track Record Banking Awards Investing&Financing Category Finalist (2019) Finance for the Future Energy Finance Deal of the Year (2019) Bonds&Loans Tiirkiye M&A/Acquisition Finance - Second place (2019) Bonds&Loans Turkiye Structured Loan Deal - Third place (2019) Bonds&Loans T
Slide 29: TSKB Financial Institutions & Investor Relations
29 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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