Turkiye Sinai Kalkinma Bankasi A.s. · BIST:TSKB
Turkiye Sinai Kalkinma Bankasi A.s — Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — Q3 2022 Earnings Presentation
27 slides from Turkiye Sinai Kalkinma Bankasi A.s's earnings presentation, November 2022
Slide 1: FI&IR Presentation 3Q-22 Bank-only Results
Corporate Banking The Industrial Development Bank of Tiirkiye FI&IR Presentation 3Q-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 tis Bank Group 403% Ly gy ein Lyle oe Shareholding baae Z fakifban! AKG AN Fitch LTFC B- B Free Float* & Other Moody’sLTIR B3 B3 SAHA Corporate 9.59/10 Governance Rating YY yy Sustainalytics ESG 7.9 Negligible Risk ‘As of 4November, 2022 Risk Rating Yay CORPORATE BANKING INV
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 3Q-22 Results
2022YE Guidances vs 3Q-22 Results Financial Guidance 9M22 (%) 2022YE (%) (Bank Only) Results Guidance Growth FX Adjusted Loan Growth -8.9 Contraction Profitability Net Interest Margin (*) 6.5 >6 Fees & Commissions Growth W35: ~80 Return On Equity ** 42.5 >40 Efficiency OPEX Growth 98 Inline with CPI
Slide 7: Strong net banking income expansion continues
Strong net banking income expansion continues Net Banking Income-TLmn Net Banking Income vs Provisions - TL mn 5,192 x3 2,164 + times, 1,603 35% 882 YL 735 1,682 922 CB Ba _ 793 20-22 30-22 9M-21 9M-22 9M-21 9m-22 ‘= Net Banking Income exc. CPl&Trading = Net Banking Income ‘Trading Gain/Loss 1 Provi
Slide 8: Banking Sector vs TSKB
Banking Sector vs TSKB CAR* 19.9% 18.8% Banking Sector TSKB *Reported figures Cost to Income 20.5% 6.8% Banking Sector TSKB Repo |__| Syndication Fi = unds ° 4% 1% Borrowed Deposit65% re 8% Pd 8 a i" i) Securities issued z Equity 2% x 9% € = Subordinated bonds o Other and loans (ATI + Tier Il) 3% Lo
Slide 9: Comfortable FX Liquidity and Maturity Profile
Comfortable FX Liquidity and Maturity Profile ~ USD 535 mn Non-Withdrawn DF Fundin Funding / Total Liabilities (exc. Equity & Oth.) - USD mn Climate + Environment 74% ECA . irs DFI Inclusiveness 26% unding 20% Unguaranteed DFI aN 2 eeriies Issued FX Liquidity 10% 10% 9% Subordinated Debt Coverage Ra
Slide 10: Long Term DFI Funding Base
10 Long Term DFI Funding Base Outstanding DFI Funding Base - 3Q-22 44.6% Yearly Multilateral Funding Agreements —- USD mn 4.6% 4.3% | Ee co | F] El 2.0% 2016 2017 2018 2019 2020 2021 9M22 |) 19% 1.1% 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
APE Resilient Asset Composition Asset Composition - TL bn Total Loans - TL bn Currency Breakdown 75.5 69.6 cy > 3% 64.2 3.0 92% 4.2$ 3.8$ 10-22 20-22 30-22 10-22 20-22 30-22 mLoans mSecurities =Cash&MM mNon EAs & Other Keg Remaining Average Maturity - Years 3Q-22 Loans by Currency & Type i TRY, 8% A
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
Slide 14: ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Slide 15: Sector breakdown of loans
Electricity Generation 42.7% Finance 8.2% Metal & Machinery 7.0% Electricity/Gas Distr. 5.6% Tourism 5.5% Health & Education 4.7% Logistics 4.2% Construction & Construction Materials 3.6% Chemistry & Plastics 2.9% • Food & Beverage 2.7% • Non-Residential Real Estate 2.1% • Automotive 1.3% Telecom &
Slide 16: Renewable energy loan breakdown
1.6 bn 1.9 bn 1.9 bn 1.9 bn 1.9 bn 1.7 bn 4% 6% 6% 7% 8% 11% 5% 5% 5% 6% 9% 12% 35% 37% 35% 37% 39% 36% 17% 18% 19% 20% 19% 19% 37% 35% 35% 31% 24% 22% 2017 2018 2019 2020 2021 3Q-22 Hydro Geothermal Wind Biomass Solar • •
Slide 17: 2,120 % 44.9 7.2 21.0 21.4 22.2
2,120 % 44.9 69 7 5 7.2 5 21.0 9 21.4 22.2
Slide 18: Security Yields
Security Yields 75.6% TRY Sec. Yield exc. CPI CPI 58.6% • 42.8% • 23.2% • 19.6% 16.6% 13.0% 19.1% 15.3% 16.4% 17.0% 17.3% 18.8% 13.6% 1Q-21 2Q-21 3Q-21 4Q-21 1Q-22 2Q-22 3Q-22
Slide 19: Income Statement Highlights
Income Statement Highlights TLhmn 9M-21 9M-22 YoY 20-22 StrongNIl generation boosted Net Interest Income 1,621.3 4,404.7. 172% 1,434.4 by CPllinkersand Trading Income 151.7 951.4 527% 215.4 robust loan spread oe Strong YoY Net Fees & Commissions 50.9 119.5 135% 51.2 increase inthe va fees & Other In
Slide 20: Further enhanced core NIM performance
Further enhanced core NIM performance Annualized NIM 72 bps-» 6.46% 5.74% 5.24% 3.94% a “4 fa fj (é = Robust margin expansion continues excluding CPI linkers = 2022 October to October CPI valuation assumption is revised to 80.8% from 66.5%. = 325 mioTL additional revenue generated from CPI assumptio
Slide 21: Strengthened Solvency Metrics above regulatory levels
Strengthened Solvency Metrics above regulatory levels Capital Ratios Without BRSA Temporary Measures Evolution of RWA and Equity- TL bn Hee 15.6% 14.0% E 91.6 12.0% 81.2 85.0 y 3Q-22 CET-| Ratio: 10.4% 8.5% 12.8% 13.3% 14.4% 75 14 ee 6p HEE Lees HE | | | mTier|Ratio = CAR errr ere) Soe) With BRSA Te
Slide 22: Sustainability Developments — 3Q22
Sustainability Developments — 3Q22 Net-Zero Banking Alliance (NZBA) launched by UNEP FI We Joined = Announced our commitment and our road-map in October 2022 Net-Zero Banking Alliance 1.5°C ambition of the Paris Agreement ; Alignment of loan and investment portfolio with zero emissions targets by 20
Slide 23: 2S BS Q gf x
2S BS Q gf x
Slide 24: Balance Sheet
24 Balance Sheet Cash and Banks Securities Loans (Gross) Provisions Subsidiaries Other Total ST Funds LT Funds Securities Issued Repo & MM Other Subordinated Debt Equity 9,469 21,430 75,492 4,777 2,450 4,221 108,284 2,766 62,281 20,506 3,746 5,665 3,688 9,632 31/03/2022 30/06/2022 30/09/2022 mo TL F
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
Key Performance Indicators ROE* ROA Cost to Income 42.5% 3.7% 33.4% po Bey Zu Z 2.8% Z 6.8% 6.8% 16.7% ou | YE21 10-22 20-22 30-22 YE-21 10-22 20-22 3022 YE-21 10-22 20-22 30-22 Tier-I** CAR®* NIM*** My eee 128% 13. 15.3% 15.6% 6.5% 14.5% 5.7% 8.9% 14.0% 5.2% [ i I [ YE-21 10-22 20-22 3022 YE21 10-2
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
Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — Q3 2022 Earnings Presentation on 6ix