Turkiye Vakiflar Bankasi Turk Anonim Ortakligi · BIST:VAKBN

Turkiye Vakiflar Bankasi Turk Anonim Ortakligi — Türkiye Vakıflar Bankası T.A.O. (VakıfBank) — Q3 2020 Earnings Presentation

24 slides from Turkiye Vakiflar Bankasi Turk Anonim Ortakligi's earnings presentation, Nov 9, 2020

  1. Slide 1: Earnings Presentation BRSA Bank-Only 3Q20

    Earnings Presentation BRSA Bank-Only 3Q20 November 9, 2020

  2. Slide 2: 3Q20 Earnings and Ratios

    INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q20 3Q20 Earnings and Ratios Net Income (TL million) *Pre-Provisioning Operating Income (TL million) 4,341 10,763.4 1,100 3Q20 114.8% 1,525 2Q20 185.2% 5,010.6 1,522 3Q19 503 368 1,716 1Q20 2Q19 1Q19 651 9M19 9M20 9M19 9M20 Annual ROAE (%) Proactiv

  3. Slide 3: Key Highlights of 3Q20

    INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q20 Key Highlights of 3Q20 Proven track record of profitability amid challenging global macro conditions • Quarterly bank-only net income came at TL 1,100 million. • 9M20 bank-only net income came at TL 4,341 million despite further strengthened co

  4. Slide 4: 9M20 P&L Details

    INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q20 9M20 P&L Details 4,392* 20,390 (5,937)* 2,630 168 (2,577) 15,777 (8,969) 9M20 (1,142) 4,341 Net Interest Net Fees and Dividend Net Trading Other Income Total Operating Provisions Taxes Net Income Income Commissions Income Income Revenue Expense

  5. Slide 5: High quality revenue breakdown

    INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q20 High quality revenue breakdown Total Revenues* – Revenue Breakdown (TL million) 61.5% Dividend Other+Trading Dividend Other+Trading 0.4% 8.9% 0.8% 9.7% 20,390 Net F&C 12.9% Net F&C 9M19 12,626 9M20 23.2% NII NII 77.4% 66.7% 9M19 9M20 Core Banki

  6. Slide 6: NIM evolution in line with guidance

    INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q20 NIM evolution in line with guidance Net Interest Margin (NIM %) Swap Adjusted Net Interest Margin (%) TL 1.1 billion 90 bps additional CPI linker 146 bps income impact on 4Q20 NIM is ~90 bps. 4.07 4.32 3.79 4.61 4.96 4.14 4.18 3.07 3.71 4.08 2.

  7. Slide 7: Costs are under control with maintained cost/income level

    INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q20 Costs are under control with maintained cost/income level Operating Expenses (TL million)* Breakdown of OPEX* 38.4 Cumulative Opex 943 938 C/I Ratio (%) 29.1 Growth 22.5% 5 branches have been closed YtD September 5,937 2019 2020 4,846 One-off C

  8. Slide 8: Well-diversified & stable loan breakdown

    INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q20 Well-diversified & stable loan breakdown Segment Breakdown of Loans (TL billion) Currency Breakdown of Loans (TL billion) Portfolio Breakdown (%) 411.2 SME 24.7 25.6 369.5 19.4 411.2 369.5 24.6 26.8 16.0 29% Retail 105.2 118.3 28% 274.8 102.6 1

  9. Slide 9: Breakdown of loan portfolio

    INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q20 Breakdown of loan portfolio Sector Breakdown of Cash Loans CGF Loans Manufacturing Retail Loans 18% (TL billion) 4Q19 1Q20 2Q20 3Q20 23% Construction Originated Amount 36.6 36.9 90.0 92.4 Other (inc. business and 10% retail credit cards) Outsta

  10. Slide 10: Strong coverage levels with proactive approach

    INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q20 Strong coverage levels with proactive approach NPL (TL million)* Net Cost of Risk (bps)** 886 1,575 16,606 15,917 243 204 219 193 168 161 NPL 2Q20 New NPL Collections NPL 2Q20 The positive impact of 5.23 5.93 change on NPL NPL Ratio (%)* 4.30 3

  11. Slide 11: Further market share gaining on deposit market

    INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q20 Further market share gaining on deposit market Total Deposits (TL billion) Breakdown of Deposits Market Share 9.7% 9.8% 11.0% 11.4% 394.2 55% 54% 335.9 45% 46% 178.1 $ 22.9 251.5 Sector 229.7 144.2 $ 21.0 FC TL Deposits FC Deposits TL Deposits

  12. Slide 12: Well diversified wholesale borrowing

    INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q20 Well diversified wholesale borrowing Breakdown of Wholesale Funding Local Bonds Other 6.3% 2.2% Eurobond AT I Issuance Fresh funding from World Bank amounting 23.2% 10.6% USD 250 million with a final maturity of 23 years including 7 years grace

  13. Slide 13: Solvency ratios

    INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q20 Solvency ratios Capital Adequacy Ratio (%) 3Q20 12.58 Required CET I 10.55 10.48 9.77 12.04 CET1 level 8.01% 15.59 3Q20 Solvency ratios without forbearances Tier I 13.81 13.59 12.69 15.16 Required Tier I level (% - 3Q20) 17.01 16.61 17.61 17.19

  14. Slide 14: Appendix

    INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q20 Appendix Pg. 15 Milestones on the sustainable banking approach Pg. 16 Improved efficiency with enhanced digital platforms Pg. 17 Composition of Assets&Liabilities Pg. 18 Well-positioned security portfolio with 73% share of floatings Pg. 19 Reta

  15. Slide 15: Milestones on the sustainable banking

    INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q20 Milestones on the sustainable banking VakıfBank became a Carbon Negative company by offsetting First stakeholder more than all of its The first bank in Turkey to greenhouse gas engagement receive OHSAS 18001 process to emissions calculated for

  16. Slide 16: Improved efficiency with enhanced digital platforms

    INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q20 Improved efficiency with enhanced digital platforms Non-branch transaction share # of digital banking ~90% customers* reached 5 million with 44% Call Center growth YoY 1.8 ATM 27.0 The volume of transaction made Mobile Banking through digital p

  17. Slide 17: Composition of asset&liabilities

    INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q20 Composition of asset&liabilities Breakdown of Assets (%) TL/FC Mix in Total Assets Other 12.5 3Q20 Interbank 0.4 The share of IEA 39% 87.6% 61% Securities 3Q20 22.7 in total assets Loans FC TL 64.4 Breakdown of Liabilities (%) TL/FC Mix in Tota

  18. Slide 18: Well-positioned security portfolio with 73% share of floatings

    INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q20 Well-positioned security portfolio with 73% share of floatings Total Securities (TL million) Portfolio Structure 125.7% 3Q20 Breakdown of FC Securities 7% 40%  Share of Fixed: 100% 144,700 58,014 Breakdown of TL Securities 53% 100,181  Share

  19. Slide 19: Retail Lending Portfolio

    INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q20 Retail Lending Portfolio General Purpose Consumer (TL billion) Residential Mortgages (TL billion) Credit Card Loans (TL million)* 85.3% 90.8% 31.5% %70 of GPC %30 of loans mortgages 13,568 extended to 50.6 payroll clients extended to 40.2 45.2

  20. Slide 20: Diversified funding sources via non-deposit funding

    INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q20 Diversified funding sources via non-deposit funding Syndication Eurobonds and Private Placements USD 2 billion outstanding  Mar’20: USD 325 million bilateral loan with ICBC, 3 years maturity USD 3 billion outstanding Eurobonds and USD 185.2 mi

  21. Slide 21: Unconsolidated Key Financial Ratios

    INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q20 Unconsolidated Key Financial Ratios 9M19 2019YE 2Q20 3Q20 9M20 Profitability ROAE 6.9% 9.1% 15.8% 10.0% 15.0% ROAA 0.6% 0.7% 1.2% 0.7% 1.1% Cost / Income** 38.4% 35.8% 27.8% 34.4% 29.1% Cost / Assets** 1.7% 1.6% 1.5% 1.3% 1.2% Fee / Cost** 60.5

  22. Slide 22: Unconsolidated Balance Sheet

    INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q20 Unconsolidated Balance Sheet 3Q19 2Q20 3Q20 TL USD (thousand) TL USD TL USD TL USD YoY QoQ YoY QoQ Cash & Balances with Central Bank 30,946,802 5,479,143 32,797,776 4,781,017 43,588,854 5,617,120 40.9% 32.9% 2.5% 17.5% Interbank 5,512,458 975,9

  23. Slide 23: Unconsolidated Income Statement

    INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q20 Unconsolidated Income Statement (TL-thousand, %) 9M19 2Q20 3Q20 9M20 YoY QoQ Net Interest Income 8,416,738 5,466,659 5,401,549 15,776,605 87.44% -1.19% Net Fee & Com. Income 2,931,282 743,216 865,573 2,630,080 -10.28% 16.46% Dividend Income 50,

  24. Slide 24: For VakıfBank IR

    For Earnings For VakıfBank IR Presentations: Application: A member of BIST Sustainability Index Investor Relations Saray Mahallesi Dr. Adnan Buyukdeniz Cad. A1 Blok No: 7a Umraniye/Istanbul (Akyaka Park Mall) E-mail: investorrelations@vakifbank.com.tr Tel (90-216) 724 2685 Fax (90-216) 724 3941 www.

Türkiye Vakıflar Bankası T.A.O. (VakıfBank) — Q3 2020 Earnings Presentation on 6ix