Turkiye Sinai Kalkinma Bankasi A.s. · BIST:TSKB
Turkiye Sinai Kalkinma Bankasi A.s — Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — Q4 2023 Earnings Presentation
31 slides from Turkiye Sinai Kalkinma Bankasi A.s's earnings presentation, February 2024
Slide 1: Corporate Banking Investment Banking Advisory Services
Corporate Banking Investment Banking Advisory Services
Slide 2: TSKB at a Glance
TSKB at a Glance 4 Turkey tis Bank Group 40.2% Ly Ly) Gy Lyle oe Shareholding baae Z fakifban! AKG AN Fitch LTFC B- B Free Float® & Other Moody’sLTIR B3 B3 SAHA Corporate 0.66/10 Governance Rating YY Sustainalytics ESG 6.9 Negligible Risk As of February 82024 Risk Rating yy ye, CORPORATE BANKING INV
Slide 3: A Unique Business Model
A Unique Business Model = Long term tenor in liabilities: 10 years * Medium term in assets: 4.7 years = Diversified funding tools = Amortized loan book = Multi-disciplinary assessment during allocation = Sector specific research analysts during allocation and monitoring period = Strong collateraliza
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 loans, investment banking activities and advisory services Ministry of Treasury and Finance Its capacity to introduce innovative the
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: TSKB Sustainability Journey
TSKB Sustainability Journey - | First Carbon Neutral Bank of Turkey Environmental Factor in Credit Appraisal Process Environmental Management System Yy coy 1980 1990 2005 2007 2008 2009 First Environmental Loans | + UNEP FI + ISO 14001 Certificate + Launch of www. cevreciyiz.com 0Og cevreciyiz. * ce
Slide 7: • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Slide 8: 2023 Sustainable Banking Performance & Metrics
2023 Sustainable Banking Performance & Metrics SDG-linked Loans USD 8 billion SDG-linked on A HA USD 10 billion SDG-linked financing by 2030 “Aorerealation since 2021 yy financing by 2030 Climate and Environment focused SDG-linked Loans Climate focused financing |71{3))7 Cy) ion in 2023 * Reducing a
Slide 9: 4Q-23 At a Glance
4Q-23 At a Glance Differentiating profitability + Robust core banking income generation performance overbeating + NIM outperformance vs guidance our guidance + 8% QoQ, 74% YoY bottom line expansion Y Stellar NII expansion bolstered by strong quarterly loan volume and contribution of securities portf
Slide 10: Financial Guidance (Bank Only)
Financial Guidance YE-23 Guidance YE-23 Figures YE-24 Guidance (Bank Only) % % % Growth FX Adjusted Loan Growth ~5 5 High Single Digit Profitability Net Interest Margin >5 7 ~6 Fees & Commissions Growth ~100 186 > avg. CPI Return On Equity ~35 41.2 ~40 Efficiency OPEX Growth ~90 135 > avg. CPI Cost/
Slide 11: Robust Core Banking Income Expansion
11 Robust Core Banking Income Expansion Core Banking Income- TL mn 11,449 Net banking income exc, CPI&Trading 7,194 Trading Gain/Loss CPI Income YE-22 YE-23 Annual Evolution of Net Banking Income vs Provisions - TL mn. Strong profitability supported our prudent approach and leading position with res
Slide 12: Banking Sector vs TSKB
AP Banking Sector vs TSKB BANKING SECTOR 18.8% Banking Sector "Reported figures Deposit 67% Equity 9% CAR* 26.2% TSKB Cost to Income 32.0% 9.4% Banking Sector TSKB Repo 3% Syndication Funds Borrowed 8% Securities Issued 3% Subordinated bonds her | |and loans (ATI + Tier I) one 2% Loans/Assets 73.6%
Slide 13: Funds secured in 2023 reached USD 1.1 billion
Funds secured in 2023 reached USD 1.1 billion Funding / Total Liabilities (exc. Equity & Oth.) Waray ome ya Deu 9 7 2% 7 2% [76] 618 [sf _. 7 Ea m Guaranteed DFl Funding i 15] Unguaranteed DFl Funding _ = a Securities Issued 12% 12% 11% 2024 2025 >=2026 ™ Subordinated Debt ju = Syndication & Other =
Slide 14: Long Term DFI Funding Base
Long Term DFI Funding Base Outstanding DFI Funding Base - 4Q-23 IBRD 44.1% Yearly Multilateral Funding Agreements - USD mn AIIB Loan Agreements in 2023 EIB ¥ KfW| EUR 100 million Y OeEB| EUR 25 million Kfw 7.3% ¥ IsDB| USD 100 mil Qa AFD 4.9% IBRD TGF | CDB 4.1% IsDB 3.6% Diy yyyyasYygpow pry 2022 2
Slide 15: Outstanding Project Themes Shaping Future Loan Book
VS 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 16: Resilient Asset Composition
16 Resilient Asset Composition Asset Composition - TL bn 3% 40-23 = Cash & MM mNon IEAs & Other 30-23 4Q-22 mLoans = Securities 4Q-23 Loans by Currency TL; 8.6% ea USD; 51.0% EUR; 40.4% Total Loans - TL bn 130.1 115.8 13) 80.3 7.6 3.95 40-22 30-23 40-23 ™ FX Loans ($) = TL Loans Remaining Average Ma
Slide 17: 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 18: ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Slide 19: Loan Breakdown by Sector
Electricity Generation 35.6% Finance 10.3% Metal & Machinery 7.3% Tourism 6.8% Logistics 5.6% Health & Education 5.3% Electricity/Gas Distr. 4.5% Construction & Construction Materials 4.5% Chemistry & Plastics 4.4% Food & Beverage 2.8% Textile 2.7% Paper and Forestry Products 2.6% Other**
Slide 20: Renewable Energy Loans by Source
1.6 bn 1.9 bn 1.9 bn 1.9 bn 1.9 bn 1.7 bn 1.6 bn 4% 6% 6% 7% 8% 11% 5% 5% 5% 6% 15% 9% 11% 12% 35% 37% 35% 37% 39% 36% 37% 17% 18% 19% 20% 19% 19% 19% 37% 35% 35% 31% 24% 23% 17% 2017 2018 2019 2020 2021 2022 2023 Hydro Geothermal Wind Biomass Solar • •
Slide 21: ✓ ✓ ✓ ✓ ✓ 113,073 1,173 13,126 3,969 3,939 3,073
✓ ✓ ✓ ✓ ✓ 113,073 1,173 13,126 3,969 3,939 3,073
Slide 22: Security Yields
Security Yields Excluding CPI CPI 80.4% 75.6% • 58.6% 57.7% 56.9% 47.8% 47.5% 42.8% • 31.5% 18.8% 19.1% 18.9% 19.4% 19.9% 22.6% 17.3% • 1Q-22 2Q-22 3Q-22 4Q-22 1Q-23 2Q-23 3Q-23 4Q-23
Slide 23: Income Statement Highlights
Income Statement Highlights Time ver ve2s [INGV) 3023 4025 (Jeeal) Net Interest Income 6,415 9,564 49% 2,586 3,046 18% Robust . bottom line Trading Income 1,024 2,371 131% 255 478 88% surge +74% YoY Net Fees & Commissions 159 453 186% 151 166 10% Other Income (inc dividends) 102 249 144% 3 125 nm. S
Slide 24: NIM overperformed vs guidance given core NIM expansion and security book yields
NIM overperformed vs guidance given core NIM expansion and security book yields 6.6% 6.3% 5.9% 2.4% 2.1% 2.4% ‘mCP Impact 2.3% yy v Upward NIM trend in 2023 mCore NIM @ Zi L, 4.3% 4.2% id ¥ Solid core NIM expansion 3.5% v Robust loan spread 10-23 20-23 30-23 40-23 . Quarterly NIM Y Strategic treasur
Slide 25: Resilient solvency metrics support our growth plans
Resilient solvency metrics support our growth plans Capital Ratios Without BRSA Temporary Measures Evolution of RWA and Equity - TL bn 142.1 LED Yy 97.1 8.5% 17.4 LS Yoibil AS Yokes 12.5 = = 2022 30-23 2023 2022 30-23 2023 mTier|Ratio = CAR =RWA s=CoreEquity =Total Capital With BRSA Temporary Measur
Slide 26: Appendix
2S BS Q gf x
Slide 27: Balance Sheet
Lay Balance Sheet Cash and Banks Securities Loans (Gross) Provisions Subsidiaries Other Total ST Funds LT Funds Securities Issued Repo & MM Other Subordinated Debt Shareholders’ Equity 5,758 9,868 7,639 -2,292 3,555 2,015 26,544 31/12/2022 15,126 27,839 130,137 -8,228 7,370 4,640 176,884 5,913 100,7
Slide 28: Detailed Income Statement
Detailed Income Statement 28 “n.m.” is used for not meaningful.
Slide 29: Appendix: ESG Ratings
Appendix: ESG Ratings Sustainalytics ESG Risk Rating CDP Climate Change Moody’s ESG Fitch ESG Credit Sustainable Fitch ESG Refinitiv Score Credit Impact Score Relevance Score Entity Score ESG Score Range 0-40+ A/D- 1-5 1-5 1-5 (0-100) A+/D- Score 6.9 A- 2 3 3 (61/100) A Negligible risk category Lead
Slide 30: Appendix: Stage 2 Loans Breakdown
Appendix: Stage 2 Loans Breakdown Stage 2 Loans Sector % Coverage (%) Tourism 40 40 Electricity Generation 20 13 97% of Electricity Electricity/Gas Distribution 17 41 Generation loans Non-residential Real Estate 7 30 are Renewable Metal and Machinery 5 20 Telecom/Logistics 4 9 Automotive Supply Indu
Slide 31: Disclaimer
DISCLAIMER This presentation document is prepared for informational purposes only and contains certain forward-looking comments, opinions, and forecasts. These reflect the views of Türkiye Sınai Kalkınma Bankası A.Ş. ("TSKB") as of the date of this presentation and contain certain assumptions. Altho
Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — Q4 2023 Earnings Presentation on 6ix