Turkiye Vakiflar Bankasi Turk Anonim Ortakligi · BIST:VAKBN
Turkiye Vakiflar Bankasi Turk Anonim Ortakligi — VakıfBank — Q1 2016 Earnings Presentation
24 slides from Turkiye Vakiflar Bankasi Turk Anonim Ortakligi's earnings presentation, May 5, 2016
Slide 1: Earnings Presentation BRSA Bank-Only 1Q 2016
Earnings Presentation VakıfBank IR App. Available at BRSA Bank-Only 1Q 2016 May 5, 2016
Slide 2: 1Q16 Macro Highlights
INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q16 1Q16 Macro Highlights Global Economy FED kept all interest rates unchanged in March meeting. The market expectation of FED rate hikes continued to decrease. UST 10Y yield hovers around 1.7% to 1.8%, reflecting a dovish stance for FED rate hikes
Slide 3: 1Q16 VakıfBank Highlights
INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q16 1Q16 VakıfBank Highlights Quarterly bank-only net income is TL 516.7 LtD ratio further came down to 108% vs 112% in million, which is up by 19% YoY. Excluding 2015YE. TL LtD decreased to 112% from 115% in dividend income, comparable net income
Slide 4: 1Q 2016 Earnings and Ratios
INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q16 1Q 2016 Earnings and Ratios Quarterly Net Income (TL million) Comparable Net Income (TL million)* 478.4 18.9% 372.5 656.6 28.4% 516.7 452.5 1Q15 1Q16 434.6 386.3 ROAE (%) 1Q16 16.1 ROAE is in line 11.7 11.4 11.2 12.1 12.2 with the sector 1Q15 2
Slide 5: Asset breakdown
INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q16 Asset breakdown Total Assets (TL billion) Sector Total 12.8% vs Asset Breakdown of Assets (%) growth of 2.1% QoQ Quarterly Growth 189.8 Securities Loans 182.9 Other * 16.2 16.1 16.6 3.8% 168.4 3Q14 +3% +6% Interbank 2.5 2.9 3.5 14.5 13.8 Strong
Slide 6: Well balanced security portfolio
INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q16 Well balanced security portfolio Total Securities (TL million) Portfolio Structure 9.9% Total TL 5.1 billion TL 21.7 billion equivalent 26,792 TL FC 24,385 25,337 7,678 5.7% 7,493 27% 6,871 28.0% 28.2% 30.3% 1,139 100% HTM 583 2.4% 885 3.5% 4.2
Slide 7: Conservative LtD ratios keep improving
INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q16 Conservative LtD ratios keep improving Total Loans (TL billion) FC Loans (USD billion) 11.0% 1.2% 123.0 124.8 12.4 12.6 12.1 112.5 1.5% 35.4 35.4 3.4% 32.3 0.2% 9.8% 1Q15 YE15 1Q16 Loan/Deposit (%) 87.6 89.4 80.2 2.0% 112.9 111.9 108.1 118.6 Bl
Slide 8: Well diversified loan breakdown
INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q16 Well diversified loan breakdown Breakdown of Loans (TL billion) Portfolio Shift (%) 11.0% SME 26.0 1.6 pps 27.6 112.5 123.0 124.8 7.3 8.9 8.6 Other 1 1.5% Retail 32.1 (0.2 pps) 31.9 SME 2 29.2 33.0 34.5 Com.&Corp. 41.9 (1.4 pps) 40.5 Mortgage 1
Slide 9: Residential mortgage loans backed retail loan growth
INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q16 Residential mortgage loans backed retail loan growth General Purpose Consumer (TL billion) Residential Mortgages (TL billion)* Strong presence in 8.3% 7.2% key retail vs Sector GPC segments thanks growth of 2.1% YoY to 15.2 15.5 15.6 14.3 14.6
Slide 10: Improving complementary credit card business under retail franchise
INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q16 Improving complementary credit card business under retail franchise Credit Card Loans (TL million) Retail Credit Card Market Share (%) Sector’s 16.7% credit card 55 bps YoY loan growth increase in vs of 9.3% YoY 4.75 4.87 4.95 retail credit 5,2
Slide 11: Selective business loan growth among profitable products
INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q16 Selective business loan growth among profitable products Commercial&Corporate (TL billion) Project Finance Loans (USD billion) 7.3% 7.3% 7.4 7.7 50.8 7.1 50.6 3.3% (0.4%) Share of SME 47.1 loans increased to 28% 1Q15 YE15 1Q16 1Q15 YE15 1Q16 SM
Slide 12: Asset quality
INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q16 Asset quality NPL (TL million)1 Reported1 and Comparable NPL Ratios (%) 552 278 5,124 5.15 4,850 Collections /New NPL: 4.84 4.76 4.96 50.4% in 3.94 1Q16 3.79 3.57 3.52 3.29 3.41 3.57 3.10 3.14 3.10 2.84 2.89 Sector W/O Sector; W/O NPL Legacy NP
Slide 13: Customer deposits driven well diversified funding structure
INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q16 Customer deposits driven well diversified funding structure Breakdown of Liabilities (%) First Ever Benchmark Other 4.9 Euro-denominated 6.2 6.1 Sub-Debt 2.2 2.3 2.1 Breakdown of Liabilities (TL billion) Mortgage Covered Bond 6.5 Bonds 5.8 5.0
Slide 14: Market share gains in every sub-segment of deposits maintained
INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q16 Market share gains in every sub-segment of deposits maintained Total Deposits (TL billion) FC Deposits (USD billion) The share of 15.9% vs Sector Total Deposits 12.9% Sector FC retail vs Deposits(in 109.9 115.5 growth of 2.3% QoQ 12.7 USD terms
Slide 15: Solvency ratios
INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q16 Solvency ratios Capital Adequacy Ratio (%) 23 bps Core Tier I 10.8% 10.4% 10.5% 11.3% 11.5% 14.2 13.7 14.5 14.1 13.7 BRSA Recom. 12% Min. Ratio 8% 1Q15 1H15 3Q15 YE15 1Q16 +19 -24 The effect of 14.52 -14 -25 0.1 TL decrease 14.08 in TL/USD rate
Slide 16: NIM, Spreads and Costs
INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q16 NIM, Spreads and Costs Yields (%) Cost of Deposits (%) TL Loans TL Securities TL Deposits FC Deposits +24 bps (9 bps) +21 bps +16 bps 12.06 12.53 12.77 10.92 10.83 8.38 8.59 1.60 8.06 1.54 1.44 6.31 3Q15 4Q15 1Q16 3Q15 4Q15 1Q16 3Q15 4Q15 1Q16
Slide 17: Revenue breakdown
INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q16 Revenue breakdown Net Interest Income (TL million) Total Revenues(TL million) 25.1% 11.3% 1,547 1,551 2,093.2 2,080.8 1,869.6 1,240 0.3% 1Q15 4Q15 1Q16 1Q15 4Q15 1Q16 Core Banking Revenues* (TL million) Breakdown of Total Revenues (%) 21.0% 3.3
Slide 18: Fee & Commission income
INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q16 Fee & Commission income Net Fee & Commission Income (TL million) Breakdown of Net Fee & Commission Income (%) (0.7%) 1Q16 Inquiry&Expertise Insurance 7 6 Cash Loans Other 247.5 24 228.7 5 227.0 (8.3%) Payment systems Non-Cash Loans 35 23 1Q15 4
Slide 19: Opex is inside the budget
INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q16 Opex is inside the budget Operating Expenses (TL million) Fee Repayment (Quarterly, TL million) (38.5%) 9.0% 70.8 930.9 932.1 56.3 855.3 52.8 47.9 0.1% 34.6 (27.8%) 1Q15 2Q15 3Q15 4Q15 1Q16 1Q15 4Q15 1Q16 Cost/Income (%) Breakdown of Opex (TL m
Slide 20: VakıfBank with numbers
INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q16 VakıfBank with numbers Distribution Channels & Customer (#) 1Q16 Efficiency (‘000 TRY) 1Q16 Branches 920 Assets per Employee 12,396 ATMs 3,768 Assets per Branch 206,336 Personnel 15,313 Loans per Employee 8,152 POS Terminals 172,604 Loans per B
Slide 21: Balance Sheet
INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q16 Balance Sheet YoY QoQ (TL-million, %) 1Q15 YE15 1Q16 Growth Growth Cash & Balances with Central Bank 21,179 21,485 23,928 12.98% 11.37% Interbank 4,198 5,234 6,692 59.41% 27.86% Assets Securities 24,385 25,337 26,792 9.87% 5.74% Loans 112,489 1
Slide 22: Income Statement
INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q16 Income Statement YoY QoQ (TRY-Thousand, %) 1Q15 4Q15 1Q16 Growth Growth Net Interest Income 1,240,163 1,546,894 1,550,977 25.1% 0.3% Net Fee & Com. Income 228,679 247,509 227,031 (0.7%) (8.3%) Dividend Income 62,130 89 38,257 (38.4%) 42885.4% N
Slide 23: Diversified funding source via Non-Deposit Funding
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2015 Diversified funding source via Non-Deposit Funding Syndicated Loan September 2015 •US$ 920 million equivalent 1 year syndicated loan, all in cost as Libor + 0.85% ve Euribor +0.75% with participation of 30 banks from 15 countries. Sub-debt J
Slide 24: Investor Relations contact and disclaimer
A member of BIST Sustainability Index Investor Relations Levent Mah. Çayır Çimen Sok. No:7 Kat:6 34330 Beşiktaş-İstanbul / Turkey E-mail: investorrelations@vakifbank.com.tr Tel (90-212) 316 7336 Fax (90-212) 316 7126 www.vakifbank.com.tr Disclaimer Notice: This report has been prepared by VakıfBank,