Turkiye Vakiflar Bankasi Turk Anonim Ortakligi · BIST:VAKBN
Turkiye Vakiflar Bankasi Turk Anonim Ortakligi — Q1 2024 Earnings Presentation
26 slides from Turkiye Vakiflar Bankasi Turk Anonim Ortakligi's earnings presentation, May 9, 2024
Slide 1: Earnings Presentation BRSA Bank-Only 1Q24
Earnings Presentation BRSA Bank-Only 1Q24 May 9, 2024
Slide 2: 1Q24 Earnings and profitability
Earnings Presentation Bank-Only 1Q24 1Q24 Earnings and profitability Net Income (TL billion) ROAE (%) 167% Sector average of Flattish with vs. (15%) QoQ sector avg. of contraction 28% 12.0 and 27.0 43% YoY increase 10.0 24.7 20% 18.0 14.5 4.5 TL 11 billion free provisions in the b/s as of 1Q24 1Q23
Slide 3: Key highlights of 1Q24
Earnings Presentation Bank-Only 1Q24 Key highlights of 1Q24 Improving focus on efficiency and profitability TL 12 1Q24 net income materialized at TL 12 billion which is billion up by 20% QoQ vs sector average of 15% contraction 27% Quarterly ROAE came at 27% vs YE 2023 ROAE of 18% 167% 1Q24 net inco
Slide 4: 1Q24 P&L details
Earnings Presentation Bank-Only 1Q24 1Q24 P&L details 1Q23 1Q24 TL million TL million YoY vs. QoQ 174% Net Interest 17,702 6,453 (38%) Income 159% Net Fees and 10,629 12% 4,101 Commissions 93% 1 Dividend 1 8% Income Net Trading (3,536) TL 11 billion (257%) 2,252 6% free provision in the Income b/s a
Slide 5: NIM, CPI linkers and money market funding
Earnings Presentation Bank-Only 1Q24 NIM, CPI linkers and money market funding CPI Expectation NIM NIM 1.8% 3.2% 5.3% 3.0% ~ ~ ~ ~ ~ 3.9% ~ ~ ~ ~ ~ Swap 2.7% 1.6% 1.3% Adj. NIM 1Q23 3Q23 4Q23 1Q24 ~ ~ ~ ~ If interest income from CPI linkers remained same QoQ; ➢ 1Q24 NIM would be 5.6% ➢ 1Q24 swap adj
Slide 6: Contribution of payment systems to fee income exceeded 50% threshold
Earnings Presentation Bank-Only 1Q24 Contribution of payment systems to fee income exceeded 50% threshold Net Fee & Commission Income Breakdown (TL billion) Insurance Insurance 10.7% 4.5% Cash Loans Cash Loans 159% 33.2% 51.1% Payment Payment System 1Q23 System 1Q24 24.4% 10.6 52.8% 9.5 13.9% 9.4% N
Slide 7: Cost/Income ratio maintained
Earnings Presentation Bank-Only 1Q24 -30% level of Cost/Income ratio maintained Opex (TL billion) Cost/Income Ratio (%) 85% 31.5* 32.4 30.6 30.8 14.8 12.4 19% 8.0* 1Q23 4Q23 1Q24 1Q23 3Q23 4Q23 1Q24 HR Cost (TL billion) Breakdown of Opex Non-HR Cost (TL billion) 80% 94% 5.7 9.1 4.7 HR Cost 7.7 61% 5
Slide 8: Strategical shift in lending portfolio in favor of high quality business loans
Earnings Presentation Bank-Only 1Q24 Strategical shift in lending portfolio in favor of high quality business loans Portfolio Breakdown VB Sector VB Sector QoQ Loan Growth QoQ (%) QoQ (%) YoY (%) YoY (%) Total Loan Growth 7.2 10.7 47.8 51.8 1Q24 5% 55% Com.&Corp. TL Loan Growth 4.2 8.8 35.7 43.3 4Q2
Slide 9: Breakdown of loan portfolio
Earnings Presentation Bank-Only 1Q24 Breakdown of loan portfolio Currency Breakdown Loans by Interest Structure TL FC 67% 33% 1Q24 72% 69% TL Loans FC Loans ($) 28% 12% 10% 31% 6% QoQ Growth 4% 5% 4% 1% 2Q23 3Q23 4Q23 1Q24 2Q23 3Q23 4Q23 1Q24 Fixed Rate Floating Rate -4% Sectoral Breakdown of Cash L
Slide 10: Solid buffers with total NPL coverage ratio above sector average
Earnings Presentation Bank-Only 1Q24 Solid buffers with total NPL coverage ratio above sector average NPL (TL million)* Stage II Loans Breakdown (TL billion) 7.2 7.8 7.5 Share in total 6.7 loans (%) 2,780 11 1,507 21,085 19,823 116.4 119.9 Total Stage II Loans NPL 4Q23 New NPL Write-Off Collections
Slide 11: Deposit portfolio shifted in favor of more granular base
Earnings Presentation Bank-Only 1Q24 Deposit portfolio shifted in favor of more granular base Total Deposits (TL billion) Breakdown of Deposits 60% 61% 56% 39% 44% Sector 1,961.8 2,002.8 TL Deposits FC Deposits TL Deposits FC Deposits 1,700.6 2% 707.7 778.7 1,252.7 626.4 $ 23.9 $ 24.0 FC 75% $ 22.8
Slide 12: USD 3 billion total fresh international funding YtD
Earnings Presentation Bank-Only 1Q24 USD 3 billion total fresh international funding YtD Breakdown of International Funding Other Coverage Free FX liquidity 1.7% Eurobond Short term Repo & Collateralized 1.8X ~$9.3 billion $5.1 billion Funding 18.2% International 26.7% Funding Long term $10.5 billio
Slide 13: Solvency ratios
Earnings Presentation Bank-Only 1Q24 Solvency ratios Capital Adequacy Ratio (%) Solvency ratios Including free (%) w/o BRSA provisions amounting forbearance TL 11 billion Required CET1 CET I 12.58 11.33 11.37 11.73 10.52 level 8.5% CET I 9.66 10.28 Tier I 14.32 13.36 13.23 13.64 12.17 Required Tier
Slide 14: Appendix
Earnings Presentation Bank-Only 1Q24 Appendix Pg. 15 Sustainable banking approach Pg. 16 Sustainable loan products Pg. 17 Firsts in sustainable banking Pg. 18 Sustainable customer base thanks to enhanced digital platforms Pg. 19 Composition of assets & liabilities Pg. 20 Well positioned TL security
Slide 15: Sustainable banking approach
Earnings Presentation Bank-Only 1Q24 Sustainable banking approach Indices Initiatives Sustainability Rating ❑ Score: 44 in 2023 ❑ Global A list in 2023 ❑ 1st assessment in 2015 ❑ A- Score in 2023 ❑ 1st assessment in 2022 Sustainability Reporting 15
Slide 16: Sustainable loan products
Earnings Presentation Bank-Only 1Q24 Sustainable loan products Women in Business Loan Green Mortgage Loan ➢ For a business that is managed or owned by ➢ Aiming to support the reduction of residential women, having less than 250 employees and energy consumption and greenhouse gas completing the year
Slide 17: Firsts in sustainable banking
Earnings Presentation Bank-Only 1Q24 Firsts in sustainable banking The first Turkish bank to have its targets Proactive provisioning policy in accordance with CBAM validated by (Carbon Border Adjustment Mechanism) and Science Based Targets initiative (SBTi) ‘Fit for 55’ principles Scope 1 & Scope 2
Slide 18: Sustainable customer base thanks to enhanced digital platforms
Earnings Presentation Bank-Only 1Q24 Sustainable customer base thanks to enhanced digital platforms Branch 948 8% Branches # of active* digital Internet banking customers Banking ~7.7 mn reached Digital 51% ~7.7 million Banking Customers Non-branch # of transaction made Mobile transaction through di
Slide 19: Composition of asset & liabilities
Earnings Presentation Bank-Only 1Q24 Composition of asset & liabilities Breakdown of Assets (%) Currency Breakdown of Total Assets Loans The biggest listed bank 1Q24 Other in terms of asset size* 53.1 20.8 Interbank Total assets exceeded TL 3 trillion 39% treshold with 12%* 61% 2.2 1Q24 market share
Slide 20: Well positioned TL security portfolio
Earnings Presentation Bank-Only 1Q24 Well positioned TL security portfolio Total Securities (TL billion) Portfolio Structure 78.5% 722.8 659.8 5% 50% 2% 9.6% 43% 576.8 8.7% 52% 352.6 48% 344.4 405.0 312.8 16.5 209.2 34.3 29.7 1Q24 1Q23 22.4 353.7 234.3 281.1 173.4 Trading AFS HTM Trading AFS HTM 1Q2
Slide 21: Retail lending portfolio
Earnings Presentation Bank-Only 1Q24 Retail lending portfolio General Purpose Consumer (TL billion) Residential Mortgages (TL billion) Credit Card Loans (TL billion)* 28% 1% 115% 156.4 135.3 16% 91.7 81.4 71.4 54.9 58.4 55.2 72.7 13% (6%) 1Q23 YE23 1Q24 1Q23 YE23 1Q24 1Q23 YE23 1Q24 Total Retail (TL
Slide 22: Diversified funding sources via non-deposit funding
Earnings Presentation Bank-Only 1Q24 Diversified funding sources via non-deposit funding Sustainable-linked syndication Eurobonds and Private Placements USD 1.5 billion outstanding Nov’23: USD 658 million equivalent syndicated loan, SOFR +3.50%, Euribor +3.25% USD 2.75 billion outstanding Eurobonds
Slide 23: Unconsolidated Key Financial Ratios
Earnings Presentation Bank-Only 1Q24 Unconsolidated Key Financial Ratios 1Q23 2Q23 3Q23 4Q23 1Q24 Profitability ROAE 14.5% 2.9% 26.2% 24.7% 27.0% ROAA 1.0% 0.2% 1.6% 1.5% 1.7% Cost / Income 31.5%* 43.8% 32.4% 30.6% 30.8% Cost / Assets 4.4% 1.8% 1.7% 1.8% 2.0% Fee / Cost 51.3%* 53.3% 67.3% 76.3% 71.7
Slide 24: Unconsolidated Balance Sheet
Earnings Presentation Bank-Only 1Q24 Unconsolidated Balance Sheet (TL thousand, %) 1Q23 4Q23 1Q24 TL USD USD USD USD TL TL TL YoY QoQ YoY QoQ equivalent equivalent equivalent Cash & Balances with Central 212,922,730 11,098,367 385,703,700 13,045,515 502,213,898 15,507,656 135.9% 30.2% 39.7% 18.9% Ba
Slide 25: Unconsolidated Income Statement
Earnings Presentation Bank-Only 1Q24 Unconsolidated Income Statement (TL thousand, %) 1Q23 4Q23 1Q24 YoY QoQ Net Interest Income 5,941,206 21,275,628 7,663,882 29.0% (64.0%) (Inc. Swap Cost) Swap Cost -511,322 -7,317,214 -10,038,011 1,863.1% 37.2% Net Fee & Com. Income 4,100,531 9,474,119 10,629,030
Slide 26: For Earnings Presentations: Investor Relations
For Earnings Presentations: A member of BIST Sustainability Index Investor Relations Finanskent Mahallesi Finans Caddesi No:40/1 Ümraniye / İstanbul E-mail: investorrelations@vakifbank.com.tr Tel (90-216) 724 2685 Fax (90-216) 724 3941 www.vakifbank.com.tr Disclaimer Notice: This report has been pre
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