Turkiye Vakiflar Bankasi Turk Anonim Ortakligi · BIST:VAKBN

Turkiye Vakiflar Bankasi Turk Anonim Ortakligi — Q1 2019 Earnings Presentation

26 slides from Turkiye Vakiflar Bankasi Turk Anonim Ortakligi's earnings presentation, May 10, 2019

  1. Slide 1: Earnings Presentation BRSA Bank-Only 1Q 2019

    VakıfBank IR App. Available at Earnings Presentation BRSA Bank-Only 1Q 2019 May 10, 2019

  2. Slide 2: 1Q19 Earnings and Ratios

    INVESTOR RELATIONS Earnings Presentation Bank Only 1Q19 1Q19 Earnings and Ratios Net Income (TL million) Pre-Provisioning Operating Profit (TL million) 26.3% 3,275 %43 PPOP 1,051.4 1,044.2 increase QoQ despite 2,593 ~TL 1.1 billion 2,295 lower interest 651.2 42.7% income from CPI 1Q18 4Q18 1Q19 1Q18

  3. Slide 3: Drivers of Strong Performance & Key Highlights of 1Q19

    INVESTOR RELATIONS Earnings Presentation Bank Only 1Q19 Drivers of Strong Performance & Key Highlights of 1Q19 Effective NIM management • 1Q19 NIM came at 3.22% vs 3.65% in 4Q18 due to seasonality of CPI linkers. • Adjusted with CPI linkers impact on a quarterly basis, 1Q19 NIM would be 4.71%. • Cor

  4. Slide 4: 1Q19 P&L Details

    INVESTOR RELATIONS Earnings Presentation Bank Only 1Q19 1Q19 P&L Details 1,370 4,823 (1,548) 129 979 1 (2,494) 2,345 1Q19 (130) 651 Net Interest Net Fees and Dividend Net Trading Other Income Total Operating Provisions Taxes Net Income Income Commissions Income Income Revenue Expenses % vs 1Q18 +2%

  5. Slide 5: Revenue breakdown

    INVESTOR RELATIONS Earnings Presentation Bank Only 1Q19 Revenue breakdown Total Revenues – Revenue Breakdown (TL million) 25.1% Trading Dividend Trading Dividend 2.9 1.2 2.7 0.0 4,823 Other Other 24.6 3,857 28.4 48.6 NII NII 59.8 1Q18 1Q19 Net F&C Net F&C 11.5 20.3 1Q18 1Q19 Core Banking Revenues (T

  6. Slide 6: Effective NIM management

    INVESTOR RELATIONS Earnings Presentation Bank Only 1Q19 Effective NIM management Net Interest Margin (NIM %) Breakdown of Interest Income from Securities (TL million) 4.71 2,458 3.96 1,989 3.65 1,538 3.22 758 828 1,636 549 1,376 363 398 989 395 430 613 822 1Q18 2Q18 3Q18 4Q18 1Q19 1Q18 4Q18 1Q19 Adj

  7. Slide 7: Eye-catching fee growth gained additional momentum with lending growth

    INVESTOR RELATIONS Earnings Presentation Bank Only 1Q19 Eye-catching fee growth gained additional momentum with lending growth Net Fee & Commission Income (TL million) – Fee Breakdown 120.5% Insurance Inquiry & Insurance Inquiry & Expertise 6% 979 Expertise 8% 13% 11% Cash Loans Other 36% Other 0% 1

  8. Slide 8: Further improved C/I ratio despite high inflation driven cost growth

    INVESTOR RELATIONS Earnings Presentation Bank Only 1Q19 Further improved C/I ratio despite high inflation driven cost growth Operating Expenses (TL million) Breakdown of OPEX 22.5% 1Q18 1Q19 1,531* 1,548 57% 56% 1,264 43% 44% 1.1% HR Cost Non-HR Cost HR Cost Non-HR Cost 1Q18 4Q18 1Q19 Cost/Income (%

  9. Slide 9: Well diversified & stable loan breakdown

    INVESTOR RELATIONS Earnings Presentation Bank Only 1Q19 Well diversified & stable loan breakdown Breakdown of Loans (TL billion) Portfolio Breakdown (%) Loan Portfolio Breakdown (TL billion) 246.3 14.2 258.2 221.6 26.1 25.8 SME 14.8 Gross Loans 232.5 11.9 195.4 63.5 Retail 27.1 23.5 24.7 Other1 12.0

  10. Slide 10: Breakdown of Loan Portfolio

    INVESTOR RELATIONS Earnings Presentation Bank Only 1Q19 Breakdown of Loan Portfolio Sector Breakdown of Cash Loans Breakdown of Construction Loans Retail Loans Manufacturing 19% 15% Stage III TL 1.6 billion Stage II 5.4% Construction TL 6.0 billion 20.3% 11% Stage I TL 22.1 billion Other 1Q19 1Q19 1

  11. Slide 11: Relatively weak economic activity reflected in asset quality but nothing unexpected

    INVESTOR RELATIONS Earnings Presentation Bank Only 1Q19 Relatively weak economic activity reflected in asset quality but nothing unexpected NPL (TL million)* Sector Breakdown of Stage III Loans 1,617 Construction 543 11,874 Wholesale & Retail 10,800 13.5% Trade 27.1% Manufacturing 16.6% NPL 4Q18 New

  12. Slide 12: Conservative approach on staging and further increased provisioning levels

    INVESTOR RELATIONS Earnings Presentation Bank Only 1Q19 Conservative approach on staging and further increased provisioning levels Net Expected Credit Losses Cost of Risk Ratios (bps) 83 bps 200 bps (Thousand TL) 1Q19 319 Expected Credit Losses 2,461,830 236 267 127 99 Stage I 598,060 67 Stage II 81

  13. Slide 13: Customer deposits driven well diversified funding structure

    INVESTOR RELATIONS Earnings Presentation Bank Only 1Q19 Customer deposits driven well diversified funding structure Total Deposits (TL billion) Breakdown of Deposits 198.1 179.4 162.1 55% 54% 89.5 45% 46% 69.8 $ 15.9 54.1 $ 13.2 $ 13.7 Sector TL Deposits FC Deposits TL Deposits FC Deposits 107.9 109

  14. Slide 14: Timely executed long term wholesale funding transactions

    INVESTOR RELATIONS Earnings Presentation Bank Only 1Q19 Timely executed long term wholesale funding transactions Breakdown of Wholesale Funding 5.5% Local Bonds TL 1.5 billion fresh covered bond AT I Issuance issuance in 1Q19 from international 6.0% Eurobond 19.1% markets with 8 years maturity. IFI

  15. Slide 15: Strong solvency ratios amid challenging macro conditions

    INVESTOR RELATIONS Earnings Presentation Bank Only 1Q19 Strong solvency ratios amid challenging macro conditions Capital Adequacy Ratio (%) Basel III compatible Additional Tier I Tier I 12.22 11.81 11.98* 13.75 12.23 13.87 164 bps issuance positive EUR 700 million impact on in April 2019 BRSA 15.26*

  16. Slide 16: Appendix

    INVESTOR RELATIONS Earnings Presentation Bank Only 1Q19 Appendix Pg. 18 Composition of Assets&Liabilities Pg. 19 Well balanced Securities Portfolio Pg. 20 Retail Lending Portfolio Pg. 21 Strong growth in mobile platforms continues Pg. 22 VakıfBank with Numbers Pg. 23 Diversified Funding Sources via

  17. Slide 17: Composition of Asset & Liabilities

    INVESTOR RELATIONS Earnings Presentation Bank Only 1Q19 Composition of Asset & Liabilities Breakdown of Assets (%) TL/FC Mix in Total Assets Other 1Q19 15.6 Interbank 1.5 The share of IEA 84.4% 61% 39% 1Q19 Securities 67.8 in total assets 15.1 Loans FC TL Breakdown of Liabilities (%) TL/FC Mix in To

  18. Slide 18: Well balanced security portfolio

    INVESTOR RELATIONS Earnings Presentation Bank Only 1Q19 Well balanced security portfolio Total Securities (TL million) Portfolio Structure 72.2% TL FC 54,868 49,054 17% 11.9% 31,855 40,930 100% 39,981 75% 43% ‘Share of total’ 40% 82% 25,753 81% 136 71 0% 50 0% 0% 9,002 13,802 6,052 25% Fixed Floatin

  19. Slide 19: Retail Lending Portfolio

    INVESTOR RELATIONS Earnings Presentation Bank Only 1Q19 Retail Lending Portfolio General Purpose Consumer (TL billion) Residential Mortgages (TL billion) Credit Card Loans (TL million)* 15.6% (2.2%) 23.5% 8,944 8,836 24.5 8,580 22.4 20.9 20.3 21.2 22.2 21.2 19.6 19.4 19.2 7,636 7,157 15.8% 1Q18 2Q18

  20. Slide 20: Strong growth in mobile platforms continues

    INVESTOR RELATIONS Earnings Presentation Bank Only 1Q19 Strong growth in mobile platforms continues Active Mobile Banking Customers (#thousand)* Breakdown of Transactions 44.9% Call Center 2.4% 2,769 2,388 2,570 Mobile Banking 2,195 1,911 28.9% 7.8% ATM 30.9% 1Q19 1Q18 2Q18 3Q18 4Q18 1Q19 Internet B

  21. Slide 21: VakıfBank with numbers

    INVESTOR RELATIONS Earnings Presentation Bank Only 1Q19 VakıfBank with numbers Distribution Channels&Customer (#) 1Q19 Efficiency (‘000 TRY) 1Q19 Personnel 16,811 Assets per Employee 21,606 POS Terminals 276,145 Assets per Branch 382,341 Outstanding Credit Cards 4.7 mn Loans per Employee 14,648 Tota

  22. Slide 22: Diversified funding sources via Non-Deposit Funding

    INVESTOR RELATIONS Earnings Presentation Bank Only 1Q19 Diversified funding sources via Non-Deposit Funding US$ 2.30 billion outstanding April 2019 US$ 1.100 million equivalent syndicated loan, all in cost as Libor + 2.50% and Euribor +2.40% with participation of 38 banks from 17 countries. Syndicat

  23. Slide 23: Unconsolidated Key Financial Ratios

    INVESTOR RELATIONS Earnings Presentation Bank Only 1Q19 Unconsolidated Key Financial Ratios 1Q18 1H18 9M18 2018 1Q19 Profitability ROAE 17.4% 17.2% 16.6% 16.1% 9.1% ROAA 1.5% 1.5% 1.3% 1.4% 0.8% Cost / Income 32.8% 37.0% 33.8% 36.9% 32.1% Cost / Assets 1.8% 1.7% 1.5% 1.8% 1.7% Fee / Cost 35.1% 36.5%

  24. Slide 24: Unconsolidated Balance Sheet

    INVESTOR RELATIONS Earnings Presentation Bank Only 1Q19 Unconsolidated Balance Sheet 1Q18 YE18 1Q19 TL USD (thousand) TL USD TL USD TL USD YoY QoQ YoY QoQ Cash & Balances with 30,855,501 7,804,920 32,254,489 6,108,805 30,451,373 5,399,180 (1.3%) (5.6%) (30.8%) (11.6%) Central Bank Interbank 9,796,46

  25. Slide 25: Unconsolidated Income Statement

    INVESTOR RELATIONS Earnings Presentation Bank Only 1Q19 Unconsolidated Income Statement (TL-thousand, %) 1Q18 4Q18 1Q19 YoY QoQ Net Interest Income 2,306,171 2,590,567 2,344,772 1.7% -9.5% Net Fee & Com. Income 443,857 737,871 978,559 120.5% 32.6% Dividend Income 44,413 40 1,337 (97.0%) 3242.5% Net

  26. Slide 26: Investor Relations contact and disclaimer

    A member of BIST Sustainability Index With this recycling paper, following items have been saved annually; Investor Relations Saray Mahallesi Dr. Adnan Buyukdeniz Cad. A1 Blok 60 kg of landfill No: 7a Umraniye/Istanbul 14 kg of CO2 and greenhouse gases (Akyaka Park Mall) E-mail: investorrelations@va

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