Turkiye Sinai Kalkinma Bankasi A.s. · BIST:TSKB
Turkiye Sinai Kalkinma Bankasi A.s — Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — FY2017 Earnings Presentation
25 slides from Turkiye Sinai Kalkinma Bankasi A.s's earnings presentation, February 2018
Slide 1: Investor Presentation 2017YE – BRSA Bank only Results
Created with a trial version of Syncfusion Essential PDF Investor Presentation 2017YE –BRSA Bank only Results
Slide 2: Key Highlights
Key Highlights Privately Long lasting Strong risk Integrated Access to Solid capital owned relationship management Business Turkish structure and Development with with well Model with Treasury conservative and Development below Sustainability guaranteed match-funding Investment Finance industry Prin
Slide 3: TSKB @ a Glance
TSKB @ a Glance Overview Ratings First and only Private Development Bank in Turkey TSKB Turkey TRY 28.9 bn asset size 375 employees, 2 branches Fitch LTFC BB+ BB+ 15th bank in terms of Asset size Moody’s LTIR Ba1 Ba1 3.4% market share in LTFC corporate loans TRY 4.0 bn MCAP* Corporate Go
Slide 4: Primary Strengths
Primary Strengths One of the leading Turkish Ability to fund itself from leading development and investment supranational FIs/ long-term loans banks with an 17% market guaranteed by the Turkish Treasury share in its peer group comprise c. 53% of total funding Prudent balance sheet Strong supportive
Slide 5: Sustainability is core to our activities
Sustainability is core to our activities Financing for renewable energy projects Support for low carbon Support for employment economics Sustainable banking for Turkey’s sustainable growth Environmental risk evaluation Energy and resource for all investment projects efficiency in production Responsi
Slide 6: Main activities in support of mission
Main activities in support of mission Products and Services of the Group Corporate Banking Investment Banking Advisory Services Direct loan financing for industrial investments, energy and resource Managing own securities portfolio and Strategic Consultancy, LT partnership to efficiency, renew
Slide 7: Financial Highlights
Financial Highlights Sustainable Profitability & Net Interest Margin TRY mn 4Q-2017 profit TL 595.7 mn , 25% higher than 4Q-16 RoE @ 18.4%, 5-years average @ 18% NIM@ 3.9% C/I ratio @ 12.5% USD mn Robust Asset Quality - High Efficiency 1.8% QoQ Loan Growth, NPL ratio @ 0.2% Cost of risk
Slide 8: Banking Sector vs TSKB
Banking Sector vs TSKB * Sector data as of Dec. 17 Banking Sector TSKB Deposits Long Term DFI Funding (Average maturity less than 3 months) (11 years of average maturity) 7
Slide 9: Resillient Asset Composition
Resillient Asset Composition TRY mn Growth (FX adjusted) Total assets increased by 20% QoQ YTD 28,910 Loans 2.1% 15.0% 3% 3% 3% 3% 4% Securities&Other -0.4% -3.5% 7% 6% 3% 3% 5% 6% 6% 16% Total Assets 1.0% 9.5% 3% 3% 15% 6% 16% 12% 15% 16% 7% FX Assets 0.9% 7.3% 18% 19% 8% 8% 8% 7% TRY Assets 2.1% 1
Slide 10: Diversified and Sustainable Funding Base
Diversified and Sustainable Funding Base 6,493 USD mn 5,797 Total Funding: USD 6,5 mn • 87% of the Total Funding is Long Term • FX Short term funding: 13% (including syndication, P/N, Repo, Money Market) Total Senior Eurobond: 1 billion USD DFI Funding / LT Funding 72% Tier 2 Capital: 300 million US
Slide 11: Long Term DFI Funding
Long Term DFI Funding Outstanding DFI Funding Base Yearly Multilateral Funding Agreements USD mn 83% of DFI Funding guaranteed by Turkish Treasury DFI Funding –2017 Amount Theme IFC 75 mio USD Sustainable Climate Loan EBRD 85 mio USD Mid-size Sustainable Energy Financing Facility III (Midseff ııı) T
Slide 12: Outstanding Project Themes
Outstanding Project Themes Social Infrastructure: Midcap Health, Education & Capacity Clean Transportation Building Energy and Resource Efficiency Renewable Energy Environmental Industrial SME Support Pollution Abatement Development in Industry Climate Change Sustainable Tourism Research & Developme
Slide 13: Above Sector Solvency Metrics
Above Sector Solvency Metrics Capital Adequacy Ratio Total Risk Weighted Assets TRY mn 17.0% Market Risk 14.9% 14.3% 187 12.0% 30% Operational Risk 1,221 28,176 6.0% Credit Risk 26,767 Equity Movement 15% Last 5 year average SHE increase 565.7 3,535 Last 5 year average ROE 2,928 -92.8 103.4 18% Free
Slide 14: Solid Loan Growth
Solid Loan Growth Loans by Sector Disbursements by Themes & Sectors RE, mostly Geothermal and Solar Projects 26% SMEs inc. APEX Loans 17% Energy & Resource Effieciency 8% Women Empowerment 5% Infrastructure & Environment 4% • NPL ratio is 0.2. • Group 2 loans/Total Loans is 2.1%. (*) Automative: 1.6
Slide 15: Renewable Energy and Energy&Resource Efficiency
Renewable Energy and Energy&Resource Efficiency 1.3 bn USD 1.4 bn USD 1.5 bn USD 1.6 bn USD 1.9 bn USD 206 of 245 RE are in operation 5,617 mw installed capacity is financed:, • 4,722 mw are in operation (84%) 131 Projects in Energy&Resource Efficiency, 6% of the portfolio Resource Efficiency En
Slide 16: Renewable Support Mechanism by YEKDEM Law
Renewable Support Mechanism by YEKDEM Law Guaranteed Sales Prices & Local Machinery Incentives Guaranteed Sale Price Local Machinery Incentives Type (USD cent/kWh) (USD cent/kWh) Hydro Power Plant 7,3 1,0—2,3 Wind Power Plant 7,3 0,6—3,7 Geothermal Power Plant 10,5 0,7—2,7 Biomass Power Plant 13,3 0
Slide 17: Well-managed Securities Portfolio
Well-managed Securities Portfolio TRY mn By maturity % 73 TRY Securities Portfolio Breakdown TRY Securities / Assets : 12% Duration is 2.7 yrs in Fixed & Floating bonds, 4.3 yrs in CPIs. All TL securities 70% is in AFS portfolio. are funded by Free % 65 Private sector bonds: 4.2% of total port
Slide 18: Yields enhanced by new originations and inflation
Yields enhanced by new originations and inflation Net Loan Spread 17
Slide 19: Impressive quarterly performance
Impressive quarterly performance (TRY mn) 4Q-16 1Q-17 2Q-17 3Q-17 4Q-17 QoQ High volume&solid loan spreads, Net Interest Income 189.2 210.4 203.9 233.2 280.9 20.5% and CPI contribution Trading Income-Adj. - 6.7 9.9 13.8 3.4 32.3 NA Swap valuations&derivative trading create volatility Net Commissions
Slide 20: Notable NIM Expansion
Notable NIM Expansion Quarterly NIM Annual NIM 37 bps yoy NIM Evolution Cumulative NIM Evolution Quarterly 59 -44 20 447 18 18 391 376 376 32 -11 20 353 -14 12 -13 381 376 3Q-2017 Net Loans Eurobond CPI Linkers Assets Borrowings Gain/Loss 4Q-2017 Liquid Other YE-2016 Net Loans Eurobond Securities CP
Slide 21: Key Performance Indicators
Key Performance Indicators ROAA Cost to Income ROE; Annualized Net Income for the period / Average Total Equity. ROAA; Annualized Net Income for the period / Average Total Assets. 20
Slide 22: 2018 Forward Looking Expectations
2018 Forward Looking Expectations 2018YE GUIDANCE FX Adjusted Loan Growth 12-15 Loans/Assets Ratio ~77 Net Interest Income Growth ~15 Fees & Commissions Growth >20 OPEX Growth ~30 Net Interest Margin (adj.)* 3.6-3.8 Return On Equity ~18 Return On Assets ~2.2 Cost/Income Ratio 14-15 Capital Adequacy
Slide 23: Appendix: Balance Sheet
Appendix: Balance Sheet 31/12/2016 30/09/2017 31/12/2017 (TRY mn) TRY FX TOTAL TRY FX TOTAL TRY FX TOTAL Cash and Banks 240 856 1,096 169 906 1,074 11 843 854 Securities 3,214 1,188 4,402 3,262 1,143 4,406 3,342 1,208 4,550 Loans 1,280 16,042 17,322 2,046 18,637 20,684 2,143 20,151 22,294 Subsidiari
Slide 24: Appendix: Cumulative Income Breakdown
Appendix: Cumulative Income Breakdown (TRY mn) 2016 2017 YoY Net Interest Income 715.8 928.4 29.7% Trading Income - Adj. - 0.9 59.5 NA Net Commissions 8.6 14.4 67.4% Dividend & Other 45.2 24.6 -45.4% Net Banking Income 768.7 1,027.5 33.6% OPEX - 115.6 - 132.4 14.5% Operating Profit 653.1 894.5 37.0%
Slide 25: TSKB Investor Relations
TSKB Investor Relations ir@tskb.com.tr | www.tskb.com
Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — FY2017 Earnings Presentation on 6ix