Turkiye Vakiflar Bankasi Turk Anonim Ortakligi · BIST:VAKBN
Turkiye Vakiflar Bankasi Turk Anonim Ortakligi — FY2017 Earnings Presentation
31 slides from Turkiye Vakiflar Bankasi Turk Anonim Ortakligi's earnings presentation, Feb 13, 2018
Slide 1: Earnings Presentation BRSA Bank-Only YE 2017
VakıfBank IR App. Available at Earnings Presentation BRSA Bank-Only YE 2017 February 13, 2018
Slide 2: 2017 Macro Highlights
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2017 2017 Macro Highlights GDP Growth Monetary Policy 14.00 12.0 13.00 10.0 12.00 8.0 11.00 6.0 10.00 4.0 9.00 2.0 8.00 0.0 7.00 -2.0 CBRT Avr. Funding Rate Monthly TL Deposit Rate O/N Lending Rate Late liquidity Window USD/TL Banking Sector 4.5
Slide 3: 2017 VakıfBank Highlights
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2017 2017 VakıfBank Highlights Quarterly bank-only net income is TL 901.3 million, which is up Group II loans are down by 9.2% QoQ despite Otas exposure. by 15.2% YoY and 28.6% QoQ. The share of Group II loans in total lending continued to decrea
Slide 4: The best ROAE among listed peer banks
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2017 The best ROAE among listed peer banks Reported Net Income (TL million) ROAE (%) 2.6 ppt 37.7% Sector net better than vs income sector growth 10.5 13.3 14.9 11.6 14.0 13.6 3,723.4 Sector 30.9% YoY 17.5 15.0 2.5 ppt 16.5 15.9 2,703.0 12.2 12.8
Slide 5: 2017 P&L Details
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2017 2017 P&L Details 1,674 11,883 (4,421) 1,331 93 164 8,621 (2,788) (952) 2017 3,723 Net Interest Net Fees and Dividend Net Trading Other Income Total Operating Provisions Taxes Net Income Income Commissions Income Income Revenue Expenses % vs
Slide 6: Revenue breakdown
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2017 Revenue breakdown Total Revenues (TL million) Revenue Breakdown (%) 25.4% Other Other Dividend Dividend 11,883 10.0 1.0 14.1 0.7 Trading Trading 9,477 5.1 1.4 Net F&C Net F&C 10.4 11.2 2016 2017 3,223 NII 2,557 26.1% NII 73.5 72.6 2016 3Q17
Slide 7: NIM, Spreads and Costs
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2017 NIM, Spreads and Costs TL Core Spreads (%) FC Core Spreads (%) 14.01 13.22 13.32 13.37 5.96 5.51 5.92 TL Loan Yields 5.20 TL Deposit Costs FC Loan Yields 9.31 9.38 1.95 2.04 2.16 2.17 8.50 FC Deposit Costs 7.61 5.61 4.82 4.63 4.06 4.01 3.75
Slide 8: Stellar performance on fee income among listed peer banks
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2017 Stellar performance on fee income with one of the highest growth rate among listed peer banks Net Fee&Commission Income (TL million) Breakdown of Net Fee&Commission Income (%) 1,330.7 Money Transfer Insurance 35.7% 5 6 33.7% Inquiry&Expertis
Slide 9: Efficiency improvement on Cost/Income ratio with 3.3 ppt YoY decrease
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2017 Efficiency improvement on Cost/Income ratio with 3.3 ppt YoY decrease Operating Expenses (TL million) Breakdown of Opex (TL million) +12.8% (adj)* 15.3% Quarterly 4,421 3,835.1 4,420.7 Growth 3,835 94.6 Non- HR 15.1% 2,652 13.0% 2,346 1,124
Slide 10: Asset Breakdown
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2017 Asset Breakdown Total Assets (TL billion) Breakdown of Assets (%) 27.3% Other* Quarterly Growth 270.6 15.5 Securities Loans 236.6 246.8 212.5 Interbank Balanced 9.6% 5.0 1Q17 +4% +4% asset growth in lucrative 2017 products Securities 2Q17 +2
Slide 11: Loan growth fueled by strong TL lending
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2017 Loan growth fueled by strong TL lending Total Loans (TL billion) FC Loans (USD billion) 24.8% 3% 13.6 13.7 14.0 Sector 13.5 182.9 vs total loan 174.0 growth 2.1 % 167.1 5.1% 21% YoY 52.7 146.6 48.7 28.8% 47.7 28.0% 28.6% 8.3% 47.6 32.5% 10.8
Slide 12: Well diversified&stable loan breakdown
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2017 Well diversified&stable loan breakdown Breakdown of Loans (TL billion) Loans (TL billion) 146.6 167.1 174.0 182.9 Other 1 9.5 10.1 11.2 11.9 VB VB VB Sector Sector 2017 QoQ YoY QoQ YoY Cash&Non-Cash SME 37.0 44.7 46.8 47.8 234 7% 25% 6% 21%
Slide 13: Market share gaining on high yielding retail segments continued in 2017
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2017 Market share gaining on high yielding retail segments continued in 2017 General Purpose Consumer (TL billion) Residential Mortgages (TL billion) Strong presence in key retail 21.1% vs Sector GPC 11.7% segments thanks growth of to 18.9% YoY 1
Slide 14: Selective commercial&corporate lending was the main driver of quarterly loan growth
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2017 Selective commercial&corporate lending was the main driver of quarterly loan growth Commercial&Corporate (TL billion) Project Finance Loans (USD billion) 26.5% Sector 9.4% vs commercial& corporate 83.6 growth of 75.9 77.8 22% YoY 8.8 9.0 8.2
Slide 15: The share of Group II loans in total lending continued to decrease
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2017 The share of Group II loans in total lending continued to decrease NPL (TL million)* Reported and Comparable NPL Ratios (%) 18 bps improvement 1,027 YoY 5.19 5.08 5.13 4.97 581 4.19 7,192 7,638 4.04 3.97 4.01 3.24 3.22 3.17 3.26 3.10 3.05 3.
Slide 16: TL 500 million general provision recycled into free provision with no P&L impact
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2017 Higher NPL coverage ratio above sector averages is further supported by free provisions Specific Provisions (TL million) 1,936 2,194 TL 500 million general provision amount recycled into free provision with no P&L 533 (4.7%) 508 impact 2016
Slide 17: Customer deposits driven well diversified funding structure
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2017 Customer deposits driven well diversified funding structure Breakdown of Liabilities (%) International Borrowings in 2017 Bonds Sub-Debt Sub-Debt Other Total issuance USD 6.0 billion in 2017 2.2 Other Bonds 2.4 7.0 7.2 10.8 6.9 USD 1.3 billi
Slide 18: Further market share gains continued in both total and TL deposits
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2017 Further market share gains continued in both total and TL deposits Total Deposits (TL billion) Breakdown of Deposits (%) TL Deposits (TL billion) 25.4% vs Sector total 20.2% Sector TL State vs deposit deposit Other growth of Deposit growth o
Slide 19: Further enhanced solvency ratios driven by strong profitability in 2017
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2017 Further enhanced solvency ratios driven by strong profitability in 2017 Capital Adequacy Ratio (%) Buffers (%) 2017 2018 2019 +86 bps Capital Conservation Buffer 1.250 1.875 2.500 CET1 11.47 12.36 12.80 12.79 12.33 Counter Cyclical Buffer* N
Slide 20: Appendix
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2017 Appendix Pg. 21 Securities Portfolio Pg. 22 Credit Card Loans Pg. 23 Alternative Distribution Channels Pg. 24 VakıfBank with Numbers Pg. 25 Ratings Pg. 26 Diversified Funding Sources via Non-Deposit Funding Pg. 27 Historical developments on
Slide 21: Well balanced security portfolio
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2017 Well balanced security portfolio Total Securities (TL million) Portfolio Structure 16.8% 27,611 29,352 30,213 32,253 TL 5.8 billion Total 8,181 8,992 8,991 6.8% 16,766 TL 26.5 billion equivalent 29.6% 29.8% 30.6% 52.0% TL FC 1,669 1,648 1,61
Slide 22: Sustainable market share gain in credit card business maintained
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2017 Sustainable market share gain in credit card business maintained Credit Card Loans (TL million)* Retail Credit Card Market Share (%) Sector 19.2% credit card 44 bps YoY loan growth increase in vs of 13.7% YoY retail credit card market 7,123
Slide 23: Increased focus on alternative distribution channels
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2017 Increased focus on alternative distribution channels Active Mobile Banking Customers (#thousand)* Breakdown of Transactions (%) 55.5% Call Center 1,727 2.7 1,545 1,400 11.8% 1,111 ATM Mobile Banking 34.0 24.9 2017 2016 2Q17 3Q17 2017 Interne
Slide 24: VakıfBank with numbers
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2017 VakıfBank with numbers Distribution Channels&Customer (#) 2017 Efficiency (‘000 TRY) 2017 Personnel 16,097 Assets per Employee 16,809 POS Terminals 216,804 Assets per Branch 291,879 Outstanding Credit Cards 4.0 mn Loans per Employee 11,364 T
Slide 25: Ratings
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2017 Ratings Fitch Ratings Moody’s Standard&Poor’s (February 1, 2018) (February 2, 2018) (December 12, 2017) Long term FC IDR BB+ Ba2 BB / B FC Counterparty Credit Ratings VakıfBank Outlook Stable Negative Negative BCA (Baseline Credit Assessment
Slide 26: Diversified funding sources via Non-Deposit Funding
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2017 Diversified funding sources via Non-Deposit Funding US$ 2.1 billion outstanding September 2017 US$ 891 million equivalent 1 year syndicated loan, all in cost as Libor + 1.35% and Euribor +1.25.% with participation of 22 banks from 11 countri
Slide 27: Historical developments on the upcoming share transfer process
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2017 Historical developments on the upcoming share transfer process Mr. Ali Babacan, Deputy Prime Minister The Articles 6-12 of the Statutory Decree numbered 696 that was published on the Official Gazette on during that time, announced the transf
Slide 28: Unconsolidated Key Financial Ratios
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2017 Unconsolidated Key Financial Ratios 2016 4Q16 3Q17 4Q17 2017 Profitability* ROAE 15.0% 16.5% 12.8% 15.9% 17.5% ROAA 1.4% 1.5% 1.2% 1.4% 1.5% Cost / Income 40.5% 36.4% 43.9% 37.3% 37.2% Cost / Assets 1.8% 1.8% 1.8% 1.8% 1.6% Fee / Cost 25.6%
Slide 29: Unconsolidated Balance Sheet
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2017 Unconsolidated Balance Sheet 2016 3Q17 2017 TL USD (thousand) TL USD TL USD TL USD YoY QoQ YoY QoQ Cash&Balances with Central Bank 24,365,297 6,931,806 26,242,801 7,366,359 28,644,824 7,577,996 17.56% 9.15% 9.32% 2.87% Interbank 3,890,322 1,
Slide 30: Unconsolidated Income Statement
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2017 Unconsolidated Income Statement 4Q17 (TL-thousand, %) 2016 4Q16 3Q17 4Q17 2017 YoY QoQ 4Q16 Net Interest Income 6,966,641 1,948,658 1,804,381 2,318,905 8,621,426 23.75% 28.52% 19.00% Net Fee&Com. Income 980,883 278,168 356,037 371,840 1,330,
Slide 31: 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
Turkiye Vakiflar Bankasi Turk Anonim Ortakligi (VakıfBank) — FY2017 Earnings Presentation on 6ix