Turkiye Vakiflar Bankasi Turk Anonim Ortakligi · BIST:VAKBN
Turkiye Vakiflar Bankasi Turk Anonim Ortakligi — Q3 2022 Earnings Presentation
26 slides from Turkiye Vakiflar Bankasi Turk Anonim Ortakligi's earnings presentation, Nov 7, 2022
Slide 1: Earnings Presentation BRSA Bank-Only 3Q22
Earnings Presentation BRSA Bank-Only 3Q22 November 7, 2022
Slide 2: 3Q22 Earnings and profitability
Earnings Presentation Bank-Only 3Q22 3Q22 Earnings and profitability Net Income (TL million) ROAE(%) 23% Adj. with TL 5.5 billion 46.3 51.8 43.6 617% 23,338 free prov. free provisions in 3Q22 TL 7.7 11,092 36.0 billion free provisions 15,610 9,016 TL 5.5 29.2 7,016 TL 2 billion billion free 26.1 fre
Slide 3: Key highlights of 3Q22
Earnings Presentation Bank-Only 3Q22 Key highlights of 3Q22 Solid NIM performance +248 NIM expanded by 248 bps to Swap adjusted NIM expanded by 317 bps to +317 bps bps 5.28% in 9M22 from 2.8% in YE21 4.94% in 9M22 from 1.76% in YE21 TL 29 billion total CPI linker income expected in 4Q22 TL 29 6.5 pp
Slide 4: 3Q22 P&L details
Earnings Presentation Bank-Only 3Q22 3Q22 P&L details YoY 9M22 3Q22 QoQ 39,386 Net Interest 15,670 273% 8% Income Free Provisions 133% 7,198 Net Fees and 3,079 29% Commissions 2017 +TL 500 mio 23% 148 Dividend Income 2 (92%) 2018 +TL 530 mio Net Trading 2019 -TL 178 mio 181% 3,101 1,507 222% Income
Slide 5: Solid NIM performance
Earnings Presentation Bank-Only 3Q22 Solid NIM performance CPI Expectation Net Interest Margin (NIM %) +TL 18 billion +2.5 ppt additional income from CPI in 4Q22 5.8 5.6 5.3 CPI-linkers reached 2.8 120% 2.3 of equity 9M21 2021 2Q22 3Q22 9M22 Total Money Market Funding Swap Adjusted Net Interest Marg
Slide 6: Eye-catching fee & commission income growth
Earnings Presentation Bank-Only 3Q22 Eye-catching fee & commission income growth Net Fee & Commission Income (TL million) Net Fee & Commission Income Breakdown 133% Cash Loans Non-Cash Loans Payment Systems 7,198 17% 25% 46% Insurance Other 3,092 3,079 2,383 29% 7% 4% 9M21 2Q22 3Q22 9M22 Fee/Opex Ra
Slide 7: Disciplined cost management on track
Earnings Presentation Bank-Only 3Q22 Disciplined cost management on track Opex (TL million) Cost/Income Ratio (%) Lower than (21 ppt) 70% headline inflation 41.0 11,328 6,662 19.8 19.6 19.8 4,480 3,805 18% 9M21 2Q22 3Q22 9M22 9M21 2Q22 3Q22 9M22 HR Cost (TL million) Breakdown of OPEX Non-HR Cost (TL
Slide 8: Proactive lending strategy driven by short-term & floating rate TL business loans
Earnings Presentation Bank-Only 3Q22 Proactive lending strategy driven by mainly short-term & floating rate TL business loans Portfolio Breakdown (%) Currency Breakdown (%) QoQ Loan Growth 65% 35% 3Q22 13% TL Loans FC Loans ($) Com. & Corp 16% 2Q22 12% TL 458 billion 58% 12% 11% 9% QoQ Growth 1Q22 1
Slide 9: Breakdown of loan portfolio
Earnings Presentation Bank-Only 3Q22 Breakdown of loan portfolio Sectoral Breakdown of Cash Loans Breakdown of FC Loans Retail Loans Manufacturing Breakdown of Project 16% Finance 21% Other (inc. Energy business and 14% 21% Export retail credit cards) 3Q22 32% 10% Construction Loans Project Finance
Slide 10: Asset quality remained intact with all time high coverage ratios
Earnings Presentation Bank-Only 3Q22 Asset quality remained intact with all time high coverage ratios NPL (TL million)* Stage II Loans Breakdown (TL million) Stage II 1,045 1,071 14.3 14.5 18.3 19.2 Coverage 19,547 19,521 Ratio (%) Share in total 10.83 9.48 9.20 loans (%) 8.69 73,064 Total Stage II
Slide 11: Well-balanced deposit portfolio
Earnings Presentation Bank-Only 3Q22 Well-balanced deposit portfolio Total Deposits (TL billion) Breakdown of Deposits Market 11.1% 11.6% 11.9% 53% 47% 46% 54% 11.3% Share Sector 956.3 TL Deposits FC Deposits TL Deposits FC Deposits 787.7 451.4 $ 24.4 FC 77% Retail Deposit 590.9 400.7 TL State Depos
Slide 12: Well diversified external funding
Earnings Presentation Bank-Only 3Q22 Well diversified external funding Breakdown of Wholesale Funding TL 88.5 billion sustainable finance provided as Local Bonds Other of 3Q22 in the balance sheet 2.5% 2.7% Eurobond AT I Issuance IFI Borrowings 26% 8.9% Eurobond 7% 30% IFI Sustainable 6.8% Finance*
Slide 13: Solvency ratios
Earnings Presentation Bank-Only 3Q22 Solvency ratios Capital Adequacy Ratio (%) Required CET1 Solvency ratios CET I •9.88 9.96 12.84 11.36 11.69 level 8.5% Solvency ratios including free (%) without BRSA provision amount of forbearance Tier I •12.39 12.88 15.57 13.68 13.90 Required Tier I TL 9.5 bil
Slide 14: Appendix
Earnings Presentation Bank-Only 3Q22 Appendix Pg. 15 Sustainable banking approach Pg. 16 Sustainable loan products Pg. 17 The first Turkish bank incorporated sustainability approach to its provisioning policy Pg. 18 Improved efficiency with enhanced digital platforms Pg. 19 Composition of assets & l
Slide 15: Sustainable banking approach
Earnings Presentation Bank-Only 3Q22 Sustainable banking approach Indices Initiatives Sustainability Rating B Score in 2021 Score: 47 in 2021 1st assessment in 2015 1st assessment in 2022 Sustainability Reporting 15
Slide 16: Sustainable loan products
Earnings Presentation Bank-Only 3Q22 Sustainable loan products Women in Business Loan For a business that is managed or owned by women, having less than 250 employees and completing the year with a profit with Green Mortgage Loan attractive interest rates Aiming to support the reduction of resid
Slide 17: The first Turkish bank incorporated sustainability approach to its provisioning policy
Earnings Presentation Bank-Only 3Q22 The first Turkish bank incorporated sustainability approach to its provisioning policy Proactive provisioning policy in accordance with CBAM (Carbon Border Adjustment Mechanism) and ‘Fit for 55’ principles To eliminate the transformation risk of these companies,
Slide 18: Improved efficiency with enhanced digital platforms
Earnings Presentation Bank-Only 3Q22 Improved efficiency with enhanced digital platforms Branch 935 9% Branches # of active* digital Internet banking customers Banking reached ~6.5 million 45% ~6.5 mio Non-branch # of transaction made Mobile Digital transaction through digital platform Banking Banki
Slide 19: Composition of asset&liabilities
Earnings Presentation Bank-Only 3Q22 Composition of asset&liabilities Breakdown of Assets (%) Currency Breakdown of Total Assets Other 3Q22 16.4 The biggest listed bank Interbank of Turkey in terms of asset size with 55% 3.5 11% market share 3Q22 45% Loans Securities 57.4 The share of IEA 23.2 84% T
Slide 20: Well-positioned security portfolio
Earnings Presentation Bank-Only 3Q22 Well-positioned security portfolio Total Securities (TL million) Portfolio Structure 83.6% Breakdown of FC Securities 321,791 304,335 7% 5.7% 36% 104,454 125,127 223,737 58% 3Q22 175,233 73,862 14,865 15,189 100% 62,715 16,404 3Q21 11,747 Fixed 185,016 181,476 Tr
Slide 21: Retail Lending Portfolio
Earnings Presentation Bank-Only 3Q22 Retail Lending Portfolio General Purpose Consumer (TL billion) Residential Mortgages (TL billion) Credit Card Loans (TL billion)* 15.8% 25.0% 108.3% 56.6 56.1 42.3 0.9% 57.1 55.6 35.0 21.1% 49.9 48.4 49.3 48.3 50.5 2.7% 26.8 44.5 23.6 20.3 3Q21 4Q21 1Q22 2Q22 3Q2
Slide 22: Diversified funding sources via non-deposit funding
Earnings Presentation Bank-Only 3Q22 Diversified funding sources via non-deposit funding Syndication Eurobonds and Private Placements USD 1.6 billion outstanding Apr’22: USD 1 billion equivalent syndicated loan, Libor +2.75%, Euribor USD 3.3 billion outstanding Eurobonds and USD 144.9 million +2.1
Slide 23: Unconsolidated Key Financial Ratios
Earnings Presentation Bank-Only 3Q22 Unconsolidated Key Financial Ratios 9M21 2021 2Q22 3Q22 9M22 Profitability ROAE 6.1% 8.5% 36.0% 26.1% 29.2% ROAA 0.4% 0.5% 2.4% 1.7% 1.7% Cost / Income 41.0% 34.7% 19.6% 19.8% 19.8% Cost / Assets 1.2% 0.9% 1.2% 1.3% 1.1% Fee / Cost 46.4% 47.3% 62.6% 68.7% 63.5% N
Slide 24: Unconsolidated Balance Sheet
Earnings Presentation Bank-Only 3Q22 Unconsolidated Balance Sheet (TL-thousand, %) 3Q21 2Q22 3Q22 TL USD TL USD TL USD TL USD YoY QoQ YoY QoQ Cash & Balances with Central 77,787,917 8,759,901 160,491,468 9,613,722 166,081,366 8,967,676 113.5% 3.5% 2.4% (6.7%) Bank Assets Interbank 12,518,241 1,409,7
Slide 25: Unconsolidated Income Statement
Earnings Presentation Bank-Only 3Q22 Unconsolidated Income Statement (TL thousand, %) 9M21 2Q22 3Q22 9M22 YoY QoQ Net Interest Income 5,056,510 14,049,149 14,667,219 36,845,705 628.7% 4.4% (Inc. Swap Cost) Swap Cost -5,511,755 -460,722 -1,002,728 -2,539,853 (53.9%) 117.6% Net Fee & Com. Income 3,092
Slide 26: For Earnings Presentations: Investor Relations
For Earnings Presentations: A member of BIST Sustainability Index Investor Relations Saray Mahallesi Dr. Adnan Buyukdeniz Cad. A1 Blok No: 7a Umraniye/Istanbul E-mail: investorrelations@vakifbank.com.tr Tel (90-216) 724 2685 Fax (90-216) 724 3941 www.vakifbank.com.tr Disclaimer Notice: This report h
Turkiye Vakiflar Bankasi Turk Anonim Ortakligi (VakıfBank) — Q3 2022 Earnings Presentation on 6ix