Turkiye Vakiflar Bankasi Turk Anonim Ortakligi · BIST:VAKBN

Turkiye Vakiflar Bankasi Turk Anonim Ortakligi — Türkiye Vakıflar Bankası T.A.O. (VakıfBank) — Q3 2015 Earnings Presentation

25 slides from Turkiye Vakiflar Bankasi Turk Anonim Ortakligi's earnings presentation, Nov 5, 2015

  1. Slide 1: Earnings Presentation BRSA Bank-Only 3Q 2015

    Earnings Presentation VakıfBank IR App. Available at BRSA Bank-Only 3Q 2015 November 5, 2015

  2. Slide 2: 3Q15 Macro Highlights

    INVESTOR RELATIONS Earnings Presentation_Bank Only 3Q15 3Q15 Macro Highlights Global Economy Turkish Economy FED kept its policy rate unchanged, citing Turkish GDP growth came above than concerns on global economic risks and low expectations at 3.8% in 2Q15 on the back of domestic inflation rate. Th

  3. Slide 3: 3Q15 VakıfBank Highlights

    INVESTOR RELATIONS Earnings Presentation_Bank Only 3Q15 3Q15 VakıfBank Highlights Quarterly bank-only net income is TL 452.5 TL deposits, the key competition area among million, which is up by 17% QoQ vs sector Turkish banks, are up by 9.3% QoQ, which decline of 32%. brought Ytd growth to 15% vs sec

  4. Slide 4: 9M15 Earnings and Ratios

    INVESTOR RELATIONS Earnings Presentation_Bank Only 3Q15 9M15 Earnings and Ratios Quarterly Net Income (TL million) Net Income (TL million) Flat sector 30.2% 1,273.5 net income growth YoY 1,070.5 vs 19% 682.8 17.1% 434.6 452.5 9M14 9M15 386.3 347.7 ROAE (%) Sector 11.7 11.8 7.8 12.1 10.3 77 bps bette

  5. Slide 5: Customer driven asset growth

    INVESTOR RELATIONS Earnings Presentation_Bank Only 3Q15 Customer driven asset growth Total Assets (TL billion) 28.2% Sector total Breakdown of Assets (%) asset vs growth 174.5 188.8 24.2% YoY 147.3 158.2 Quarterly Growth 8.2% Other * 16.7 15.8 17.6 17.3 Securities Loans Interbank 1.6 1.6 2.5 3.6 1Q1

  6. Slide 6: Well balanced and stable security portfolio

    INVESTOR RELATIONS Earnings Presentation_Bank Only 3Q15 Well balanced and stable security portfolio Total Securities (TL million) Portfolio Structure Total TL 4.8 billion 9.2% equivalent TL 20.3 billion TL FC 25,076 23,558 24,215 35% Interest 22,963 3.6% 30% 35% 100% income 7,433 6,482 6,855 7,124 2

  7. Slide 7: Selective and profitability focus loan growth in target segments

    INVESTOR RELATIONS Earnings Presentation_Bank Only 3Q15 Selective and profitability focus loan growth in target segments Total Loans (TL billion) FC Loans (USD billion) 27.5% 13.5% Sector total loan growth 124.2 vs 24.8% YoY 118.3 12.6 12.6 12.0 5.0% 104.3 11.1 97.4 38.2 33.7 27.9 13.4% 25.3 51.0% 3

  8. Slide 8: Well diversified loan breakdown

    INVESTOR RELATIONS Earnings Presentation_Bank Only 3Q15 Well diversified loan breakdown Breakdown of Loans (TL billion) Portfolio Shift (%) 27.5% SME 26.4 (0.9 pps) 25.5 97.4 104.3 118.3 124.2 Other 1 6.8 6.9 7.7 8.2 5.0% Retail 34.7 (3.9 pps) 30.8 SME 2 25.7 27.7 31.5 31.7 38.9 4.8 pps 43.7 Mortgag

  9. Slide 9: Market share gaining in lucrative retail sub-segments sustained

    INVESTOR RELATIONS Earnings Presentation_Bank Only 3Q15 Market share gaining in lucrative retail sub-segments sustained General Purpose Consumer (TL billion) Residential Mortgages (TL billion)* Strong presence in 19.2% 4.1% key retail vs Sector GPC segments thanks growth 7.7% YoY to 15.1 15.2 14.9 1

  10. Slide 10: Sustained healthy growth in credit cards despite macroprudential measures

    INVESTOR RELATIONS Earnings Presentation_Bank Only 3Q15 Sustained healthy growth in credit cards despite macroprudential measures Credit Card Loans (TL million) Outstanding Credit Cards (million #) Sector’s 18.8% credit card loan growth 5,033 vs 6.7% YoY 4,783 3.3 3.4 3.2 3.2 4,383 3.1 4,238 5.2% 3Q

  11. Slide 11: Project-finance lending driven commercial&corporate loan growth

    INVESTOR RELATIONS Earnings Presentation_Bank Only 3Q15 Project-finance lending driven quarterly commercial&corporate loan growth Commercial&Corporate (TL billion) Project Finance Loans (USD billion) 43.2% 27.3% 54.2 7.6 7.8 49.1 6.8 6.1 37.9 41.9 10.5% 3.1% Share of commercial & corporate 3Q14 YE14

  12. Slide 12: Asset quality

    INVESTOR RELATIONS Earnings Presentation_Bank Only 3Q15 Asset quality Reported NPL Ratio (%)1 Comparable NPL Ratio (%) Mortgages NPL Ratio (%) 3.96 3.67 3.68 4.69 4.84 4.76 4.80 3.52 2.89 2.94 3.35 3.20 3.10 3.29 2.79 2.85 0.57 0.52 0.57 0.54 Sector Sector 0.49 0.46 0.47 W/O Legacy Sector; W/O NPL N

  13. Slide 13: Optimization of Group IV NPL provisioning resulted around 6.8 pps decrease on coverage

    INVESTOR RELATIONS Earnings Presentation_Bank Only 3Q15 Optimization of Group IV NPL provisioning resulted around 6.8 pps decrease on coverage NPL (TL million)* Breakdown of New NPL Inflow (%) Other Credit Cards 5.4 SME 654 222 4,742 11.5 18.2 4,310 Mortgage 3.6 GPC 14.7 Com.&Corp. 46.6 NPL 1H15 New

  14. Slide 14: Customer deposit driven well diversified funding structure

    INVESTOR RELATIONS Earnings Presentation_Bank Only 3Q15 Customer deposit driven well diversified funding structure Breakdown of Liabilities (%) Other 4.9 5.1 5.3 5.5 Sub-Debt 1.4 1.4 2.2 2.3 Breakdown of Liabilities (TL billion) Private placement Bonds 6.7 6.6 6.7 6.5 outstanding balance Repo* 9.4 1

  15. Slide 15: Non-granular deposit base via stellar growth on demand and retail deposit

    INVESTOR RELATIONS Earnings Presentation_Bank Only 3Q15 Non-granular deposit base via stellar growth on demand and retail deposit Total Deposits (TL billion) FC Deposits (USD billion) 26.2% 11.5% 112.6 100.3 12.3 89.2 91.8 12.3% 11.6 37.0 11.0 11.2 31.2 24.9 26.1 FC 18.9% 5.3% Solid TL 64.3 65.7 69.

  16. Slide 16: Solvency ratios

    INVESTOR RELATIONS Earnings Presentation_Bank Only 3Q15 Solvency ratios Capital Adequacy Ratio (%) Core Tier I 11.2% 11.4% 10.8% 10.4% 10.5% 13.1% 12.4% The impact of 1 bps (72 bps) revaluation of fixed 15.4 assets is 37 bps on 14.2 14.7 Tier II 13.9 14.0 13.7 13.7 BRSA Recom. 12% Min. Ratio 8% 3Q14

  17. Slide 17: NIM, Spreads and Costs

    INVESTOR RELATIONS Earnings Presentation_Bank Only 3Q15 NIM, Spreads and Costs Yields (%) Cost of Deposits (%) TL Loans TL Securities TL Deposits FC Deposits 43 bps (501 bps)** 30 bps (9 bps) 11.66 11.97 12.06 11.63 11.32 8.06 7.76 1.79 9.52 1.60 1.63 7.98 1.54 7.23 6.31 6.90 3Q14 4Q14 2Q15 3Q15 3Q1

  18. Slide 18: Earnings breakdown

    INVESTOR RELATIONS Earnings Presentation_Bank Only 3Q15 Earnings breakdown Net Interest Income (TL million) Net Interest Income excluding CPI (TL million) 19.2% 12.3% 3,940 3,305 1,172.7 1,154.3 1,216.8 1,083.9 5.4% 1,433 1,267 9M14 2Q15 3Q15 9M15 3Q14 4Q14 2Q15 3Q15 Core Banking Revenues* (TL milli

  19. Slide 19: Promising fee growth is in line with upward revision towards 30%

    INVESTOR RELATIONS Earnings Presentation_Bank Only 3Q15 Promising fee growth is in line with upward revision towards 30% Net Fee and Commission Income (TL million) Breakdown of Net Fee and Commission Income (%) 9M15 Inquiry&Expertise Insurance 30% 5 4 Cash Loans 673.6 Other 29 518.2 12 220.7 224.2 P

  20. Slide 20: Comparable opex growth is better than the operating budget

    INVESTOR RELATIONS Earnings Presentation_Bank Only 3Q15 Comparable opex growth is better than the operating budget Operating Expenses (TL million) Comparable Opex* 17% 2,679.3 9M15 2,289.4 Fee Rebate Comparable 9M15 TL 179.9 OPEX million TL 2,499.4 million 905.3 918.7 12.7% 9M14 Comparable Fee Rebat

  21. Slide 21: VakıfBank with numbers

    INVESTOR RELATIONS Earnings Presentation_Bank Only 3Q15 VakıfBank with numbers Distribution Channels & Customer (#) 9M15 Efficiency (‘000 TRY) 9M15 Branches 912* Assets per Employee 12,271 ATMs 3,446 Assets per Branch 207,723 Personnel 15,388 Loans per Employee 8,073 POS Terminals 163,893 Loans per

  22. Slide 22: Balance Sheet

    INVESTOR RELATIONS Earnings Presentation_Bank Only 3Q15 Balance Sheet YoY QoQ (TL-million, %) 3Q14 2Q15 3Q15 Growth Growth Cash & Balances with Central Bank 19,431 21,518 25,127 29.3% 16.8% Interbank 2,354 4,443 6,843 190.6% 54.0% Assets Securities 22,963 24,215 25,076 9.2% 3.6% Loans 97,398 118,294

  23. Slide 23: Income Statement

    INVESTOR RELATIONS Earnings Presentation_Bank Only 3Q15 Income Statement YoY QoQ (TRY-Thousand, %) 9M14 2Q15 3Q15 9M15 Growth Growth Net Interest Income 3,305,324 1,432,613 1,266,811 3,939,587 19.2% (11.6%) Net Fee & Com. Income 518,234 220,746 224,150 673,575 30.0% 1.5% Dividend Income 65,966 0 0 6

  24. Slide 24: Diversified funding source via Non-Deposit Funding

    INVESTOR RELATIONS Earnings Presentation_Bank Only 3Q15 Diversified funding source via Non-Deposit Funding Syndicated Loan September, 2015 •US$ 936 million equivalent 1 year syndicated loan, all in cost as Libor/Euribor 0.75% and 122% roll over ratio with participation of 30 banks from 16 countries.

  25. Slide 25: Investor Relations contact and disclaimer

    A member of BIST Sustainability Index Investor Relations Levent Mah. Çayır Çimen Sok. No:7 Kat:6 34330 Beşiktaş-İstanbul / Turkey E-mail: investorrelations@vakifbank.com.tr Tel (90-212) 316 7336 Fax (90-212) 316 7126 www.vakifbank.com.tr Disclaimer Notice: This report has been prepared by VakıfBank,

Türkiye Vakıflar Bankası T.A.O. (VakıfBank) — Q3 2015 Earnings Presentation on 6ix