Turkiye Sinai Kalkinma Bankasi A.s. · BIST:TSKB
Turkiye Sinai Kalkinma Bankasi A.s — Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — H1 2021 Earnings Presentation
27 slides from Turkiye Sinai Kalkinma Bankasi A.s's earnings presentation, 2021
Slide 1: Created with a trial version of Syncfusion Essential PDF
Created with a trial version of Syncfusion Essential PDF
Slide 2: TSKB at a Glance
TSKB at a Glance A, Turkey mis Bank Group boars Ls LE) Sovereign "Shareholding Z mVakifbank Structure Fitch LTFC B+ BB- Free Float & Other Moody’sLTIR B3 B2 SAHA Corporate Governance Rating yy WEIL Sustainalytics ESG 16,7 LowRisk Risk Rating yj As of August 31, 2021 CORPORATE BANKING INVESTMENT BANK
Slide 3: A Unique Business Model
A Unique Business Model = — Longtermtenorin liabilities: 11 years = Medium term inassets: Syears = Diversified funding tools = Amortized loan book = Multi-disciplinary assessment during allocation = Sector specificresearch analysts during allocation and monitoring period = Strong collateralization =
Slide 4: Main Stakeholders of the Bank
Main Stakeholders of the Bank Atrustworthy partnerin; Large Corporates, MidCapCompanies & SME's Its field experience Its capacity to introduce innovative themes with respectto investment projects Cooperation in various areas such as; corporate loans, investmentbanking activities and advisory service
Slide 5: Sustainability is Well Integrated into Our Business Model
Sustainability is Well Integrated into Our Business Model health and safety © Supporting less developed regions Support for employment in Turkey; © Encouraging women participation to the economy PPB, Support transition to low ® Providing financing to operational SF en oy Environmental & Social Risk
Slide 6: 1H-21 performance is in line with 2021 expectations
1H-21 performance is in line with 2021 expectations Financial Guidance 2021E(%) 1H-21 Results (% (Bank Only) Growth FX Adjusted Loan Growth 3-5 3.3 Profitability : VE liveri Sustainable Fees & Commissions Growth ~20 20 de wetting) financial akeholder performance Net Interest Margin (*) ~4.0 4.2 Capi
Slide 7: 1H-21 Key Highlights
1H-21 Key Highlights Net Banking Income -TRY mn YoY 1,045 32%. I 679 574 162 | 152 | 205 1H-20 1H-21 BE Net Banking Income exc. CPI & Trading Bi Trading Gain/Loss BH cPlincome Net Profit- TRY mn YoY 49%, 479 1H-20 1H-21 Net Banking Income vs Provisions - TRY mn 32% 25% (increase © excluding \ free }
Slide 8: Banking Sector vs TSKB
Banking Sector vs TSKB CAR Loans/Assets NPL 17.8% 133% 77.9% 3.6% 3.8% 60.7% Banking Sector TSKB Banking Sector TSKB Banking Sector TSKB Cost to Income NIM ROE 15.3% oo 4.2% 11.0% 2.8% a | Banking Sector TSkB Banking Sector TSKB Banking Sector TSKB Repo & Dey jorit i S co Funds Isis ‘Syndication & K
Slide 9: Syndication & Other DFI Funding Eurobond
- 213 -343 -537 -570 -300 * -350 -2,726 -750 -300 2021 2022 2023 >=2024 Syndication & Other DFI Funding Eurobond Tier 2
Slide 10: Long Term DFI Funding Base
Long Term DFI Funding Base Outstanding DFI Funding Base- 2Q-21 IBRD 38.7% Yearly Multilateral Funding Agreements - USDmn EIB Kfw AIIB IDB 5.2% AFD 4.9% cDB 44% CEB 2.8% JBIC 2.7% IFC | 1.6% EBRD | 0.8% OEB | 0.3% 10 TSKB
Slide 11: Outstanding Project Themes Shaping Future Loan Book
11 Outstanding Project Themes Shaping Future Loan Book Energy and Resource Efficiency Women’s Employmentand Equal Opportunity Renewable Energy Midcap Financing Supporting Exporters Regional Development Supporting Employment Sustainable Agriculture Industrial Development Sustainable Tourism Occupatio
Slide 12: Resilient Asset Composition
Resilient Asset Composition Asset Composition - TRY bn Total Loans-TRY bn Bins Breakdown HG, 46.4 Z 4.2 ») 9.1% 3.6 4.9$ 90.9% 4.9$ 10-21 20-21 10-21 20-21 mLoans mSecurities =Cash&MM = Non EAs & Other ™FXLoans($) = TRY Loans Average Maturity - Years 1H-21 Loans by Currency &Type TRY; a Working Capi
Slide 13: Risk Management Pillars
Risk Management Pillars Credit Risk Monitoring the clients individually with analysing the financials Preparing monitoring reportsfor the clients at least oncea year Keepingtrack ofinternaland external (ifit is done) ratings of the customers, reviewing the internalratingsannually Actively managing t
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Slide 15: Loan portfolio sector breakdown
Electricity Generation; 39.2% Electricity/Gas Distr.; 6.5% • Tourism; 7.0% • Finance; 14.0% Other; 9.4% •
Slide 16: Renewable energy loans by source
1.6 bn 1.9 bn 1.9 bn 1.9 bn 1.9 bn 2.0 bn 2% 4% 6% 6% 7% 7% 6% 5% 5% 5% 6% 8% 32% 35% 37% 35% 37% 39% 14% 17% 18% 19% 20% 19% 46% 37% 35% 35% 31% 28% 2016 2017 2018 2019 2020 2021 Q2 Hydro Geothermal Wind Biomass Solar • •
Slide 17: Asset Quality Remains Intact
Asset Quality Remains Intact ‘OSS Share Coverage Li mount Total Ratio : s Stage1 38,097 82.1% 0.9% WY Stage2 6,582 14.2% 15% Stage3 1,742 3.8% 50% Gross Loans 46,421 100.0% 47% Stage-2 Loans Breakdown Coverage - 16% Stage2 Loans Coverage -8% Renewables:86% 100% of REL under Electricit SAMA. YEKDEM g
Slide 18: Security book supporting Bank's profitability
Security book supporting Bank’s profitability Total Securities Portfolio Breakdown TRY 8.2bn TRY Securities Portfolio Breakdown* TRY7.8bn y TRY7.2bn TRY7.3bn 4,560] 58% 20-20 4Q-20 71% Floating 10-21 20-21 20-20 4Q-20 10-21 20-21 mTRY(mn) = YP($ mn) * Audit report values are taken into account Secur
Slide 19: Takeaways from the Income Statement
Takeaways from the Income Statement TRY mn 1H-20 1H-21 Net Interest Income 797.8 941.4 Trading Income 64.8 161.7 Net Fees & Commissions 29.6 35.6 Other Income (Inc. Dividend) 6.4 35.5 Banking Income 898.6 1,174.2 OPEX (-) 108.3 129 Net Banking Income 790.3 1,045.2 Provisions (-) 375.2 532.1 Income F
Slide 20: Steady NIM Performance
Steady NIM Performance Annualized NIM* 43% : Higa 4.2% 20-20 10-21 20-21 413 10 9 5 Net FX Loans Th Sec exc.CPt FX Securities 1921 Net TL Loans, CPiLinkers FXGains/Losses 20 *Annualized NIM computationin line with guidance calculation methodology. 422 26-21 3.8% 3.6% 3.4% 20-20 10-21 2Q-21 My 2 2, s
Slide 21: Capital adequacy movement
12.0% 8.5% 0.4 - 0.4 0.3 9.8 10.0 Mar-21 Δ RWA Δ MtM Net Profit Jun- 21
Slide 22: Recent developments on ESG and Sustainable Banking
Recent developments on ESG and Sustainable Banking TSKB’s Perspective on Climate Risks First “Climate Risks Report’ in the Turkish banking sector in line with Task Force on Climate-Related Financial Disclosures (TCFD) recommendations Combatting climate change Supporting transition to a low-carbon ec
Slide 23: Appendix
2S BS Q <1 x=
Slide 24: 1,775 1,631 3,406 4,733 3,450 8,183 4,227 42,194 46,421 -607 -1,575 -2,182 1,342 102
1,775 1,631 3,406 4,733 3,450 8,183 4,227 42,194 46,421 -607 -1,575 -2,182 1,342 102 1,444 1,195 1,097 2,293 12,666 46,899 59,566 - 1,667 1,667 - 1,991 1,991 - 26,615 26,615 - 34,479 34,479 - 7,529 7,529 - 9,927 9,927 879 935 1,813 619 1,785.19 2,404 830 716 1,545 804 846 1,650 - 2,153 2,153 - 2,696
Slide 25: Detailed Income Statement
Detailed Income Statement TRY mn 10-21 2Q-21 QoQ Net Interest Incomeinc. Swap Cost 430.3 511.1 19% Net Interest Income 551.7 630.8 14% CPI Linkers 93.6 111.2 19% Swap Costs (-) 121.5 119.7 -2% Net Commissions 10.7 24.9 133% Other Income 32.1 3.4 -90% Dividends 27 0.3 -90% Other 293 3.1 -89% Trading
Slide 26: Key Performance Indicators
26 Key Performance Indicators L L 2020 1Q-21 20-21 Tier-I** 11.3% 9.8% 10.0% 2020 10-21 20-21 *ROE: Annualized NetIncome for the period / Average Total Equity ** Excluding forbearence ROA 1.6% 1.6% 2020 10-21 CAR** 2020 1Q-21 1.7% 2Q-21 15.2% 20-21 Cost to Income 11.3% 11.2% 11.0% 2020 1Q-21 2Q-21 N
Slide 27: TSKB Financial Institutions & Investor Relations
27 TSKB Financial Institutions & Investor Relations TSKB Financial Institutions & Investor Relations ir@tskb.com.tr www.tskb.com Meclisi Mebusan Cad. 81 Findikli 34427 istanbul OF io]
Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — H1 2021 Earnings Presentation on 6ix