Turkiye Sinai Kalkinma Bankasi A.s. · BIST:TSKB
Turkiye Sinai Kalkinma Bankasi A.s — Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — Q3 2016 Earnings Presentation
26 slides from Turkiye Sinai Kalkinma Bankasi A.s's earnings presentation, October 2016
Slide 1: Investor Presentation 3Q2016 – BRSA Bank only Results
Created with a trial version of Syncfusion Essential PDF Investor Presentation 3Q2016 –BRSA Bank only Results
Slide 2: TSKB @ a Glance
TSKB @ a Glance Ownership Structure First and only Private Development Bank in Turkey TRY 22.9 bn asset size Free Float 360 employees, 2 branches İş Bank and Others 41.16% 19th bank in terms of Asset size 50.46% 3.1% market share in LTFC corporate loans TRY 2.8 bn MCAP* 58% of free flo
Slide 3: TSKB’s Historical Shareholding Structure
TSKB’s Historical Shareholding Structure İş Bankası 24% Osmanlı Bankası 16% Yapı ve Kredi Bankası 12% Selanik Bankası 4% T. Ticaret Bankası 4% Garanti Bankası 3,86% Akbank 2% Banks 77,86% Banka Komerçiyale İtalyana 2% Banka di Roma 2% Hollantse Bank Uni. 2% Tutum Bankası 2% T. İmar Bankası 2% T. Kre
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 18% market share guaranteed by the Turkish Treasury in its peer group comprise c. 54% of total funding Strong supportive long-term Prudent bala
Slide 5: 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 6: 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 7: Financial Highlights
Financial Highlights Sustainable Profitability & Net Interest Margin TRY mn 132.0 115.5 114.8 117.0 117.7 104.9 93.7 89.3 94.2 3Q-16 profit TRY 366.9 mn, %25.6 higher than 3Q-2015 81.3 82.4 4.9% 3Q-16 qoq profit TRY 118 mn, , %42.8 higher than 3Q-2015 4.4% 3.9% 3.9% 3.9% 3.9% 3.9% RoE @ 18.3%,
Slide 8: Banking Sector vs TSKB
Banking Sector vs TSKB CAR Loans/Assets NPL 16.0% 64.2% 67.1% 3.3% 15.2% 0.3% Banking Sector TSKB Banking Sector TSKB Banking Sector TSKB Cost to Income NIM ROE 18.3% 39.9% 13.9% 3.7% 3.6% 15.4% Banking Sector TSKB Banking Sector TSKB Banking Sector TSKB * BRSA Sector data as of Sept ’16 Long Term D
Slide 9: Asset Composition
Asset Composition FX Total Assets Growth (FX adjusted) TRY YtD YoY QoQ 22,870 20,735 Loans 8.4% 8.3% 4.1% 15,701 Securities, Cash&MM 6.1% 17.4% -1.6% 73.4% 68.6% 70.6% Total Assets 7.4% 10.2% 2.2% FX Assets 0.3% 2.1% 2.1% 29.4% 26.6% 31.4% TRY Assets 24.8% 32.4% 0.6% 2014 2015 3Q-16 2015 3Q-16 TRY L
Slide 10: Liabilities Composition
Liabilities Composition FX Total Liabilities TRY Growth (FX Adjusted) 22,870 20,735 YtD YoY QoQ 15,701 74.3%% Funding 7.4% 9.6% 3.3% 74.4% 70.8% Equity 15.3% 23.3% 3.1% 25.6% 25.7% FX Liabilities 6.9% 8.0% 1.7% 29.2% TRY Liabilities 8.1% 17.9% 2.6% 2014 2015 3Q-16 3Q-16 2015 Eurobond 13.4% Eurobond
Slide 11: Funding Structure
Funding Structure 6,512 USD mn 6,097 5,628 1,001 Total Funding: 1,027 USD 6,512 mn 1,057 1,026 Repo &Money Market 704 Securities Issued 385 506 564 Syndication & P/N etc. 79% of the Total Funding is Long Term Unguarenteed LT Funding Guarenteed LT Funding 3,672 3,571 3,582 FX Short term funding: 9% (
Slide 12: Long Term DFI Funding
Long Term DFI Funding Outstanding Funding Base IBRD 37% EIB 30% KFW 87% of DFI Funding 10% guaranteed by IDB 8% Turkish Treasury CEB 5% IFC 4% 2015 AFD 2% 3Q-16 EBRD 2% DFI Funding - 2015 Amount Theme CITI 1% JBIC 150 mio USD Renewable Energy and Energy Efficiency OEB 1% EIB 100 mio EUR SME and Midc
Slide 13: Shareholders’ Equity
Shareholders’ Equity Equity Capital Adequacy Ratio 15.3% 18.2% TRY mn CAR Tier I 14.9% 15.2% 2,870 13.5% 2,489 2,288 2,328 17.0% 14.0% 14.4% 12.5% 2014 3Q-15 2015 3Q-16 2014 3Q-15 2015 3Q-16 Equity Movement Risk Weighted Assets TRY mn TRY mn Credit Risk Operational Risk Market Risk 367 2,870 2,489 -
Slide 14: Loan Portfolio
Loan Portfolio Loans by Sector Loans by Type 66% Investment Loans Electricity Production 32% Electricity/Gas Distribution 8% 27% Working Capital Loans Finance 15% Logistics 6% 7% APEX Metal and Machinery 5% Chemistry and Plastics 5% Loan Portfolio (mn USD) FX adj growth of 8.4% Non-residential
Slide 15: Renewable Energy and Energy&Resource Efficiency
Renewable Energy and Energy&Resource Efficiency Renewable Energy Portfolio (Outstanding) 1.3 bn USD 1.4 bn USD 1.5 bn USD 1.6 bn USD 7% 7% Solar Projects 6% 7% are on the 118 of 153 RE are in operation 18% 22% agenda 34% 35% 3% 4,272 mw installed capacity is 9% 13% financed:, Hydros’ risk • 3,74
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: Robust Asset Quality
Robust Asset Quality NPL Ratio TRY mn 178 179 171 140 145 133 0.6% 0.5% 0.4% 60 60 59 0.4% 53 48 48 0.4% 0.3% 0.2% 0.2% 2009 2010 2011 2012 2013 2014 2015 3Q-16 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16 3Q-16 Group II Loans NPL * Average NPL ratio for last 5 years is 0.3% TRY mn 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16 3Q
Slide 18: Securities Portfolio
Securities Portfolio TRY mn By maturity Duration is 2.2 yrs in Fixed & Floating < 1 Year 1<3 3<5 >5 FX($) 342 bonds, 5.5 yrs in CPIs. 240 344 TRY 76% is in AFS portfolio. % 75 23% 12% of TRY portfolio funded by repo 2,929 3,102 44% 2,840 Private sector bonds: 8% of total 8% portfolio 25% TRY
Slide 19: Income Statement (Cumulative)
Income Statement (Cumulative) YoY (TRY mn) 3Q-15 3Q-16 Distribution of Banking Income Change Adj. Net Interest Income * 429.6 517.4 20.4% 31% Net Commisions 8.1 3.6 -55.7% 56% 61% 63% 7% Dividend Income 33.6 30.1 -10.4% 21% Other Operating Income 17.7 14.5 -18.1% 16% 17% 16% Net Banking Income 489.0
Slide 20: Income Breakdown
Income Breakdown Net Interest Income Breakdown Weight of Banking Income Net Interest Income Loans 48% 61% 56% 57% 2014 89.3% Liquid Assets 2015 90.4% 39% 44% 43% 52% 3Q-16 91.0% 2014 3Q-15 2015 3Q-16 Commission Income Breakdown-Gross TRY mn Net Commissions 12.1 9.8 13.8 8.9 Brokerage 2% 2014 1.8% 7%
Slide 21: Net Interest Margin
Net Interest Margin Annual NIM Quarterly NIM 4.2% 3.9% 3.9% 3.9% 3.9% 3.9% 3.7% 3.6% 3.6% 3.6% 3.4% 3.1% 3.1% 3Q-14 4Q-14 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16 3Q-16 2014 3Q-15 2015 3Q-16 NIM Evolution Annually NIM Evolution Quarterly 372 - 26 20 - 15 36 386 34 360 - 16 20 33 308 - 14 - 17 25 YE-2015
Slide 22: Key Performance Indicators
Key Performance Indicators ROE Core-ROE ROAA Cost to Income 18.0% 14.7% 15.4% 17.7% 18.2% 16.9% 17.0% 17.0% 17.4% 18.3%18.4% 14.3% 2.6% 2.2% 2.2% 2.2% 2014 3Q-15 2015 3Q-16 2014 3Q-15 2015 3Q-16 2014* 3Q-15 2015 3Q-16 *14.1% excluding one-off Free Capital Interest Income/AIEA Interest Expense/AIBL 1
Slide 23: Balance Sheet
Balance Sheet 30/09/2015 31/12/2015 30/09/2016 (TRY mn) TRY FX TOTAL TRY FX TOTAL TRY FX TOTAL Cash and Banks 1,145 757 1,902 1,121 1,305 2,426 1,371 1,157 2,528 Securities 2,695 1,052 3,746 2,840 995 3,835 3,102 1,020 4,122 Loans 756 13,514 14,270 1,000 2,675 13,675 1,830 13,523 15,353 Subsidiaries
Slide 24: Quarterly Income Breakdown
Quarterly Income Breakdown Change Change (TRY mn) 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16 3Q-16 QoQ YoY Adj. Net Interest 136 152 142 185 181 153 183 20.1% 29.4% Income Net Commisions 2 3 4 3 1 1 1 -19.3% -72.8% Dividend Income 13 20 0 0 9 21 0 - - Other Operating Income 16 1 1 1 10 4 1 -69.2% 19.8% Net
Slide 25: Detailed Quarterly Income Breakdown
Detailed Quarterly Income Breakdown (TRY mn) 2Q-2016 3Q-2016 QoQ Interest Income 294.8 325.0 10.2% Interest on Loans 194.9 209.6 7.6% Interest from Securities 74.3 90.9 22.3% Higher CPI Yields Interest from Liquid Assets (net) 25.7 24.6 -4.5% Interest Expense - 135.7 - 141.2 4.0% Interest on funds b
Slide 26: TSKB Investor Relations
TSKB Investor Relations ir@tskb.com.tr | www.tskb.com
Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — Q3 2016 Earnings Presentation on 6ix