Turkiye Vakiflar Bankasi Turk Anonim Ortakligi · BIST:VAKBN

Turkiye Vakiflar Bankasi Turk Anonim Ortakligi — FY2023 Earnings Presentation

26 slides from Turkiye Vakiflar Bankasi Turk Anonim Ortakligi's earnings presentation, Feb 6, 2024

  1. Slide 1: Earnings Presentation BRSA Bank-Only YE23

    Earnings Presentation BRSA Bank-Only YE23 February 6, 2024

  2. Slide 2: 2023 Earnings and profitability

    Earnings Presentation Bank-Only YE23 2023 Earnings and profitability Net Income (TL billion) ROAE (%) 4% 51% Adj. ROAE* 25.0 35.3% 24.0 30.2 14.3 26.2 24.7 4.3 Free provisions 18.0 9.5 2022 2023 3Q23 4Q23 2022 3Q23 4Q23 2023 Core Banking Revenue (TL billion) Coverage Ratios (%) Stage I Coverage Rati

  3. Slide 3: Key highlights of 2023

    Earnings Presentation Bank-Only YE23 Key highlights of 2023 Further improved core banking revenues supported profitability TL 25 YE23 net income is up by 4.3% YoY billion and annual ROAE came at 18% TL 14.3 4Q23 net income would be TL 14.3 35.3% Adjusted quarterly ROAE would be billion billion if ad

  4. Slide 4: 2023 P&L details

    Earnings Presentation Bank-Only YE23 2023 P&L details 4Q23 2023 TL million TL million QoQ vs. YoY Net Interest 51,955 89% 28,593 (30%) Income Net Fees and 25,746 139% 35% 9,474 Commissions 200 34% 1 Dividend (99%) Income 181% TL 11 billion Net Trading 14,031 free provision in the (160%) (3,775) Inco

  5. Slide 5: NIM, CPI linkers and money market funding

    Earnings Presentation Bank-Only YE23 NIM, CPI linkers and money market funding CPI Expectation NIM 1.8% 0.4% 3.2% 5.3% NIM 4.0% ~ ~ ~ ~ ~ Swap 1.7% 2.7% Adj. NIM 0.3% ~ ~ ~ ~ ~ 1Q23 2Q23 3Q23 4Q23 6.8% ~ ~ ~ ~ ~ NIM 1.0% 1.9% 2.9% 6.5% Swap 2.3% ~ 0.9% 1.6% Adj. NIM 2022 1H23 9M23 2023 Total Money M

  6. Slide 6: Improved contribution of payment systems with 40% share in fee income composition

    Earnings Presentation Bank-Only YE23 Improved contribution of payment systems with 40% share in fee income composition Net Fee & Commission Income Breakdown (TL billion) Insurance Insurance 7.9% 7.4% 139% Cash Loans Cash Loans 40.9% Payment 48.0% Payment System 2022 2023 System 25.7 27.8% 40.1% vs s

  7. Slide 7: Cost/Income ratio normalized at 30% level

    Earnings Presentation Bank-Only YE23 Cost/Income ratio normalized at 30% level Opex (TL billion)* Cost/Income Ratio (%)* 126% 43.8 2023YE 33.7%* 40.5 32.4 30.6 21.4 17.9 20% 12.4 10.5 59% 18% 2022 3Q23 4Q23 2023 1Q23 2Q23 3Q23 4Q23 HR Cost (TL billion) Breakdown of Opex* Non-HR Cost (TL billion)* 10

  8. Slide 8: Market share gains in strategically focused areas

    Earnings Presentation Bank-Only YE23 Market share gains in strategically focused areas Portfolio Breakdown VB Sector VB Sector QoQ Loan Growth QoQ (%) QoQ (%) YoY (%) YoY (%) Total Loan Growth 8.4 9.0 60.6 54.0 4Q23 11% 56% Com.&Corp. TL Loan Growth 6.3 8.6 60.2 54.5 3Q23 7% TL 838 billion 2Q23 23%

  9. Slide 9: Breakdown of loan portfolio

    Earnings Presentation Bank-Only YE23 Breakdown of loan portfolio Currency Breakdown Loans by Interest Structure TL FC 2023 74% 70% 69% 31% vs. 79% 26% in 3Q23 TL Loans FC Loans ($) vs. 21% 30% in 3Q23 23% 12% QoQ Growth 10% 6% 5% 1% Fixed Rate Floating Rate 0% -4% 1Q23 2Q23 3Q23 4Q23 1Q23 2Q23 3Q23

  10. Slide 10: Net CoR exceeded budget to build-up additional buffer in line with pro-active policy

    Earnings Presentation Bank-Only YE23 Net CoR exceeded budget to build-up additional buffer in line with pro-active policy NPL (TL million)* Stage II Loans Breakdown (TL billion) Stage II 24.4 22.1 22.9 23.9 Coverage Ratio (%) 2,161 1,000 1,935 8.3 7.8 Share in 20,597 19,823 6.9 6.7 total loans (%) 1

  11. Slide 11: Well-balanced deposit portfolio

    Earnings Presentation Bank-Only YE23 Well-balanced deposit portfolio Total Deposits (TL billion) Breakdown of Deposits 74% 64% 64% 36% 36% Sector 1,961.8 TL Deposits FC Deposits TL Deposits FC Deposits 1,700.6 1,402.2 15% 707.7 626.4 $ 23.9 FC 1,127.7 $ 22.8 78% 573.2 TL 447.0 $ 22.0 $ 23.9 22% 1,25

  12. Slide 12: The most active Turkish Bank in international funding

    Earnings Presentation Bank-Only YE23 The most active Turkish Bank in international funding Breakdown of International Funding Other Repo & 1.9% Collateralized Eurobond Funding 18.5% 24.6% Short term $5.1 billion AT I Issuance International Coverage Free FX liquidity 5.6% Funding 1.5X ~$7.9 billion U

  13. Slide 13: Solvency ratios

    Earnings Presentation Bank-Only YE23 Solvency ratios Capital Adequacy Ratio (%) Reported solvency Solvency ratios ratios including free (%) w/o BRSA Required CET1 provision amount of CET I 11.52 12.58 11.33 11.37 11.72 level 8.5% forbearance TL 11 billion Tier I 13.55 14.32 13.36 13.23 13.64 Require

  14. Slide 14: Appendix

    Earnings Presentation Bank-Only YE23 Appendix Pg. 15 Sustainable banking approach Pg. 16 Sustainable loan products Pg. 17 Firsts in sustainable banking Pg. 18 Sustainable customer base thanks to enhanced digital platforms Pg. 19 Composition of assets & liabilities Pg. 20 Well positioned TL security

  15. Slide 15: Sustainable banking approach

    Earnings Presentation Bank-Only YE23 Sustainable banking approach Indices Initiatives Sustainability Rating ❑ Score: 44 in 2023 ❑ A Score in 2023 ❑ 1st assessment in 2015 ❑ A- Score in 2023 ❑ 1st assessment in 2022 Sustainability Reporting 15

  16. Slide 16: Sustainable loan products

    Earnings Presentation Bank-Only YE23 Sustainable loan products Women in Business Loan Green Mortgage Loan ➢ For a business that is managed or owned by ➢ Aiming to support the reduction of residential women, having less than 250 employees and energy consumption and greenhouse gas completing the year

  17. Slide 17: Firsts in sustainable banking

    Earnings Presentation Bank-Only YE23 Firsts in sustainable banking The first Turkish bank to have its targets Proactive provisioning policy in accordance with CBAM validated by (Carbon Border Adjustment Mechanism) and Science Based Targets initiative (SBTi) ‘Fit for 55’ principles Scope 1 & Scope 2

  18. Slide 18: Sustainable customer base thanks to enhanced digital platforms

    Earnings Presentation Bank-Only YE23 Sustainable customer base thanks to enhanced digital platforms Branch 944 9% Branches # of active* digital Internet banking customers Banking reached ~7.6 mn ~7.6 million 47% Digital Banking Non-branch Customers # of transaction made Mobile transaction through di

  19. Slide 19: Composition of asset & liabilities

    Earnings Presentation Bank-Only YE23 Composition of asset & liabilities Breakdown of Assets (%) Currency Breakdown of Total Assets The biggest listed bank 4Q23 Other in terms of asset size 18 with 11.9% market Interbank share among Turkish banks 64% 36% 5 4Q23 Loans 54 The share of IEA Securities 82

  20. Slide 20: Well positioned TL security portfolio

    Earnings Presentation Bank-Only YE23 Well positioned TL security portfolio Total Securities (TL billion) Portfolio Structure 77.1% 659.8 5% 5% 576.8 42% 8.7% 52% 14.4% 474.2 344.4 53% 43% 372.6 312.8 251.5 158.6 34.3 29.7 17.1 29.0 4Q23 4Q22 281.1 196.9 193.7 234.3 Trading AFS HTM Trading AFS HTM 20

  21. Slide 21: Retail lending portfolio

    Earnings Presentation Bank-Only YE23 Retail lending portfolio General Purpose Consumer (TL billion) Residential Mortgages (TL billion) Credit Card Loans (TL billion)* 36.9% 8.2% 139.8% 135.3 113.3 99.0 81.4 75.2 77.9 19.4% 71.4 72.7 54.9 58.0 59.6 58.4 56.4 54.0 59.4 4.4% (2.0%) 4Q22 1Q23 2Q23 3Q23

  22. Slide 22: Diversified funding sources via non-deposit funding

    Earnings Presentation Bank-Only YE23 Diversified funding sources via non-deposit funding Sustainable-linked syndication Eurobonds and Private Placements USD 1.5 billion outstanding USD 3.5 billion outstanding Eurobonds and USD 522.6 million ▪ Nov’23: USD 658 million equivalent syndicated loan, SOFR

  23. Slide 23: Unconsolidated Key Financial Ratios

    Earnings Presentation Bank-Only YE23 Unconsolidated Key Financial Ratios 2022 4Q22 3Q23 4Q23 2023 Profitability ROAE 30.2% 34.0% 26.2% 24.7% 18.0% ROAA 1.8% 2.2% 1.6% 1.5% 1.1% Cost / Income 18.1% 15.7% 32.4% 30.6% 33.7%* Cost / Assets 1.1% 1.6% 1.7% 1.8% 1.9% Fee / Cost 60.2% 54.4% 67.3% 76.3% 63.6

  24. Slide 24: Unconsolidated Balance Sheet

    Earnings Presentation Bank-Only YE23 Unconsolidated Balance Sheet (TL thousand, %) 2022 3Q23 2023 TL USD USD USD USD TL TL TL YoY QoQ YoY QoQ equivalent equivalent equivalent Cash & Balances with Central Assets 268,935,221 14,358,528 335,064,092 12,221,079 385,703,700 13,045,515 43.4% 15.1% (9.1%) 6

  25. Slide 25: Unconsolidated Income Statement

    Earnings Presentation Bank-Only YE23 Unconsolidated Income Statement (TL thousand, %) 2022 3Q23 4Q23 2023 YoY QoQ Net Interest Income 70,326,695 12,827,095 21,275,628 41,356,873 (41.2%) 65.9% (Inc. Swap Cost) Swap Cost -3,388,468 -2,320,721 -7,317,214 -10,598,201 212.8% 215.3% Net Fee & Com. Income

  26. Slide 26: For Earnings Presentations: Investor Relations

    For Earnings Presentations: A member of BIST Sustainability Index Investor Relations Finanskent Mahallesi Finans Caddesi No:40/1 Ümraniye / İstanbul E-mail: investorrelations@vakifbank.com.tr Tel (90-216) 724 2685 Fax (90-216) 724 3941 www.vakifbank.com.tr Disclaimer Notice: This report has been pre

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