Turkiye Sinai Kalkinma Bankasi A.s. · BIST:TSKB
Turkiye Sinai Kalkinma Bankasi A.s — Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — Q2 2017 Earnings Presentation
25 slides from Turkiye Sinai Kalkinma Bankasi A.s's earnings presentation, 2017
Slide 1: Investor Presentation 2Q2017 – BRSA Bank only Results
Created with a trial version of Syncfusion Essential PDF Investor Presentation 2Q2017 –BRSA Bank only Results
Slide 2: TSKB @ a Glance
TSKB @ a Glance Ownership Structure First and only Private Development Bank in Turkey TRY 25.8 bn asset size Free Float 368 employees, 2 branches İş Bank and Others Group 40.91% 17th bank in terms of Asset size 50.71% 3.3% market share in LTFC corporate loans TRY 3.4 bn MCAP* 59.1% of
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. 56% 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 151 141 132 117 118 110 1H-2017 profit TL 291.3 mn , 16.9% higher than 1H-16 RoE @ 19.1%, 5-years average @ 18.6% 3.9% 3.9% 3.8% 3.4% 3.6% NIM@ 3.8% 3.1% C/I ratio @ 14.5% 1Q-16 2Q-16 3Q-16 4Q-16 1Q-17 2Q-17 Net Inco
Slide 8: Banking Sector vs TSKB
Banking Sector vs TSKB CAR Loans/Assets NPL 17.5% 75.9% 16.9% 65.2% 3.2% 0.3% Banking Sector TSKB Banking Sector TSKB Banking Sector TSKB Cost to Income NIM ROE 19.1% 38.6% 3.9% 3.8% 16.0% 14.5% Banking Sector TSKB Banking Sector TSKB Banking Sector TSKB * Sector data as of June 17 Long Deposits; Te
Slide 9: Asset Composition
Asset Composition 7.5% TRY mn 25,412 25,794 Growth (FX adjusted) 24,002 3% 3% 7% 6% QoQ YTD YoY 3% 21,791 6% 3% 15% Loans 5.5% 9.3% 14.1% 16% 12% 19% 7% 8% Liquid Assets -10.9% -9.0% -26.9% 19% 5% Total Assets 2.1% 4.6% 1.3% 5% FX Assets 2.2% 3.7% 7.7% 67% 68% TRY Assets -0.1% 5.3% -14.5% 61% 67% Le
Slide 10: Funding Structure
Funding Structure USD mn 6,097 6,203 5,797 Total Funding: 1,002 USD 6,203 mn Repo &Money Market 999 704 Securities Issued 506 520 508 Subordinated Debt 87% of the Total Funding is Long Syndication & P/N etc. Term Unguarenteed DFI Funding 3,571 3,548 3,625 T. Guarenteed DFI Funding FX Short term fund
Slide 11: Long Term DFI Funding
Long Term DFI Funding Outstanding Funding Base IBRD 39% 88% of DFI Funding EIB 31% guaranteed by KFW 10% Turkish Treasury IDB 8% CEB 4% IFC 2% AFD 2% 2016 EBRD 1% 1H-17 CITI 1% OEB 1% DFI Funding - 2016 Amount Theme JBIC 0% EIB 100 mio EUR SME and Midcap EIB 100 mio EUR Energy and Environment AFD 10
Slide 12: Shareholders' Equity
Shareholders’ Equity Equity Capital Adequacy Ratio TRY mn 17.4% 17.5% CAR 14.9% 3,182 Tier I 14.3% 2,928 2,991 2,489 2,288 14.0% 13.5% 12.2% 12.5% 2014 2015 2016 1Q-17 2Q-17 2015 2016 1Q-17 2Q-17 Equity Movement Risk Weighted Assets TRY mn TRY mn Credit Risk Operational Risk Market Risk 291,3 3,182
Slide 13: Loan Portfolio
Loan Portfolio Loans by Sector Loans by Type 62% Investment Loans Electricity Production 34% Finance 15% 32% Working Capital Loans Electricity/Gas Distribution 8% Non-residential Real Estate 6% 6% APEX Metal & Machinery 5% Chemistry & Plastics 5% Loan Portfolio (mn USD) Constructon 5% FX adj g
Slide 14: 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 1.7 bn USD 7% 7% 6% 6% 6% 152 of 282 RE are in operation 18% 22% 34% 32% 33% 3% 5,541 mw installed capacity is 9% 14% 17% financed:, • 4,438 mw are in operation (8
Slide 15: 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 16: Robust Asset Quality
Robust Asset Quality 195 194 183 NPL Ratio TRY mn 178 179 171 145 0.6% 0.5% 0.4% 59 53 53 53 0.4% 0.4% 48 48 48 0.3% 0.3% 0.2% 0.2% 2009 2010 2011 2012 2013 2014 2015 2016 2Q17 4Q-15 1Q-16 2Q-16 3Q-16 4Q-16 1Q17 2Q17 Group II Loans NPL * Average NPL ratio for last 5 years is 0.3% TRY mn 4Q-15 1Q-16
Slide 17: Securities Portfolio
Securities Portfolio TRY mn By maturity Duration is 3.1 yrs in Fixed & Floating < 1 Year 1<3 3<5 >5 340 346 bonds, 4.8 yrs in CPIs. FX($) 344 342 64% is in AFS portfolio. 9% TRY % 70 13% 3% of TRY portfolio funded by repo 38% 3,213 2,840 2,949 2,830 Private sector bonds: 4% of total portfoli
Slide 18: Quarterly Income Breakdown
Quarterly Income Breakdown (TRY mn) 2Q-16 1Q-17 2Q-17 QoQ YoY Net Interest Income 159.1 209.0 205.7 -1.6% 29.3% NII; flat qoq, strong yoy Trading Income – Adj. -7.4 11.3 12.1 7.1% - Net Commissions 2.2 2.2 3.6 61.4% 65.0% Dividend & Other 24.4 5.0 14.5 189.7% -40.6% Dividend income from Is Leasing N
Slide 19: Cumulative Income Breakdown
Cumulative Income Breakdown Net Profit Net Interest Income Breakdown 1H-16 1H-17 25 48% 47% 54% 18 12 6 30 5 52% 53% 46% 1H-16 2016 1H-17 415 Loans Liquid Assets 333 Net Income Net Income 1H-17; 291 1H-16; 249 Commission Income Breakdown-Gross TRY mn 6.1 11.9 9.3 3% 5% 12% OPEX; -60 OPEX; -67 Provis
Slide 20: Net Interest Margin
Net Interest Margin Annual NIM Quarterly NIM 3.9% 3.9% 3.9% 3.8% 3.7% 3.8% 3.6% 3.6% 3.4% 3.6% 3.5% 3.5% 3.1% 3.1% 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16 3Q-16 4Q-16 1Q-17 2Q-17 2015 2Q-16 2016 2Q-17 19 Based on Adj Net Interest Income excluding valuation gain/loss. Quarterly and Annual Adj. Net Intere
Slide 21: Key Performance Indicators
Key Performance Indicators ROE ROAA Cost to Income 15.8% 18.9% 19.1% 14.3% 15.0% 14.5% 17.0% 17.6% 2.2% 2.3% 2.1% 2.3% 2015 2Q-16 2016 2Q-17 2015 2Q-16 2016 2Q-17 2015 2Q-16 2016 2Q-17 Free Capital Interest Income/AIEA Interest Expense/AIBL 10.7% 10.3% 10.4% 6.6% 7.0% 10.1% 6.3% 6.5% 3.0% 3.1% 3.2%
Slide 22: Appendix: 2017 Forward Looking Expectations
Appendix: 2017 Forward Looking Expectations (%) 2017 Guidance FX Adjusted Loan Growth 10-13 Loans/Assets Ratio 70 Net Interest Income Growth >12 Net Fees & Commissions Growth >20 Net Interest Margin >3.5 Return On Equity 17-18 Return On Assets ~2.0 Cost/Income Ratio 15-16 OPEX Growth 13 Capital Adeq
Slide 23: Appendix: Balance Sheet
Appendix: Balance Sheet 30/06/2016 31/12/2016 30/06/2017 (TRY mn) TRY FX TOTAL TRY FX TOTAL TRY FX TOTAL Cash and Banks 1,489 1,069 2,558 240 856 1,096 265 833 1,098 Securities 3,100 1,016 4,115 3,214 1,188 4,402 2,831 1,196 4,027 Loans 1,675 12,574 14,279 1,280 16,042 17,322 1,974 17,612 19,586 Sub
Slide 24: Appendix: Quarterly Income Breakdown
Appendix: Quarterly Income Breakdown Change Change (TRY mn) 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16 3Q-16 4Q-16 1Q-17 2Q-17 QoQ YoY Adj. Net Interest 136 152 142 185 181 153 183 201 220 218 -1.2% 42.6% Income Net Commisions 2 3 4 3 1 1 1 1 2 4 61.4% 202.4% Dividend Income 13 20 0 0 9 21 0 0 3 15 382.2%
Slide 25: TSKB Investor Relations
TSKB Investor Relations ir@tskb.com.tr | www.tskb.com
Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — Q2 2017 Earnings Presentation on 6ix