Sekerbank T.a.s. · BIST:SKBNK
Sekerbank T.a.s — Q3 2020 Earnings Presentation
36 slides from Sekerbank T.a.s's earnings presentation, Sep 30, 2020
Slide 1: Şekerbank T.A.Ş. Financial Results as of 30.09.2020
Şekerbank T.A.Ş. Financial Results as of 30.09.2020
Slide 2: Table of Content
Table of Content 1. Şekerbank At a Glance 2 2. 8 3. 2. Balance Sheet Structure and Asset Quality 8 21 3. Funding Structure and Liquidity 15 5. 25 6. 4. Income Statement and Profitability 28 21 5. Capital Adequacy 25 6. Digital Transformation Program 28 1
Slide 3: Şekerbank at a Glance
Table of Content Şekerbank at a Glance 1. Şekerbank At a Glance 2 2. Balance Sheet Structure and Asset Quality 8 3. Funding Structure and Liquidity 15 4. Income Statement and Profitability 21 5. Capital Adequacy 25 6. Digital Transformation Program 28
Slide 4: 67 years of Experience in Community Banking
67 years of Experience in Community Banking Şekerbank was founded in 1953 by hundreds of thousands of sugar beet cooperative members to finance sustainable agriculture, the sugar industry and rural development. Shareholder Structure as of 30.09.2020 0,09% Other 33,30% Şekerbank T.A.Ş. Voluntary Pens
Slide 5: Milestones
Milestones ECOloan: A first of its kind in Turkey to finance energy efficiency Initiated ‘Social and Environmental Impact Analysis’ on loans Founded as the One of the first public First Bank in Turkey A founding signatory of Turkey’s first 5-year ‘Sugar Beet offerings in the which receive a ‘The Pri
Slide 6: Deep-rooted and Widespread Branch Network
Deep-rooted and Widespread Branch Network Trakya Region 238 branches (33 Branches) Karadeniz Region throughout Turkey Marmara Region (28 Branches) (in 67 cities and (37 Branches) 90 rural districts) İç Anadolu Region Most of Şekerbank (38 Branches) branches have had the samelocation for over Ege Reg
Slide 7: Continous Focus on Community Banking
Continous Focus on Community Banking Covered Bond Family Farming EKOkredi Issued in 2011 as a first Banking covered bond in Turkey and EKOkredi, launched in 2009, also the first Turkish lira In order to mitigate rural-to-urban is a first of its kind to denominated borrowing migration in line with th
Slide 8: Key Financial Highlights
Key Financial Highlights 30.09.2020 (TRY MM) Bank-only Consolidated Total Assets 36.387 37.959 Gross Loans 24.972 26.245 SME Loans / Total Loans 52,88% 51,89% Customer Deposits 29.235 28.454 Loan / Deposit Ratio 85,42% 92,24% Total Capital 3.307 3.360 Tier I Ratio 8,98% 8,52% Capital Adequacy Ratio
Slide 9: Balance Sheet Structure and Asset Quality
Balance Sheet Structure and Asset Quality
Slide 10: Balance Sheet Structure
Balance Sheet Structure Total Assets (TRY MM) Total Liabilities and Equity (TRY MM) TL dominated loan structure Solid and broad-based deposit structure 37.959 Loans Breakdown 37.959 Deposits Breakdown 0,07% 7,30% 4,52% 10,07% 17,93% 5,71% 13,35% 14,12% 51,89% 40,81% 13,51% 82,07% SME Retail Time Dem
Slide 11: Loan Structure
Loan Structure Loan Growth (TRY MM) 22.492 23.912 21.957 21.705 20.769 20.897 20.637 21.936 5.919 6.020 5.473 5.207 5.794 5.848 5.986 5.984 2018 YE 2019 Q1 2019 Q2 2019 Q3 2019 YE 2020 Q1 2020 Q2 2020 Q3 Cash Loans Non-Cash Loans Net Loans in Local & Foreign Currency and Total Loans (TRY MM) 23.912
Slide 12: Cash Loan Structure
Cash Loan Structure Cash Loans Breakdown by Sector (%) 16,71% Manufacturing 6,45% Wholesale and retail trade 15,82% 3,01% Agricultural 4,55% Construction Services 10,49% Tourism 13,00% Transportation and telecommunication Financial institutions 12,93% 17,04% Other Cash Loan Breakdown by Segments (%)
Slide 13: Loans and Provision Coverage Ratios (Bank Only)
Loans and Provision Coverage Ratios (Bank Only) Total Provisions / Gross Loans Stage I Loans to Gross Loans 0,70% 0,72% 0,69% 0,75% 0,75% 0,60% 0,63% 0,63% 2018 YE 2019 Q1 2019 Q2 2019 Q3 2019YE 2020 Q1 2020 Q2 2020 Q3 2018 YE 2019 Q1 2019 Q2 2019 Q3 2019 YE 2020 Q1 2020 Q2 2020 Q3 Stage I Loan Rati
Slide 14: Asset Quality (Bank-Only)
Asset Quality (Bank-Only) NPL Exposure 9,31% 8,88% 8,24% 7,17% NPL 2019 YE NPL 2020 Q3 3,77% (TRY MM) Addition Collection (TRY MM) 2.849 2.796 2.734 2.607 2.849 411 2.607 1.180 2018 YE 2019 YE 2020 Q1 2020 Q2 2020 Q3 170 Total NPL (TRY MM) NPL/Total Assets Hard Collateralisation NPL Ratio 77,05% 72,
Slide 15: Securities
Securities Composition by Type (MM TL) 4.092 3.596 3.709 3.584 3.588 4.471 4.637 4.985 2,09% 2,09% 1,91% 1,31% 0,94% 1,21% 0,72% 0,68% 14,12% 14,58% 16,24% 17,83% 16,66% 19,69% 21,06% 22,49% 83,79% 83,33% 81,85% 80,86% 82,39% 79,10% 78,21% 76,83% 2018 YE 2019 Q1 2019 Q2 2019 Q3 2019 YE 2020 Q1 2020
Slide 16: Funding Structure and Liquidity
Funding Structure and Liquidity
Slide 17: Funding Overview
Funding Overwiev Diversified Funding Source Base (TRY MM) 32.965 33.934 32.607 31.482 32.045 32.715 34.583 37.959 1.717 1.245 1.639 2.167 1.606 1.276 1.501 1.592 2.365 1.512 2.120 5.361 2.453 2.180 1.961 1.992 2.169 5.273 5.757 5.199 4.542 5.434 5.965 4.484 28.715 22.941 24.567 23.952 24.042 23.698
Slide 18: Loan / Deposit Ratio
Loan / Deposit Ratio Total Gross Loan / Customer Deposit Ratio 105,39% 101,92% 99,70% 99,14% 98,84% 97,57% 95,89% 92,24% 97,89% 95,19% 92,48% 91,84% 91,63% 89,35% 88,95% 85,42% 2018 YE 2019 Q1 2019 Q2 2019 Q3 2019 YE 2020 Q1 2020 Q2 2020 Q3 Bank-Only Consolidated TRY Gross Loan / Customer Deposit Ra
Slide 19: Liquidity Overview
Liquidity Overview Liquidity Coverage Ratio (TL +FC) 191,45% 177,88% 180,18% 134,38% 141,35% 163,38% 129,10% 129,46% 128,64% 123,07% 126,43% 122,49% 112,80% 115,53% 112,16% 119,58% 90% 100% 100% 100% 100% 100% 100% 100% 2018 YE 2019 Q1 2019 Q2 2019 Q3 2019 YE 2020 Q1 2020 Q2 2020 Q3 LCR (TL + FC) (B
Slide 20: Deposit Structure
Deposit Structure Deposit Structure and Durations TL + FC Customer Time Deposit 12,86% TL+FC Customer Time Deposit Segment Base (Monthly Average) 24,56% 9,22% Retail Below 500.000 TL 1,72% 50,89% Corporate & Commercial 500.000-1M TL 36,25% Above 1M TL SME 64,50% Agriculture Total customer deposits
Slide 21: Borrowings
Borrowings Balanced mix between retail and institutional funding through covered bonds, loans from IFIs, subordinated loans, trade finance and syndicated borrowings Proven Access to Diversified Sources of Funding Recent Issuances Summary June 2017: USD 85MM Tier 2 Private Placement Ratings Overvie
Slide 22: Income Statement and Profitability
Income Statement and Profitability
Slide 23: Profit and Loss
Profit and Loss Income Statement (TRY MM) 2019 Q3 2020 Q3 Interest Income 3.292 2.425 Interest Expense 2.481 1.208 Net Interest Income 811 1.216 Net fees and Commisions Income 281 188 Personnel Expenses 409 415 Dividend Income 1 0 Net Trading Income/Loss (94) (19) Other Operating Income 245 156 Tota
Slide 24: Revenues In Detail
Revenues In Detail Net Interest Income / Margin Net Interest Income (TRY MM) Net Interest Margin (%) 3.292 2.425 7,55% 6,81% 6,28% 1.216 5,53% 811 4,07% 4,60% 3,27% 3,57% 7,20% 6,59% 5,30% 6,14% 3,77% 4,27% 2,80% 3,22% 1.208 2.481 2019 Q3 2020 Q3 2018 YE 2019 Q1 2019 Q2 2019 Q3 2019 YE 2020 Q1 2020
Slide 25: Ratios
Ratios Cost to Income Ratio (Bank-only) 79,40% 79,76% 64,15% 64,79% 63,05% 62,21% 55,49% 56,48% 2018 YE 2019 Q1 2019 Q2 2019 Q3 2019 YE 2020 Q1 2020 Q2 2020 Q3 Cost of Risk (Bank Only) 4,30% 3,39% 3,12% 2,73% 2,00% 1,53% 1,50% 1,22% 2018 YE 2019 Q1 2019 Q2 2019 Q3 2019 YE 2020 Q1 2020 Q2 2020 Q3 24
Slide 26: Capital Adequacy
Capital Adequacy Sekerbank
Slide 27: Capital Adequacy Overview
Capital Adequacy Overview Tier 1 & Capital Adequacy Ratios (%) Bank-only Consolidated 15,14% 14,33% 13,47% 13,31% 13,86% 13,40% 13,41% 13,52% 13,88% 12,87% 13,11% 12,65% 12,51% 12,48% 12,46% 12,68% Min. 12% CAR Recommendation 11,25% 10,72% 9,64% 9,83% 9,35% 9,18% 9,00% 9,03% 8,98% 9,09% 9,12% 8,80%
Slide 28: Capital Adequacy Overview
Capital Adequacy Overview Risk Weighted Assets (MM TL) & Leverage Ratio (%) Bank-only Consolidated 6,41% 5,95% 5,57% 5,80% 5,60% 6,27% 5,78% 5,42% 5,55% 5,38% 5,08% 4,87% 5,31% 5,08% 4,86% 4,71% 26.727 25.647 25.518 25.639 24.656 23.828 23.921 23.833 24.785 24.753 24.146 24.716 22.938 22.849 22.416
Slide 29: Digital Transformation Program
Digital Transformation Program
Slide 30: We launched a comprehensive Transformation Program in July 2018
We launched a comprehensive Transformation Program in July 2018 for sustainable, profitable and strong growth
Slide 31: The main goal of the Transformation
30 The main goal of the Transformation is to move Sekerbank forward in four main areas Rebuilding processes and digital channels Improving asset quality Accelerating growth Establishing a lean and effective organization
Slide 32: We invest in our key capabilities to sustain value
Advanced customer analytics Cost excellence We invest in our key capabilities to Asset quality and risk management Sustainable value sustain value creation creation Digitalization and process excellence HR capabilities IT and data infrastructure 31 31 31
Slide 33: Strategy and Transformation Program
Strategy and Transformation Program Strategic Focus Areas SME Focus Broad-based Retail Deposit Focus Prioritizing Small Business and Agricultural Banking while Enhancing the widespread and solid deposit structure by increasing productivity in Large SMEs further diversifying the funding structure Sus
Slide 34: Key Pillars of Digitalization
Key Pillars of Digitalization Fast and lean processes Seamless customer experience with new omnichannel structure Mobile RM in order to reach out to rural community more effectively Sales support with analytical models Effective credit origination, monitoring and control based on analytical models P
Slide 35: Contact Details
Contact Details Sekerbank T.A.Ş. Zeki Önder Executive Vice President Tel: +90 212 344 07 36 zeki.onder@sekerbank.com.tr Financial Institutions, Structured Finance & Investor Relations Oya Sarı Head of Financial Institutions, Structured Finance and Investor Relations Tel: +90 212 319 71 58 oya.sari@s
Slide 36: Legal Notice For Investors
Legal Notice For Investors The information in this document has been obtained by Sekerbank T.A.Ş. (“Sekerbank”) from sources believed to be reliable. However, Sekerbank cannot guarantee the accuracy, completeness or correctness of such information. This document has been issued for information purpo