Turkiye Vakiflar Bankasi Turk Anonim Ortakligi · BIST:VAKBN

Turkiye Vakiflar Bankasi Turk Anonim Ortakligi — Türkiye Vakıflar Bankası T.A.O. (VakıfBank) — Q1 2020 Earnings Presentation

26 slides from Turkiye Vakiflar Bankasi Turk Anonim Ortakligi's earnings presentation, May 8, 2020

  1. Slide 1: Earnings Presentation BRSA Bank-Only 1Q 2020

    Earnings Presentation BRSA Bank-Only 1Q 2020 May 8, 2020

  2. Slide 2: 1Q20 Earnings and Ratios

    INVESTOR RELATIONS Earnings Presentation Bank-Only 1Q20 1Q20 Earnings and Ratios Net Income (TL million) Further Strengthened Coverage Ratios (%) 163.5% Stage II Total Coverage Coverage Ratio Ratio 1,716.2 7.30 93.34 1,280.3 34.0% 5.88 90.35 142 bps 299 bps 651.2 4Q19 1Q20 4Q19 1Q20 1Q19 4Q19 1Q20 Q

  3. Slide 3: Key Highlights of 1Q20

    INVESTOR RELATIONS Earnings Presentation Bank-Only 1Q20 Key Highlights of 1Q20 A strong start to 2020 with good level of profitability • Quarterly bank-only net income came at TL 1,716 million; one of the highest among peer banks.  Quarterly net income is up by 34% QoQ vs. sector average of 14.2%,

  4. Slide 4: 1Q20 P&L Details

    INVESTOR RELATIONS Earnings Presentation Bank-Only 1Q20 1Q20 P&L Details 1,657* 7,097* (1,850)* 1,021 151 (642) 4,908 (3,118) 1Q20 (412) 1,716 Net Interest Net Fees and Dividend Net Trading Other Income Total Operating Provisions Taxes Net Income Income Commissions Income Income Revenue Expenses % v

  5. Slide 5: High quality revenue breakdown

    INVESTOR RELATIONS Earnings Presentation Bank-Only 1Q20 High quality revenue breakdown Total Revenues* – Revenue Breakdown (TL million) 47.1% Dividend Other+Trading* Dividend Other+Trading* 0.0% 2.1% 14.3% 31.1% 7,097 Net F&C Net F&C 4,823 14.4% 1Q19 1Q20 20.3% NII NII 69.2% 48.6% 1Q19 1Q20 Core Ban

  6. Slide 6: Solid start to the year with strong NIM

    INVESTOR RELATIONS Earnings Presentation Bank-Only 1Q20 Solid start to the year with strong NIM Net Interest Margin (NIM %) Swap Adjusted Net Interest Margin (%) 195 bps 186 bps 5.38 5.17 4.14 4.40 4.48 3.22 3.07 2.62 1Q19 4Q19 2019YE 1Q20 1Q19 4Q19 2019YE 1Q20 TL Core Spreads (%) FC Core Spreads (%

  7. Slide 7: Net Fee&Commission Income

    INVESTOR RELATIONS Earnings Presentation Bank-Only 1Q20 Net Fee&Commission Income Net Fee & Commission Income (TL million) – Fee Breakdown 4.4% Insurance Inquiry & Expertise Insurance 11% 8% 1,021.3 13% Inquiry & Expertise 978.6 Cash Loans 8% 43% Other Other 4% 2% Payment 1Q19 Cash Loans 1Q20 system

  8. Slide 8: Further improved cost/income ratio

    INVESTOR RELATIONS Earnings Presentation Bank-Only 1Q20 Further improved cost/income ratio Operating Expenses (TL million)* Breakdown of OPEX* 19.5% 950 943 940 3 branches have been closed in One-off donation 1Q19 2019 1Q20 1Q20 to Covid-19 1,850 campaign impact: 1,772 +3.2 ppt on annual opex 4.4% g

  9. Slide 9: Well diversified & stable loan breakdown

    INVESTOR RELATIONS Earnings Presentation Bank-Only 1Q20 Well diversified & stable loan breakdown Segment Breakdown of Loans (TL billion) Currency Breakdown of Loans (TL billion) Portfolio Breakdown (%) 312.0 312.0 SME 25.8 24.1 16.3 274.8 274.8 Retail 23.5 23.8 246.3 250.0 16.3 75.3 15.2 246.3 250.0

  10. Slide 10: Breakdown of loan portfolio

    INVESTOR RELATIONS Earnings Presentation Bank-Only 1Q20 Breakdown of loan portfolio Sector Breakdown of Cash Loans Breakdown of Construction Loans Manufacturing Retail Loans 18.0% 19.9% Stage II Stage III TL 3.0 billion TL 8.3 billion Construction Other (inc. 10.1%  Limited concentration 8.6% in re

  11. Slide 11: Provisioning levels further increased proactively

    INVESTOR RELATIONS Earnings Presentation Bank-Only 1Q20 Provisioning levels further increased proactively NPL (TL million)* Net Cost of Risk* (bps) 1,943 421 421 1,784 360 331 Gross CoR 17,314 17,473 264 228 219 193 NPL 4Q19 New NPL Collections NPL 1Q20 5.93 The impact 4.60 4.74 5.30 of write-off NP

  12. Slide 12: Increased share of demand deposits on the back of higher business volumes

    INVESTOR RELATIONS Earnings Presentation Bank-Only 1Q20 Increased share of demand deposits on the back of higher business volumes Total Deposits (TL billion) Breakdown of Deposits 269.0 251.5 214.3 198.1 118.1 56% 108.0 44% 48% 52% $ 17.9 $ 18.1 97.7 Sector 89.5 $ 17.0 FC $ 15.9 TL TL Deposits FC De

  13. Slide 13: The highest amount of international funding provided YtD in Turkish banking sector

    INVESTOR RELATIONS Earnings Presentation Bank-Only 1Q20 The highest amount of international funding provided YtD in Turkish banking sector Breakdown of Wholesale Funding Local Bonds Other 2.1% In January 2020, VakıfBank issued a new Eurobond with an 8.0% Eurobond amount of USD 750 million, AT I Issu

  14. Slide 14: Solvency Ratios

    INVESTOR RELATIONS Earnings Presentation Bank-Only 1Q20 Solvency Ratios Capital Adequacy Ratio (%) CET I 10.39 10.49 10.55 10.48 9.77 1Q20 Required Tier I 12.23 13.98 13.81 13.59 12.69 Tier I level 9.52% 17.01 17.01 16.61 Solvency ratios without forbearances (% - 1Q20) 15.25 14.73 CAR 14.09 BRSA Rec

  15. Slide 15: Appendix

    INVESTOR RELATIONS Earnings Presentation Bank-Only 1Q20 Appendix Pg. 16 Further strenghtened sustainable banking approach in the global platforms Pg. 17 Precautions against Covid-19 pandemic Pg. 18 Effective and smooth utilization of digital platforms thanks to strong infrastructure Pg. 19 Compositi

  16. Slide 16: Further strengthened sustainable banking approach in the global platforms

    INVESTOR RELATIONS Earnings Presentation Bank-Only 1Q20 Further strenghtened sustainable banking approach in the global platforms Since 2015, VakıfBank have The first Turkish been reporting to the Carbon In 2020, in public institution Disclosure Project Bloomberg to sign the (CDP – Women’s Gender-Eq

  17. Slide 17: Precautions against COVID-19 pandemic

    INVESTOR RELATIONS Earnings Presentation Bank-Only 1Q20 Precautions against COVID-19 pandemic For our employees; For our customers;  Suspension of travels and cancellation of face-to-  TL 50 million donation to the Covid-19 related national campaign face meetings, trainings, customer visits and in

  18. Slide 18: Effective and smooth utilization of digital platforms thanks to strong infrastructure

    INVESTOR RELATIONS Earnings Presentation Bank-Only 1Q20 Effective and smooth utilization of digital platforms thanks to strong infrastructure Non-branch transaction Non-branch transaction # of transactions via mobile banking increased share as of March-end share as of April-end ~87% ~91% 42% in Apri

  19. Slide 19: Composition of asset&liabilities

    INVESTOR RELATIONS Earnings Presentation Bank-Only 1Q20 Composition of asset&liabilities Breakdown of Assets (%) TL/FC Mix in Total Assets Other 12.3 1Q20 Interbank 1.2 The share of IEA 36% 87.6% 64% 1Q20 Securities 19.2 in total assets 67.3 Loans FC TL Breakdown of Liabilities (%) TL/FC Mix in Tota

  20. Slide 20: Well balanced security portfolio

    INVESTOR RELATIONS Earnings Presentation Bank-Only 1Q20 Well balanced security portfolio Total Securities (TL million) Portfolio Structure 61.9% Breakdown of FC Securities 88,820  Share of Fixed: 100% 73,016 21.6% 33% 46,247 54,868 52% 47,015 ‘Share of total’ 64% 67% 6,523 40,930 7% 75% 2,298 Break

  21. Slide 21: Retail lending portfolio

    INVESTOR RELATIONS Earnings Presentation Bank-Only 1Q20 Retail lending portfolio General Purpose Consumer (TL billion) Residential Mortgages (TL billion) Credit Card Loans (TL million)* 32.7% 31.5% 21.1% 32.5 29.2 10,825 10,703 27.3 25.2 10,315 24.7 23.6 9,772 24.5 11.3% 8,836 21.1 19.2 19.0 6.7% 1Q

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

    INVESTOR RELATIONS Earnings Presentation Bank-Only 1Q20 Diversified funding sources via non-deposit funding Syndication Eurobonds USD 2.3 billion outstanding  Mar’20: USD 325 million bilateral loan with ICBC, 3 years maturity  Apr’20: USD 950 million equivalent syndicated loan, Libor +2.25%, USD 3

  23. Slide 23: Unconsolidated Key Financial Ratios

    INVESTOR RELATIONS Earnings Presentation Bank-Only 1Q20 Unconsolidated Key Financial Ratios 1Q19 2019YE 1Q20 Profitability ROAE 9.1% 9.1% 20.6% ROAA 0.8% 0.7% 1.6% Cost / Income 32.1% 35.8% 26.1% Cost / Assets 1.7% 1.6% 1.6% Fee / Cost 63.2% 60.1% 55.2% Liquidity Loans / Deposits 124.3% 109.2% 116.0

  24. Slide 24: Unconsolidated Balance Sheet

    INVESTOR RELATIONS Earnings Presentation Bank-Only 1Q20 Unconsolidated Balance Sheet 1Q19 2019YE 1Q20 TL USD (thousand) TL USD TL USD TL USD YoY QoQ YoY QoQ Cash & Balances with Central Bank 30,451,373 5,399,180 36,495,220 6,128,500 22,680,000 3,441,578 (25.5%) (37.9%) (36.3%) (43.8%) Interbank 5,54

  25. Slide 25: Unconsolidated Income Statement

    INVESTOR RELATIONS Earnings Presentation Bank-Only 1Q20 Unconsolidated Income Statement (TL-thousand, %) 1Q19 4Q19 1Q20 YoY QoQ Net Interest Income 2,344,772 4,597,974 4,908,397 109.3% 6.8% Net Fee & Com. Income 978,559 1,047,406 1,021,291 4.4% (2.5%) Dividend Income 1,337 135 151,402 11224.0% 11204

  26. Slide 26: For VakıfBank IR

    For Earnings For VakıfBank IR Presentations: Application: A member of BIST Sustainability Index Investor Relations Saray Mahallesi Dr. Adnan Buyukdeniz Cad. A1 Blok No: 7a Umraniye/Istanbul (Akyaka Park Mall) E-mail: investorrelations@vakifbank.com.tr Tel (90-216) 724 2685 Fax (90-216) 724 3941 www.

Türkiye Vakıflar Bankası T.A.O. (VakıfBank) — Q1 2020 Earnings Presentation on 6ix