Turkiye Sinai Kalkinma Bankasi A.s. · BIST:TSKB
Turkiye Sinai Kalkinma Bankasi A.s — Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — Q1 2024 Earnings Presentation
32 slides from Turkiye Sinai Kalkinma Bankasi A.s's earnings presentation, May 2024
Slide 1: Corporate Banking Investment Banking Advisory Services
Corporate Banking Investment Banking Advisory Services
Slide 2: TSKB at a Glance
TSKB at a Glance 4 Turkey tis Bank Group 40.2% Ly Ly) Gy Lyle oe Shareholding baae Z fakifban! Structure WM Fitch LTFC B B+ Free Float® & Other Moody’sLTIR B3 B3 SAHA Corporate 0.66/10 Governance Rating YY Sustainalytics ESG 6.9 Negligible Risk As of May 6 2024 Risk Rating yy ye, CORPORATE BANKING I
Slide 3: A Unique Business Model
A Unique Business Model = Long term tenor in liabilities: 11 years * Medium term in assets: 4.6 years = Diversified funding tools = Amortized loan book = Multi-disciplinary assessment during allocation = Sector specific research analysts during allocation and monitoring period = Strong collateraliza
Slide 4: Main Stakeholders of the Bank
Main Stakeholders of the Bank A trustworthy partner in; Large Corporates, MidCap Companies & SME's Its field experience Cooperation in various areas such as; corporate loans, investment banking activities and advisory services Ministry of Treasury and Finance Its capacity to introduce innovative the
Slide 5: Sustainability is Well Integrated into Our Business Model
Sustainability is Well Integrated into Our Business Model health and safety © Supporting less developed regions Support for employment in Turkey; ® Encouraging women participation to the economy ERB Support transition to low ye carbon economy © Providing financing to operational Environmental & Soci
Slide 6: TSKB Sustainability Journey
TSKB Sustainability Journey - | First Carbon Neutral Bank of Turkey Environmental Factor in Credit Appraisal Process Environmental Management System Yy coy 1980 1990 2005 2007 2008 2009 First Environmental Loans | + UNEP FI + ISO 14001 Certificate + Launch of www. cevreciyiz.com 0Og cevreciyiz. * ce
Slide 7: • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Slide 8: Revised Target
10 bn USD Revised Target 8 bn USD Target 38% Since 2021
Slide 9: 1Q-24 At a Glance
1Q-24 At a Glance Strong Profitability + Best-in-class ROE, QoQ flat net income generation Differentiating Business + NIM evolution in line with guidance Model + Maintained FX Loan Spread Further strengthened + USD 300 mn AT-1 issuance solvency, supporting our + CAR: 19.5%, Tier-I: 18.4% growth stra
Slide 10: Financial Guidance (Bank Only)
Financial Guidance 1Q-24 Figures YE-24 Guidance (Bank Only) % % Growth FX Adjusted Loan Growth 3 High Single Digit Profitability Net Interest Margin 5.7 ~6 Fees & Commissions Growth 104 > avg. CPI Return On Equity 34.7 ~40 Efficiency OPEX Growth 68 > avg. CPI Cost/Income Ratio 15.8 - Solvency* Capit
Slide 11: Robust Profitability Continues
11 Robust Profitability Continues Net Profit-TL mn Yearly ton ] Quarterly Qe 1,934 10-23 10-24 4-23 10-24 ROE 41.2% 34.7% 10-23 2023 10-24 Strong coverage base and free provision stock will support our profitability going forward
Slide 12: Banking Sector vs TSKB
Banking Sector vs TSKB CAR* 22.9% 17.0% Banking Sector TSKB *Reported figures Cost to Income 40.6% 15.8% Banking Sector TSKB Repo oc 5% Syndication Funds ° Borrowed 6 8% al Deposit rc) 64% Securities Issued z 3% 3 Subordinated bonds < Faulty Other) /and loans (ATI + Tier Ih 8% 2% AP Loans/Assets Tot
Slide 13: Syndication & Other DFI Funding Eurobond
-476 -570 -53 -400 -2,304 -650 -300 2024 2025 >=2026 Syndication & Other DFI Funding Eurobond Subordinated loan Money Market Funding
Slide 14: Long Term DFI Funding Base
Long Term DFI Funding Base Outstanding DFI Funding Base - 10-24 44.2% Yearly Multilateral Funding Agreements — USD mn 2016 2017 2018 2019 2020 2021 2022 2023
Slide 15: Outstanding Project Themes Shaping Future Loan Book
VS Outstanding Project Themes Shaping Future Loan Book Energy and Resource Efficiency Women’s Employment and Equal Opportunity Renewable Energy Midcap Financing Supporting Exporters Regional Development Supporting Employment Sustainable Agriculture Industrial Development Sustainable Tourism Occupati
Slide 16: Resilient Asset Composition
16 Resilient Asset Composition Asset Composition - TL bn 10-23 4Q-23 10-24 m Loans = Securities = Cash & MM mNon IEAs & Other 1Q-24 Loans by Currency TL; 7.7% Ve USD; 50.1% EUR; 42.2% Total Loans - TL bn Currency Loan Breakdown Growth 144.4 ha 130.1 ree >) 9% 8 ©6900 ° " oo 84.0 ' 91% 10-23 40-23 10
Slide 17: Risk Management Pillars
Risk Management Pillars Credit Risk * Monitoring the clients individually with analysing the financials * Preparing monitoring reports for the clients at least once a year * Keeping track of internal and external (if it is done) ratings of the customers, reviewing the internal ratings annually = Act
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Slide 19: Loan Sector Breakdown
Electricity Generation 34.5% Finance 10.8% Metal & Machinery 7.5% Tourism 7.1% Logistics 5.2% Health & Education 5.1% Construction & Construction Materials 4.9% Chemistry & Plastics 4.6% Electricity/Gas Distr. 4.2% Textile 3.1% Paper and Forestry Products 2.8% Food & Beverage 2.8% Other**
Slide 20: Renewable Energy Loans by Source
1.9 bn 1.9 bn 1.9 bn 1.9 bn 1.7 bn 1.6 bn 1.5 bn 6% 6% 7% 8% 11% 5% 5% 6% 15% 19% 9% 11% 12% 11% 37% 35% 37% 39% 36% 37% 35% 18% 19% 20% 19% 19% 19% 19% 35% 35% 31% 24% 23% 17% 16% 2018 2019 2020 2021 2022 2023 1Q-24 Hydro Geothermal Wind Biomass Solar • •
Slide 21: ✓ ✓ ✓ ✓ ✓ 126,444 1,139 13,732 4,258 4,186 3,260
✓ ✓ ✓ ✓ ✓ 126,444 1,139 13,732 4,258 4,186 3,260
Slide 22: Security Yields
Security Yields Excluding CPI CPI 80.4% 75.6% • 58.6% 57.7% 56.9% 47.8% 47.5% 42.8% 42.6% • 31.5% 18.8% 19.1% 18.9% 19.4% 19.9% 22.6% 17.3% 41.5% 1Q-22 2Q-22 3Q-22 4Q-22 1Q-23 2Q-23 3Q-23 4Q-23 1Q-24
Slide 23: Income Statement Highlights
Income Statement Highlights Net Interest Income 1,584 Trading Income 103 Net Fees & Commissions 64 Other Income (Inc, Dividend) 307 Banking Income 2,058 OPEX (-) 301 Net Banking Income 1,757 Provisions (-) 110 Income From Participations 180 Tax Provisions (-) 420 Net Profit 1,407 Based on MIS data 3
Slide 24: NIM stayed strong and in line with the guidance
NIM stayed strong and in line with the guidance Annualized NIM 7.0% 5.9% 2.4% = CPI Impact Ae Core NIM 4.6% 3.5% 1Q-23 4Q-23 5.7% 1.8% 3.9% 10-24 ¥ NiMevolution is in line with expectations (+) Maintained strong loan spread (-) Elevated QoQ swap costs () QoQ decline in CPHinker income 24 *IEA Evolut
Slide 25: Further strengthened solvency metrics support our growth plans
Further strengthened solvency metrics support our growth plans Capital Ratios Without BRSA Temporary Measures Evolution of RWA and Equity -TL bn 174.6 152.1 104.3 34.0 10-23 2023 10-24 — 2023 10-24 Tier | Ratio CAR =RWA sCoreEquity =Total Capital With BRSA Temporary Measures - CAR: 22.9% | Tier: 21.
Slide 26: 2S BS Q gf x
2S BS Q gf x
Slide 27: Balance Sheet
27 Balance Sheet val 31/03/2023 31/12/2023 31/03/2024 TK TOTAL TK TOTAL TK TOTAL Cash and Banks 2,060 3,448 5,508 7,427 7,699 15,126 10,236 5,554 15,789 Securities 10,310 10,986 21,295 12,177 15,663 27,839 16,208 17,707 33,915 Loans (Gross) 7,674 76,358 84,032 11,299 118,839 130,137 11,051 133,311 1
Slide 28: Detailed Income Statement
Detailed Income Statement TLmn 1Q-23 4Q-23 1Q-24 QoQ YoY Net Interest Incomeinc, Swap Cost 1,584 3,046 2,541 -17% 60% Net Interest Income 1,569 3,757 3,764 0% 140% CPI Linkers 672 942 837 -11% 25% Swap Costs 14 711 -1,223 72% nm. Net Commissions 64 166 130 -22% 104% Other Income 307 125 60 52% -80%
Slide 29: Appendix: ESG Rating
Appendix: ESG Rating U)sustainarvics Wepp Sustainalytics ESG Risk Rating CDP Climate Change Score Range 0-40+ A/D- Score 6.9 A- Negligible risk category Leadership First place in Turkiye 9 place among global (Ni. ) development banks | Tgp RATED | 29 Moopy’s Moody's ESG Credit Impact Score a5 2 Neutr
Slide 30: Appendix: Stage Loans Breakdown
30 Appendix: Stage 2 Loans Breakdown Stage 2 Loans Sector % Coverage (%) Tourism 42 4l Electricity Generation 21 11 Electricity/Gas Distribution 17 41 Non-residential Real Estate 7 30 Metal and Machinery 5 24 Telecom/Logistics 4 9 Automotive Supply Industry 3 20 Health 1 47 TOTAL 100 31 * Hard colla
Slide 31: Appendix: IEA Evolution
31 Appendix: IEA Evolution Interest Earning Assets 187 165 ; 10-23 40-23 10-24 mliquid assets msecurities = loans v Interest Earning Assets were up by 13% qogq, 73% yoy, which was driven by * High FX denomination * Growth strategy
Slide 32: DISCLAIMER
DISCLAIMER This presentation document is prepared for informational purposes only and contains certain forward-looking comments, opinions, and forecasts. These reflect the views of Turkiye Sinai Kalkinma Bankasi A‘S. ("TSKB") as of the date of this presentation and contain certain assumptions. Altho
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