Turkiye Sinai Kalkinma Bankasi A.s. · BIST:TSKB

Turkiye Sinai Kalkinma Bankasi A.s — Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — Q1 2018 Earnings Presentation

22 slides from Turkiye Sinai Kalkinma Bankasi A.s's earnings presentation, 2018

  1. Slide 1: Investor Presentation 1Q2018 – BRSA Bank only Results

    Created with a trial version of Syncfusion Essential PDF Investor Presentation 1Q2018–BRSA Bank only Results

  2. Slide 2: Key Highlights

    Key Highlights Privately owned Development Integrated Business Model with Access to Turkish Treasury and Investment Bank Sustainability Principles guaranteed funding policy Long lasting relationships with Solid capital structure and Strong risk management with Development Finance conservative match-

  3. Slide 3: TSKB @ a Glance

    TSKB @ a Glance Overview Ratings  First and only Private Development Bank in Turkey TSKB Turkey  TRY 31.4 bn asset size  377 employees, 2 branches Fitch LTFC BB+ BB+  15th bank in terms of Asset size Moody’s LTIR Ba3 Ba2  3.6% market share in LTFC corporate loans  TRY 2.7 bn MCAP* Corporate Go

  4. Slide 4: Sustainability is Core to Our Activities

    Sustainability is Core to Our Activities Support for employment along Financing for renewable with economic priorities of Turkey energy projects Environmental risk TSKB for Turkey’s Support for low evaluation for all sustainable carbon investment growth economics projects Responsible and Energy and

  5. 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 – industrial  Strategic financial consultancy – LT  Manages own securities portfolio investments, energy and resource efficiency, partnership to s

  6. Slide 6: Financial Highlights

    Financial Highlights Sustainable Profitability & Net Interest Margin TL mn 161 159  1Q-18 profit TL 158.9 mn , 11% higher than 4Q-17 151 146 4.5%  RoE @ 17.4%, 5-years average @ 18% 143 4.1% 3.6% 3.8%  NIM@ 4.1% 3.8%  C/I ratio @ 13.3% 1Q-17 2Q-17 3Q-17 4Q-17 1Q-18 Net Income Quarterly NIM USD m

  7. Slide 7: Banking Sector vs TSKB

    Banking Sector vs TSKB CAR Loans/Assets NPL 16.6% 76.2% 2.8% 16.1% 66.9% 0.2% Banking Sector TSKB Banking Sector TSKB Banking Sector TSKB Cost to Income NIM ROE 38.0% 17.4% 4.3% 4.1% 14.4% 13.3% Banking Sector TSKB Banking Sector TSKB Banking Sector TSKB * Sector data as of March 31, 2018 Long Term

  8. Slide 8: Asset composition

    Asset composition TL mn Total assets increased by 24% (yoy) Growth (FX adj.) QoQ YoY 9% (qoq) 31,393 3%3% Loans 2.0% 12.6% 29,011 3% 6% 3% Securities&Other 10.8% 4.7% 4% 4% 25,412 15% 3% Total Assets 3.8% 10.8% 7% 6% 16% 16 % 7% 16 FX Assets 3.8% 9.9% 17% 7% 7% % TL Assets 2.1% 11.8% 7% IEA; %97 69%

  9. Slide 9: Diversification of the funding mix continues

    Diversification of the funding mix continues USD mn Funding / Total Liabilities (exc equity) 5,797 6,493 6,838 Repo &Money Market 7% 6% 5% Total Funding: USD 6,838 mn Securities Issued 17% 15% 19% Subordinated Debt 5% 5% 4% • 88% of the Total Funding is Long 6% 6% Syndication & P/N etc. 9% 11% Term

  10. Slide 10: Long Term DFI Funding

    Long Term DFI Funding Outstanding DFI Funding Base Yearly Multilateral Funding Agreements USD mn IBRD 36% EIB 29% KFW 14% 986 IDB 7% 660 733 CEB 4% 82% of DFI Funding 463 340 AFD guaranteed by 160 4% IFC 2017 Turkish Treasury 2012 2013 2014 2015 2016 2017 2% 1Q-18 EBRD 2% JBIC 1% OEB 0% DFI Funding

  11. Slide 11: Outstanding Project Themes

    Outstanding Project Themes Social Infrastructure: Midcap Health, Education & Capacity Clean Transportation Building Energy and Resource Efficiency Renewable Energy Environmental Industrial SME Support Pollution Abatement Development in Industry Climate Change Sustainable Tourism Research & Developme

  12. Slide 12: Solvency is well above its required levels

    Solvency is well above its required levels Total Risk Weighted Assets TL mn Market Risk 200 12% Equity Movement ytd Operational Risk 1,539 31.12.2017 - Equity 3,535 31,452 IAS 27 Impact 101 Credit Risk 01.01.2018 – Equity 3,636 29,712 Cash Dividend -110 MtM Gains/Losses -32 Capital Adequacy Ratio CA

  13. Slide 13: Selective and lucrative lending

    Selective and lucrative lending Loans by Sector 7% 9% Electricity Production 34% 19% Loans by Loans by 47% Finance 14% Type Currency 44% 74% Logistics 9% Electricity/Gas 7% Distribution Investment Loans Construction 5% USD EUR TRY Working Capital Loans Metal and Machinery 5% 23,927 APEX Chemistry an

  14. 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 1.9 bn USD 7% 7% 6% 6% 5% 18% 22% 34% 32% 35% 3%  206 of 245 RE are in operation 9% 14% 17%  5,617 mw installed capacity is financed:, • 4,722 mw are in operation (8

  15. 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

  16. Slide 16: Well managed securities portfolio

    Well managed securities portfolio TL mn TL Securities Portfolio Breakdown 312 FX($) 322 Fixed Fixed 346 %35 %37 TRY All TL securities CPI CPI % 74 are funded by Linked 3,561 Linked 3,337 Free Equity %40 %63 %40 2,949 Floating Floating Floating %25 %23 4Q-17 1Q-18 1Q-17 4Q-17 1Q-18 Securities / Asset

  17. Slide 17: NIM widened further

    NIM widened further Annualized NIM Quarterly NIM 381 NIM NIM exc. CPI4.4% 4.1% 1Q-18 4.1% 3.8% 3.8% 16 3.6% bps 3.4% 2017 ytd 3.6% 3.7% 3.9% 3.4% 3.2% 3.2% 3.2% 2016 3.5% 4Q-16 1Q-17 2Q-17 3Q-17 4Q-17 1Q-18 407 407 407 407 Based on Adj Net Interest Income excluding valuation gain/loss. Quarterly and

  18. Slide 18: Another successful quarterly performance

    Another successful quarterly performance TL mn 1Q-17 4Q-17 1Q-18 QoQ YoY Flat NII, excluding CPI linkers Net Interest Income 210.4 280.9 267.7 -5% 27% Income Trading Income 9.9 32.3 24.8 -23% 150% Swap valuations&derivative trading Net Commissions 2.2 5.5 4.7 -15% 114% Dividend & Other 5.0 4.3 3.7 -

  19. Slide 19: Key Performance Indicators

    Key Performance Indicators ROAE ROAA Cost to Income 17.6% 18.4% 17.4% 15.0% 12.5% 13.3% 2.1% 2.3% 2.1% 2016 2017 1Q-18 2016 2017 1Q-18 2016 2017 1Q-18 CAR NIM Free Capital 17.1% 4.1% 16.1% 3.9% 10.3% 10.1% 9.5% 3.7% 14.9% 14.3% 3.5% 2016 2017 1Q-18 2015 2016 2017 1Q-18 2015 2016 2017 1Q-18 ROE; Annu

  20. Slide 20: 1Q18 Budget Performance

    1Q18 Budget Performance 2018YE GUIDANCE 1Q2018 RESULTS FX Adjusted Loan Growth 12-15 13(yoy) Loans/Assets Ratio ~77 76 Net Interest Income Growth ~15 27 Fees & Commissions Growth >20 61 OPEX Growth ~30 17 Net Interest Margin (adj.)* 3.6-3.8 4.1 Return On Equity ~18 17.4 Return On Assets ~2.2 2.1 Cos

  21. Slide 21: Balance Sheet

    Balance Sheet 31/12/2017 31/03/2018 (TL mn) TL FX TOTAL TL FX TOTAL Cash and Banks 11 843 854 8 1,329 1,329 Securities 3,342 1,208 4,550 3,561 1,235 4,797 Loans 2,143 20,151 22,294 2,129 21,799 23,928 Provisions - - - -29 -202 -232 Subsidiaries 587 28 610 590 33 623 Other 355 343 699 411 529 941 Tot

  22. Slide 22: TSKB Investor Relations

    TSKB Investor Relations ir@tskb.com.tr | www.tskb.com

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