Turkiye Sinai Kalkinma Bankasi A.s. · BIST:TSKB
Turkiye Sinai Kalkinma Bankasi A.s — Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — Q3 2018 Earnings Presentation
24 slides from Turkiye Sinai Kalkinma Bankasi A.s's earnings presentation, 2018
Slide 1: Investor Presentation 3Q-2018 BRSA Bank only Results
Created with a trial version of Syncfusion Essential PDF Investor Presentation 3Q-2018–BRSA Bank only Results
Slide 2: Distinctive Banking Model
Distinctive Banking Model Privately owned Development Integrated Business Model with Access to Turkish Treasury and Investment Bank Sustainability Principles guaranteed funding policy Long lasting relationships with Strong risk management Development Finance Solid capital structure with well below I
Slide 3: TSKB at a Glance
TSKB at a Glance Overview Ratings First and only Private Development Bank in Turkey TSKB Turkey TRY 43.6 bn asset size 375 employees, 2 branches Fitch LTFC B+ BB 13th bank in terms of Asset size Moody’s LTIR B2 Ba3 3.0% market share in LTFC corporate loans TRY 2.0 bn MCAP* Corporate Gove
Slide 4: Main Business Lines supporting the Bank's mission
Main Business Lines supporting the Bank’s 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, part
Slide 5: Main highlights from 3Q18
Main highlights from 3Q18 Sound liquidity maintained during times of volatile markets $970mn unutilized funds Further new DFI agreements expected Sound liquidity position NIM 4.1% Stable blended FX cost of funding Eurobond issuance in January High collection rate ROAE 17.6% Surge in the
Slide 6: Banking Sector vs TSKB
Banking Sector vs TSKB CAR Loans/Assets NPL 77.1% 18.1% 17.9% 64.1% 3.1% 2.0% Banking Sector TSKB Banking Sector TSKB Banking Sector TSKB Cost to Income NIM ROE 33.8% 17.6% 4.1% 14.2% 3.9% 11.4% Banking Sector TSKB Banking Sector TSKB Banking Sector TSKB * Sector data as of September 30, 2018 Long T
Slide 7: Strong Asset Growth
Strong Asset Growth TL mn Total assets increased by 60% (yoy) Growth (FX adj.) 24% (qoq) QoQ YtD YoY 43,553 Loans -3.7% 0.4% 2.1% 3% 7% Securities&Other 11.0% 30.7% 30.2% 12% 3% Total Assets 0.8% 6.2% 7.5% 28,994 6% 6% FX Assets 0.8% 1.6% 2.4% 3% 14% 3% 4% TL Assets 0.3% 21.2% 23.5% 5% 16% 8% 16% IE
Slide 8: Diversification efforts pay off with new funding agreements
Diversification efforts pay off with new funding agreements Total Funding: $6,387 mn • 93% of the Total Funding is Long Term World Bank Loan DFI Funding / • Short term funding: 7% Agreement LT Funding (including syndication, Repo & Money Market) $400 mn 73% Funding / Total Liabilities (exc equity) U
Slide 9: Long Term DFI Funding
Long Term DFI Funding Outstanding DFI Funding Base Yearly Multilateral Funding Agreements USD mn IBRD 37% EIB 28% 986 KFW 13% 660 733 600 IDB 82% of DFI Funding 463 7% 340 guaranteed by 160 CEB 5% Turkish Treasury 2012 2013 2014 2015 2016 2017 2018 AFD 4% 2017 IFC 2% 3Q-18 EBRD 2% DFI Funding - 2017
Slide 10: Outstanding Project Themes
Outstanding Project Themes Social Infrastructure: Midcap Health, Education & Capacity Clean Transportation Building Energy and Resource Efficiency Renewable Energy Environmental Industrial SME Support Pollution Abatement Development in Industry Climate Change Sustainable Tourism Research & Developme
Slide 11: Robust solvency metrics
Robust solvency metrics Capital Adequacy Ratio 17.0% 17.9% * Equity Movement (TL mn) 15.2% 31.12.2017 - Equity 3,535 Cash Dividend -110 12.0% MtM Gains/Losses -45 8% Deferred Tax 34 Net Profit 491 30.09.2018 - Equity 3,905 CAR Evolution 17.9 421 bps Liquidity Coverage Ratio* -230 bps 38 bps 33 bps 1
Slide 12: Selective lending book
Selective lending book Total Loans mn Loans/Assets: 77% 3.6% Loans in TL (bn) 1.8% 1.8% 2.3% 33.6 -3.7% 22.3 50% 5,269 5,370 5,561 5,328 5,250 3,022 2,099 2,193 2,178 2,493 2017 3Q-18 3Q-17 4Q-17 1Q-18 2Q-18 3Q-18 FX Loans ($) TRY Loans QoQ FX Adjusted Growth Performing Loans by Currency & Type Aver
Slide 13: Sectoral exposures under focus
Sectoral exposures under focus includes APEX loans which account for 9 Ports, telecom, percent of the loan logistics book 33% 11% 10% 10% 8% 5% 5% 5% 4% 4% 4% 2% 50% Energy and Resource Efficiency Mainly Exporters 85% renewable energy portfolio All in feed in tariff * Food: 4% Automotive
Slide 14: Renewable Energy and Energy&Resource Efficiency
Renewable Energy and Energy&Resource Efficiency Renewable Energy Portfolio (Outstanding) ($) 1.3 bn 1.4 bn 1.5 bn 1.6 bn 1.9 bn 1.9 bn 7% 7% 6% 5% 6% 5% 5% 18% 22% 34% 32% 35% 3% 38% 232 of 288 RE are in operation 9% 14% 17% 6,056 mw installed capacity is financed:, 17% • 5,134 mw are in operati
Slide 15: Feed-in Tarriff Mechanism for RE Projects
Feed-in Tarriff Mechanism for RE Projects Guaranteed Sales Prices & Incentives for Local Equipments Guaranteed Sale Price Incentives for Local Equip. 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
Slide 16: Prudent loan classification under IFRS 9
Prudent loan classification under IFRS 9 30.06.2018 Net Cost of Risk: Gross Amount Share in Total Coverage Ratio Provisions (-) TL Mn. 109 bps Stage 1 24,885 91.3% 0.2% 62 Existing Free provisions amount Stage 2 1,848 6.8% 12.8% 238 TL 130 Mn. Stage 3 520 1.9% 24.1% 124 Cost of Risk Evolution (Quart
Slide 17: Security book
Security book TL mn TL Securities Portfolio Breakdown % 74 %67 Floating Securities / Assets : 12% TL Security Yields 15.1% Duration: 1.6 yrs in Fixed bonds, 2.2 yrs in Floating bonds, 3.9 yrs in CPIs. CPI and new purchases 69% is in AFS portfolio. 12.8% 12.8% Private sector bonds: 3.4% of tota
Slide 18: Solid NIM expansion
Solid NIM expansion Annualized NIM Quarterly NIM NIM NIM exc. CPI 4.7% 4.4% 4.1% 3.9% 3.9% 3.8% 3.6% 3.8% 3.4% 3.8% 3.4% 3.6% 3.7% 3.6% 3.4% 3.2% 3.2% 3.2% 3Q-16 4Q-16 1Q-17 2Q-17 3Q-17 4Q-17 1Q-18 2Q-18 3Q-18 Negative impact of TL loans cost increase is more than offseted by higher contribution fro
Slide 19: TSKB continues to generate a solid topline
TSKB continues to generate a solid topline TL mn 3Q-17 2Q-18 3Q-18 QoQ YoY Net Interest Income 237.2 283.0 371.5 31.2% 56.6% Higher CPI, Higher NIM Income from swap valuations & derivative Trading Income 3.4 29.8 47.2 58.5% N.M. trading, as a buffer against currency impact on provisions Net Commissi
Slide 20: Key Performance Indicators
Key Performance Indicators ROAE ROAA Cost to Income 17.6% 18.4% 17.6% 15.0% 12.5% 11.4% 2.1% 2.3% 1.8% 2016 2017 3Q-18 2016 2017 3Q-18 2016 2017 3Q-18 CAR NIM Free Capital 17.1% 17.9% 4.1% 14.3% 3.9% 10.3% 10.1% 7.1% 3.5% 2016 2017 3Q-18 2016 2017 3Q-18 2016 2017 3Q-18 ROE; Annualized Net Income for
Slide 21: 2018YE guidances are revised
2018YE guidances are revised 2018YE GUIDANCE 3Q2018 2018YE GUIDANCE (Jun. 2018) RESULTS (revised) FX Adjusted Loan Growth 10-12 2 (yoy) ~2 Loans/Assets Ratio ~77 77 ~77 Net Interest Income Growth ~30 42 ~40 Fees & Commissions Growth >20 48 ~25 OPEX Growth ~25 23 ~25 Net Interest Margin (adj.)* ~4.0
Slide 22: TSKB Investor Relations
TSKB Investor Relations ir@tskb.com.tr | www.tskb.com
Slide 23: Cumulative Income Breakdown
Cumulative Income Breakdown (TRY mn) 3Q-17 3Q-18 YoY Net Interest Income 651.5 922.2 42% Trading Income - Adj. 27.2 101.8 274% Net Commissions 8.9 13.2 48% Dividend & Other 20.3 19.0 -6% Net Banking Income 708.0 1,056.3 49% OPEX - 98.0 - 120.1 23% Operating Profit 610.0 936.2 53% Provisions - 43.2 -
Slide 24: Appendix: Balance Sheet
Appendix: Balance Sheet 31/12/2017 30/06/2018 30/09/2018 (TRY mn) TRY FX TOTAL TRY FX TOTAL TRY FX TOTAL Cash and Banks 11 843 854 102 1,103 1,205 14 1,547 1,561 Securities 3,342 1,208 4,550 3,594 1,262 4,856 3,591 1,795 5,387 Loans 2,143 20,151 22,294 2,898 24,231 27,129 2,493 31,105 33,598 Provisi
Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — Q3 2018 Earnings Presentation on 6ix