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

Turkiye Sinai Kalkinma Bankasi A.s — Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — H1 2018 Earnings Presentation

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

  1. Slide 1: Investor Presentation 1H-2018 BRSA Bank only Results

    Created with a trial version of Syncfusion Essential PDF Investor Presentation 1H-2018–BRSA Bank only Results

  2. 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

  3. Slide 3: TSKB at a Glance

    TSKB at a Glance Overview Ratings  First and only Private Development Bank in Turkey TSKB Turkey  TRY 35.0 bn asset size  371 employees, 2 branches Fitch LTFC BB- BB  14th bank in terms of Asset size Moody’s LTIR Ba3 Ba2  3.4% market share in LTFC corporate loans  TRY 2.4 bn MCAP* Corporate Go

  4. 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

  5. Slide 5: Highlights from 1H18

    Highlights from 1H18 Sound liquidity maintained during times of volatile markets  $850mn unutilized funds New DFI Funding  Further new DFI funding expected $400mn Bank’s focus on ‘’inclusiveness’’ strengthened by new social $350mn $220mn Eurobond Loan from World Syndication loan themes issuance Ba

  6. Slide 6: Banking Sector vs TSKB

    Banking Sector vs TSKB CAR Loans/Assets NPL 16.3% 77.5% 66.2% 2.9% 15.2% 1.9% Banking Sector TSKB Banking Sector TSKB Banking Sector TSKB Cost to Income NIM ROE 36.4% 17.4% 14.4% 3.7% 3.9% 13.3% Banking Sector TSKB Banking Sector TSKB Banking Sector TSKB * Sector data as of June 30, 2018 Long Term D

  7. Slide 7: Strong Asset Growth

    Strong Asset Growth TL mn Total assets increased by 35% (yoy) Growth (FX adj.) QoQ YtD YoY 12% (qoq) 35,008 3% Loans 2.0% 4.0% 9.3% 3% 31,393 3% 6% 3% Securities&Other - 10.8% 17.6% 28,994 6% 3% 14% 25,929 4% Total Assets 1.7% 5.2% 10.3% 3% 15% 8% 16% FX Assets -2.9% 0.9% 4.2% 6% 7% 16% 7% TL Assets

  8. Slide 8: Long Term DFI Funding

    Long Term DFI Funding Outstanding DFI Funding Base Yearly Multilateral Funding Agreements USD mn IBRD 38% EIB 27% KFW 13% 986 IDB 7% 660 733 CEB 82% of DFI Funding 463 400 5% 340 guaranteed by 160 AFD 4% 2017 Turkish Treasury 2012 2013 2014 2015 2016 2017 2018 IFC 2% 2Q-18 EBRD 2% JBIC 2% OEB 0% DFI

  9. Slide 9: Solid Funding Base

    Solid Funding Base Total Funding: USD 6,627 mn • 90% of the Total Funding is Long Term World Bank Loan DFI Funding / • Short term funding: 10% Agreement LT Funding (including syndication, P/N, Repo, Money Market) $400 mn 73% Funding / Total Liabilities (exc equity) USD mn 5,797 6,493 6,838 6,627 7%

  10. 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

  11. Slide 11: Robust solvency metrics

    Robust solvency metrics Capital Adequacy Ratio 17.5% Equity Movement (TL mn) CAR 16.1% Tier I 15.2% 31.12.2017 - Equity 3,535 14.3% IAS 27 Impact 84 12.0% 01.01.2018 – Equity 3,619 Cash Dividend -110 13.5% 12.5% 11.6% MtM Gains/Losses -142 10.4% 6.0% Deferred Tax 34 1H18 Net Profit 325 2016 2017 1Q-

  12. Slide 12: Diversified Lending Structure

    Diversified Lending Structure Loans by Sector • No significant change in sector Electricity Production 33% breakdown Finance 13% Logistics 11% • Ytd 4%, qoq 2% fx adj. loan growth Electricity/Gas… 8% Construction 5% • Decreasing concentration with the Metal and Machinery 5% expansion of customer bas

  13. Slide 13: Prudent loan classification under IFRS 9

    Prudent loan classification under IFRS 9 31.03.2018-IFRS 9 TL Mn. Gross Amount Share in Total Coverage Ratio Provisions (-) Stage 1 22,104 92.2% 0.3% 59 Stage 2 1,823 7.6% 9.6% 173 Stage 3 50 0.2% 96.8% 49 Gross Loans (*) 23,977 280 Net Cost of Risk 65 bps (*) incl. Stage 3 Existing Free 30.06.2018

  14. 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 5% 7% 7% 6% 6% 5% 5% 18% 22% 34% 32% 35% 3% 38%  223 of 283 RE are in operation 9% 14% 17%  6,074 mw installed capacity is financed:, 16% • 5,049 mw are in operati

  15. 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

  16. Slide 16: Security Portfolio

    Security Portfolio TL mn TL Securities Portfolio Breakdown 312 278 FX($) 322 346 Fixed Fixed Fixed %35 %37 %37 TL CPI CPI CPI 3,594 74% Linked Linked Linked 3,561 3,337 %40 %40 %40 62% 2,949 Floating Floating Floating Floating %25 %23 %22 4Q-17 1Q-18 2Q-18 1Q-17 4Q-17 1Q-18 2Q-18 Securities / Assets

  17. Slide 17: NIM Evolution

    NIM Evolution Annualized NIM Quarterly NIM NIM NIM exc. CPI 4.4% 2Q-18 4.1% 3.9% 3.9% 3.8% 3.8% 3.9% 3.6% 3.4% 1Q-18 4.1% 3.1% 3.7% 3.6% 3.6% 3.4% 3.4% 2017 3.9% 3.2% 3.2% 3.2% 2.9% 2016 3.5% 2Q-16 3Q-16 4Q-16 1Q-17 2Q-17 3Q-17 4Q-17 1Q-18 2Q-18 FX Loan Yields & FX Cost of Funding TL Loan Yields & T

  18. Slide 18: Quarterly Income Statement

    Quarterly Income Statement TL mn 2Q-17 1Q-18 2Q-18 QoQ YoY Net Interest Income 203.9 267.7 283.0 5.7% 38.8% Flattish NIM, higher AIEA Trading Income 13.8 24.8 29.8 19.9% 115.6% Swap valuations&derivative trading Net Commissions 3.6 4.7 3.8 -18.8% 6.1% Dividend & Other - 0.2 3.7 1.6 NM NM Net Banking

  19. Slide 19: Key Performance Indicators

    Key Performance Indicators ROAE ROAA Cost to Income 17.6% 18.4% 17.7% 15.0% 12.5% 13.1% 2.1% 2.3% 2.0% 2015 2016 2017 2016 2017 1H-18 2016 2017 1H-18 CAR NIM Free Capital 17.1% 3.9% 3.9% 10.3% 10.1% 15.2% 8.5% 14.3% 3.5% 2016 2017 1H-18 2016 2017 1H-18 2016 2017 1H-18 ROE; Annualized Net Income for

  20. Slide 20: Revision on 2018YE Guidance

    Revision on 2018YE Guidance 2018YE GUIDANCE 1H2018 2018YE GUIDANCE (Jan. 2018) RESULTS (revised) FX Adjusted Loan Growth 12-15 9 (yoy) 10-12 Loans/Assets Ratio ~77 77 ~77 Net Interest Income Growth ~15 33 ~30 Fees & Commissions Growth >20 46 >20 OPEX Growth ~30 21 ~25 Net Interest Margin (adj.)* 3.6

  21. Slide 21: TSKB Investor Relations

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

  22. Slide 22: Appendix: Cumulative Income Breakdown

    Appendix: Cumulative Income Breakdown (TRY mn) 1H-17 1H-18 YoY Net Interest Income 414.3 550.8 33% Trading Income - Adj. 23.8 54.6 130% Net Commissions 5.8 8.5 46% Dividend & Other 19.5 5.2 -73% Net Banking Income 463.4 619.1 34% OPEX -67.3 -81.2 21% Operating Profit 396.1 537.9 36% Provisions -31.7

  23. Slide 23: Appendix: Balance Sheet

    Appendix: Balance Sheet 31/12/2017 31/03/2018 30/06/2018 (TRY mn) TRY FX TOTAL TRY FX TOTAL TRY FX TOTAL Cash and Banks 11 843 854 8 1,329 1,329 102 1,103 1,205 Securities 3,342 1,208 4,550 3,561 1,235 4,797 3,594 1,262 4,856 Loans 2,143 20,151 22,294 2,129 21,799 23,928 2,898 24,231 27,129 Provisio

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