Turkiye Vakiflar Bankasi Turk Anonim Ortakligi · BIST:VAKBN
Turkiye Vakiflar Bankasi Turk Anonim Ortakligi — H1 2017 Earnings Presentation
33 slides from Turkiye Vakiflar Bankasi Turk Anonim Ortakligi's earnings presentation, Aug 9, 2017
Slide 1: Earnings Presentation BRSA Bank-Only 1H 2017
Earnings Presentation VakıfBank IR App. Available at BRSA Bank-Only 1H 2017 August 9, 2017
Slide 2: 1H17 Macro Highlights
INVESTOR RELATIONS Earnings Presentation_Bank Only 1H17 1H17 Macro Highlights GDP Growth Monetary Policy 14.00 10.0 13.00 8.0 12.00 6.0 11.00 4.0 10.00 9.00 2.0 8.00 0.0 7.00 -2.0 CBRT Avr. Funding Rate Monthly TL Deposit Rate O/N Lending Rate Late liquidity Window USD/TL Banking Sector 4.0 3.8 (%)
Slide 3: 1H17 VakıfBank Highlights
INVESTOR RELATIONS Earnings Presentation_Bank Only 1H17 1H17 VakıfBank Highlights Quarterly bank-only net income is TL 896.7 million, Further improved asset quality metrics; which is up by 52.8% YoY and down by 26.8% QoQ. NPL ratio is down by 17 bps QoQ to 4.04%. 1H17 bank only net income is TL 2,
Slide 4: 1H17 Earnings and Ratios
INVESTOR RELATIONS Earnings Presentation_Bank Only 1H17 1H17 Earnings and Ratios Net Income (TL million) ROAE (%) Sector net Above than income sector 24.5 profitability growth ratios 33.2% 20.8 92.2% YoY 17.1 17.0 16.1 2,121.4 15.0 13.9 12.7 1,224.8 1,103.6 (26.8%) 896.7 1H16 1Q17 2Q17 1H17 586.9 VB
Slide 5: 1H17 P&L Details
INVESTOR RELATIONS Earnings Presentation_Bank Only 1H17 1H17 P&L Details 820 6,103 (2,094) 603 64 119 4,498 (1,352) (536) 2,121 1H17 Net Interest Net Fees and Dividend Net Trading Other Income Total Operating Provisions Taxes Net Income Income Commissions Income Income Revenue Expenses % vs 1H16 +45
Slide 6: Revenue breakdown
INVESTOR RELATIONS Earnings Presentation_Bank Only 1H17 Revenue breakdown Total Revenues (TL million) Revenue Breakdown (%) 42.4% Dividend Other Other Dividend 13.5 1.9 1.0 6,103 13.5 Trading Trading 1.7 1.9 4,287 Net F&C Net F&C 3,267 10.6 1H16 9.9 1H17 2,836 NII NII 72.3 73.7 1H16 1Q17 2Q17 1H17 N
Slide 7: NIM, Spreads and Costs
INVESTOR RELATIONS Earnings Presentation_Bank Only 1H17 NIM, Spreads and Costs TL Core Spreads (%) FC Core Spreads (%) 13.11 13.22 12.98 13.32 5.96 4.94 5.19 5.20 TL Loan Yields FC Loan Yields 8.50 TL Deposit Costs 1.72 1.95 1.95 2.04 8.28 FC Deposit Costs 7.61 7.07 4.01 5.61 5.91 3.22 3.24 3.17 4.8
Slide 8: Fee growth momentum promises better than budget figure for full year 2017
INVESTOR RELATIONS Earnings Presentation_Bank Only 1H17 Fee growth momentum promises better than budget figure for full year 2017 Net Fee & Commission Income (TL million) Breakdown of Net Fee & Commission Income (%) Inquiry&Expertise Insurance 32.3% 1H17 6 6 Cash Loans Other 602.8 19 15 455.8 7.2% 3
Slide 9: Opex growth in line with operational budget
INVESTOR RELATIONS Earnings Presentation_Bank Only 1H17 Opex growth in line with operational budget Operating Expenses (TL million) Breakdown of Opex (TL million) Jaws Ratio (%, YoY) +8% (adj)* Quarterly 1H16 Growth 9.9% 2,094.2 1H17 Jaws Ratio: Fee 3.9% 1,906.3 13.7 (12.3%) 2,094 (76.9%) Rebates 59
Slide 10: Asset Breakdown
INVESTOR RELATIONS Earnings Presentation_Bank Only 1H17 Asset Breakdown Total Assets (TL billion) Breakdown of Assets (%) 22.2% Other* 15.6 221.0 236.6 212.5 193.6 Interbank 7.1% 1.4 1H17 Quarterly Growth Securities Securities Loans 12.4 Loans 70.6 3Q16 +1% +6% Selective lending, yet TL 1H16 YE16 1Q
Slide 11: Loan growth accelerated via quarterly TL business lending backed by CGF guarantee
INVESTOR RELATIONS Earnings Presentation_Bank Only 1H17 Loan growth accelerated via quarterly TL business lending backed by CGF guarantee Total Loans (TL billion) FC Loans (USD billion) 29.3% 5.7% Sector 167.1 total loan 13.5 13.4 13.6 growth 12.9 153.2 1.7% 146.6 9.1% vs 22.2% YoY 47.7 129.3 48.5 (
Slide 12: Well diversified & stable loan breakdown
INVESTOR RELATIONS Earnings Presentation_Bank Only 1H17 Well diversified & stable loan breakdown Breakdown of Loans (TL billion) Loans (TL billion) 129.3 146.6 153.2 167.1 Other 1 9.1 9.5 9.7 10.1 VB VB VB Sector Sector 1H17 QoQ YoY QoQ YoY Cash& Non-Cash SME 37.0 37.5 44.7 209.6 7% 29% 4% 22% 34.4
Slide 13: GPC driven retail loan growth continued
INVESTOR RELATIONS Earnings Presentation_Bank Only 1H17 GPC driven retail loan growth continued General Purpose Consumer (TL billion) Residential Mortgages (TL billion) 17.5% vs Sector GPC 8.0% growth of 9.7% Strong presence in 13.1% YoY market key retail 17.9 18.9 share 17.0 17.5 segments thanks 16
Slide 14: Loan growth is fuelled by high quality segments
INVESTOR RELATIONS Earnings Presentation_Bank Only 1H17 Loan growth is fuelled by high quality segments Commercial&Corporate (TL billion) Project Finance Loans (USD billion) Sector commercial & 7.8% Corporate & 41.8% corporate vs growth of 8.6 Commercial 8.2 8.2 75.9 28% YoY 7.9 lending is 71.2 66.1
Slide 15: Further improved asset quality metrics
INVESTOR RELATIONS Earnings Presentation_Bank Only 1H17 Further improved asset quality metrics NPL (TL million)* Reported1 and Comparable NPL Ratios (%) 792 Collections/New 5.06 5.19 5.13 5.08 490 NPL: 6,728 7,030 4.19 4.21 61.8% in 1H17 4.06 4.04 3.88 3.91 3.76 3.70 3.30 3.24 3.21 3.10 Sector W/O S
Slide 16: Lower than budgeted Net CoR maintained
INVESTOR RELATIONS Earnings Presentation_Bank Only 1H17 Lower than budgeted Net CoR maintained Specific Provisions (TL million) General Provision (TL million) 1153 148 134 122 815 674 479 ~TL 1.4 billion additional 26 general 1H16 1Q17 2Q17 1H17 1H16 1Q17 2Q17 1H17 provisions held Specific Cost of R
Slide 17: Customer deposits driven well diversified funding structure
INVESTOR RELATIONS Earnings Presentation_Bank Only 1H17 Customer deposits driven well diversified funding structure Breakdown of Liabilities (%) Breakdown of Liabilities (TL billion) May 2017, fresh Sub-Debt Sub-Debt Other Bonds Other Eurobond 2.1 Bonds 2.1 6.6 6.6 7.9 6.1 193.6 236.6 issuance Other
Slide 18: Conservative funding maintained via stellar TL deposit growth
INVESTOR RELATIONS Earnings Presentation_Bank Only 1H17 Conservative funding maintained via stellar TL deposit growth Total Deposits (TL billion) Breakdown of Deposits (%) 23.8% Stellar TL deposit 141.3 123.8 130.0 29 30 32 29 growth of 114.1 8.7% 37.7 41.7 40.6 FC 14.1% 33.3 FC (2.7%) QoQ vs TL 100
Slide 19: Effective Capital Management & further strengthened solvency ratios
INVESTOR RELATIONS Earnings Presentation_Bank Only 1H17 Effective Capital Management & further strengthened solvency ratios Capital Adequacy Ratio (%) Buffers (%) 2Q17 2017 2018 2019 +44 bps Capital Conservation Buffer 1.250 1.250 1.875 2.500 CET1 11.81% 11.83% 11.47% 12.36% 12.80% Counter Cyclical
Slide 20: Appendix
INVESTOR RELATIONS Earnings Presentation_Bank Only 1H17 Appendix Pg. 21 Securities Portfolio Pg. 22 Credit Card Loans Pg. 23 Alternative Distribution Channels Pg. 24 VakıfBank with numbers Pg. 25 Ratings Pg. 26 Diversified funding sources via Non-Deposit Funding Pg. 27 Unconsolidated Key Financial R
Slide 21: Well balanced security portfolio
INVESTOR RELATIONS Earnings Presentation_Bank Only 1H17 Well balanced security portfolio Total Securities (TL million) Portfolio Structure 12.8% 26,014 27,611 28,786 29,352 Total TL 5.8 billion 2.0% 8,992 TL 23.6 billion equivalent 8,181 8,628 7,746 30.0% 30.6% TL FC 29.6% 29.8% 1,669 1,611 1,771 98
Slide 22: Sustainable market share gain in credit card business maintained
INVESTOR RELATIONS Earnings Presentation_Bank Only 1H17 Sustainable market share gain in credit card business maintained Credit Card Loans (TL million) Retail Credit Card Market Share (%) Sector 12.4% credit card 57 bps YoY loan growth increase in vs of 6.6% YoY retail credit 5.49 5.64 card market 5
Slide 23: Increased focus on alternative distribution channels
INVESTOR RELATIONS Earnings Presentation_Bank Only 1H17 Increased focus on alternative distribution channels Active Mobile Banking Customers (#thousand)* Breakdown of Transactions (%) 70.5% Other** Call Center 6.59 1,399.9 3.80 1,265.6 1,110.8 10.6% 820.9 ATM Mobile Banking 20.80 41.60 1H17 1H16 201
Slide 24: VakıfBank with numbers
INVESTOR RELATIONS Earnings Presentation_Bank Only 1H17 VakıfBank with numbers Distribution Channels & Customer (#) 1H17 Efficiency (‘000 TRY) 1H17 Personnel 16,006 Assets per Employee 14,783 POS Terminals 211,207 Assets per Branch 255,257 Outstanding Credit Cards 3.8 mn Loans per Employee 10,442 To
Slide 25: Ratings
INVESTOR RELATIONS Earnings Presentation_Bank Only 1H17 Ratings Fitch Ratings Moody’s Standard & Poor’s (February 2, 2017) (August 7, 2017) (February 1, 2017) Long term FC IDR BB+ Ba2 BB / B FC Counterparty Credit Ratings VakıfBank Outlook Stable Negative Negative BCA (Baseline Credit Assessment) Vi
Slide 26: Diversified funding sources via Non-Deposit Funding
INVESTOR RELATIONS Earnings Presentation_Bank Only 1H17 Diversified funding sources via Non-Deposit Funding US$ 2,052 milllion outstanding April 2017 US$ 967 million equivalent 1 year syndicated loan, all in cost as Libor + 1.45% ve Euribor +1.35% with participation of 30 banks from 15 countries. Sy
Slide 27: Unconsolidated Key Financial Ratios
INVESTOR RELATIONS Earnings Presentation_Bank Only 1H17 Unconsolidated Key Financial Ratios 1H16 2016 1Q17 2Q17 1H17 Profitability* ROAE 12.7% 15.0% 24.5% 17.0% 20.8% ROAA 1.2% 1.4% 2.3% 1.6% 1.9% Cost / Income 44.5% 40.5% 31.1% 38.0% 34.3% Cost / Assets 2.0% 1.8% 1.8% 1.8% 1.8% Fee / Cost 23.9% 25.
Slide 28: Consolidated Key Financial Ratios
INVESTOR RELATIONS Earnings Presentation_Bank Only 1H17 Consolidated Key Financial Ratios 1H16 2016 1Q17 2Q17 2017 Profitability ROAE (Cumulative) 12.5% 15.3% 25.0% 17.6% 21.3% ROAA (Cumulative) 1.1% 1.4% 2.3% 1.6% 1.9% Cost / Income 50.7% 45.8% 36.3% 43.1% 39.5% Cost / Assets 2.5% 2.2% 2.3% 2.2% 2.
Slide 29: Unconsolidated Balance Sheet
INVESTOR RELATIONS Earnings Presentation_Bank Only 1H17 Unconsolidated Balance Sheet 1H16 YE16 1Q17 1H17 TL USD (thousand) TL USD TL USD TL USD TL USD YoY QoQ YoY QoQ Cash & Balances with 25,798,855 8,957,936 24,365,297 6,931,806 23,300,205 6,418,789 26,244,627 7,477,102 1.7% 12.6% (16.5%) 16.5% Cen
Slide 30: Consolidated Balance Sheet
INVESTOR RELATIONS Earnings Presentation_Bank Only 1H17 Consolidated Balance Sheet 1H16 YE16 1Q17 1H17 TL USD (thousand) TL USD TL USD TL USD TL USD YoY QoQ YoY QoQ Cash & Balances with 25,804,910 8,960,038 24,369,315 6,932,949 23,306,975 6,420,654 26,256,301 7,480,428 1.7% 12.7% (16.5%) 16.5% Centr
Slide 31: Unconsolidated Income Statement
INVESTOR RELATIONS Earnings Presentation_Bank Only 1H17 Unconsolidated Income Statement (TL-thousand, %) 1H16 1Q17 2Q17 1H17 YoY QoQ Net Interest Income 3,098,192 2,376,757 2,121,383 4,498,140 45.2% (10.7%) Net Fee & Com. Income 455,760 290,876 311,912 602,788 32.3% 7.2% Dividend Income 82,722 43,01
Slide 32: Consolidated Income Statement
INVESTOR RELATIONS Earnings Presentation_Bank Only 1H17 Consolidated Income Statement (TL-thousand, %) 1H16 1Q17 2Q17 1H17 YoY QoQ Net Interest Income 3,234,022 2,452,903 2,206,722 4,659,625 44.1% (10.0%) Net Fee & Com. Income 407,056 267,488 290,266 557,754 37.0% 8.5% Dividend Income 61,139 43,054
Slide 33: Investor Relations contact and disclaimer
A member of BIST Sustainability Index With this recycling paper, following items have been saved annually; Investor Relations 60 kg of landfill Levent Mah. Çayır Çimen Sok. No:7 Kat:6 14 kg of CO2 and greenhouse gases 34330 Beşiktaş-İstanbul / Turkey E-mail: investorrelations@vakifbank.com.tr 1,519
Turkiye Vakiflar Bankasi Turk Anonim Ortakligi (VakıfBank) — H1 2017 Earnings Presentation on 6ix