Sekerbank T.a.s. · BIST:SKBNK
Sekerbank T.a.s — Q1 2020 Earnings Presentation
35 slides from Sekerbank T.a.s's earnings presentation, Mar 31, 2020
Slide 1: Consolidated Financial Results as of 31.03.2020
Şekerbank T.A.Ş. Consolidated Financial Results as of 31.03.2020
Slide 2: Table of content
Table of content 1. Şekerbank At a Glance 2 2. Balance Sheet Structure and Asset Quality 8 3. Funding Structure and Liquidity 15 4. Income Statement and Profitability 21 5. Capital Adequacy 25 6. Digital Transformation Program 28 1
Slide 3: Şekerbank At a Glance
Sekerbank At a Glance Sekerbank &5
Slide 4: 66 years of Experience in Community Banking
66 years of Experience in Community Banking Foundation and Strategy Our Mission To become the “leading bank in financing small enterprises” among Turkey’s top ten private banks in terms of asset size Our Vision With the “Community Banking” understanding from village to city, We are a Turkish bank th
Slide 5: Milestones
Milestones • First Bank to receive ‘Corporate • Signed the Declaration on Governance Rating’ in Turkey. Sustainable Finance Founded as the ‘Sugar Beet • First micro-finance project • Issued a 10-year, variable-rate, lira- Cooperative Bank’ in Eskişehir Turkey’s first 5-year denominated domestic subo
Slide 6: Well-Established Network
Well-Established Network İç Anadolu Regional Office Marmara Regional Office (38 Branches) Karadeniz Regional Office Trakya Regional Office (37 Branches) (28 Branches) (33 Branches) Kırklareli Kastomunu Sinop İstanbul Zonguldak Samsun Samsun Artvin Rize Ordu Trabzon Çankırı Amasya Ankara Çorum Giresu
Slide 7: Continuous Focus on Innovation in Community Banking
Continuous Focus on Innovation in Community Banking / Covered Bond Issued in 2011 as a first covered bond in Turkey and also the first Turkish lira denominated borrowing transaction structured in intemational capital markets as well as was the world’s first Covered Bond issue covered by SME loans. E
Slide 8: Key Financial Highlights
Key Financial Highlights 31.03.2020 (TRY MM) Bank-only Consolidated Total Assets 31.481 32.715 Net Loans 19.550 20.637 SME Loans/Total Loans 52,92% 52,45% Customer Deposits 24.168 23.385 Loan/Deposit Ratio 80,89% 88,25% Shareholders’ Equity 2.012 1.992 Tier I Ratio 9,00% 8,32% Capital Adequacy Ratio
Slide 9: Balance Sheet Structure and Asset Quality
Balance Sheet Structure and Asset Quality
Slide 10: Balance Sheet Structure
Balance Sheet Structure Total Assets (TRY MM) Total Liabilities and Equity (TRY MM) TL dominated loan structure Solid and broad-based deposit structure 32.715 Loans Breakdown 32.715 Deposits Breakdown 0,06% 6,84% 4,87% 11,01% 6,09% 13,41% 52,4 13,93% 16,61% 5% 40,72% 86,5 11,92% 9% SME Retail Time D
Slide 11: Loan Structure
Loan Structure Loan Growth (TRY MM) 23.278 23.900 22.492 21.957 21.705 20.769 20.897 20.637 6.324 6.506 5.919 6.020 5.473 5.207 5.794 5.848 2018 Q2 2018 Q3 2018 YE 2019 Q1 2019 Q2 2019 Q3 2019 YE 2020 Q1 Cash Loans Non-Cash Loans Net Loans in Local & Foreign Currency and Total Loans (TRY MM) 23.278
Slide 12: Cash Loan Structure
Cash Loan Structure Highly Diversified Loan Book Cash Loans Breakdown by Sector (%) 15,81% Manufacturing 5,96% 14,62% Wholesale and retail trade 2,89% Agricultural 4,07% Construction Services 12,03% 12,74% Tourism Transportation and telecommunication Financial institutions 13,39% 18,49% Other Focus
Slide 13: Loans and Provision Coverage Ratios (Bank Only)
Loans and Provision Coverage Ratios (Bank Only) Provisions / Gross Loans Stage I Loans to Gross Loans 0,70% 0,72% 0,69% 0,75% 0,75% 0,53% 0,56% 0,60% 20, 00% 2018 Q2 2018 Q3 2018 YE 2019 Q1 2019 Q2 2019 Q3 2019YE 2020 Q1 2018 Q2 2018 Q3 2018 YE 2019 Q1 2019 Q2 2019 Q3 2019 YE 2020 Q1 Stage I Loan Ra
Slide 14: Asset Quality (Bank-Only)
Asset Quality (Bank-Only) NPL Exposure 9,31% 20, 00% 400 000% 5,92% 8,88% 10, 00% 3,30% 3,28% 3,77% 3,81% 4,63% 350 000% NPL 2019 YE (TRY MM) Addition Collection NPL 2020 Q1 (TRY MM) 300 000% 0,0 0% 250 000% -10,00% 200 000% -20,00% 2.849 2.796 150 000% -30,00% 1.761 100 000% -40,00% 1.076 1.122 1.1
Slide 15: Securities
Securities Composition by Type (MM TL) 3.232 3.793 4.092 3.596 3.709 3.584 3.588 4.471 2,97% 2,25% 2,09% 2,09% 1,91% 1,31% 0,94% 1,21% 7,69% 9,42% 14,12% 14,58% 16,24% 17,83% 16,66% 19,69% 89,34% 88,33% 83,79% 83,33% 81,85% 80,86% 82,39% 79,10% 2018 Q2 2018 Q3 2018 YE 2019 Q1 2019 Q2 2019 Q3 2019 YE
Slide 16: Funding Structure and Liquidity
Funding Structure and Liquidity
Slide 17: Funding Overview
Funding Overview Diversified Funding Source Base (TRY MM) 34.420 35.954 32.965 33.934 32.607 31.482 32.045 32.715 1.671 1.311 2.458 1.245 2.405 1.606 2.365 1.276 1.501 1.592 2.453 2.180 1.512 1.961 1.992 7.114 2.169 5.757 5.199 4.542 5.434 9.179 5.965 4.484 21.525 24.711 22.941 23.952 24.042 23.698
Slide 18: Loan/Deposit Ratios
Loan/Deposit Ratios Total Gross Loan / Customer Deposit Ratio 119,86% 106,40% 105,39% 101,92% 99,70% 99,14% 98,84% 97,57% 113,27% 98,85% 97,89% 95,19% 92,48% 91,84% 91,63% 89,35% 2018 Q2 2018 Q3 2018 YE 2019 Q1 2019 Q2 2019 Q3 2019 YE 2020 Q1 Bank-Only Consolidated TRY Gross Loan / Customer Deposit
Slide 19: Liquidity Overview
Liquidity Overview Liquidity Coverage Ratio (TL +FC) 191,45% 177,88% 180,18% 134,38% 141,35% 129,10% 129,46% 121,27% 163,38% 111,30% 119,52% 126,43% 122,49% 115,53% 112,80% 108,50% 100% 100% 100% 100% 100% 90% 90% 90% 2018 Q2 2018 Q3 2018 YE 2019 Q1 2019 Q2 2019 Q3 2019 YE 2020 Q1 LCR (TL + FC) (Ban
Slide 20: Deposit Structure
Deposit Structure Deposit Structure and Durations TL + FC Customer Time Deposit TL+FC Customer Time Deposit Segment Base (Monthly Average) 13,44% 20,30% 9,09% Retail Corporate & Commercial 43,94% Below 500.000 TL 1,75% 42,63% 500.000-1M TL 68,86% SME Above 1M TL Agriculture Total Customer Deposits
Slide 21: Borrowings
Borrowings Balanced mix between retail and institutional funding through covered bonds, loans from IFIs, subordinated loans, trade finance and syndicated borrowings Proven Access to Diversified Sources of Funding Recent Issuances Summary June 2017: USD 85MM Tier 2 Private Placement December 2017
Slide 22: Income Statement and Profitability
Income Statement and Profitability
Slide 23: Profit and Loss
Profit and Loss Income Statement (TRY MM) 2019 Q1 2020 Q1 Interest Income 1.080 847 Interest Expense 866 403 Net Interest Income 214 444 Net fees and Commisions Income 98 79 Personnel Expenses 134 139 Dividend Income 0 0 Net Trading Income/Loss 16 (19) Other Operating Income 30 59 Total Operating Pr
Slide 24: Revenues In Detail
Revenues In Detail Net Interest Income / Margin Net Interest Income (TRY MM) Net Interest Margin (%) 1.080 847 7,55% 444 5,80% 5,90% 5,53% 214 3,57% 4,07% 4,60% 3,27% 7,20% 5,44% 5,62% 5,30% 3,77% 4,27% 2,80% 3,22% 403 866 2019 Q1 2020 Q1 2018 Q2 2018 Q3 2018 YE 2019 Q1 2019 Q2 2019 Q3 2019 YE 2020
Slide 25: Ratios
Ratios Cost to Income Ratio Cost / Income (%) – Bank Only 79,40% 79,76% 64,15% 64,79% 63,05% 58,42% 57,24% 55,49% 2018 Q2 2018 Q3 2018 YE 2019 Q1 2019 Q2 2019 Q3 2019 YE 2020 Q1 Cost of Risk NPL Coverage Cost of Risk (%) – Bank Only NPL Coverage (%) – Bank Only 4,30% 76,74% 76,41% 3,39% 74,46% 73,60
Slide 26: Capital Adequacy
Capital Adequacy SekerbankS5
Slide 27: Capital Adequacy Overview
Capital Adequacy Overview Tier 1 & Capital Adequacy Ratios (%) Bank-only Consolidated 15,14% 14,33% 14,13% 14,33% 13,47% 13,31% 13,86% 13,40% 13,41% 13,53% 13,41% 12,87% 12,65% 12,51% 12,40% 12,46% Min. 12% CAR Recommendation 11,25% 10,80% 10,66% 10,72% 10,25% 10,20% 9,64% 9,83% 9,35% 9,18% 9,09% 9,
Slide 28: Capital Adequacy Overview
Capital Adequacy Overview Risk Weighted Assets (MM TL) & Leverage Ratio (%) Bank-only Consolidated 15, 00% 40. 000 39. 900 39. 800 39. 700 39. 600 39. 500 39. 400 39. 300 39. 200 39. 100 39. 000 38. 900 38. 800 38. 700 38. 600 38. 500 38. 400 38. 300 38. 200 38. 100 38. 000 37. 900 37. 800 37. 700 3
Slide 29: Digital Transformation Program
Digital Transformation Program
Slide 30: We launched a comprehensive Transformation Program
We launched a comprehensive Transformation Program in July 2018 for sustainable, profitable and strong growth
Slide 31: The main goal of the Transformation
30 The main goal of the Transformation is to move Sekerbank forward in four main areas Rebuilding processes and digital channels Improving asset quality Accelerating growth Establishing a lean and effective organization
Slide 32: Strategy and Transformation Program Strategic Focus Areas
Strategy and Transformation Program Strategic Focus Areas SME Focus Broad-based Retail Deposit Focus Prioritizing Small Business and Agricultural Banking while Enhancing the widespread and solid deposit structure by increasing productivity in Large SMEs further diversifying the funding structure Sus
Slide 33: Key Pillars of Digitalization
Key Pillars of Digitalization Fast and lean processes Seamless customer experience with new omnichannel structure Mobile RM in order to reach out to rural community more effectively Sales support with analytical models Effective credit origination, monitoring and control based on analytical models P
Slide 34: Contact Details
Contact Details Sekerbank T.A.Ş. Zeki Önder Executive Vice President Tel: +90 212 344 07 36 zeki.onder@sekerbank.com.tr Financial Institutions, Structured Finance & Investor Relations Oya Sarı Head of Financial Institutions, Structured Finance and Investor Relations Tel: +90 212 319 71 58 oya.sari@s
Slide 35: Legal Notice For Investors
Legal Notice For Investors The information in this document has been obtained by Sekerbank T.A.Ş. (“Sekerbank”) from sources believed to be reliable. However, Sekerbank cannot guarantee the accuracy, completeness or correctness of such information. This document has been issued for information purpo