Albaraka Turk Katilim Bankasi A.s. · BIST:ALBRK

Albaraka Turk Katilim Bankasi A.s — Albaraka Türk Participation Bank — Investor Presentation (2023)

20 slides from Albaraka Turk Katilim Bankasi A.s's investor presentation, 2023

  1. Slide 1: 1H'23 Investor Presentation

    1H’23 Investor Presentation Albaraka Türk Participation Bank HİZMETE ÖZEL

  2. Slide 2: Macroeconomic Outlook

    6 Macreconomic Outlook Global central banks continue to raise policy rates as global economic activity remains robust. The annual consumer inflation in Türkiye realized at 47.8% in July’23. Global PMI Central Banks Policy Rates Index % 70 10 60 8 54.0 EM 50 48.8 6 Fed 40 4 BOE ECB 30 Services 2 Manu

  3. Slide 3: Banking Sector Overview

    6 Banking Sector Overview Profitability of participation banks is higher than banking sector while NPL ratios continue to decrease in 1H’23. Total Assets* Funded Credits* TL Billion TL Billion +32.5% +33.2% 2022 10,238 FC - TL +37% 1H’23 3,398 LC -TL 19,102 +36.2% 7,726 879 (33%) 2,556 291 14,344 (3

  4. Slide 4: Albaraka Türk Snapshot

    Albaraka Türk Snapshot Well managed Assets & Liabilities and OPEX leading to continuous improvement for better financial results. Net Profit Income – Cost Dynamics Return on Avg. Equity & Assets* TL Million TL Billion % +57% 1H’22 1H’23 2022 +25.1% 128.9% 6.9 1H’23 26.6 1,493.2 +72% +37.2% +21% 21.3

  5. Slide 5: Profitability continue to increase on back of strong operational revenues

    Profitability continue to increase on back of strong operational revenues ROAA and ROAE improved significantly both QoQ and YoY. Net Profit TL Million Total Operational Income 128.9% 88.8% TL Billion 7.2 1,493.2 976.2 10.6% +60.2% 4.5 33.5% 7.8% 517.0 652.4 30.7% 13.5% 13.4% 42.5% 48.1% 1H’22 1H’23

  6. Slide 6: Asset growth in line with market developments

    6 Asset growth in line with market developments Share of TL assets continue to increase in total assets hence our balance sheet has become more resilient. Composition of Total Assets Currency Breakdown of Total Assets TL Billion , % TL/USD Billion, % +29.6% +29.6% 189.7 +41% +20.2% 3.5% 189.7 2022 O

  7. Slide 7: Funded credits portfolio become healthier on basis of increasing TL performing credits

    7 Funded credits portfolio become healthier on basis of increasing TL performing credits Loan growth accelerated in Q2’23 on back of TL cash credits. Total Funded Credits Currency Breakdown of Performing Credits* TL Million - Inc. f.Leasing, TL million , excl. expected credit losses(provisions) TL B

  8. Slide 8: Asset quality further improved with NPL ratio decrease & enhanced provision cushion

    8 Asset quality further improved with NPL ratio decrease & enhanced provision cushion. High asset quality eased cost of risk. Also provisioining ratio continues to increase further. Non Performing Credits Development NPL Ratio TL Billion % 0.14 0.64 8 6.7 1.47 0.60 NPL Ratio 1.37 6 Net NPL Ratio 4 3

  9. Slide 9: Moderate growth in securities portfolio with limited exposure to market risk

    6 Moderate growth in securities portfolio with limited exposure to market risk Growth in total securities portfolio went up by %20.8 YtD. The portfolio income increased by 29% YoY. Total Securities Portfolio Securities Yield* TL Billion % Available for Sale +20.8% 12 Marketable Securities 42.7 10.8

  10. Slide 10: Liraization continue on collected funds, also maturity of collected funds improve

    10 Liraization continue on collected funds, also maturity of collected funds improve Compositon of total liabilities slightly changed by additional Tier – 2 sukuk issuance. However participation funds constitute 72% of total liabilities. Composition of Total Liabilities Composition of Collected Fund

  11. Slide 11: TL funds collection continue to increase by help of currency protected deposit scheme

    TL funds collection continue to increase by help of currency protected deposit scheme TL current and participation accounts increased by 9.3% and 46.2% YtD respectfully. Current Accounts Participation Accounts TL Billion – Annual Growth % TL Billion – Annual Growth % +46.2% +19.1% 2022 2022 56.8 1H’

  12. Slide 12: Despite rising expenses, profitability continue to increase

    86 Despite rising expenses, profitability continue to increase. Strong profit share income and fees & commisson income enabled us to further enhance income generation both YoY and QoQ. Quarterly Net Fees and Commission Income TL Million Fees and Commisions Recieved +159.1% Fees and Commisions Paid 1

  13. Slide 13: Well managed A&L and OPEX led to significant yield & cost improvement

    6 Well managed A&L and OPEX led to significant yield & cost improvement Limited contraction in net profit share margin, strong fee income and efficient cost management supported profitability to increase. Income-Cost Dynamics Net Profit Share Margin* TL Million % +60.2% +48.5% 7,212 5,719 13.5% 10.7

  14. Slide 14: Strong performance on all income items as well as efficient cost management

    6 Strong performance on all income items as well as efficient cost management YoY QoQ Notes (TL Million) 1H’22 1H’23 % Q1’23 Q2’23 % NPSI continued to increase due to higher credit yileds than deposit Net Profit Share Income 2,167 3,063 41.3% 1,432 1,631 13.9% costs. Net Fees & Commssion Net fees &

  15. Slide 15: Improved profitability and additional Tier-2 supportive to CAR

    Improved profitability and additional Tier-2 supportive to CAR CAR is at comfortable levels by support of additional USD 100 million Tier-2 as well as increasing profitability. Capital Adequacy Ratio Capital Breakdown % % AT-1 Tier-2 16.3 Core Capital 14.9 14.6 7.5% 5.1% 11.2 11.0 10.1 10.3 9.2 24.6

  16. Slide 16: Financial Ratios – Sector Comparison

    6 Financial Ratios – Sector Comparison Percent (%) 2022 1H’23 Participation Albaraka Türk Participation Banks Banking Sector Albaraka Türk Banking Sector Banks CAR 14.9 20.5 19.5 14.5 20.4 18 NPL Ratio 1.9 1.4 2.1 1.4 1.1 1.6 Provisioning Ratio (Stage 3) 88.7 99.8 86.7 94.9 102.4 86.5 Loan/Deposits

  17. Slide 17: Summary Balance Sheet

    6 Summary Balance Sheet (TL Million) 2022 1H’23 Growth (%) (TL Million) 2022 1H’23 Growth (%) Cash and Balances with Funds Collected 112,676 137,633 22.1% 24,865 32,922 32.4% Central Bank Funds Borrowed 4,412 18,033 308.7% Banks 7,340 11,953 62.8% Borrowings from Money Market Placements 1,726 0 - 7,

  18. Slide 18: Summary Income Statement

    6 Summary Income Statement (TL Million) 1H’22 1H’23 Growth (%) Profit Share Income 4,412 6,932 57.1% Profit Share Expense 2,245 3,869 72.3% Net Profit Share Income 2,166 3,062 41.4% Net Fees and Commissions Income 350 763 118% Fees and Commissions Received 465 1,062 99.8% Fees and Commissions Paid 1

  19. Slide 19: Thank You

    THANK YOU... 18 alBaraka’O

  20. Slide 20: Disclaimer

    6 DISCLAIMER THIS PRESENTATION AND THE INFORMATION CONTAINED HEREIN IS CONFIDENTIAL AND MAY NOT BE REPRODUCED, CIRCULATED, DISTRIBUTED OR PUBLISHED (IN WHOLE OR IN PART) OR DISCLOSED BY RECIPIENTS TO ANY OTHER PARTY. BY VIEWING THIS PRESENTATION, YOU AGREE TO BE BOUND BY THE FOREGOING LIMITATIONS. T

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