Turkiye Vakiflar Bankasi Turk Anonim Ortakligi · BIST:VAKBN

Turkiye Vakiflar Bankasi Turk Anonim Ortakligi — Q1 2014 Earnings Presentation

25 slides from Turkiye Vakiflar Bankasi Turk Anonim Ortakligi's earnings presentation, May 7, 2014

  1. Slide 1: Earnings Presentation BRSA Bank-Only 1Q 2014

    Earnings Presentation INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q14 BRSA Bank-Only 1Q 2014 May 7, 2014 www.vakifbank.com.tr 1

  2. Slide 2: 1Q 2014 Macro Highlights

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q14 1Q 2014 Macro Highlights FED continued to reduce its total asset purchase Turkey’s annual C/A deficit decreased to 62.2 bio another 20 bio USD in 1Q14 to 55 bio USD. USD in February 2014 due to the rise in the exports and fall in the gold impor

  3. Slide 3: 1Q 2014 VakifBank Highlights

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q14 1Q 2014 VakifBank Highlights Quarterly net income came at 373.6 mio TL. Specific CoR is in line with the budget at 123 bps. Net CoR came better than budget at 51 bps ROAE at 11.8% and ROAA at 1.1%. thanks to strong collections. Total loans are

  4. Slide 4: 1Q 2014 Earnings and Ratios

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q14 1Q 2014 Earnings and Ratios Quarterly Net Income (Mio TL) Operating Profit (Mio TL) 4.7% ROAE (%) ROAA (%) www.vakifbank.com.tr 4

  5. Slide 5: Well managed asset mix

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q14 Well managed asset mix Total Assets (TL bio) Breakdown of Assets (%) 30.3% Other * 2.7% Interbank Securities The share of (92 bps) loans in total Interest Earning Assets (TL bio) Loans assets 83.4% 82.1% 28.9% 82.5% of total (80 bps) 64.2% 3.2%

  6. Slide 6: TL heavy loan growth

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q14 TL heavy loan growth Total Loans (TL bio) FC Loans (USD bio) 28.7% 9.0% 86.5 89.3 3.3% 69.4 (0.4%) 29.2% Loan/Deposit (%) 106.0 106.1 107.5 4.5% 28.6% www.vakifbank.com.tr 6

  7. Slide 7: NIM, Spreads and Costs

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q14 NIM, Spreads and Costs Yields (%) Cost of Deposits (%) TL Loans TL Securities TL Deposits FC Deposits 112 bps 49 bps 103 bps (1 bps) Net Interest Margin (NIM %) FC Loans FC Securities* (15 bps) 7 bps (45 bps) www.vakifbank.com.tr * MIS data. 7

  8. Slide 8: Well diversified loan breakdown

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q14 Well diversified loan breakdown Breakdown of Loans (TL bio) Portfolio Shift (%) 3 28.7% 69.4 86.5 89.3 Other 1 3.3% SME (1.8 pps) SME 2 Mortgage Retail (3.1 pps) GPC Com.&Corp. Com.&Corp. 4.9 pps 1 Other includes credit cards, overdraft and aut

  9. Slide 9: Strong presence in key retail segments

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q14 Regulatory effects & slowdown in consumption decreased quality retail demand General Purpose Consumer (TL bio) Residential Mortgages**(TL bio) 12.4% #3* 23.5% #2* Strong presence (1.5%) 2.3% in key retail segments thanks to Retail Overdraft (TL

  10. Slide 10: Business Credit Card Market Share gaining ground

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q14 Business Credit Card Market Share gaining ground Credit Card Loans (TL mio) 19.8% Credit Card Loans growth YoY; (6.1%) 19.8% Sector growth YoY; 10.4% Market share* (%) Average Quarterly Issuing Volume (TL mio) www.vakifbank.com.tr *Calculations

  11. Slide 11: Corporate and commercial lending growth is gaining momentum

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q14 Corporate and commercial lending growth is gaining momentum Commercial&Corporate (TL bio) Project Finance Loans (USD bio) 47.3% 16.6% 5.9% Corporate & Commercial Loan growth SME*(TL bio) Total Com.&Corporate Loans**(TL bio) YoY 20.2% 35.2% 47.3

  12. Slide 12: Customer deposits remain the main funding tool

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q14 Customer deposits remain the main funding tool Breakdown of Liabilities (%) Other Sub-Debt Breakdown of Liabilities (TL bio) Bonds 139.1 Wholesale Borrowing Repo* 106.8 Other Funds Bor. Sub-Debt Bonds Funds Borrowed+Bonds Issued SHE Repo Funds

  13. Slide 13: Robust deposit growth in demand, retail and FC deposits

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q14 Robust deposit growth in demand, retail and FC deposits Total Deposits (TL bio) FC Deposits (USD bio) Demand Deposit 27.0 20.0% growth 81.5 83.1 YoY; 1.9% 65.4 12.3% 12.3% 39.5% (1.9%) Share of Demand Deposits in total; Demand Deposits (TL bio)

  14. Slide 14: Timely reshaped securities portfolio in favour of CPI linkers

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q14 Timely reshaped securities portfolio in favour of CPI linkers Total Securities (TL mio) Portfolio Structure 23.4% 22,931 22,128 Total CPI Linkers’ 3.6% 18,577 19.3 bio TL share in TL Securities increased from 16.8% 0.6% in 1Q13 to 34.3% 76.7% 3

  15. Slide 15: NPL Ratios

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q14 NPL Ratios Overall NPL Ratio* (%) Total Retail NPL (%) Sector Sector Sector; W/O NPL W/O Legacy NPL** sales & write-offs Commercial Installment Loans NPL (%) Credit Cards NPL (%) Sector Sector www.vakifbank.com.tr *Accumulated NPL, no write off

  16. Slide 16: Asset quality

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q14 Asset quality NPL (mio TL)* Breakdown of New NPL Inflow (%) Other Credit Cards Com. Inst. Mortgage GPC Com.&Corp. Specific Cost of Risk (%) Group II Loans (mio TL) Coverage Ratio (%) 15.5% Sector * Accumulated NPL, no write off & no asset sale.

  17. Slide 17: Solvency ratios

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q14 Solvency ratios Capital Adequacy Ratio (%) 12.3% 11.3% 11.0% 10.6% 11.3% Core Tier I BRSA Recom. 12% Min. Ratio 8% Core Tier I Ratio is up by 73 bps QoQ www.vakifbank.com.tr 17

  18. Slide 18: High quality earnings breakdown

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q14 High quality earnings breakdown Net Interest Income (TL mio) Breakdown of Total Revenues (%) (21.3) Other Dividend Trading (6.7%) Net F&C NII 1Q14 Core Banking Revenues* (TL mio) Other (20.9%) Dividend Trading (7.0%) Net F&C NII 1Q13 www.vakifb

  19. Slide 19: Revenue Items

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q14 Revenue Items Dividend Income (TL mio) Other Income (TL mio) 40% 21.4% 21.3% 20.3% Breakdown of Net Fee & Com. Income (%) Other Insurance Cash Loans Cash Loans Inquiry Insurance &Expertise Inquiry & Expertise Credit Cards Non-Cash Non-Cash Loan

  20. Slide 20: Opex

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q14 Opex Operating Expenses* (TL mio) Breakdown of Operating Expenses (%) 17.9%* Other Rental Personnel Exp. 624.5 Advertisement 3.4%* Exp. Administrative Exp. 1Q14 Cost/Income (%) Other Advertisement Exp. Rental Personnel Exp. Administrative Exp.

  21. Slide 21: VakifBank with numbers

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q14 VakifBank with numbers Distribution Channels & 1Q14 Efficiency (‘000 TRY) 1Q14 Customer Base (#) Branches 869* Assets per Employee 9,337 ATMs 2,970 Assets per Branch 160,130* Personnel 14,869 Loans per Employee 5,992 POS Terminals 137,948 Loans

  22. Slide 22: Balance Sheet

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q14 Balance Sheet YoY QoQ (TL-mio, %) 1Q2013 YE2013 1Q2014 Growth Growth Cash & Balances with Central Bank 13,551 18,968 19,802 46.1% 4.4% Interbank 1,074 2,639 2,552 137.5% (3.3%) Assets Securities 18,577 22,128 22,931 23.4% 3.6% Loans 69,388 86,4

  23. Slide 23: Income Statement

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q14 Income Statement ∆{1Q13 ∆{4Q13 (TRY-Thousand, %) 1Q2013 4Q2013 1Q2014 1Q14} 1Q14) Net Interest Income 1,345,095 1,135,300 1,059,148 (21.3%) (6.7%) Net Fee & Com. Income 177,111 158,922 145,105 (18.1%) (8.7%) Dividend Income 46,395 40 64,956 40.

  24. Slide 24: Diversified funding source via Non-Deposit Funding

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q14 Diversified funding source via Non-Deposit Funding Syndicated Loan September, 2013 •Secured US$ 166 million and € 471 million 1 year syndicated loan, all-in cost as Libor +0.75% and Euribor + 0.75%, respectively •107% roll-over ratio 27 banks f

  25. Slide 25: Investor Relations

    Investor Relations Çamlık Cad. Çayır Çimen Sok. No:2 Kat:6 34330 1. Levent-İstanbul / Turkey E-mail: investor.relations@vakifbank.com.tr Tel (90-212) 316 7390 Fax (90-212) 316 7126 www.vakifbank.com.tr Disclaimer Notice: This report has been prepared by Vakifbank, Investor Relations Department and i

Turkiye Vakiflar Bankasi Turk Anonim Ortakligi (VakifBank) — Q1 2014 Earnings Presentation on 6ix