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

Albaraka Turk Katilim Bankasi A.s — Albaraka Türk Katılım Bankası A.Ş. — Q4 2022 Earnings Presentation

21 slides from Albaraka Turk Katilim Bankasi A.s's earnings presentation, 2023

  1. Slide 1: Q4'2022 Investor Presentation

    Q4’2022 Investor Presentation Albaraka Türk Participation Bank HİZMETE ÖZEL

  2. Slide 2: Macroeconomic Outlook

    6 Macreconomic Outlook Global PMI Central Banks Policy Rates Index % 70 10 60 8 50 EM 50 6 49 Fed 40 4 BOE 30 Services 2 ECB Manufacturing 20 0 01/19 04/19 07/19 10/19 01/20 04/20 07/20 10/20 01/21 04/21 07/21 10/21 01/22 04/22 07/22 10/22 01/23 04/23 10/19 01/19 04/19 07/19 01/20 04/20 07/20 10/20

  3. Slide 3: Banking Sector Overview

    6 Banking Sector Overview Total Assets* Funded Credits* TL Billion TL Billion +54.2% +55.7% +65.6% +70.5% 2021 LC -TL 7,704 2022 FC - TL 593 14,344 1,188 4,996 5,142 384 9,215 (67%) 348 (66%) 717 2,851 176 8.3% (57%) (52%) 7.8% 2,146 2,562 172 209 (43%) (33%) (51%) (36%) Banking Sector Participation

  4. Slide 4: Albaraka Türk Snapshot

    Albaraka Türk Snapshot Pre-Provisions Profit Income – Cost Dynamics Return on Equity & Assets* TL Billion TL Billion % +120% +18.68 281% 2021 2022 +0.92 11.05 21.18 7.38 1.2 2021 +70% +228% 1.05 1.0 2022 5.67 +2,015% 6.02 0.8 Gross Provisions 5.02 +53% 6.02 (TL 1.7 Billion Free Provisions) 0.6 3.33

  5. Slide 5: Profitability back on track, asset quality highly improved along with high provisions

    Profitability back on track, asset quality highly improved along with high provisions Although high amount of provisions set aside, our net profit reached to TL 1.37 billion as end of 2022. Net Profit Net Profit + Provisions Gross Operational Income TL Million TL Million TL Billion 10.6 281% 27% 1,2

  6. Slide 6: Capital base bolstered up by additional capital injection and increased capacity of internal capital generation

    Capital base bolstered up by additional capital injection and increased capacity of internal capital generation Despite the 20% Tier-2 amortization in 2022, we managed to keep CAR at the same level compared to 2021. Paid-in Capital Capital Adequacy Ratio TL Million 2021 % +85.2% 2022 16.8 2,500 2022

  7. Slide 7: Moderate asset growth in line with market developments

    6 Modarate asset growth in line with market developments Share of TL assets increased in total assets and our balance sheet become more resilient to potential exchange rate fluctuations. Composition of Total Assets Currency Breakdown of Total Assets TL Billion , % TL/USD Billion, % 146 +34% 146 +5%

  8. Slide 8: Funded credits portfolio reshaped by improved asset quality and liraization strategy

    7 Funded credits portfolio reshaped by improved asset quality and «liraization» strategy Both share of performing credits and TL credits increased in total funded credits. Composition of Total Funded Credits Currency Breakdown of Performing Credits* % % 72.6 +31% 6.8% 0.2% +27.6% 74.0 56.9 6.9% 2.0%

  9. Slide 9: Asset quality improved significantly, and also backed by high provisioning policy

    8 Asset quality improved significantly, and also backed by high provisioning policy NPL ratio has retreated to 1.9% which is below the banking sector average, currency composition of NPL portfolio restructured. Non Performing Credits Development NPL Ratio TL Billion % 8 6.7 1.37 6.3 NPL Ratio 3.15 0

  10. Slide 10: Growth in securities portfolio driven by CBRT pledge, supported profitability

    6 Growth in securities portfolio driven by CBRT pledge, supported profitability Growth in total securities portfolio went up by %105 YoY. Total Securities Portfolio Securities Yield* TL Billion % Available for Sale 35,39 12 10.71 10.69 29,75 6,3% 10.08 Held to Maturity 24,84 2,2% 10 Marketable Secur

  11. Slide 11: Solid funds collection remain main sources of funding with increased TL accounts

    10 Solid funds collection remain main sources of funding with increased TL accounts Share of participation accounts increased in total collected funds after introduction of currency-protected participation accounts which also helped increse TL accounts. Composition of Total Liabilities Composition o

  12. Slide 12: Current accounts still remain high and reduce cost of funding

    Current accounts still remain high and reduce cost of funding Liraization strategy perfectly implemented which enabled us reduce dolarization and cost of funding. Current Accounts Participation Accounts TL Billion – Annual Growth % TL Billion – Annual Growth % +3% 2021 +211% 2021 2022 2022 -34% 38.6

  13. Slide 13: Low cost TL funds and CPI-linked assets boosted net profit share income

    86 Low cost TL funds and CPI-linked assets boosted net profit share income Income generation capacity enhanced and increase in opex kept below inflation. Net Fees and Commission Income TL Million Fees and Commisions Recieved 97 Fees and Commisions Paid 197 192 158 2021 1.7 132 Net Profit Share Incom

  14. Slide 14: 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 Expanded net profit share margin, fee income and efficient cost management supported profitability. Income-Cost Dynamics TL Million +141.5% +125.1% Yield & Cost Movement % 16,627 15,261 10.0% 6.2% 2.6% 6.2% 16 14.6% 14 12.9 17.3

  15. Slide 15: Income – Cost Dynamics

    6 Income – Cost Dynamics YoY Notes (Million TRL) Q4’21 Q4’22 % Profit share income continued to increase on back of high credit yields and Net Profit Share Income 1.694 5.382 217,8 growing securities income. Thus net profit share income increased by 217% YoY. Fee income generation from banking servi

  16. Slide 16: Financial Ratios – Sector Comparison

    6 Financial Ratios – Sector Comparison Percent (%) Q4’21 Q4’22 Albaraka Türk Participation Banks Banking Sector Albaraka Türk Participation Banks Banking Sector CAR 14.90 18.82 18.39 14.88 20.26 19.46 NPL Ratio 6.29 2.93 3.10 1.94 1.38 2.05 Provisioning Ratio (Stage 3) 70.26 87.89 79.52 88.74 99.78

  17. Slide 17: Strategic Priorities

    Strategic Priorities Our short term priority will be managing the balance sheet in accordance with the regulations and minimize the impact on capital, risk profile and income generation. In the upcoming period, we put resolving the structural issues that limits our profitability into the center of o

  18. Slide 18: Summary Balance Sheet

    6 Summary Balance Sheet (TL Million) Q4’21 Q4’22 Growth (%) (TL Million) Q4’21 Q4’22 Growth (%) Cash and Balances with Funds Collected 91,237 112,676 23.5 26,499 24,865 -6.2 Central Bank Funds Borrowed 6,259 4,412 -29.5 Banks 5,296 7,340 38.6 Borrowings from Money Money Market Placements 0 1,726 N/A

  19. Slide 19: Summary Income Statement

    6 Summary Income Statement (TL Million) Q4’21 Q4’22 Growth (%) Profit Share Income 5,023 11,052 120.0 Profit Share Expense 3,330 5,670 70.3 Net Profit Share Income 1,693 5,382 217.8 Net Fees and Commissions Income 406 645 58.9 Fees and Commissions Received 582 1,035 77.7 Fees and Commissions Paid 17

  20. Slide 20: Thank You

    THANK YOU...

  21. Slide 21: 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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