Turkiye Vakiflar Bankasi Turk Anonim Ortakligi · BIST:VAKBN
Turkiye Vakiflar Bankasi Turk Anonim Ortakligi — Türkiye Vakıflar Bankası T.A.O. (VakıfBank) — Investor Presentation (August 2024)
26 slides from Turkiye Vakiflar Bankasi Turk Anonim Ortakligi's investor presentation, August 2024
Slide 1: Investor Presentation August 2024
Investor Presentation August 2024
Slide 2: Agenda
Investor Presentation Appendix Macroeconomic Overview VakıfBank at a Glance & Key Highlights Financial Statements 2
Slide 3: Macro trends
Investor Presentation Macro trends GDP (y-y, %) 55,632 56,973 49,086 51,767 22.2 45,009 39,386 31,232 7.5 5.8 6.5 6.4 7.5 7.9 9.6 7.6 7.8 24,760 24,833 5.9 4.4 4.0 3.5 4.0 3.9 5.9 4.0 5.7 CAD (million USD) 2.5 0.9 -2.6-2.6-1.7 -10.3 1Q24* 3Q21 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4
Slide 4: Turkish Banking Sector
Investor Presentation Turkish Banking Sector TL Performing Loans (TL billion) Turkish Banking Sector Key Ratios (%) Capital Ratios NIM 9,817 7,894 8,591 8.8 7,268 7,268 18.3 19.5 18.9 6,689 16.4 17.1 5,109 5.3 4.9 4.9 4.5 2,832 15.5 15.1 13.4 13.3 13.5 YE21 YE22 2Q23 3Q23 3Q23 YE23 1Q24 2Q24 YE21 YE
Slide 5: TL core spreads in Turkish banking sector
Investor Presentation TL core spreads in Turkish banking sector The Upper Limits for TL Commercial Loans (%) 69.3 The upper limit of 1.4x and 1.8x reference rate for TL commercial loans have been terminated as of July 2023 and October 2023, respectively. 50.0 50.0 56.3 45.0 45.0 42.5 40.0 33.8 35.0
Slide 6: VakıfBank at a Glance & Key Highlights
Investor Presentation Appendix Macroeconomic Overview VakıfBank at a Glance & Key Highlights Financial Statements 6
Slide 7: Ownership Structure & Overseas Activities
Investor Presentation Ownership Structure & Overseas Activities Ownership Structure as of 2Q24 (%) Strong Local Franchise & International Presence in 7 countries Cologne Branch of Free Float VakıfBank Int. AG Other (Group D) Shareholders of Vienna Branch of Group B-C 6.4 (Group A-B) VakıfBank Int. A
Slide 8: VakıfBank Financial Group Subsidiaries
Investor Presentation VakıfBank Financial Group Subsidiaries Financial Subsidiaries Non-Financial Subsidiaries Bank’s Direct Consolidated Bank’s Direct Consolidated Share (%) Share (%) Share (%) Share (%) 62.12 62.12 67.27 84.82 92.10 94.45 52.43 52.43 99.50 99.66 96.73 98.76 97.14 97.14 100.00 100.
Slide 9: Strategic Priorities
Investor Presentation Strategic Priorities VakıfBank has 5 key corporate strategic priorities with sub-strategic targets ‒Providing widespread and cost-effective funding at a granular level ‒Supporting manufacturing, export, employment-related loan growth ‒Increasing number of customers and transact
Slide 10: Ratings & Outstanding Eurobonds
Investor Presentation Ratings & Outstanding Eurobonds Ratings Moody’s Fitch Ratings JCR Eurasia Long-Term FC Deposit B1 (Positive) National Long-Term Rating AA (tur) (Stable) LT International FC Issuer Credit Rating BB (Stable) Short-Term FC Deposit NP Long-Term FC IDR B (Positive) LT International
Slide 11: Strong market shares in every field
Investor Presentation Strong market shares in every field Asset (TL Million) Loan (TL Million) Deposit (TL Million) #2nd #2nd #2nd #2nd #2nd #2nd #2nd #2nd #3nd 3,238 2,152 2,797 12% 1,962 12% Market 13% 1,708 13% Market Share Market Market Share 1,499 Share Share 1,681 12% 1,128 13% Market 12% Mark
Slide 12: Strong Positioning in Key Segments
Investor Presentation Strong Positioning in Key Segments SME Loans (TL billion) Commercial & Corporate Loans (TL billion) #2 #2 #1 #1 Ranking #3 #3 #3 #2 Ranking 10.6 11.8 11.5 11.4 Market 13.9 14.4 13.9 14.0 Market Share (%) Share (%) 897.9 414.5 420.8 771.3 807.7 370.1 Total foreign trade 300.3 64
Slide 13: Well positioned TL security portfolio
Investor Presentation Well positioned TL security portfolio Total Securities (TL billion) Portfolio Structure 57% 722.8 743.3 6% 659.8 3.0% 45% 1% 8.7% 53% 332.4 352.6 41% 55% 474.2 344.4 5.8 251.5 16.5 34.3 29.0 405.1 2Q23 2Q24 353.7 281.1 193.7 Trading AFS HTM Trading AFS HTM 2Q23 4Q23 1Q24 2Q24 A
Slide 14: Composition of asset & liabilities
Investor Presentation Composition of asset & liabilities Breakdown of Assets (%) Currency Breakdown of Total Assets The biggest listed bank 2Q24 Other in terms of asset size with 22.2 Loans 12%* market share 52.7 38% Interbank 62% 2.1 2Q24 The share of IEA 78% Securities in total assets 23.0 TL FC B
Slide 15: NIM, CPI linkers and money market funding
Investor Presentation NIM, CPI linkers and money market funding CPI Expectation NIM (%) 0.42% 5.30% 3.02% 3.03% NIM 3.95% Swap 0.31% 1.31% 1.25% Adj. NIM 2Q23 4Q23 1Q24 2Q24 ➢ Improvement on incremental ➢ Expected CPI income in 3Q24 TL core spreads will support is TL 21 billion with 40.7% NIM in 2H2
Slide 16: Risks on asset quality faring, yet under control with healthy provisioning
Investor Presentation Risks on asset quality faring, yet under control with healthy provisioning NPL (TL million)* Stage II Loans Breakdown (TL billion) Share in total 7.8 7.9 loans (%) 6.9 7.5 4,826 9 1,590 24,321 21,085 134.3 Total Stage II Loans 116.4 119.8 56.0 55.2 54.1 Restructured 42% 88.1 47
Slide 17: Onshore customer deposits oriented funding structure
Investor Presentation Onshore customer deposits oriented funding structure Total Deposits (TL billion) Breakdown of Deposits (%) 53% 67% 63% 33% 37% 2,152 Sector 1,962 2,003 7% TL Deposits FC Deposits TL Deposits FC Deposits 779 702 708 1,402 $ 21.4 $ 23.9 FC Share of demand $ 24.0 573 TL deposits 7
Slide 18: YtD international funding amount
Investor Presentation YtD international funding amount: USD 7 billion Breakdown of International Funding Short term $5.8 billion Private Placement International Coverage Free FX liquidity Other 8.0% Eurobond Funding 1.1X ~$6.5 billion 1.5% 15.7% Repo & Long term Collateralized Funding $11.7 billion
Slide 19: Solvency ratios
Investor Presentation Solvency ratios Capital Adequacy Ratio (%) Solvency ratios Including free (%) w/o BRSA provision impact forbearance Required CET1 CET I 11.33 11.37 11.73 10.52 10.54 level 8.5% CET I 9.53 9.96 Tier I 13.36 13.23 13.64 12.17 13.12 Required Tier I Tier I 11.91 12.34 level 10% CAR
Slide 20: Financial Statements
Investor Presentation Appendix Macroeconomic Overview VakıfBank at a Glance & Key Highlights Financial Statements 20
Slide 21: 2Q24 Earnings and profitability
Investor Presentation 2Q24 Earnings and profitability Net Income (TL billion) ROAE (%) 248% vs. 19.2 Sector avg. 27.0 of 25.5% 21.2 12.0 18.0 7.2 5.5 TL 8.5 billion 9.0 free provisions in the b/s as of 1H24 1H23 1Q24 2Q24 1H24 1H23 YE23 1Q24 1H24 Core Banking Revenues (TL billion) * Timely Executed
Slide 22: 2Q24 P&L details
Investor Presentation 2Q24 P&L details 2Q24 1H24 QoQ TL million vs. TL million YoY 5% Net Interest 36,328 342% 18,626 Income (1%) Net Fees and 21,135 129% TL 11 billion 10,506 Commissions free provision in the b/s as of 1Q24 8771% 113 Dividend 114 1111% Income Net Trading (10,598) (192% ) (100% ) (7
Slide 23: Unconsolidated Key Financial Ratios
Investor Presentation Unconsolidated Key Financial Ratios 1H23 2023 1Q24 2Q24 1H24 Profitability ROAE 9.0% 18.0% 27.0% 15.3% 21.2% ROAA 0.6% 1.1% 1.7% 0.9% 1.3% Cost / Income 37.2%* 33.7%* 30.8% 52.5% 39.7% Cost / Assets 1.6%* 1.4%* 2.0% 2.2% 2.0% Fee / Cost 52.4%* 63.6%* 71.7% 59.5% 65.1% NIM 1.0%
Slide 24: Unconsolidated Balance Sheet
Investor Presentation Unconsolidated Balance Sheet (TL thousand, %) 2Q23 1Q24 2Q24 TL USD USD USD USD TL TL TL YoY QoQ YoY QoQ equivalent equivalent equivalent Cash & Balances with Central 229,435,856 8,805,271 502,213,898 15,507,656 591,900,126 18,041,720 158.0% 17.9% 104.9% 16.3% Bank Assets Inter
Slide 25: Unconsolidated Income Statement
Investor Presentation Unconsolidated Income Statement (TL thousand, %) 1H23 1Q24 2Q24 1H24 YoY QoQ Net Interest Income 8,214,416 17,701,893 18,625,737 36,327,630 342.2% 5.2% Swap Cost -960,266 -10,038,011 -10,933,553 -20,971,564 2083.9% 8.9% Net Fee & Com. Income 9,234,264 10,629,030 10,505,748 21,1
Slide 26: For Earnings Presentations: Investor Relations
For Earnings Presentations: A member of BIST Sustainability Index Investor Relations Finanskent Mahallesi Finans Caddesi No:40/1 Ümraniye / İstanbul E-mail: investorrelations@vakifbank.com.tr Tel (90-216) 724 2685 Fax (90-216) 724 3941 www.vakifbank.com.tr Disclaimer Notice: This report has been pre
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