Turkiye Vakiflar Bankasi Turk Anonim Ortakligi · BIST:VAKBN
Turkiye Vakiflar Bankasi Turk Anonim Ortakligi — Türkiye Vakıflar Bankası T.A.O. (VakıfBank) — H1 2022 Earnings Presentation
26 slides from Turkiye Vakiflar Bankasi Turk Anonim Ortakligi's earnings presentation, Aug 8, 2022
Slide 1: Earnings Presentation BRSA Bank-Only 1H22
Earnings Presentation BRSA Bank-Only 1H22 August 8, 2022
Slide 2: 2Q22 Earnings and Profitability
Earnings Presentation Bank-Only 1H22 2Q22 Earnings and Profitability Net Income (TL million) ROAE(%) Adj. with 37.0 46.3 free prov. 610% 134% 12,247 9,016 TL 2.2 billion 36.0 free prov. TL 2 billion 10,019 7,016 free prov. 30.3 >TL 2.2 billion free provision in 18.9 1H22 179% +17 ppt 3,002 3,230 TL
Slide 3: Key Highlights of 2Q22
Earnings Presentation Bank-Only 1H22 Key Highlights of 2Q22 Strong Profitability 1H22 net income up by 610% 2Q22 net income would be TL 9 TL 10 TL 7 2Q22 net income up by 134% TL 9 YoY and annual ROAE came at billion if adjusted with additional free billion billion QoQ and quarterly ROAE came at bil
Slide 4: 2Q22 P&L Details
Earnings Presentation Bank-Only 1H22 2Q22 P&L Details YoY 1H22 2Q22 QoQ 23,716 Net Interest 14,510 305% 58% Income Free Provisions 114% 4,119 Net Fees and 2,383 37% Commissions 2018 +TL 530 mio 22% 146 Dividend Income 24 (80%) 2019 -TL 178 mio Net Trading 2020 +TL 220 mio 181% 1,594 468 (58%) Income
Slide 5: Solid NIM performance
Earnings Presentation Bank-Only 1H22 Solid NIM performance Net Interest Margin (NIM %) Swap Adjusted Net Interest Margin (%) 5.6 5.8 4.7 5.0 3.7 4.2 +1.6 ppt +1.9 ppt 2.8 1.8 1.9 +2.2 ppt 0.8 +2.9 ppt 1H21 2021 1Q22 2Q22 1H22 1H21 2021 1Q22 2Q22 1H22 CPI Expectation Total Money Market Funding 2Q21 3
Slide 6: Stellar Fee & Commission income growth
Earnings Presentation Bank-Only 1H22 Stellar Fee & Commission income growth Net Fee & Commission Income (TL million) Net Fee & Commission Income Breakdown 114% Cash Loans Non-Cash Loans Payment Systems 4,119 19% 25% 44% 2,383 Insurance Other 1,929 1,736 37% 9% 3% 1H21 1Q22 2Q22 1H22 Fee/Opex Ratio (
Slide 7: OPEX
Earnings Presentation Bank-Only 1H22 OPEX Opex (TL million) Cost/Income Ratio (%) 58% (20 ppt) Lower than headline inflation 6,848 39.8 4,337 3,805 20.0 19.6 19.8 3,043 25% 1H21 1Q22 2Q22 1H22 1H21 1Q22 2Q22 1H22 HR Cost (TL million) Breakdown of OPEX Non-HR Cost (TL million) 65% 52% 2,988 HR Cost 4
Slide 8: Ongoing lending growth on selective areas
Earnings Presentation Bank-Only 1H22 Ongoing lending growth on selective areas Portfolio Breakdown (%) Portfolio Breakdown (%) QoQ Loan Growth 64% 36% 2Q22 10% TL Loans FC Loans Com. & Corp 1Q22 13% 16% in USD terms TL 386 billion 53% 4Q21 30% 11% 9% 4% 3Q21 4% 1% -5% -5% 0% 2Q21 4Q21 1Q22 2Q22 2Q21
Slide 9: Breakdown of loan portfolio
Earnings Presentation Bank-Only 1H22 Breakdown of loan portfolio Sector Breakdown of Cash Loans Breakdown of FC Loans Retail Loans Manufacturing Breakdown of Project 17% 21% Finance Other (inc. 17% Export Energy business and 13% 2Q22 Loans 31% retail credit cards) 10% Construction 42% 4% Working 62%
Slide 10: Net CoR reflects conservative provisioning policy
Earnings Presentation Bank-Only 1H22 Net CoR reflects conservative provisioning policy NPL (TL million)* Stage II Loans Breakdown (TL million) Stage II 14.1 14.5 18.2 18.3 Coverage 3,156 Ratio (%) Share in total 10.83 10.03 9.48 18,991 1,437 19,547 loans (%) 8.18 1,163 68,785 Total Stage II 62,159 6
Slide 11: Well-balanced deposit portfolio
Earnings Presentation Bank-Only 1H22 Well-balanced deposit portfolio Total Deposits (TL billion) Breakdown of Deposits Market 11.3% 11.1% 11.5% 11.6% Share 49% 51% 57% 787.7 43% 684.2 590.9 400.7 Sector $ 24.0 432.4 337.9 FC $ 23.0 TL Deposits FC Deposits TL Deposits FC Deposits 335.5 TL $ 25.0 211.
Slide 12: Well diversified external funding
Earnings Presentation Bank-Only 1H22 Well diversified external funding Breakdown of Wholesale Funding TL 81.1 billion sustainable finance provided as of 2Q22 in the balance sheet Local Bonds Other 2.2% 2.4% Eurobond IFI Borrowings AT I Issuance 26% 8.2% Eurobond 7% 27% Sustainable IFI Finance* 6.5%
Slide 13: Solvency ratios
Earnings Presentation Bank-Only 1H22 Solvency ratios Capital Adequacy Ratio (%) Required CET1 Solvency ratios without BRSA CET I 10.52 9.88 9.96 12.84 11.36 level 8.5% forbearance (% - 2Q22) Tier I 13.22 12.39 12.88 15.57 13.68 Required Tier I CAR 14.43 level 10% 17.50 15.13 15.55 Tier I 12.54 14.26
Slide 14: Appendix
Earnings Presentation Bank-Only 1H22 Appendix Pg. 15 Sustainable banking approach Pg. 16 Sustainable loan products Pg. 17 The first Turkish bank incorporated sustainability approach to its provisioning policy Pg. 18 Improved efficiency with enhanced digital platforms Pg. 19 Composition of assets & l
Slide 15: Sustainable banking approach
Earnings Presentation Bank-Only 1H22 Sustainable banking approach Indices Initiatives Sustainability Rating B Score in 2021 Score: 47 in 2021 1st assessment in 2015 Sustainability Reporting 15
Slide 16: Sustainable Loan Products
Earnings Presentation Bank-Only 1H22 Sustainable Loan Products Women in Business Loan Green Mortgage Loan For a business that is managed or owned by Aiming to support the reduction of residential women, having less than 250 employees energy consumption and greenhouse gas and completing the year
Slide 17: The first Turkish bank incorporated sustainability approach to its provisioning policy
Earnings Presentation Bank-Only 1H22 The first Turkish bank incorporated sustainability approach to its provisioning policy Proactive provisioning policy in accordance with CBAM (Carbon Border Adjustment Mechanism) and ‘Fit for 55’ principles To eliminate the transformation risk of these companies,
Slide 18: Improved efficiency with enhanced digital platforms
Earnings Presentation Bank-Only 1H22 Improved efficiency with enhanced digital platforms Branch 939 9% Branches # of active* digital Internet banking customers Banking reached 6.3 million 46% 6,301K # of transaction made Mobile Digital Non-branch transaction through digital platform Banking Banking
Slide 19: Composition of asset&liabilities
Earnings Presentation Bank-Only 1H22 Composition of asset&liabilities Breakdown of Assets (%) TL/FC Mix in Total Assets Other 2Q22 16.4 The biggest listed bank Interbank of Turkey in terms of asset size with 3.3 12.6% market share 53% 2Q22 47% Loans Securities 56.6 The share of IEA 23.7 84% TL FC in
Slide 20: Well-positioned security portfolio
Earnings Presentation Bank-Only 1H22 Well-positioned security portfolio Total Securities (TL million) Portfolio Structure 75.3% Breakdown of FC Securities 7% 304,335 37% 272,150 100% 2Q22 11.8% 104,454 2Q21 56% 223,737 93,276 73,862 14,865 165,427 Fixed 14,742 Trading AFS HTM Breakdown of TL Securit
Slide 21: Retail Lending Portfolio
Earnings Presentation Bank-Only 1H22 Retail Lending Portfolio General Purpose Consumer (TL billion) Residential Mortgages (TL billion) Credit Card Loans (TL billion)* 17.1% 32% 106.5% ~70% of GPC loans ~30% of mortgages extended to payroll clients extended to payroll clients 56.6 35.0 57.1 26.8 30.4
Slide 22: Diversified funding sources via non-deposit funding
Earnings Presentation Bank-Only 1H22 Diversified funding sources via non-deposit funding Syndication Eurobonds and Private Placements USD 1.6 billion outstanding Apr’22: USD 1 billion equivalent syndicated loan, Libor +2.75%, Euribor USD 3.3 billion outstanding Eurobonds and USD 142.4 million +2.1
Slide 23: Unconsolidated Key Financial Ratios
Earnings Presentation Bank-Only 1H22 Unconsolidated Key Financial Ratios 1H21 2021 1Q22 2Q22 1H22 Profitability ROAE 6.0% 8.5% 18.9% 36.0% 30.3% ROAA 0.4% 0.5% 1.1% 2.4% 1.8% Cost / Income 39.8% 34.7% 20.0% 19.6% 19.8% Cost / Assets 1.2% 0.9% 1.1% 1.2% 1.1% Fee / Cost 44.5% 47.3% 57.1% 62.6% 60.1% N
Slide 24: Unconsolidated Balance Sheet
Earnings Presentation Bank-Only 1H22 Unconsolidated Balance Sheet (TL-thousand, %) 2Q21 1Q22 2Q22 TL USD TL USD TL USD TL USD YoY QoQ YoY QoQ Cash & Balances with Central 66,165,072 7,622,704 132,831,962 9,048,499 160,491,468 9,613,722 142.6% 20.8% 26.1% 6.2% Bank Assets Interbank 14,243,069 1,640,9
Slide 25: Unconsolidated Income Statement
Earnings Presentation Bank-Only 1H22 Unconsolidated Income Statement (TL thousand, %) 1H21 1Q22 2Q22 1H22 YoY QoQ Net Interest Income 2,494,394 8,129,337 14,049,149 22,178,486 889% 173% (Inc. Swap Cost) Income on CPI linkers 3,429,358 5,356,846 12,664,672 18,021,518 526% 236% Swap Cost -3,364,084 -1
Slide 26: VakıfBank Investor Relations contact
For VakıfBank IR Application: For Earnings Presentations: A member of BIST Sustainability Index Investor Relations Saray Mahallesi Dr. Adnan Buyukdeniz Cad. A1 Blok No: 7a Umraniye/Istanbul E-mail: investorrelations@vakifbank.com.tr Tel (90-216) 724 2685 Fax (90-216) 724 3941 www.vakifbank.com.tr Di
Türkiye Vakıflar Bankası T.A.O. (VakıfBank) — H1 2022 Earnings Presentation on 6ix