Albaraka Turk Katilim Bankasi A.s. · BIST:ALBRK
Albaraka Turk Katilim Bankasi A.s — Albaraka Türk Participation Bank — Q4 2024 Earnings Presentation
23 slides from Albaraka Turk Katilim Bankasi A.s's earnings presentation, Dec 31, 2024
Slide 1: Investor Presentation 2024 Q4
Investor Presentation 2024 Q4 Albaraka Türk Participation Bank
Slide 2: Macroeconomics / Banking Outlook
Macroeconomics / Banking Outlook
Slide 3: Macroeconomic Outlook: Gradual Rebalancing
Macroeconomic Outlook: Gradual Rebalancing The global economy maintains a stable outlook—despite the mild decrease compared to the previous periods—with the moderation of inflation and the interest rate cut cycles by major central banks. In Türkiye, tight monetary policy and financial conditions are
Slide 4: Banking Sector Overview: Tight monetary policy weighs down 2024's growth and earnings
6 Banking Sector Overview: Tight monetary policy weighs down 2024’s growth and earnings As a result of the tight monetary policy, asset growth in both banking and participation banking sectors wer moderate in 2024 while profitability ratios declined YoY. Net Profit Funded Credits* Total Assets* TL B
Slide 5: 2024 Financial Results
2024 Financial Results
Slide 6: Strong performance despite the challenges posed by tight monetary policy
Strong performance despite the challenges posed by tight monetary policy Positively differentiated from the sector with sound performance Net Profit Income – Cost Dynamics 2023 Return on Avg. Equity & Assets* TL Billion % TL Billion 2024 -12.6% +73.9% YoY QoQ -25.7% 2023 -5.5 8.5 2024 8.2 7.8 33.4 +
Slide 7: Consistent growth in total assets alongside NPSM contraction
6 Consistent growth in total assets alongside NPSM contraction Asset growth limited by regulatory credit growth caps, with NPSM contraction deeping from Q3 to Q4’24. Other Assets Composition of Total Assets Currency Breakdown of Total Assets TL Billion , % TL/USD Billion, % Securities Cash and Equiv
Slide 8: Solid funded credit growth achieved despite regulatory constraints
7 Solid funded credit growth achieved despite regulatory constraints Total funded credit portfolio grew by 36% YtD, driven by the growth in the performing credits and the share of FC credits rising to 48%. Total Funded Credits Currency Breakdown of Performing Credits* TL Billion - Inc. f.Leasing. TL
Slide 9: Prudent approach maintained, additional TL 2.1 billion in free provisions allocated in 2024
8 Prudent approach maintained, additional TL 2.1 billion in free provisions was allocated in 2024 NPL ratio decreased to 1.36%, stage 2 coverage ratio increased to 25.6% in Q4’24. NPL Ratio Net NPL Ratio Non Performing Credits Development NPL Ratio TL Billion % 2.5 0.30 2.0 1.65% 1.66% 1.58% 1.01 0.
Slide 10: Moderate growth in total securities, yield continues to support profitability
6 Moderate growth in total securities, yield continues to support profitability Securities yield up by 340 bps YoY, maintaining contribution to profitability. LC Total Securities Portfolio Securities Yield* % Total Available for Sale TL Billion FC Marketable Securities 27.5 27.2 25.5 26.4 +18% 28 24
Slide 11: Despite increased importance of alternative products, collected funds remain primary source
10 Despite increased importance of alternative products, collected funds remain primary source While collected funds remain key, the significance of alternative funding sources expected to decline with market return declines. Composition of Total Liabilities Currency Composition of Collected Funds T
Slide 12: Share of TL funds grows in collected funds, with accelerated exit from FX-protected accounts
Share of TL funds grows in collected funds, with accelerated exit from FX-protected accounts Rapid growth in TL funds due to high yields in 2024, more than doubling funding costs YoY. Current Accounts Participation Accounts TL Billion – Annual Growth % TL Billion – Annual Growth % 26.7% 2023 +28.1%
Slide 13: Profitability sustained through effective management of costs, risk, and market conditions
86 Profitability sustained through effective management of costs, risk, and market conditions High funding costs coupled with swap costs impacted core banking revenue in 2024, but swap costs eased in H2 with securitized assets revaluation gains boosting Q4 profitability. Profit Share Income Profit S
Slide 14: Sound cost-income dynamics despite tight monetary policy and regulatory constraints
6 Sound cost-income dynamics despite tight monetary policy and regulatory constraints Despite YoY contraction in core banking income due to high funding costs, efficient cost management and low staff-per-branch ratio helped contain expenses. Income-Cost Dynamics Cost Income* TL Billion +4.5% 18.4 17
Slide 15: Navigating challenges of operational environment with sustained profitability
6 Navigating challenges of operational environment with sustained profitability YoY QoQ Notes (TL Million) 2023 2024 % Q3’24 Q4’24 % Due to the tight monetary policy environment, net profit share margin Net Profit Share Income 8,530 7,451 -13% 745 1,991 167% remained under pressure. Net Fees & Commi
Slide 16: Capital adequacy ratio remains stable and sufficient to support growth
Capital adequacy ratio remains stable and sufficient to support growth CAR rises to 17.2% with $120 million of Tier 2 support issued in Q4’24 and further support is expected to be improved in 2025. Capital Adequacy Ratio Capital Breakdown % % 21.9 AT-1 Tier-2 17.3 17.2 Core Capital 3.0% 16.2 4.4% 15
Slide 17: 2024 Guidance vs. Actuals
2024 Guidance vs. Actuals
Slide 18: 2024 YE performance is successfully aligned with our guidance
2024 YE performance is succesfully aligned with our guidance with sound asset quality and enhanced provisioning cushion 2024 Guidance 2024 TL Loan Growth ~20% 16.3% FC Loan Growth ~30% 48% NPL Ratio 1.6-1.8% 1.4% Provisioning Ratio 85-90% 87.8% ~2.5-2.8% 2.8% Net Profit Share Margin ~3.2-3.5% (incl.
Slide 19: Appendix
Appendix
Slide 20: Summary Balance Sheet
Summary Balance Sheet (TL Million) 2023 2024 Growth (%) (TL Million) 2023 2024 Growth (%) Cash and Balances with Funds Collected 161,806 204,767 26.6% 49,084 61,261 24.8% Central Bank Funds Borrowed 30,536 50,237 64.5% Banks 14,585 22,810 56.4% Borrowings from Money Market Placements - - - - - - Mon
Slide 21: Summary Income Statement
6 Summary Income Statement (TL Million) 2023 2024 Growth (%) Profit Share Income 20,074 42,060 110% Profit Share Expense 11,544 34,609 200% Net Profit Share Income 8,530 7,451 -13% Net Fees and Commissions Income 2,251 3,392 51% Fees and Commissions Received 2,766 4,023 45% Fees and Commissions Paid
Slide 22: Thank You
THANK YOU...
Slide 23: 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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