Turkiye Sinai Kalkinma Bankasi A.s. · BIST:TSKB
Turkiye Sinai Kalkinma Bankasi A.s — Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — Q1 2017 Earnings Presentation
24 slides from Turkiye Sinai Kalkinma Bankasi A.s's earnings presentation, 2017
Slide 1: Investor Presentation 1Q2017 – BRSA Bank only Results
Created with a trial version of Syncfusion Essential PDF Investor Presentation 1Q2017 –BRSA Bank only Results
Slide 2: TSKB @ a Glance
TSKB @ a Glance Ownership Structure First and only Private Development Bank in Turkey TRY 25.4 bn asset size Free Float 362 employees, 2 branches İş Bank and Others Group 40.91% 18th bank in terms of Asset size 50.71% 3.2% market share in LTFC corporate loans TRY 3.2 bn MCAP* 56.8% of
Slide 3: TSKB's Historical Shareholding Structure
TSKB’s Historical Shareholding Structure İş Bankası 24% Osmanlı Bankası 16% Yapı ve Kredi Bankası 12% Selanik Bankası 4% T. Ticaret Bankası 4% Garanti Bankası 3.86% Akbank 2% Banks 77.86% Banka Komerçiyale İtalyana 2% Banka di Roma 2% Hollantse Bank Uni. 2% Tutum Bankası 2% T. İmar Bankası 2% T. Kre
Slide 4: Primary Strengths
Primary Strengths One of the leading Turkish Ability to fund itself from leading development and investment supranational FIs/ long-term loans banks with an 18% market share guaranteed by the Turkish Treasury in its peer group comprise c. 56% of total funding Strong supportive long-term Prudent bala
Slide 5: Main activities in support of mission
Main activities in support of mission Products and Services of the Group Corporate Banking Investment Banking Advisory Services Direct loan financing for industrial investments, energy and resource Managing own securities portfolio and Strategic Consultancy, LT partnership to efficiency, renew
Slide 6: Sustainability is core to our activities
Sustainability is core to our activities Financing for renewable energy projects Support for low carbon Support for employment economics Sustainable banking for Turkey’s sustainable growth Environmental risk evaluation Energy and resource for all investment projects efficiency in production Responsi
Slide 7: Financial Highlights
Financial Highlights 140.8 Sustainable Profitability & Net Interest Margin TRY mn 132.0 115.5 114.8 117.0 118.0 110.0 94.2 82.4 1Q-2017 profit TL 140.8 mn , 6.4% higher than 2016 RoE @ 19.0%, 5-years average @ 18% 3.9% 3.9% 3.9% 3.8% 3.6% 3.7% 3.4% NIM@ 3.8% 3.1% 3.1% C/I ratio @ 14.8% 1Q-15
Slide 8: Banking Sector vs TSKB
Banking Sector vs TSKB CAR Loans/Assets NPL 17.4% 73.4% 64.5% 3.3% 16.1% 0.3% Banking Sector TSKB Banking Sector TSKB Banking Sector TSKB Cost to Income NIM ROE 19.0% 38.3% 3.9% 3.8% 14.8% 17.4% Banking Sector TSKB Banking Sector TSKB Banking Sector TSKB * Sector data as of March 17 Long Term DFI De
Slide 9: Asset Composition
Asset Composition 5.9% 25,412 TRY mn Growth (FX adjusted) 24,002 3% 7% 3% QoQ YoY 20,735 6% 17% Loans 3.5% 10.6% 3% 12% 19% 7% Liquid Assets 2.2% -12.5% 19% 5% Total Assets 2.2% 3.7% 5% %77 FX FX Assets 0.7% 8.2% %77 FX %70 FX TRY Assets 5.4% -8.0% 67% 66% 61% Leverage Ratio 8.5X Loan to Asset Ratio
Slide 10: Funding Structure
Funding Structure USD mn 6,097 5,935 5,797 Total Funding: USD 5,935 mn Repo &Money Market 1,014 704 999 Securities Issued 506 520 512 Subordinated Debt 87% of the Total Funding is Long Syndication & P/N etc. Term Unguarenteed LT Funding 3,571 3,548 3,468 T. Guarenteed LT Funding FX Short term fundin
Slide 11: Long Term DFI Funding
Long Term DFI Funding Outstanding Funding Base IBRD 37.9% 87% of DFI Funding EIB guaranteed by 30.5% KFW Turkish Treasury 10.8% IDB 8.4% CEB 4.7% IFC 2.5% 2016 AFD 2.4% 1Q-17 EBRD 1.3% CITI 0.9% DFI Funding - 2016 Amount Theme OEB 0.5% EIB 100 mio EUR SME and Midcap EIB 100 mio EUR Energy and Enviro
Slide 12: Shareholders' Equity
Shareholders’ Equity Equity Capital Adequacy Ratio TRY mn CAR 17.4% Tier I 14.9% 14.3% 2,928 2,991 2,489 14.0% 13.5% 12.2% 2015 2016 1Q-17 2015 2016 1Q-17 Equity Movement Risk Weighted Assets TRY mn TRY mn Credit Risk Operational Risk Market Risk 140,8 2,991 14,4 2,928 -92,9 22,190 19,926 16,161 201
Slide 13: Loan Portfolio
Loan Portfolio Loans by Sector Loans by Type Electricity Production 35% 64% Investment Loans Electricity/Gas Distribution 9% 28% Working Capital Loans Finance 14% Logistics 6% 8% APEX Metal and Machinery 6% Chemistry and Plastics 4% Loan Portfolio (mn USD) Non-residential Real Estate 5% FX adj
Slide 14: Renewable Energy and Energy&Resource Efficiency
Renewable Energy and Energy&Resource Efficiency Renewable Energy Portfolio (Outstanding) 1.3 bn USD 1.7 bn USD 1.4 bn USD 1.5 bn USD 1.6 bn USD 7% 7% 6% 6% 6% 144 of 227 RE are in operation 18% 22% 34% 32% 34% 3% 5,373 mw installed capacity is 9% 14% 15% financed:, • 4,430 mw are in operation (8
Slide 15: Renewable Support Mechanism by YEKDEM Law
Renewable Support Mechanism by YEKDEM Law Guaranteed Sales Prices & Local Machinery Incentives Guaranteed Sale Price Local Machinery Incentives Type (USD cent/kWh) (USD cent/kWh) Hydro Power Plant 7,3 1,0—2,3 Wind Power Plant 7,3 0,6—3,7 Geothermal Power Plant 10,5 0,7—2,7 Biomass Power Plant 13,3 0
Slide 16: Robust Asset Quality
Robust Asset Quality 195 194 NPL Ratio TRY mn 178 179 171 145 0.6% 0.5% 0.4% 59 53 53 0.4% 0.4% 48 48 48 0.3% 0.3% 0.2% 0.2% 2009 2010 2011 2012 2013 2014 2015 2016 1Q17 4Q-15 1Q-16 2Q-16 3Q-16 4Q-16 1Q17 Group II Loans NPL * Average NPL ratio for last 5 years is 0.3% TRY mn 4Q-15 1Q-16 2Q-16 3Q-16
Slide 17: Securities Portfolio
Securities Portfolio TRY mn By maturity Duration is 2.6 yrs in Fixed & Floating < 1 Year 1<3 3<5 >5 340 346 bonds, 5.0 yrs in CPIs. FX($) 344 67% is in AFS portfolio. 9% TRY % 70 12% 3% of TRY portfolio funded by repo 45% 3,213 2,840 2,949 Private sector bonds: 5% of total portfolio 34% TRY
Slide 18: Quarterly Income Breakdown
Quarterly Income Breakdown Net Interest Income Breakdown (TRY mn) 1Q-16 4Q-16 1Q-17 QoQ YoY Net Interest Income 178.7 188.7 209.0 10.8% 17.0% 48% 45% 51% Trading Income – Aje. 1.6 11.6 11.3 -2.6% - Net Commissions 2.4 2.2 2.2 0.0% -8.3% 52% 55% 49% Dividend & Other 19.1 0.6 5.0 - -73.8% Net Banking
Slide 19: Net Interest Margin
Net Interest Margin Annual NIM Quarterly NIM 3.9% 3.9% 3.9% 3.9% 3.8% 3.7% 3.8% 3.6% 3.6% 3.4% 3.5% 3.1% 3.1% 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16 3Q-16 4Q-16 1Q-17 2015 1Q-16 2016 1Q-17 NIM Evolution Cumulative NIM Evolution Quarterly 43 - 20 382 - 16 22 17 382 353 16 -16 13 342 4Q-2016 Net Loans Se
Slide 20: Key Performance Indicators
Key Performance Indicators ROE Core-ROE ROAA Cost to Income 20.8% 20.8% 19.0%19.1% 14.3% 15.0% 14.8% 17.0% 17.4% 17.6% 17.5% 13.8% 2.5% 2.3% 2.2% 2.1% 2015 1Q-16 2016 1Q-17 2015 1Q-16 2016 1Q-17 2015 1Q-16 2016 1Q-17 Free Capital Interest Income/AIEA Interest Expense/AIBL 10.1% 10.5% 10.3% 9.9% 6.7%
Slide 21: Appendix: 2017 Forward Looking Expectations
Appendix: 2017 Forward Looking Expectations (%) 2016 Guidance 2016 Realization 2017 Guidance FX Adjusted Loan Growth 12 8.2 10-13 Loans/Assets Ratio 68 72 ✔ 70 Net Interest Income Growth - 16.4 >12 Net Fees & Commissions Growth 30 -25 >20 Net Interest Margin ~3.9 3.5 >3.5 Return On Equity 17-18 17.6
Slide 22: Appendix: Balance Sheet
Appendix: Balance Sheet 31/03/2016 31/12/2016 31/03/2017 (TRY mn) TRY FX TOTAL TRY FX TOTAL TRY FX TOTAL Cash and Banks 1,489 801 2,290 240 856 1,096 356 1,018 1,374 Securities 2,982 981 3,964 3,214 1,188 4,402 2,949 1,256 4,205 Loans 1,331 12,449 13,780 1,280 16,042 17,322 1,746 16,918 18,664 Subsi
Slide 23: Appendix: Quarterly Income Breakdown
Appendix: Quarterly Income Breakdown Change Change (TRY mn) 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16 3Q-16 4Q-16 1Q-17 QoQ YoY Adj. Net Interest 136 152 142 185 181 153 183 201 220 9.5% 21.5% Income Net Commisions 2 3 4 3 1 1 1 1 2 100.0% 100.0% Dividend Income 13 20 0 0 9 21 0 0 3 - -66.7% Other Operati
Slide 24: TSKB Investor Relations
TSKB Investor Relations ir@tskb.com.tr | www.tskb.com
Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — Q1 2017 Earnings Presentation on 6ix