Turkiye Vakiflar Bankasi Turk Anonim Ortakligi · BIST:VAKBN

Turkiye Vakiflar Bankasi Turk Anonim Ortakligi — Türkiye Vakıflar Bankası T.A.O. (VakıfBank) — FY2015 Earnings Presentation

24 slides from Turkiye Vakiflar Bankasi Turk Anonim Ortakligi's earnings presentation, Feb 11, 2016

  1. Slide 1: Earnings Presentation BRSA Bank-Only YE 2015

    Earnings Presentation VakıfBank IR App. Available at BRSA Bank-Only YE 2015 February 11, 2016

  2. Slide 2: 4Q15 Macro Highlights

    INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2015 4Q15 Macro Highlights Global Economy Key Macroeconomic Parameters 2011 2012 2013 2014 2015 FED’s first rate hike in December 2015, brought 8.8% 2.1% 4.2% 2.9% 4.0%* Real GDP Growth an end to the seven year period of near-zero Current Account

  3. Slide 3: 4Q15 VakıfBank Highlights

    INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2015 4Q15 VakıfBank Highlights Quarterly bank-only net income is TL 656.6 million, which Quarterly NIM expanded 66 bps to 4%, backed by CPI is up by 45% QoQ. linkers and further improved TL core spreads. 2015 cumulative NIM materialized at 3.86%.

  4. Slide 4: YE 2015 Earnings and Ratios

    INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2015 YE 2015 Earnings and Ratios Quarterly Net Income (TL million) ROAE (%) 2015 ROAE Comparison(%)** 4Q15 Sector net 12.9 13.1 12.8 income ROAE 12.2 12.2 16.1% 11.6 11.8 11.6 growth of 10.6 vs Sector 3% YoY* 10.1% 10.1 11.2% 8.6 1,930.1 1,753.3

  5. Slide 5: The highest Loans/Assets ratio in peer group

    INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2015 The highest Loans/Assets ratio in peer group Total Assets (TL billion) 15.6% Breakdown of Assets (%) Quarterly Growth Securities Loans 188.8 182.9 1Q14 +4% +3% Other * 16.1 17.6 17.3 Moderate loan (3.1%) growth 2Q14 -3% +3% 158.2 Interbank 1

  6. Slide 6: Well balanced and stable security portfolio

    INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2015 Well balanced and stable security portfolio Total Securities (TL million) Portfolio Structure Total TL 4.9 billion 7.6% equivalent TL 20.4 billion TL FC 25,076 25,337 36% 23,558 1% 100% 7,433 7,678 29% 35% Quarterly 6,855 30.3% 29.1% 29.6% F

  7. Slide 7: Selective and profitability focused loan growth in key segments

    INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2015 Selective and profitability focused loan growth in key segments Total Loans (TL billion) FC Loans (USD billion) 17.9% 1% 124.2 123.0 12.6 12.0 12.1 (1.0%) 104.3 38.2 35.4 (3.9%) 27.9 (7.4%) 26.7% YE14 3Q15 YE15 Loan/Deposit (%) 86.0 87.6 76.

  8. Slide 8: Well diversified loan breakdown with higher share of corporate & commercial loans

    INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2015 Well diversified loan breakdown with higher share of corporate & commercial loans Breakdown of Loans (TL billion) Portfolio Shift (%) 17.9% SME 26.5 0.4 pps 26.9 104.3 118.3 124.2 123.0 Other 1 6.9 7.7 8.2 8.9 (1.0%) Retail 33.4 (1.6 pps) 31

  9. Slide 9: Retail banking market share gains sustained

    INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2015 Retail banking market share gains sustained General Purpose Consumer (TL billion) Residential Mortgages (TL billion)* Strong presence in 12.9% 5.6% key retail vs Sector GPC segments thanks growth of 4.6% YoY to 15.1 15.2 15.2 13.5 14.9 14.9

  10. Slide 10: Sustained healthy growth in credit cards despite macroprudential measures

    INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2015 Sustained healthy growth in credit cards despite macroprudential measures Credit Card Loans (TL million) Retail credit card market share (%) Sector’s 19.3% credit card 64 bps YoY loan growth increase in vs of 9.4% YoY retail credit 5,228 car

  11. Slide 11: Selective loan growth in high quality corporate segment throughout the year

    INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2015 Selective loan growth in high quality corporate segment throughout the year Commercial&Corporate (TL billion) Project Finance Loans (USD billion) 21.3% 8.3% 54.2 7.6 7.8 50.8 7.4 49.1 6.8 41.9 (6.3%) (5.1%) Share of commercial & corporate YE

  12. Slide 12: Strong collections & limited new NPL inflow helped Net CoR to be inside the budget

    INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2015 Strong collections & limited new NPL inflow helped Net CoR to be inside the budget NPL (TL million)1 Reported1 and Comparable NPL Ratios (%) 4,742 566 458 4,850 Collections /New NPL: 4.84 4.76 4.80 4.96 80.9% in 4Q15 3.67 3.68 3.79 3.52 3.20

  13. Slide 13: Customer deposit driven well diversified funding structure

    INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2015 Customer deposit driven well diversified funding structure Breakdown of Liabilities (%) Other 5.1 5.3 5.5 6.2 Sub-Debt 1.4 2.2 2.3 2.3 Breakdown of Liabilities (TL billion) Bonds 6.6 6.7 6.5 5.8 Repo* 10.2 10.3 7.5 6.3 158.2 182.9 Other Fund

  14. Slide 14: Non-granular deposit base via stellar growth on demand and retail deposits

    INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2015 Non-granular deposit base via stellar growth on demand and retail deposits Total Deposits (TL billion) FC Deposits (USD billion) 19.8% 2.4% 112.6 109.9 12.3 91.8 100.3 11.2 11.6 11.5 Total deposit 37.0(2.4% )33.4 growth of 26.1 31.2 (9.6%) F

  15. Slide 15: Solvency ratios

    INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2015 Solvency ratios Capital Adequacy Ratio (%) Core Tier I 11.4% 10.8% 10.4% 10.5% 11.3% 80 bps 14.5 14.2 13.7 14.0 13.7 BRSA Recom. 12% Min. Ratio 8% YE14 1Q15 1H15 3Q15 YE15 CAR improvement of 56 bps YoY The effect of +98 -63 0.1 TL increase/

  16. Slide 16: CPI Linkers and further improved TL core spreads supported quarterly NIM

    INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2015 CPI Linkers and further improved TL core spreads supported quarterly NIM Yields (%) Cost of Deposits (%) TL Loans TL Securities TL Deposits FC Deposits 47 bps 461 bps 32 bps (10 bps) 12.53 11.97 12.06 11.63 8.38 11.32 10.92 8.06 9.52 7.76 1.

  17. Slide 17: Earnings breakdown

    INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2015 Earnings breakdown Net Interest Income (TL million) Net Interest Income excluding CPI (TL million) 18% 19.2% 5,486 4,705.5 4,651 3,948.3 1,547 1,203.1 1,267 1,266.5 5.3% 22.1% YE14 3Q15 4Q15 YE15 YE14 3Q15 4Q15 YE15 Core Banking Revenues* (T

  18. Slide 18: Strong fee growth at 30% YoY despite regulatory pressures

    INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2015 Strong fee growth at 30% YoY despite regulatory pressures Net Fee and Commission Income (TL million) Breakdown of Net Fee and Commission Income (%) YE15 Inquiry&Expertise Insurance 29.9% 5 5 921.1 Cash Loans Other 709.3 27 13 224.2 247.5 Pay

  19. Slide 19: Comparable opex growth is in line with the operating budget

    INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2015 Comparable opex growth is in line with the operating budget Operating Expenses (TL million) Comparable Opex* 16.1% YE15 Fee Rebate Comparable 3,610.2 YE15 TL 227.8 OPEX 3,110.2 million TL 3,382.4 million 12.8% YE14 Fee Rebate Comparable 918.

  20. Slide 20: VakıfBank with numbers

    INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2015 VakıfBank with numbers Distribution Channels & Customer (#) YE15 Efficiency (‘000 TRY) YE15 Branches 920 Assets per Employee 11,872 ATMs 3,576 Assets per Branch 198,856 Personnel 15,410 Loans per Employee 7,980 POS Terminals 172,663 Loans pe

  21. Slide 21: Balance Sheet

    INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2015 Balance Sheet YoY QoQ (TL-million, %) YE14 3Q15 YE15 Growth Growth Cash & Balances with Central Bank 21,885 25,127 21,485 (1.8%) (14.5%) Interbank 2,571 6,843 5,234 103.6% (23.5%) Assets Securities 23,558 25,076 25,337 7.6% 1.0% Loans 104,34

  22. Slide 22: Income Statement

    INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2015 Income Statement YoY QoQ (TRY-Thousand, %) YE14 3Q15 4Q15 YE15 Growth Growth Net Interest Income 4,651,478 1,266,811 1,546,894 5,486,481 18.0% 22.1% Net Fee & Com. Income 709,334 224,150 247,509 921,084 29.9% 10.4% Dividend Income 66,288 0 8

  23. Slide 23: Diversified funding source via Non-Deposit Funding

    INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2015 Diversified funding source via Non-Deposit Funding Syndicated Loan September 2015 •US$ 936 million equivalent 1 year syndicated loan, all in cost as Libor/Euribor 0.75% and 122% roll over ratio with participation of 30 banks from 16 countrie

  24. Slide 24: Investor Relations contact

    A member of BIST Sustainability Index Investor Relations Levent Mah. Çayır Çimen Sok. No:7 Kat:6 34330 Beşiktaş-İstanbul / Turkey E-mail: investorrelations@vakifbank.com.tr Tel (90-212) 316 7336 Fax (90-212) 316 7126 www.vakifbank.com.tr Disclaimer Notice: This report has been prepared by VakıfBank,

Türkiye Vakıflar Bankası T.A.O. (VakıfBank) — FY2015 Earnings Presentation on 6ix