Turkiye Sinai Kalkinma Bankasi A.s. · BIST:TSKB
Turkiye Sinai Kalkinma Bankasi A.s — Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — Q3 2020 Earnings Presentation
29 slides from Turkiye Sinai Kalkinma Bankasi A.s's earnings presentation, 2020
Slide 1: Created with a trial version of Syncfusion Essential PDF
Created with a trial version of Syncfusion Essential PDF
Slide 2: A Unique Business Model
A Unique Business Model = Long term tenor in liabilities: 11 years * Medium term in assets: 5 years = Diversified funding tools = Amortized loan book = Multi-disciplinary assessment during allocation = Sector specific research analysts during allocation and monitoring period = Strong collateralizati
Slide 3: TSKB at a Glance
TSKB at a Glance Ratings TSKB Tiirkiye mis Bank Group 407 Shareholding Fitch LTFC B+ BB- mVakifbank Structure Moody’sLTIR B3 B2 Free Float & Other SAHA 9.56/10 = TRY 7.1bn MCAP* = 21% of free float belongs to foreign investors *As of October 30, 2020 CORPORATE BANKING INVESTMENT BANKING ADVISORY SER
Slide 4: Main Stakeholders of the Bank
Main Stakeholders of the Bank A trustworthy partner in; Large Corporates, MidCap Companies & SME's Its field experience Cooperation in various areas such as; corporate Its capacity to introduce innovative themes with respect to loans, investment banking activities and advisory investment projects Ba
Slide 5: Sustainability is Well Integrated into Our Business Model
Sustainability is Well Integrated into Our Business Model Support for employment in Turkey; ® Encouraging women participation to the economy ERB Sh transition to low arbon econom' Gia SE ey Poy health and safety © Supporting less developed regions Environmental & Social Risk Evaluation for all inves
Slide 6: TSKB Sustainability Journey
TSKB Sustainability Journey @ Borsa isTANBUL SUSTAINABILITY + _ First Integrated Report of the + “Equal Steps’, equal opportunity digital platform Turkish finance sector * Founding Signatories of the ‘Principles for Responsible GRI G4 Sustainability Report * — Globally first Sustainable Tier II Bank
Slide 7: 2020 Guidance
2020 Guidance Financial Guidance (Bank Only- %) 3Q20 Figures 2020E Revised FX Adjusted Loan Growth -2.1 Flat Confirmed Loan/Assets 76 ~75 Confirmed Fees & Commissions Growth 95 >50 Confirmed OPEX Growth 6 <15 ~10 Net Interest Margin (adj.) 46 ~4.0 ~4.5 Return On Tangible Equity 13.3 >14 Confirmed Re
Slide 8: Key Highlights of 3Q-20
Key Highlights of 3Q-20 Elevated coverage ratios, stable NPL @3.4% Solid NIM Evolution 46% Robust Liquidity Net Banking Income vs Provisions Net Profit TRY Annualized ROE & ROTE*** yy TRY mn 20-20 30-20 9M-19 -9M-20 20-20 30-20 mNet Banking Income Provisions mROE mROTE *Net Cost of Risk is calculate
Slide 9: Banking Sector vs TSKB
Banking Sector vs TSKB ‘AR* Loans/Assets NPL 15.6% 15.8% 61.7% 4.0% “Excluding forebearence Banking Sector TSKB Banking Sector TSKB Banking Sector TSKB Cost to Income NIM ROE 12.9% Ms 11.6% 44% 4.6% 10.6% Banking Sector TSKB Banking Sector TSKB Banking Sector TSKB 5 Repo & Depo Majority of the fundi
Slide 10: Syndication DFI Funding Eurobond
-285 - -526 -485 -653 -300 * -350 -300 -2,256 -400 -300 2020 2021 2022 2023 >=2024 Syndication DFI Funding Eurobond Tier 2
Slide 11: Long Term DFI Funding Base
11 Long Term DFI Funding Base IBRD EIB Kfw IDB AFD CEB JBIC AIB CDB EBRD OEB Outstanding DFI Funding Base - 3Q-20 39.2% Yearly Multilateral Funding Agreements - USD mn 4.9% 3.9% 2.9% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2.1% 2.0% FC q 1.9% 1.0% 0.4%
Slide 12: Outstanding Project Themes Shaping Future Loan Book
12 Outstanding Project Themes Shaping Future Loan Book Energy and Resource Efficiency Women’s Employment and Equal Opportunity Renewable Energy Midcap Financing Supporting Exporters Regional Development Supporting Employment Sustainable Agriculture Industrial Development Sustainable Tourism Occupati
Slide 13: Resilient Asset Composition
Resilient Asset Composition Asset Composition - TRY bn 52.4 46.8 46.9 415 5% 16% 30-19 40-19 10-20 20-20 30-20 mLoans mSecurities mCash&MM sNonIEAs & Other Average Maturity - Years Working Capital Loans I 2.5 APEX Loans SN 4.0 Investment Loans I 6 8 ) 5.5 years 29.4 3.2 46$ 30-19 31.4 2.7 49$ 40-19
Slide 14: Monitoring the clients individually with analysing the financials
▪ Monitoring the clients individually with analysing the financials ▪ Effective internal control systems to prevent, detect and ▪ Preparing monitoring reports for the clients at least once a manage the operational risks which results in a very low level year of losses in connection with operational
Slide 15: Detailed technical analysis of the investment projects
▪ Detailed technical analysis of the investment projects Monitoring and Collateralization ▪ Capacity determination of the investments ▪ Review and justification of the business model ▪ Loan concentration is prudently watched during loan allocation and ▪ Establishing & reporting KPIs monitoring proce
Slide 16: Sustainability-Themed Loans Account for 72% of the Portfolio
Sustainability-Themed Loans Account for 72% of the Portfolio Loans by sector 30-20 Electricity Generation; 87% of which is Renewable Energy, where 90% benefits from Feed in Tariff Finance; 62% of which are Apex Loans Other: %2 Textile, 962 Automative,%1 Packaging, 94 Other 16 Energy and Resource Eff
Slide 17: 1.3 bn 1.4 bn 1.5 bn
1.3 bn 1.4 bn 1.5 bn 1.6 bn 1.9 bn 1.9 bn 1.9 bn 7% 6% 2% 6% 6% 6% 6% 6% 5% 5% 5% 6% 22% 34% 32% 3% 35% 37% 35% 36% 9% 14% 17% 18% 19% 20% 69% 51% 46% 37% 35% 35% 32% 2014 2015 2016 2017 2018 2019 3Q-20 Hydro Geothermal Wind Biomass Solar • • •
Slide 18: Intact Asset Quality
Stage1 Loans Stage2 Loans Stage3 Loans 18 Intact Asset Quality Gross Share Amount in Total Stage1 34,009 85.1% 1.2% Stage2 4,568 11.4% 13.6% Stage3 1,370 3.4% 39.4% Gross Loans 39,947 100.0% 3.9% *Net Cost of Risk is calculated for the first 9M of the year Stage 2 Loans by Sector REL**; 90% 20-20 3Q
Slide 19: Security Book
Abs Security Book TRY 7.6 bn TRY7.2bn TRY7.2bn TRY6.1bn TRY65bn 4,528 4,601 Vary | 61% 30-19 40-19 10-20 20-20 3Q-20 mTRY (mn) == YP($mn) TRY Securities Portfolio Breakdown Fixed Fixed Fixed %33 %32 %32 70% Floating 30-19 SECURITIES / ASSETS: 14.4% Private sector bonds: 1.4% of total portfolio Free
Slide 20: Takeaways from the Income Statement
20 Takeaways from the Income Statement TRY mn 9M-19 9M-20 YoY Net Interest Income 1,142.5 1,293.9 13.3% Trading Income -44.4 163.7 n/m Net Commissions 19.8 38.6 95% Dividend&Other 28.6 74 -74.2% Banking Income 1,146.5 1,503.6 31.1% OPEX (-) 150.8 159.9 6.1% Net Banking Income 995.7 1,343.7 35.0% Pro
Slide 21: Quarterly FX Loan Spreads
Strong QoQ NIM Evolution driven by CPI Linker Income & FX Gains Annualized NIM NIM Evolution Quarterly 46% Zi 523 4.2% 43% 434 Ca || ; 7 | | | 2019 10-20 20-20 30-20 20-20 NetEXLoans Net TLLoansThSecuritesexc.CP CPI Linkers °XGaine 3020 HAE TRY Security Yields Quarterly FX Loan Spreads Figures as 17
Slide 22: Strong Internal Capital Generation supports our Solvency Metrics
22 Strong Internal Capital Generation supports our Solvency Metrics Evolution of RWA and Equity - TRY bn 48.8 50.6 Ae 42.6 ue 10.4% Hip hs Yi e 55 81 56 86 3Q-20 2019 20Q-20* 30-20 30-19 2019 20-20 30-20 mTier|(CET1) =CAR mRWA =CoreEquity =Total Capital Tier 1 (CET1) Evolution - Solvency Limits (%)
Slide 23: Key Performance Indicators
Key Performance Indicators ROE* ROA* Cost to Income 13.4% 12.7% 7% 12.0% 135% 11 69 12.1% 12.9% 0% 11.0% [J Ll i UJ fe 7 7 l lJ | U 2019 10-20 2020 30-20 2019 10-20 20-20 3020 2019 10:20 2020 30-10 ROTE** CAR NIM 17.8% 16.6% 58% 15.8% 15.8% 16.1% 43% 134% 19.49% 13.4% Hoe U i U E i 2019 10-20 20-20
Slide 24: What Lies Ahead?
24 What Lies Ahead? Responsible development banking mission leads us to; + Focuson creating value for the inclusive and sustainable development * Create finance and advisory solutions powered by our experience in development and investment banking * Stronghold our visionary approach and well establi
Slide 25: 2S BS Q gf x
2S BS Q gf x
Slide 26: Balance Sheet
Balance Sheet TRY mn 30/09/2019 31/12/2019 30/09/2020 a A A Cash and Banks 1,491 2,410 1,408 1,330 1,212 2,542 Securities 4,203 1,862 6,065 4429 2,223 6,651 4,622 2,943 7,566 Loans (Gross) 2,969 26,456 29,425 2,974 28,441 31,415 3,474 36,473 39,947 Provisions -210 -551 -761 -273 - 630 -903 -375 -1,1
Slide 27: Detailed Income Statement
Detailed Income Statement TRY mn 1Q-20 20-20 3Q-20 QoQ Net Interest Income including swap cost 370.2 427.6 496.2 6% Net Interest Income 397.4 467.3 544.2 17% CPI Linkers 82.5 69.3 114.8 16% Swap Costs (-) 27.2 39.8 48.0 28% Net Commissions 21.5 8.1 9.0 11% Other Income 5.3 11 1.0 -5% Dividends 43 0.
Slide 28: A Long Award-Wining Track Record
28 A Long Award-Wining Track Record Banking Awards Investing&Financing Category Finalist (2019) Finance for the Future Energy Finance Deal of the Year (2019) Bonds&Loans Tiirkiye M&A/Acquisition Finance - Second place (2019) Bonds&Loans Turkiye Structured Loan Deal - Third place (2019) Bonds&Loans T
Slide 29: TSKB Financial Institutions & Investor Relations
Pas TSKB Financial Institutions & Investor Relations TSKB Financial Institutions & Investor Relations ir@tskb.com.tr www.tskb.com Meclisi Mebusan Cad. 81 Findikli 34427 istanbul
Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — Q3 2020 Earnings Presentation on 6ix