Turkiye Sinai Kalkinma Bankasi A.s. · BIST:TSKB
Turkiye Sinai Kalkinma Bankasi A.s — Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — Q1 2020 Earnings Presentation
31 slides from Turkiye Sinai Kalkinma Bankasi A.s's earnings presentation, May 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 41% Fitch LTFC B+ BB- mVakifbank Moody’sLTIR B3 B1 Free Float & Other SAHA 9.56/10 = TRY 2,8 bn MCAP* = 38% of free float belongs to foreign investors *As of May 5, 2020 CORPORATE BANKING INVESTMENT BANKING ADVISORY SERVICES Loan products that co
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 se
Slide 5: Sustainability is Embedded in Our Business Model
Sustainability is Embedded in Our Business Model Support for employment in Turkey; ® Encouraging women participation to the economy €88 Gia SE ey health and safety © Supporting less developed regions Support transition to low carbon economy Environmental & Social Risk Evaluation for all investment p
Slide 6: Recent Developments on Sustainable Banking
Recent Developments on Sustainable Banking EEX D>» | international development | DFC finance club PRINCIPLES FOR UNEP RESPONSIBLE INITIATIVE | BANKING Founding Signatory of the ‘Principles for Responsible Banking’ developed by the UNEP FI 10th member of the Steering Committee of the IDFC, where the
Slide 7: Measures Taken by TSKB Against Covid-19 Pandemic
Measures Taken by TSKB Against Covid-19 Pandemic Business Conti ity = TSKB is operating in full function. = — Allemployees, whoare allowed by the Remote Working Model infrastructure and the regulations, work remotely. = For the in-office employees, necessary precautions have taken including creation
Slide 8: What are the Priorities of Sustainable Growth During Covid-19
What are the Priorities of Sustainable Growth During Covid-19 Potential Negative Impact Potential Positive Impact Construction, Tourism, Logistics Textile, Chemistry Maintaining mission banking role through Promoting sustainable investments Our Working to support inclusiveness of groups Perspective
Slide 9: Unchanged 2020 Guidances to be Considered
Unchanged 2020 Guidances to be Considered Financial Guidance (Bank Only-%) 2020E e210) Figures FX Adjusted Loan Growth 3-5 Flat Loan/Assets ~75 73 Fees & Commissions Growth >50 178 OPEX Growth <20 10 Net Interest Margin (adj.) ~4.0 4.1 Return On Tangible Equity >16 13.4 Return On Assets 1.7-1.9 1.4
Slide 10: Key Highlights of 1Q-20
10 Key Highlights of 1Q-20 Strong and Robust Stable NIM 4.1% Liquidity Net Banking Income vs Provisions Net Profit é TRY mn TRY mn Annualized ROE & ROTE** 10-19 40-19 10-20 10-19 40-19 10-20 Net Banking Income ™ Provisions mROE mROTE * Excluding forebearence Pie se es: Loaded Provisions **Tangible E
Slide 11: Banking Sector vs TSKB
Banking Sector vs TSKB CAR Loans/Assets NPL 17.9% 17.5% 73.0% 62.1% Banking Sector TSKB Banking Sector TSKB Cost to Income NIM ROE 30.5% eB 11.5% see 4.1% 12.7% Banking Sector TSKB Banking Sector TSKB Banking Sector TSKB & | Funds oon = Borrowed Z 9 15] Deposit60% 12% 7 eno 1% au oo LTDFI oO Securit
Slide 12: Comfortable FX Liquidity and Maturity Profile
Comfortable FX Liquidity and Maturity Profile Funding / Total Liabilities (exc. equity) - USD mn ™ Guarenteed DFI 6,615 6,343 Funding Unguarenteed DFI 5% Funding Ps secutes sued = Subordinated Debt 21% 17% 23% = Syndication & Other 11% 12% 11% Diversified funding base, dominated by long term 52% 53%
Slide 13: Long Term DFI Funding Base
Ales Long Term DFI Funding Base Outstanding DFI Funding Base - 10-20 Yearly Multilateral Funding Agreements - USD mn 986 IBRD 733 EIB . ia a ie | 160 | 2012 2013 2014 2015 2016 2017 2018 2019 CEB AFD Eurobond Issuance in A IFC J 1st Transaction january of the year EBRD 10X P 1st 144A JBIC oversubscr
Slide 14: Outstanding Project Themes Shaping Future Loan Book
14 Outstanding Project Themes Shaping Future Loan Book Women’s Energy and Resource Efficiency Renewable Midcap Financing Employment and Equal Opportunit: Energy Environmental Sustainable Sustainable Agriculture Regional Development Touri Pollution ourism Abatement in Industry Occupational Health and
Slide 15: Resilient Asset Composition
As Resilient Asset Composition Asset Composition - TRY bn Total Loans-—TRY bn Currency 47.2 Breakdown 41.6 34.2 31.4 3.1 ) 9% 29.5 17 cL 47S ) He 10-19 4Q-19 10-20 10-19 40-19 10-20 mFXLoans($) mTRY Loans mLoans Securities =Cash&MM ®=Non|EAs & Other Average Maturity - Years 1Q-20 Loans by Currency &
Slide 16: Credit and operational risk monitoring
▪ 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 17: Project analysis, monitoring and collateralization
▪ 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 18: Sectoral breakdown of loan book
87% of which is Renewable Energy, where 90% benefits from Feed in Tariff Non-residential Real 64% of which Estate; are Apex Loans 50% accounts for Energy & Resource Efficiency projects Despite Covid-19, we are comfortable with diversified sectoral breakdown • • • •
Slide 19: Sustainability-Themed Loans Account for 74% of The Portfolio
Ape Sustainability-Themed Loans Account for 74% of The Portfolio Energy Portfolio Risk Breakdown 14% m Renewable —_ Non Renewable 78% of non-renewable projects (in MWs) are under capacity enhancement mechanism supporting their cash flows. 2014 1.4bn 2015 Operating Projects in the Energy Loan Book (I
Slide 20: Intact Asset Quality
Intact Asset Quality SS Share Coverage lage mount in Total Ratio & £8 Stage1 29,436 86.0% 0.8% a Stage 2 3,630 10.6% 11.5% Stage3 1,165 3.4% 33.6% 391 Gross Loans 34,231 100.0% 3.1% 1,049 a , _ k = go $A 4Q-19 10-20 aor = aes 2 RS Electricity Generation 26.3% 6.9% g 3 REL 23.7% 5.0% Not REL 2.7% 23.
Slide 21: Security Book
21 Security Book TRY 7.2bn TRY 6.7 bn TRY 5.7 bn 4,085 4,432 4,528 %63 10-19 40-19 10-20 mTRY (mn) =FX($ mn) SECURITIES / ASSETS: 15% = Maturity: 1.7 yrs in Fixed bonds, 1.3 yrs in Floating bonds, 3.0 yrs in CPls in TRY Sec. Portfolio. = 69% isin AFS portfolio. = Private sector bonds: 2.5% of total
Slide 22: Income Statement in Brief
Income Statement in Brief Net Interest Income 372.0 381.5 370.2 -0.5% -3% Trading Income 424 -13.3 33.5 -21.0% nm (Derivative MtM Valuation) 19.3 -21.0 -16.6 nm. -21% Net Commissions 78 10.0 21.5 nm nm Dividend & Other 246 1.0 8.4 -66.0% nm Banking Income 446.7 379.2 433.6 -2.9% 14% OPEX (-) 49.7 54
Slide 23: Strong and Stable Net Interest Margin
23 Strong and Stable Net Interest Margin Annualized NIM Quarterly NIM Evolution Figures in Bps CPI normalized 402 7 37 49% YAY — 6 4.2% Y -19 3.9% 4.1% py ; [ ; : 2016 2017 2018 2019 10-20 4Q-19 NetFX NetTRY TRYSecurities CPI 19.20 Loans Loans exc. CPI Linkers Quarterly FX Loan Spreads Figures as Pe
Slide 24: Solid Capitalization with Internal Capital Generation
Solid Capitalization with Internal Capital Generation Evolution of RWA and Equity - TRY bn yy ss 175% 495 J 42.6 1 1 40.4 yy 12.49% 112.0% 10.7% 10.794 ! j 8.5% T T UH 1 H 1 43 64 53 76 LY jy) H (is 10-19 2019 10-20 10-20 (AF*) 10-19 2019 10-20 mTierl(CET1) =CAR *AF: After forebearance mRWA =Core Eq
Slide 25: Key Performance Indicators
25 Key Performance Indicators 18.4% 2017 18.8% 2017 “ROE; AnnualizedNet Income for theperiod / Average Total Equity. ROAA; Annualized Net Income for the period / Average Total Assets. 2018 = 2019 += 10-20 ROTE** 9 18.1% 16.1% 13.4% 2018 = 2019 10-20 ROA 2.0% a 1.7% 2017 2018 2019 CAR 17.8% 17.1% 16.
Slide 26: What Lies Ahead?
26 What Lies Ahead? Targets for Sustainability and Inclusiveness Development Banking Support transition to low carbon economy -Extend resources to support UN Sustainable Development Goals «Supporting manufacturingand infrastructure investments. +Increase support to SMEs and Midcaps +Focus on geother
Slide 27: 2S BS Q gf x
2S BS Q gf x
Slide 28: Balance Sheet
28 Balance Sheet TRY mn Cash and Banks Securities Loans (Gross) Provisions Subsidiaries Other Total ST Funds LT Funds Securities Issued Repo &MM Other Tier 2 Equity Total 4,088 1,669 -99 1,816 31/03/2019 31/12/2019 31/03/2020 a A A ee 1,920 2,848 1,408 2,644 1,664 5,753 4,429 2,223 6,651 4,528 2,687
Slide 29: Cumulative Income Breakdown
Cumulative Income Breakdown TRY mn Net Interest Income Trading Income - Adj. Net Commissions Dividend & Other Banking Income OPEX (-) Net Banking Income Provisions (-) Tax (-) Net Profit 29 370.0 424 78 24.6 446.7 49.7 396.9 -158.8 “52.9 185.2 1,523.9 -57.6 29.8 32.7 1,528.8 204.9 1,323.9 -429.6 -19
Slide 30: A Long Award-Winning Track Record
30 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 31: TSKB Financial Institutions & Investor Relations
31 TSKB Financial Institutions & Investor Relations TSKB Financial Institutions & Investor Relations ir@tskb.com.tr www.tskb.com Meclisi Mebusan Cad. 81 Findikli 34427 istanbul
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