Albaraka Turk Katilim Bankasi A.s. · BIST:ALBRK

Albaraka Turk Katilim Bankasi A.s — Albaraka Türk Participation Bank — Q1 2024 Earnings Presentation

20 slides from Albaraka Turk Katilim Bankasi A.s's earnings presentation, 2024

  1. Slide 1: Q1'24 Investor Presentation

    Q1’24 Investor Presentation Albaraka Türk Participation Bank HİZMETE ÖZEL

  2. Slide 2: Macroeconomic Outlook: Tackling high inflation is still first priority

    Macroeconomic Outlook: Tackling high inflation is still first priority Global policy rates staying higher for longer than had been expected as inflation pressures continue. In Turkey, the central bank took additional steps to tighten credit channels to achieve price stability and balancing in domest

  3. Slide 3: Banking Sector Overview: Remains sound and sustainable

    6 Banking Sector Overview: Remains sound and sustainable Total assets growth for both Turkish Banking and Participation Banking sectors were modarete in Q1'24. Profitability of participation banks continued to be higher than the conventional banking sector. Total Assets* Q4’23 Funded Credits* FC - T

  4. Slide 4: Albaraka Türk Snapshot: Financial strength remain sound

    Albaraka Türk Snapshot: Financial strength remain sound Net profit increased by 19% YoY while asset quality remain high. Income – Cost Dynamics Return on Avg. Equity & Assets* Net Profit TL Billion % TL Million +149% +31.9% Q1’23 Q1’23 +223% Q1’24 Q1’24 8.1 30.9 18.8% +39.6% 5.9 23.4 614 +108% 517 2

  5. Slide 5: Increased operational income keep support to bottomline

    Increased operational income keep support to bottomline Despite high cost of funding and inflation, TL 614 million net profit achieved at Q1’24. Total Operational Income Net Profit TL Billion TL Million +18.8% 3.5 614 34.6% +37.8% 517 3.0 25.0% 20.7% -36.6% 7.0% 20.8% 968 62.6% 614 47.2% -17.9% Q1’2

  6. Slide 6: Moderate assets growth driven mainly by funded credits

    6 Moderate assets growth driven mainly by funded credits Composition of total assets slightly changed at Q1’24 in terms of both assets classes and currency breakdown. Composition of Total Assets Currency Breakdown of Total Assets TL Billion , % TL/USD Billion, % +11.9% +11.9% 259.8 FC - TL Q4’23 Oth

  7. Slide 7: Growth in funded credits driven by TL performing credits

    7 Growth in funded credits driven by TL performing credits Healty growth in funded credits continued, stage 1 credits reached to 88% in total funded credits as end of Q1’24. Total Funded Credits Currency Breakdown of Performing Credits* TL Billion - Inc. f.Leasing. TL million . excl. expected credit

  8. Slide 8: Cost of risk eased whilst asset quality remaining high

    8 Cost of risk eased whilst asset quality remaining high While provisioning ratios remained at high level, cost for risk came down at 3.3% at Q1’24 from 4.4% at Q1’23. Non Performing Credits Development NPL Ratio TL Billion % NPL Ratio 1.91 Net NPL Ratio 1.81 0.16 0.04 0.01 2.5 2.0 1.77 1.65 1.46 1.

  9. Slide 9: Securities portfolio continues to support profitability

    6 Securities portfolio continues to support profitability Although growth in total securities realised almost flattish YtD at Q1’24, the portfolio income increased by 94% YoY. Total Securities Portfolio Securities Yield* TL Billion % Available for Sale -0.9% Marketable Securities 15 Held to Maturity

  10. Slide 10: Alternative funding resources become supportive due to competitive returns in the market

    10 Alternative funding resources become supportive due to competitive returns in the market Composition of total liabilities changed at Q1’24 due to increased weight of borrowings in funding base. Growth in borrowings reached to 49% YtD. Composition of Total Liabilities Composition of Collected Fund

  11. Slide 11: Growth in customer deposits driven by FX funds after a long period

    Growth in customer deposits driven by FX funds after a long period CA/Total Funds Collection stood at 49% as end of Q1’24 which helps reduce cost of funding. Current Accounts Participation Accounts TL Billion – Annual Growth % TL Billion – Annual Growth % +11% Q4’23 -7% Q1’24 Q4’23 66.3 67.4 61.3 Q1

  12. Slide 12: Net profit share and fees income increased despite high cost of funding

    86 Net profit share and fees income increased despite high cost of funding Despite rising cost of funding, net profit share income and fees & commission income increased by 55% and 245% YoY respectively. Quarterly Net Fees and Commission Income TL Million Fees and Commisions Recieved Fees and Commis

  13. Slide 13: Sound income-cost dynamics impacted by high cost of funding & high inflation

    6 Sound income-cost dynamics impacted by high cost of funding & high inflation Operational income increased by 17% despite net trading loss , efficient cost management achived with help of low risk cost. Income-Cost Dynamics Net Profit Share Margin* TL Million +16.9% +16.5% % 7,5 3,543 2,930 2,515 2

  14. Slide 14: Sound performance on income items as well as efficient cost management

    6 Sound performance on income items as well as efficient cost management YoY Notes (TL Million) Q1’23 Q1’24 % Net Profit Share Income 1,432 2,218 55% NPSI continued to increase due to higher credits and securities yields. Net fees and commissions increased significantly by 245% YoY thanks to strong

  15. Slide 15: Capital levels adequate to maintain CAR

    Capital levels adequate to maintain CAR CAR is at a sustainable level by moderate growth and sustainable internal capital generation. Capital Adequacy Ratio Capital Breakdown % % AT-1 17.3 Tier-2 15.8 Core Capital 13.0 12.4 12.1 4.4% 11.7 11.5 4.2% 8.8 9.3 28.0% 28.5% Q4’23 Q1’24 67.6% 67.3% Core CA

  16. Slide 16: Financial Ratios – Sector Comparison

    6 Financial Ratios – Sector Comparison Percent (%) Q4’23 Q1’24 Albaraka Participation Participation Banks Banking Sector Albaraka Turk Banking Sector Turk Banks CAR 17.3 21.4 18.8 13.0 17.9 17.0 NPL Ratio 1.7 0.9 1.5 1.6 0.9 1.4 Provisioning Ratio (Stage 3)* 98.5 99.8 82.0 98.1 96.8 81.8 Loan/Deposi

  17. Slide 17: Summary Balance Sheet

    6 Summary Balance Sheet (TL Million) Q4’23 Q1’24 Growth (%) (TL Million) Q4’23 Q1’24 Growth (%) Cash and Balances with Funds Collected 161,806 164,394 1.6% 49,084 56,444 15.0% Central Bank Funds Borrowed 30,536 47,654 56.1% Banks 14,585 18,058 23.8% Borrowings from Money Market Placements 0 0 - 0 4,

  18. Slide 18: Summary Income Statement

    6 Summary Income Statement (TL Million) Q1’23 Q1’24 Growth (%) Profit Share Income 3,241 8,069 148.9% Profit Share Expense 1,809 5,850 223.4% Net Profit Share Income 1,060 2,218 109.2% Net Fees and Commissions Income 213 734 244.6% Fees and Commissions Received 405 889 119.5% Fees and Commissions Pa

  19. Slide 19: Thank You

    THANK YOU... 18 alBaraka’O

  20. Slide 20: 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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