Turkiye Sinai Kalkinma Bankasi A.s. · BIST:TSKB
Turkiye Sinai Kalkinma Bankasi A.s — Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — Q1 2025 Earnings Presentation
32 slides from Turkiye Sinai Kalkinma Bankasi A.s's earnings presentation, 2025
Slide 1: Corporate Banking Investment Banking Advisory Services
Corporate Banking Investment Banking Advisory Services
Slide 2: TSKB at a Glance
TSKB at a Glance 4 Turkey wis Bank Group Ratings TSKB UA Lyle oe Shareholding Z fakifban! Structure Fitch LTFC B+ BB- Free Float* & Other Moody’sLTIR BI B1 SAHA Corporate Governance Rating yy YYYYyy Sustainalytics ESG 7.4 Negligible Risk As of May 242025 Risk Rating yey CORPORATE BANKING INVESTMENT
Slide 3: A Unique Business Model
A Unique Business Model = Long term tenor in liabilities: 10.1 years * Medium term in assets: 48 years = Diversified funding tools = Amortized loan book = Multi-disciplinary assessment during allocation = Sector specific research analysts during allocation and monitoring period = Strong collateraliz
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 loans, investment banking activities and advisory services Ministry of Treasury and Finance Its capacity to introduce innovative the
Slide 5: Sustainability is Well Integrated into Our Business Model
Sustainability is Well Integrated into Our Business Model health and safety © Supporting less developed regions Support for employment in Turkey; ® Encouraging women participation to the economy PRB Support transition to low ye carbon economy © Providing financing to operational Environmental & Soci
Slide 6: TSKB Sustainability Journey - I
TSKB Sustainability Journey - | + First Turkish Bank with First Carbon Neutral Bank of Signatory of IDFC Climate Turkey successful ISO 14064 declaration Environmental Factor in Credit * Greenhouse Gas + BIST Sustainability Index Appraisal Process Emissions Audit * Women’s Empowerment Environmental M
Slide 7: • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Slide 8: Climate Change and Sustainability Highlights
Climate Change and Sustainability Highlights First in Turkiye: Fully Aligned integrated Annual Report with TSRS $1 & S2 Globally First: Audited Report in line with IFRS $1 & S2 Stakeholder Engagement * — Financial Materiality & Impact Materiality * — Risks, Opportunities and Impact Analysis * Stakeh
Slide 9: 1Q25 Summary: TSKB continued to show a differentiating performance
1Q25 Summary: TSKB continued to show a differentiating performance r S Eye-catching FX-adjusted Loan Growth of 5.4% y, 4 > No NPL inflow & significant improvement in the NPL ratio to 1.7%, further supportive coverage ratios (Stage 2+3 ratio 8.1%) (~ ) New Partnerships to support strong liquidity and
Slide 10: Financial Guidance (Bank Only)
Financial Guidance 1Q-25 Figures YE25 Guidance Revisions (Bank Only) % % Growth FX Adjusted Loan Growth 5.4 Low Teens On track Profitability Net Interest Margin 5.7 ~5 On track Fees & Commissions Growth -45 ~ CPI On track Return On Equity* 33.0 ~30 On track Efficiency OPEX Growth 37 > CPI On track S
Slide 11: Banking Sector vs TSKB
Banking Sector vs TSKB CAR* 22.6% 17.6% L Banking Sector *Reported figures Cost to Income 40.0% EF 17.4% Banking Sector Deposit BANKING SECTOR 11 Syndication 2% 61% Securities sued Equity Subordinated bonds 8% Other) | 2nd loans (ATI + Tier) Borrowed 2% Funds 7% Loans/Assets Total Coverage Ratio 73.
Slide 12: Funding Maturity Profile
-385 -269 -175 -380 -221 -650 -54 -316 -2,551 1 to 12 months 1 to 3 years 3 to 5 years >5 years DFI Funding Eurobond & PP Money Market Funding Subordinated Debt Syndication & P/N etc.
Slide 13: DFI Funding Breakdown
IBRD 45.7% ✓ AIIB 10.1% KfW 8.8% JBIC 7.7% EIB 6.2% AFD* 6.0% IsDB 4.7% CDB 3.4% IFC* 3.2% EBRD* 2.8% OEB* 0.9% CEB 0.4%
Slide 14: Outstanding Project Themes Shaping Future Loan Book
14 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 15: Resilient Composition of Our Healthy Growing Assets
As Resilient Composition of Our Healthy Growing Assets Asset Composition - TL bn Total Loans-TL bn Currency Breakdown 190.2 166.4 Tay > 7% 144.4 : 4.7$ 93% 10-24 4Q24 10-25 10-24 40-24 10-25 mLoans — mSecurities © =Cash&MM —s mNonIEAs & Other =FXLoans($) = TL Loans 10-25 Loans by Currency Remaining
Slide 16: Risk Management Pillars
Risk Management Pillars Credit Risk * Monitoring the clients individually with analysing the financials * Preparing monitoring reports for the clients at least once a year * Keeping track of internal and external (if it is done) ratings of the customers, reviewing the internal ratings annually * Act
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Slide 18: Loan Book Sector Breakdown
Electricity Generation 30.3% Finance 8.6% Metal & Machinery 8.5% Logistics 6.9% Electricity/Gas Distr. 6.6% Tourism 6.2% • Construction Materials 5.6% Chemistry & Plastics 5.2% Health 5.1% • Textile 3.6% • Food & Beverage 2.7% Paper and Forestry Products 2.2% Other** 8.5%
Slide 19: Renewable Energy Loan Portfolio
1.9 bn 1.9 bn 1.9 bn 1.7 bn 1.6 bn 1.5 bn 1.5 bn 6% 7% 8% 11% 5% 6% 15% 21% 22% 9% 11% 12% 35% 9% 9% 37% 39% 36% 37% 40% 40% 19% 20% 19% 19% 19% 17% 16% 35% 31% 24% 23% 17% 13% 13% 2019 2020 2021 2022 2023 2024 1Q-25 Hydro Geothermal Wind Biomass Solar • •
Slide 20: ✓ ✓ ✓ ✓ ✓ 174,733 12,249 4,118 3,244 2,930 • • • •
✓ ✓ ✓ ✓ ✓ 174,733 857 12,249 4,118 3,244 2,930 • • • • • • •
Slide 21: Proactive and strategic Asset Liability Management resulting in better than expected yields
Proactive and strategic Asset Liability Management resulting in better than expected yields Total Securities Portfolio Breakdown Securities / Assets: TL47.4bn 18% TL 41.5 bn TL33.9bn 44% in FX 56% in TL 26.7 10-24 40-24 10-25 mTL(bn) = FX($ bn) 21 2025 Oct-Oct. CPI assumption was revised to 30.8 fro
Slide 22: Remarkable Earnings Performance with continuous growth in NII excl. CPI Linker Income
22 Remarkable Earnings Performance with continuous growth in NIl excl. CPI Linker Income Net Interest Income 2,541 Nil exc. CPI Linker Income 1,804 Trading Income 459 Net Commissions 130 Other Income (Inc. Dividend) 60 Banking Income 3,190 OPEX (-) 505 Net Banking Income 2,686 Provisions (-) 381 Inc
Slide 23: NIM stayed solid despite declining CPI-linker yields
NIM stayed solid despite declining CPl-linker yields Net Interest Income inc. Swap Cost (TL mio) Annualized NIM 2,541 3,469 3,151 “4 6.3% Z = CPI Income ay De 9 = Nil excl. CPI 1.8% 2.0% 1.2% Swap Cost = CPI Impact mCore NIM 3.9% 4.3% 4.5% (1,223) 10-24 2024YE 1Q-25 10-24 4Q-24 1Q-25 “IEA Evolution
Slide 24: CAR Evolution
CAR Evolution 0.06 2.20 0.15 0.53 0.27 0.12 1.10 21.8 20.3 4Q-24 Δ Market Risk Δ Credit Risk Δ MtM Δ Operational Risk Subordinated Δ Tier II Net Profit 1Q-25 Debt
Slide 25: Appendix
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Slide 26: Balance Sheet
Balance Sheet 31.03.2024 31.12.2024 31.03.2025 TL mn TL FX TOTAL TL FX TOTAL TL FX TOTAL Cash and Banks 10,236 5,554 15,789 1,928 10,553 12,480 4,376 7,229 11,604 Securities 16,208 17,707 33,915 22,207 19,275 41,483 26,718 20,679 47,397 Loans (Gross) 11,051 133,311 144,362 13,888 152,529 166,418 14,
Slide 27: Detailed Income Statement
Detailed Income Statement TL mn 1Q-24 4Q-24 1Q25 QoQ YoY Net Interest Income inc. Swap Cost 2,541 3,469 3,151 -9% 24% Net Interest Income exc. CPI 2,927 2,636 2,857 8% -2% CPI Linkers 837 1,365 735 -46% -12% Swap Costs -1,223 -533 -440 -17% -64% Net Fees & Commissions 130 101 71 -30% -45% Other Inco
Slide 28: Appendix: ESG Ratings
Appendix: ESG Ratings Sustainalytics ESG Risk Rating CDP Climate Change Moody’s ESG Fitch ESG Credit Sustainable Fitch ESG LSEG Score Credit Impact Score Relevance Score Entity Score ESG Score Range 0-40+ A/D- 1-5 1-5 1-5 (0-100) A+/D- Score 7.4 A- 2 3 3 (62/100) 85 Negligible risk category Leadersh
Slide 29: Appendix: Stage 2 Loans Breakdown
Appendix: Stage 2 Loans Breakdown Stage 2 Loans Sector % Coverage (%) Tourism 47 32 Electricity/Gas Distribution 17 50 93% of Electricity Electricity Generation 13 38 Generation loans Non-residential Real Estate 9 30 are Renewable Metal and Machinery 6 18 Telecom/Logistics 4 9 Automotive Supply Indu
Slide 30: Appendix: IEA Evolution
Appendix: IEA Evolution Interest Earning Assets 239 208 183 ✓ Interest Earning Assets were up by 15% QoQ and 31% YoY, 182 159 which was driven by 135 • High FX denomination 32 37 46 • Growth strategy 15 12 11 1Q-24 4Q-24 1Q-25 Liquid Assets Securities Loans
Slide 31: Appendix: Net Cost of Risk Calculation
Appendix: Net Cost of Risk Calculation Provisions (TL mn) 1Q25 Stage 1* -70 Stage 2** 235 Stage 3 0 Reversals*** (TL mn) -286 Net CoR 21 bps Currency Impact 94 bps Net CoR excl. Currency Impact -73 bps *Stage 1 provision costs are adjusted with TL 54.9 mn provisions set aside for securities. **Stage
Slide 32: Disclaimer
DISCLAIMER This presentation document is prepared for informational purposes only and contains certain forward-looking comments, opinions, and forecasts. These reflect the views of Türkiye Sınai Kalkınma Bankası A.Ş. ("TSKB") as of the date of this presentation and contain certain assumptions. Altho
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