Turkiye Vakiflar Bankasi Turk Anonim Ortakligi · BIST:VAKBN
Turkiye Vakiflar Bankasi Turk Anonim Ortakligi — Q3 2021 Earnings Presentation
25 slides from Turkiye Vakiflar Bankasi Turk Anonim Ortakligi's earnings presentation, Nov 4, 2021
Slide 1: Earnings Presentation BRSA Bank-Only 3Q 2021
Earnings Presentation BRSA Bank-Only 3Q 2021 November 4, 2021
Slide 2: 3Q21 Earnings and Ratios
INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q21 3Q21 Earnings and Ratios Net Income (TL million) Pre-Provisions Profit 16.2% 141.8% 4,341.4 1,948.1 2,177.9 TL 1,472 million free provisions 767.4 660.3 805.7 9M20 9M21 2Q21 3Q21 2Q21 3Q21 Core Banking Revenue (TL million)* Coverage Ratios (%)
Slide 3: Key Highlights of 3Q21
INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q21 Key Highlights of 3Q21 TL loan driven quarterly lending activity FC loans are down by TL 478 Total loans are up by TL 331 TL loans are up by $ 17 0.6% QoQ and up by 8.7% YoY bio 4.2% QoQ and 16.3% YoY. bio 5.3% QoQ and 13.0% YoY. bio in USD ter
Slide 4: 9M21 P&L Details
INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q21 9M21 P&L Details 6,276 16,244 3,092 120 (3,814) (6,662) 10,568 (6,827) 9M21 (577) 2,178 Net Interest Net Fees and Dividend Net Trading Other Income Total Operating Provisions Taxes Net Income Income Commissions Income Income Revenue Expenses %
Slide 5: NIM, CPI linkers and money market funding
INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q21 NIM , CPI linkers and money market funding Net Interest Margin (NIM %) Swap Adjusted Net Interest Margin (%) 2.89 157 109 2.28 1.94 82 2.02 1.80 34 bps 89 27 bps 87 bps 74 68 bps 1Q21 2Q21 3Q21 1H21 9M21 1Q21 2Q21 3Q21 1H21 9M21 CPI Expectation
Slide 6: High quality core banking revenues further increased
INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q21 High quality core banking revenues further increased Core Banking Revenue 38.8% 48.2% Share of high QoQ NII growth 5,874 quality core 4,232 82% banking revenue 10.4% in total* QoQ Net F&C growth 2Q21 3Q21 Total Revenue* – Revenue Breakdown (TL
Slide 7: Net fee & commission income
INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q21 Net fee & commission income Net Fee & Commission Income Breakdown (TL million) 10.4% Inquiry & Inquiry & Insurance Insurance Expertise Expertise 0.4% 9.0% 1,164 9.4% Cash 0.2% Loans Other Cash 1,054 Loans Other 37.3% 4.3% 11.1% 41.7% Payment sy
Slide 8: Disciplined cost management in place
INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q21 Disciplined cost management in place Operating Expenses (TL million) Breakdown of OPEX 12.2% 6,662 5,937 Annual opex growth below annual inflation 60% 58% 40% 42% 2Q21 3Q21 9M20 9M21 8.8% HR Cost / Non-HR Cost (TL million) 11.2% 12.9% 2,325 2,7
Slide 9: Well-diversified & stable loan breakdown
INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q21 Well-diversified & stable loan breakdown Segment Breakdown of Loans (TL billion) Portfolio Breakdown (%) SME 478.1 Com. & Corp 458.9 3Q21 4.2% 3.9 30.0 3Q21 411.2 422.0 25.9 % 2Q21 -1.3% 3.3 Other* 21.7 2Q21 19.4 115.6 % 111.0 1Q21 1Q21 6.3% 9.
Slide 10: Breakdown of loan portfolio
INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q21 Breakdown of loan portfolio Sector Breakdown of Cash Loans Breakdown of FC Loans Breakdown of Project Finance Manufacturing Retail Loans Working Capital 21% 19% and Other 25% Energy 23% Other Construction 28% Other (inc, 10% business and retail
Slide 11: Maintained prudent NPL coverage ratios
INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q21 Maintained prudent NPL coverage ratios NPL (TL million)* Stage II Loans Breakdown (TL million) Share in Impact of change 1,196 total loans 9.29 8.69 828 (%) 8.06 8.18 on Stage II 17,426 621 17,173 recognition : 41,541 ~+77 bps Impact of NPL 38,
Slide 12: Well-balanced deposit portfolio
INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q21 Well-balanced deposit portfolio Total Deposits (TL billion) Breakdown of Deposits Market 11.4% 12.0% 11.2% 11.3% Share 465.7 52% 432.4 48% 45% 55% 414.0 394.2 225.7 $ 25.4 Sector 198.9 211.6 178.0 $ 24.3 $ 22.9 $ 26.7 FC TL Deposits FC Deposits
Slide 13: Well diversified external funding
INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q21 Well diversified external funding Breakdown of Wholesale Funding Local Bonds Other Sustainable finance provided TL 34.5 3.8% 2.0% billion as of 3Q21. 9.7% Eurobond AT I Issuance 29.2% Eurobond IFI Borrowings Sustainable 32% 2% Finance* IFI 6.2%
Slide 14: Solvency ratios
INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q21 Solvency ratios Capital Adequacy Ratio (%) 3Q21 CET I 12.04 11.59 10.90 10.52 9.88 Required CET1 level 8% 3Q21 Tier I 15.16 14.45 13.59 13.22 12.39 Required Tier I Solvency ratios without BRSA forbearances level 9.5% (% - 3Q21) 17.19 16.44 15.5
Slide 15: Sustainable banking approach
INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q21 Sustainable banking approach VakıfBank Sustainable Recent Developments New sustainable product: Environmental Vehicle Loan for our customers INDICES A balanced gender representation in the Bank: share of female employees is 51% of the total
Slide 16: Appendix
INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q21 Appendix Pg. 17 Improved efficiency with enhanced digital platforms Pg. 18 Composition of assets & liabilities Pg. 19 Well-positioned security portfolio Pg. 20 Retail Lending Portfolio Pg. 21 Diversified funding sources via non-deposit funding
Slide 17: Improved efficiency with enhanced digital platforms
INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q21 Improved efficiency with enhanced digital platforms Non-branch transaction share** ~92% Call Center # of active* digital banking ATM customers reached 1% 21% 5.7 million Mobile Banking 36% 3Q21 Branch 8% # of transaction made Internet through d
Slide 18: Composition of asset&liabilities
INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q21 Composition of asset&liabilities Breakdown of Assets (%) TL/FC Mix in Total Assets Other 3Q21 13.4 Interbank 1.6 The share of IEA 60% 87% 40% 3Q21 Securities in total assets 22.8 Loans 62.2 TL FC Breakdown of Liabilities (%) TL/FC Mix in Total
Slide 19: Well-positioned security portfolio
INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q21 Well-positioned security portfolio Total Securities (TL million) Portfolio Structure 21.1% Breakdown of FC Securities 175,232 165,427 7% 100% 62,715 36% 144,700 146,510 60,664 5.9% 58,014 58,747 3Q21 11,747 Fixed 58% 11,207 7,331 Breakdown of T
Slide 20: Retail Lending Portfolio
INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q21 Retail Lending Portfolio General Purpose Consumer (TL billion) Residential Mortgages (TL billion) Credit Card Loans (TL million)* ~70% of GPC loans extended to payroll clients 10.5% 49.7% (4.3%) ~30% of mortgages extended to payroll clients 20,
Slide 21: Diversified funding sources via non-deposit funding
INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q21 Diversified funding sources via non-deposit funding Syndication Eurobonds and Private Placements USD 2 billion outstanding USD 4.25 billion outstanding Eurobonds and USD 44.3 million Mar’20: USD 325 million bilateral loan with ICBC, 3 years m
Slide 22: Unconsolidated Key Financial Ratios
INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q21 Unconsolidated Key Financial Ratios 9M20 2020 2Q21 3Q21 9M21 Profitability ROAE 15.0% 12.6% 5.5% 6.4% 6.1% ROAA 1.1% 0.9% 0.4% 0.4% 0.4% Cost / Income 29.1% 30.7% 50.7% 43.4% 41.0% Cost / Assets 1.2% 1.2% 1.2% 1.2% 1.2% Fee / Cost 44.3% 42.1% 4
Slide 23: Unconsolidated Balance Sheet
INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q21 Unconsolidated Balance Sheet 3Q20 2Q21 3Q21 TL USD (thousand) TL USD TL USD TL USD YoY QoQ YoY QoQ Cash & Balances with Central Bank 43,588,854 5,617,120 66,165,072 7,622,704 77,787,917 8,759,901 78.5% 17.6% 56.0% 14.9% Interbank 2,721,482 350,
Slide 24: Unconsolidated Income Statement
INVESTOR RELATIONS Earnings Presentation Bank-Only 3Q21 Unconsolidated Income Statement (TL-thousand, %) 9M20 2Q21 3Q21 9M21 YoY QoQ Net Interest Income 15,776,605 3,178,154 4,709,787 10,568,265 (33%) 48% Net Fee & Com. Income 2,630,080 1,054,223 1,163,792 3,092,370 18% 10% Dividend Income 167,668 1
Slide 25: For VakıfBank IR
For Earnings For VakıfBank IR Presentations: Application: A member of BIST Sustainability Index Investor Relations Saray Mahallesi Dr. Adnan Buyukdeniz Cad. A1 Blok No: 7a Umraniye/Istanbul (Akyaka Park Mall) E-mail: investorrelations@vakifbank.com.tr Tel (90-216) 724 2685 Fax (90-216) 724 3941 www.
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