Turkiye Sinai Kalkinma Bankasi A.s. · BIST:TSKB
Turkiye Sinai Kalkinma Bankasi A.s — Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — Q2 2023 Earnings Presentation
18 slides from Turkiye Sinai Kalkinma Bankasi A.s's earnings presentation, 2023
Slide 1: Earnings Presentation 2Q-23 Bank-only Results
Please note that any kind of fecordingincludingbut/notlimited to screenshots, video recording, recording yia external devices etc. of this presentation it's strictly forbidden for all participants.” Corporate Banking The Industrial Development Bank of Tiirkiye Investment Bai Earnings Presentation 2Q
Slide 2: 2Q-23 At a Glance
2Q-23 At a Glance + Stellar banking income generation earnings quality + NIM above guidance: 6.3%* maintained + ROE: 43.4% = Boosted trading income as a result of successful treasury management *Excluding FX Gains /Losses. Solid profitability and = Stellar net income generation bolstered by solid Qo
Slide 3: Financial Guidance (Bank Only) 1H-23 and YE-23
Financial Guidance 1H-23 (%) YE-23 (%) (Bank Only) Figures Guidance Growth FX Adjusted Loan Growth 1.7 ~5 Profitability Net Interest Margin* 6.3 >5 Fees & Commissions Growth 65 ~100 Return On Equity ** 43.4 ~35 Efficiency OPEX Growth 141 ~90 Cost/Income Ratio 9.2 <13 Solvency*** Capital Adequacy Rat
Slide 4: Strong top line, backed by continuous expansion of core banking income & remarkable trading gain
Strong top line, backed by continuous expansion of core banking income & remarkable trading gain Net Banking Income vs Provisions - TL mn i Net Banking Income-TL mn 3,027 5,291 3,534 Continuous expansion of core banking income 1,757 Significant trading 983 103 income 671 10-23 20-23 1H-22 1H-23 1H-2
Slide 5: Solid bottom line increase despite further strengthened provisions
a Solid bottom line increase despite further strengthened provisions TLhmn 1H-22 1H-23 YoY | 10-23 20-23 00 Net Interest Income 2,527 3,932 56% 1,584 2,349 48% Stellar Nil = = = " generation Trading Income 592 1,638 177% + 103 1,534 1384% Contribution from " H a tailor-made Net Fees & Commissions 83
Slide 6: Comfortable FX Liquidity and Maturity Profile
Comfortable FX Liquidity and Maturity Profile Funding / Total Lia 4% 4% 22% 16% 16% 4Q-22 10-23 20-23 ities (exc. Equity & Oth.) - USD mn m Guaranteed DF Funding = Unguaranteed DF Funding Securities Issued = Subordinated Debt Syndication & Other mRepo &Money Market ~85% ESG aligned USD 638 mn Non-Wi
Slide 7: Resilient Asset Composition
Resilient Asset Composition Asset Composition - TL bn 4Q-22 10-23 mLoans mSecurities mCash&MM mNonIEAs & Other 20-23 Remaining Average Maturity - Years Investment Loons IN 6.1 Working Capital Loans. |) 2.3 APEX Loans [I 2.1 “DF Linked working capital loans are 3.5% Weight | 70% 21% 9% ) 4.9 years To
Slide 8: Loan portfolio by sector
Electricity Generation 36.5% Metal & Machinery 9.8% Finance 9.1% Tourism 6.4% Health & Education 5.5% Logistics 5.3% Construction & Construction Materials 4.7% Electricity/Gas Distr. 4.6% • Chemistry & Plastics 3.1% • • Food & Beverage 2.6% • Non-Residential Real Estate 1.6% • • Automotive 1.3% Tele
Slide 9: Asset quality and stage breakdown
97,752 1,064 11,631 3,398 2,096 1,991 % 38 17 41.5 19 19.6 22 8 29.1 5 9.7 5 17.9 2 43.0 1 47.0 5 13.7 28.6
Slide 10: TRY securities yield excluding CPI
TRY Sec. Yield exc. CPI CPI 75.6% 80.4% • 58.6% 47.8% 42.8% 47.5% • • 18.8% 19.1% 18.9% 19.4% 17.3% 19.9% • 1Q-22 2Q-22 3Q-22 4Q-22 1Q-23 2Q-23 •
Slide 11: Core NIM continues to widen
Core NIM continues to widen Annualized NIM Quarterly NIM 7.65% 7.51% 7.55% 16.8%} 16.4%| 5.86% 2.0% 3.6% 5.9% 4.1% = CPI Impact 2.3% ™Core NIM A almost [Ex eB) 3.5% 3.5% Ass 30-22 4Q-22 1Q-23 20-23 30-22 40-22 10-23 20-23 11
Slide 12: Comfortable and resilient solvency metrics despite depreciation
Comfortable and resilient solvency metrics despite depreciation Capital Ratios Without BRSA Temporary Measures Evolution of RWA and Equity-TL bn 136.6 A 104.3 i. 17.4 i. 18.9 W777 = = = 2022 19-23 2Q-23 2022 1Q-23 2Q-23 BTier | Ratio CAR With BRSA Temporary Measures ~ CAR: 21.7% | Tier :20.6% | CET-
Slide 13: Net-Zero Transition Pathway
Net-Zero Transition Pathway In 2022, we became UN NZBA member and submitted our Scope 1-2-3 emissions targets to SBTi. As of June 2023, SBTi approved our below targets. Scope 2 continue active annual sourcing of 100% renewable electricity through Scope 1 2030 ( A ) BN reduce absolute scope 1 GHG Zo
Slide 14: 1H-23 Sustainable Finance Developments and ESG Ratings
1H-23 Sustainable Finance Developments and ESG Ratings Sustainable Reporting Developments Further Strengthened ESG-linked Funding * Alignment check of our Integrated Annual Report with IFRS $1 and IFRS $2 Standards by ISSB = Submitted 2023 CDP Climate Change Report Continuing Engagement with DFls Kf
Slide 15: Appendix
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Slide 16: Balance Sheet
16 Balance Sheet Cash and Banks Securities Loans (Gross) Provisions Subsidiaries Other Total ST Funds LT Funds Securities Issued Repo & MM Other Subordinated Debt Shareholders’ Equity 6,051 25,518 111,479 ~6,465 5,188 4874 146,645 5,062 89,367 19,935 4,084 6,415 5314 16,468 31/12/2022 31/03/2023 30/
Slide 17: Detailed Income Statement
17 Detailed Income Statement TLmn Net Interest Income inc. Swap Cost Net Interest Income CPI Linkers Swap Costs (-) Net Commissions Other Income Dividends Other Trading & FX gains/losses FX gains/losses MtM gains/losses Trading gains/losses Banking Income OPEX (-) Net Banking Income ECL (-) Stage |
Slide 18: TSKB Financial Institutions & Investor Relations
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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