Sekerbank T.a.s. · BIST:SKBNK
Sekerbank T.a.s — Q3 2019 Earnings Presentation
35 slides from Sekerbank T.a.s's earnings presentation, Sep 30, 2019
Slide 1: Şekerbank T.A.Ş. Consolidated Financial Results as of 30.09.2019
Şekerbank T.A.Ş. Consolidated Financial Results as of 30.09.2019
Slide 2: Table of content
Table of content 1. Şekerbank At a Glance 2 2. Digital Transformation Program 7 3. Balance Sheet Structure and Asset Quality 13 4. Funding Structure and Liquidity 20 5. Income Statement and Profitability 26 6. Capital Adequacy 30 1
Slide 3: Şekerbank At a Glance
Sekerbank At a Glance Sekerbank &5
Slide 4: 66 years of Experience in Community Banking
66 years of Experience in Community Banking Foundation and Strategy Our Vision To become the “leading bank in financing small enterprises” among Turkey’s top ten private banks in terms of asset size. Our Vision With the “Community Banking” understanding from village to city, we are a modern bank tha
Slide 5: Milestones
Milestones • First Bank to receive • Signed the Declaration on ‘Corporate Governance Sustainable Finance Rating’ in Turkey. Turkey’s first 5-year • İssued a 10-year, variable- Founded as the “Sugar Beet rate, lira-denominated Cooperative Bank” in Eskişehir • First micro-finance syndicated loan facil
Slide 6: Well-Established Network
Well-Established Network İç Anadolu Regional Office Marmara Regional Office (40 Branches) Karadeniz Regional Office Trakya Regional Office (39 Branches) (29 Branches) (38 Branches) Kırklareli Kastomunu Sinop İstanbul Zonguldak Samsun Samsun Artvin Rize Ordu Trabzon Çankırı Amasya Ankara Çorum Giresu
Slide 7: Continuous Focus on Innovation in Community Banking
Continuous Focus on Innovation in Community Banking / Covered Bond Issued in 2011 as a first covered bond in Turkey and also the first Turkish lira denominated borrowing transaction structured in intemational capital markets as well as was the world’s first Covered Bond issue covered by SME loans. E
Slide 8: Digital Transformation Program
Digital Transformation Program
Slide 9: We launched a comprehensive Transformation Program in July 2018
We launched a comprehensive Transformation Program in July 2018 for sustainable, profitable and strong growth
Slide 10: The main goal of the Transformation is to move Sekerbank forward in four main areas
The main goal of the Transformation is to move Sekerbank forward in four main areas Rebuilding processes and digital channels Improving asset quality Accelerating growth Establishing a lean and effective organization
Slide 11: Strategy and Transformation Program Strategic Focus Areas
Strategy and Transformation Program Strategic Focus Areas SME Focus Broad-based Retail Deposit Focus Prioritizing Small Business and Agricultural Banking while Enhancing the widespread and solid deposit structure by increasing productivity in Large SMEs further diversifying the funding structure Sus
Slide 12: Key Pillars of Digitalization
Key Pillars of Digitalization Fast and lean processes Seamless customer experience with new omnichannel structure Mobile RM in order to reach out to rural community more effectively Sales support with analytical models Effective credit origination, monitoring and control based on analytical models P
Slide 13: Key Financial Highlights
Key Financial Highlights 30.09.2019 (TRY MM) Bank-only Consolidated Total Assets 29.745 31.482 Net Loans 19.368 20.769 SME Loans/Total Loans 60,17% 59,43% Deposits 23.443 23.317 Loan/Deposit Ratio 82,62% 89,07% Shareholders’ Equity 2.153 2.169 Tier I Ratio 9,83% 9,12% Capital Adequacy Ratio (CAR) 13
Slide 14: Balance Sheet Structure and Asset Quality
Balance Sheet Structure and Asset Quality
Slide 15: Balance Sheet Structure
Balance Sheet Structure Total Assets Liabilities and Equity TL dominated loan structure Solid and broad-based deposit structure Total Assets – (TRY MM) Liabilities and Equity – (TRY MM) Loans Breakdown Deposits Breakdown 31.482 31.482 0,05% 6,30% 12,37% 4,80% 10,45% 6,89% 11,73% 34,72% 14,24% 11,80%
Slide 16: Loan Structure
Loan Structure Loan Growth (MM) 22.615 23.278 23.900 22.492 22.063 21.957 21.705 20.769 6.026 6.324 6.506 5.919 6.020 5.473 5.324 5.207 2017 YE* 2018 Q1 2018 Q2 2018 Q3 2018 YE 2019 Q1 2019 Q2 2019 Q3 Cash Loans Non-Cash Loans Net Loans in Local & Foreign Currency and Total Loans (MM) 23.278 23.900
Slide 17: Cash Loan Structure
Cash Loan Structure Highly Diversified Loan Book Cash Loans Breakdown by Sector (%) 1,70% 4,41% Agricultural 13,12% 3,33% Manufacturing 11,27% Construction Services 16,60% Wholesale and Retails Trade Tourism 16,24% Transportation & Telecommunication Financial Institutions 19,87% Other 13,46% Focus o
Slide 18: Loans and Provision Coverage Ratios (Bank Only)
Loans and Provision Coverage Ratios (Bank Only) Provisions / Gross Loans Stage I Loans to Gross Loans 0,70% 0,72% 0,69% 0,60% 0,53% 0,56% 8,10% 6,76% 7,19% 7,33% 5,75% 6,09% 84,97% 83,24% 80,88% 80,27% 79,98% 78,12% 50, 00% 2018 Q2 2018 Q3 2018 YE 2019 Q1 2019 Q2 2019 Q3 2018 Q2 2018 Q3 2018 YE 2019
Slide 19: Asset Quality (Bank-Only)
Asset Quality (Bank-Only) NPL Exposure 5,92% 4,63% 3,77% 3,81% NPL 2018 Q3 Addition Collection NPL 2019 Q3 3,42% 5,0 0% 200 000% 3,24% 3,30% 3,28% 150 000% 1.761 0,0 0% 1.761 100 000% 1.222 1.431 818 1.076 1.122 1.180 1.228 1.017 1.039 500 00% -1.457 -5,00% 0% 2017 YE* 2018 Q1 2018 Q2 2018 Q3 2018 Y
Slide 20: Securities
Securities Composition by Type 2.827 2.937 3.232 3.793 4.092 3.596 3.709 3.584 2,65% 3,49% 2,97% 2,25% 2,09% 2,09% 1,91% 1,31% 3,68% 7,69% 9,42% As of 2019 Q3, Securities / Total Assets: 11,38% 14,12% 14,58% 16,24% 17,83% 49,38% (*) The Bank has classified the Fair Value through Comprehensive Inco
Slide 21: Funding Structure and Liquidity
Funding Structure and Liquidity
Slide 22: Funding Overview
Funding Overview Diversified Funding Source Base Deposits by Currency (%) Total Liabilities Evolution (TRY MM ) Deposits by Currency (Consolidated - %) 34.420 35.954 32.965 33.934 32.607 31.482 1.671 45,21% 44,15% 44,05% 45,98% 47,73% 45,59% 1.311 1.245 2.458 2.405 1.606 1.276 2.365 2.453 2.180 1.51
Slide 23: Loan/Deposit Ratios
Loan/Deposit Ratios Total Loan / Deposit Ratio 110,96% 110,39% 108,14% 96,72% 95,71% 91,55% 90,62% 89,07% 102,50% 104,22% 102,43% 90,07% 89,06% 85,61% 84,20% 82,62% 2017 YE 2018 Q1 2018 Q2 2018 Q3 2018 YE 2019 Q1 2019 Q2 2019 Q3 Bank-Only Consolidated TRY Loans / Deposits Ratio FC Loans / Deposits R
Slide 24: Liquidity Overview
Liquidity Overview Liquidity Coverage Ratio (TL +FC)(1)(2) 191,45% 177,88% 180,18% 141,35% 134,38% 121,27% 163,38% 108,34% 107,35% 111,30% 126,43% 122,49% 108,50% 119,52% 103,67% 101,26% 100% 100% 100% 90% 90% 90% 90% 80% 2017 YE 2018 Q1 2018 Q2 2018 Q3 2018 YE 2019 Q1 2019 Q2 2019 Q3 LCR (TL + FC)
Slide 25: Deposit Structure
Deposit Structure Deposit Structure and Durations 1,64% TL + FC Time Deposit 10,41% TL+FC Retail Time Deposit (Monthly Average) (Monthly Average) 23,15% 15,04% Retail Corporate & Commercial 15,05% 61,80% Below 500.000 TL 72,91% SME 500.000-1M TL Agriculture Above 1M TL Total Deposits Increased by
Slide 26: Borrowings
Borrowings Balanced mix between retail and institutional funding through covered bonds, loans from IFIs, subordinated loans, trade finance and syndicated borrowings Proven Access to Diversified Sources of Funding Recent Issuances Summary June 2017: USD 85MM Tier 2 Private Placement Ratings Overv
Slide 27: Income Statement and Profitability
Income Statement and Profitability
Slide 28: Profit and Loss
Profit and Loss TRY MM 2018 Q3 2019 Q3 Interest Income 3.139 3.292 Interest Expense 1.934 2.481 Net Interest Income 1.206 811 Net fees and Commisions Income 256 281 Personnel Expenses 335 409 Dividend Income 1 1 Net Trading Income/Loss (115) (94) Other Operating Income 49 245 Total Operating Profit
Slide 29: Revenues In Detail
Revenues In Detail Net Interest Income / Margin Net Interest Income (TRY MM) Net Interest Margin (%) 3.139 3.292 1.206 5,69% 5,80% 5,90% 5,53% 811 5,37% 4,07% 5,64% 5,44% 5,62% 5,30% 3,27% 3,57% 5,23% 3,77% -1.934 3,22% 2,80% -2.481 2018 Q3 2019 Q3 2017 YE 2018 Q1 2018 Q2 2018 Q3 2018 YE 2019 Q1 201
Slide 30: Ratios
Ratios Cost to Income Ratio Cost / Income (%) – Bank Only 79,40% 79,76% 61,87% 62,07% 64,15% 64,79% 58,42% 57,24% 2017 YE 2018 Q1 2018 Q2 2018 Q3 2018 YE 2019 Q1 2019 Q2 2019 Q3 Cost of Risk NPL Coverage Cost of Risk (%) – Bank Only NPL Coverage (%) – Bank Only 3,39% 73,40% 74,46% 76,74% 73,60% 76,4
Slide 31: Capital Adequacy
Capital Adequacy SekerbankS5
Slide 32: Capital Adequacy Overview
Capital Adequacy Overview Tier 1 & Capital Adequacy Ratios (%) Bank-only Consolidated 15,14% 14,33% 14,13% 14,33% 13,47% 13,86% 13,53% 13,41% 13,31% 12,87% 12,65% 12,51% Min. 12% CAR Recommendation 11,25% 10,80% 10,66% 10,72% 10,25% 10,20% 9,64% 9,83% 9,35% 9,09% 9,12% Min. 8% CAR 8,80% Requirement
Slide 33: Capital Adequacy Overview
Capital Adequacy Overview Risk Weighted Assets (MM TL) & Leverage Ratio (%) Bank-only Consolidated 7,0 0% 7,0 0% 40. 000 39. 900 39. 800 39. 700 39. 600 39. 500 39. 400 39. 300 39. 200 39. 100 6,41% 39. 000 38. 900 38. 800 38. 700 38. 600 38. 500 6,27% 38. 400 38. 300 38. 200 38. 100 38. 000 37. 900
Slide 34: Contact Details
Contact Details Sekerbank T.A.Ş. Zeki Önder Executive Vice President Tel: +90 212 344 07 36 zeki.onder@sekerbank.com.tr Financial Institutions, Structured Finance & Investor Relations Oya Sarı Head of Financial Institutions, Structured Finance and Investor Relations Tel: +90 212 319 71 58 oya.sari@s
Slide 35: Legal Notice For Investors
Legal Notice For Investors The information in this document has been obtained by Sekerbank T.A.Ş. (“Sekerbank”) from sources believed to be reliable. However, Sekerbank cannot guarantee the accuracy, completeness or correctness of such information. This document has been issued for information purpo