Turkiye Vakiflar Bankasi Turk Anonim Ortakligi · BIST:VAKBN
Turkiye Vakiflar Bankasi Turk Anonim Ortakligi — FY2020 Earnings Presentation
24 slides from Turkiye Vakiflar Bankasi Turk Anonim Ortakligi's earnings presentation, Feb 9, 2021
Slide 1: Earnings Presentation BRSA Bank-Only YE2020
Earnings Presentation BRSA Bank-Only YE2020 February 9, 2021
Slide 2: YE2020 Earnings and Ratios
INVESTOR RELATIONS Earnings Presentation Bank-Only YE2020 YE2020 Earnings and Ratios Net Income (TL million) Pre-Provisioning Operating Income (TL million)* 13,733 TL 220 million additional free provision in 4Q20 5,010 5,230 8,466 669 4Q20 78.8% 86.6% 1,100 3Q20 2,802 2,802 4Q19 1,525 2Q20 1,280 3Q1
Slide 3: Key Highlights of 2020
INVESTOR RELATIONS Earnings Presentation Bank-Only YE2020 Key Highlights of 2020 Above sector average annual ROAE despite challenging macro conditions • 2020 bank-only net income came at TL 5,010 million, up by 79% YoY vs. sector average of 21% despite strengthened coverage ratios and additional fre
Slide 4: 4Q20 P&L Details
INVESTOR RELATIONS Earnings Presentation Bank-Only YE2020 4Q20 P&L Details 5,382* 26,282 (8,073)* 3,395 168 (2,551) 19,887 (11,770) 2020 (1,429) 5,010 Net Interest Net Fees and Dividend Net Trading Other Income Total Operating Provisions Taxes Net Income Income Commissions Income Income Revenue Expe
Slide 5: High quality revenue breakdown
INVESTOR RELATIONS Earnings Presentation Bank-Only YE2020 High quality revenue breakdown Total Revenues* – Revenue Breakdown (TL million) 42.1% Dividend Other+Trading Dividend 0.3% 10.8% 0.6% Other+Trading 26,282 7.8% Net F&C 18,496 12.9% Net F&C 21.5% 2019 2020 NII NII 75.7% 70.4% 2019 2020 Core Ba
Slide 6: NIM, Spreads & Costs
INVESTOR RELATIONS Earnings Presentation Bank-Only YE2020 NIM, Spreads & Costs Net Interest Margin (NIM %) Swap Adjusted Net Interest Margin (%) 16 bps 66 bps 4.18 3.79 3.74 4.14 4.30 3.07 2.91 2.40 2019 2020 3Q20 4Q20 2019 2020 3Q20 4Q20 Core Spreads (%) Total Money Market Funding 16.51 1.3 ppt 13.
Slide 7: The lowest cost/income ratio among peer group despite one-off Covid-19 related expenses
INVESTOR RELATIONS Earnings Presentation Bank-Only YE2020 The lowest cost/income ratio among peer group despite one-off Covid-19 related expenses Operating Expenses (TL million)* Breakdown of OPEX* 35.8 943 936 Cumulative Opex 30.7 Growth 22% 7 branches have C/I Ratio (%) been closed in 2019 2020 20
Slide 8: Well-diversified & stable loan breakdown
INVESTOR RELATIONS Earnings Presentation Bank-Only YE2020 Well-diversified & stable loan breakdown Segment Breakdown of Loans (TL billion) Currency Breakdown of Loans (TL billion) Portfolio Breakdown (%) 411.2 422.0 24.0 422.0 SME 25.1 19.4 21.7 411.2 369.5 369.5 25.2 26.5 16.0 Retail 105.2 105.8 12
Slide 9: Breakdown of loan portfolio
INVESTOR RELATIONS Earnings Presentation Bank-Only YE2020 Breakdown of loan portfolio Sector Breakdown of Cash Loans 2020 Covid Related CGF Package Manufacturing Retail Loans (TL billion) Outstanding Amount 18% 23% Non-Retail CGF Loans TL 42.8 Construction Retail CGF Loans TL 10.3 Other (inc. busine
Slide 10: Further strenghtened coverages with proactive approach
INVESTOR RELATIONS Earnings Presentation Bank-Only YE2020 Further strenghtened coverages with proactive approach NPL (TL million)* Net Cost of Risk (bps)** 2,410 883 17,444 Impact of NPL 15,917 recognition 243 219 day : +42 bps 202 193 161 172 NPL 3Q20 New NPL Collections NPL 4Q20 5.93 NPL Ratio (%)
Slide 11: Strong market share on deposits maintained
INVESTOR RELATIONS Earnings Presentation Bank-Only YE2020 Strong market share on deposits maintained Total Deposits (TL billion) Breakdown of Deposits Market Share 9.8% 11% 11.3% 12% 414.0 394.2 52% 55% 48% 45% 335.9 198.9 $ 26.7 Sector 178.0 251.5 144.2 $ 22.9 FC TL Deposits FC Deposits TL Deposits
Slide 12: Fresh and pioneer external funding transactions
INVESTOR RELATIONS Earnings Presentation Bank-Only YE2020 Fresh and pioneer external funding transactions Breakdown of Wholesale Funding USD 5.1 billion fresh funding despite challenging macro Local Bonds Other conditions in 2020 4.8% 2.0% Eurobond AT I Issuance 10.4% 27.5% The first sustainable eur
Slide 13: Solvency ratios
INVESTOR RELATIONS Earnings Presentation Bank-Only YE2020 Solvency ratios Capital Adequacy Ratio (%) 4Q20 Required CET I 10.48 9.77 12.58 12.04 11.59 CET1 level 8.01% 15.16 4Q20 Solvency ratios without forbearances Tier I 13.59 12.69 15.59 14.45 Required Tier I level (% - 4Q20) 17.61 17.19 16.44 9.5
Slide 14: Appendix
INVESTOR RELATIONS Earnings Presentation Bank-Only YE2020 Appendix Pg. 15 Milestones on the sustainable banking approach Pg. 16 Improved efficiency with enhanced digital platforms Pg. 17 Composition of assets&liabilities Pg. 18 Well-positioned security portfolio Pg. 19 Retail Lending Portfolio Pg. 2
Slide 15: Milestones on the sustainable banking approach
INVESTOR RELATIONS Earnings Presentation Bank-Only YE2020 Milestones on the sustainable banking approach First stakeholder VakıfBank became a The first bank in Turkey to carbon negative company engagement receive OHSAS 18001 process to by offsetting more than Occupational Health and all of its green
Slide 16: Improved efficiency with enhanced digital platforms
INVESTOR RELATIONS Earnings Presentation Bank-Only YE2020 Improved efficiency with enhanced digital platforms Non-branch transaction share** ~90% # of active* digital banking customers reached Call Center 5.2 million with 45% 1.3 ATM growth YoY 24.1 The volume of the Mobile Banking transaction made
Slide 17: Composition of asset&liabilities
INVESTOR RELATIONS Earnings Presentation Bank-Only YE2020 Composition of asset&liabilities Breakdown of Assets (%) TL/FC Mix in Total Assets Other 4Q20 18.2 Interbank The share of IEA 59% 0.4 81.8% 41% 4Q20 Securities in total assets 21.0 Loans 60.4 TL FC Breakdown of Liabilities (%) TL/FC Mix in To
Slide 18: Well-positioned security portfolio
INVESTOR RELATIONS Earnings Presentation Bank-Only YE2020 Well-positioned security portfolio Total Securities (TL million) Portfolio Structure 100.7% 2020 5% Breakdown of FC Securities 144,700 146,510 40% Share of Fixed: 100% 1.3% 58,747 Breakdown of TL Securities 58,014 55% Share of Fixed: 26%
Slide 19: Retail Lending Portfolio
INVESTOR RELATIONS Earnings Presentation Bank-Only YE2020 Retail Lending Portfolio General Purpose Consumer (TL billion) Residential Mortgages (TL billion) Credit Card Loans (TL million)* 69.4% 72% 35.2% ~%70 of GPC ~%30 of loans extended to mortgages 14,637 50.6 49.5 extended to 13,568 payroll clie
Slide 20: Diversified funding sources via non-deposit funding
INVESTOR RELATIONS Earnings Presentation Bank-Only YE2020 Diversified funding sources via non-deposit funding Syndication Eurobonds and Private Placements USD 2 billion outstanding Mar’20: USD 325 million bilateral loan with ICBC, 3 years maturity USD 3.75 billion outstanding Eurobonds and USD 292
Slide 21: Unconsolidated Key Financial Ratios
INVESTOR RELATIONS Earnings Presentation Bank-Only YE2020 Unconsolidated Key Financial Ratios 2019 4Q19 3Q20 4Q20 2020 Profitability ROAE 9.1% 16.1% 10.0% 5.9% 12.6% ROAA 0.7% 1.3% 0.7% 0.4% 0.9% Cost / Income* 35.8% 30.2% 34.4% 36.2% 30.7% Cost / Assets* 1.6% 1.7% 1.3% 1.2% 1.2% Fee / Cost* 60.1% 5
Slide 22: Unconsolidated Balance Sheet
INVESTOR RELATIONS Earnings Presentation Bank-Only YE2020 Unconsolidated Balance Sheet YE19 3Q20 YE20 TL USD (thousand) TL USD TL USD TL USD YoY QoQ YoY QoQ Cash & Balances with Central Bank 36,495,220 6,128,500 43,588,854 5,617,120 93,188,786 12,508,562 155.3% 113.8% 104.1% 122.7% Interbank 5,861,3
Slide 23: Unconsolidated Income Statement
INVESTOR RELATIONS Earnings Presentation Bank-Only YE2020 Unconsolidated Income Statement (TL-thousand, %) 2019 3Q20 4Q20 2020 YoY QoQ Net Interest Income 13,014,712 5,401,549 4,110,798 19,887,403 52.81% -23.90% Net Fee & Com. Income 3,978,688 865,573 764,982 3,395,062 -14.67% -11.62% Dividend Incom
Slide 24: 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.
Turkiye Vakiflar Bankasi Turk Anonim Ortakligi (VakıfBank) — FY2020 Earnings Presentation on 6ix