Sekerbank T.a.s. · BIST:SKBNK
Sekerbank T.a.s — Investor Presentation (December 2019)
35 slides from Sekerbank T.a.s's investor presentation, Dec 31, 2019
Slide 1: Şekerbank T.A.Ş. Consolidated Financial Results as of 31.12.2019
Şekerbank T.A.Ş. Consolidated Financial Results as of 31.12.2019
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 Turkish bank tha
Slide 5: Milestones
Milestones • First Bank to receive ‘Corporate • Signed the Declaration on Governance Rating’ in Turkey. Sustainable Finance Founded as the ‘Sugar Beet • First micro-finance project • Issued a 10-year, variable-rate, lira- Cooperative Bank’ in Eskişehir Turkey’s first 5-year denominated domestic subo
Slide 6: Well-Established Network
Well-Established Network İç Anadolu Regional Office Marmara Regional Office (38 Branches) Karadeniz Regional Office Trakya Regional Office (37 Branches) (28 Branches) (33 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 31.12.2019 (TRY MM) Bank-only Consolidated Total Assets 30.596 32.045 Net Loans 19.834 20.897 SME Loans/Total Loans 54,33% 53,98% Customer Deposits 23.815 23.305 Loan/Deposit Ratio 83,28% 89,67% Shareholders’ Equity 1.977 1.961 Tier I Ratio 9,18% 8,56% Capital Adequacy Ratio
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 32.045 32.045 0,08% 6,58% 4,68% 10,66% 6,12% 14,59% 11,23% 39,44% 14,17% 12,81%
Slide 16: Loan Structure
Loan Structure Loan Growth (MM) 23.278 23.900 22.492 21.957 21.705 20.769 20.897 6.324 6.506 5.919 6.020 5.473 5.207 5.794 2018 Q2 2018 Q3 2018 YE 2019 Q1 2019 Q2 2019 Q3 2019 YE Cash Loans Non-Cash Loans Net Loans in Local & Foreign Currency and Total Loans (MM) 23.278 23.900 21.957 22.492 21.705 2
Slide 17: Cash Loan Structure
Cash Loan Structure Highly Diversified Loan Book Cash Loans Breakdown by Sector (%) 2,42% 5,51% 12,29% Agricultural 3,58% Manufacturing Construction 11,67% 15,76% Services Wholesale and Retails Trade Tourism Transportation & Telecommunication 16,83% Financial Institutions 18,38% Other 13,56% 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% 0,75% 0,53% 0,56% 0,60% 9,11% 7,33% 8,10% 6,76% 7,19% 5,75% 6,09% 84,97% 83,24% 80,88% 80,27% 79,98% 78,12% 75,74% 20, 00% 2018 Q2 2018 Q3 2018 YE 2019 Q1 2019 Q2 2019 Q3 2019 YE 2
Slide 19: Asset Quality (Bank-Only)
Asset Quality (Bank-Only) NPL Exposure 9,31% 20, 00% 400 000% 10, 00% 3,30% 3,28% 3,77% 3,81% 4,63% 5,92% 350 000% NPL 2018 YE Addition Collection NPL 2019 YE 300 000% 0,0 0% 250 000% -10,00% 200 000% -20,00% 2.849 150 000% 2.849 -30,00% 1.761 100 000% 1.431 1.180 -40,00% 1.076 1.122 1.180 1.228 500
Slide 20: Securities
Securities Composition by Type 3.232 3.793 4.092 3.596 3.709 3.584 3.588 2,97% 2,25% 2,09% 2,09% 1,91% 1,31% 0,94% 7,69% 9,42% 14,12% 14,58% 16,24% 17,83% 16,66% 89,34% 88,33% 83,79% 83,33% 81,85% 80,86% 82,39% 2018 Q2 2018 Q3 2018 YE 2019 Q1 2019 Q2 2019 Q3 2019 YE Financial Assets at Amortised Cos
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 ) Total Deposits by Currency (%) 34.420 35.954 32.965 33.934 32.607 31.482 32.045 45,21% 44,15% 44,05% 45,98% 47,73% 45,59% 45,32% 1.671 1.311 1.245 2.458 2.405 1.606 1.276 2.365 1.501 2.453
Slide 23: Loan/Deposit Ratios
Loan/Deposit Ratios Total Loan / Customer Deposit Ratio 112,78% 99,74% 98,13% 94,44% 92,26% 91,02% 89,67% 106,76% 92,83% 91,27% 88,35% 85,70% 84,40% 83,28% 2018 Q2 2018 Q3 2018 YE 2019 Q1 2019 Q2 2019 Q3 2019 YE Bank-Only Consolidated TRY Loans / Customer Deposits Ratio FC Loans / Customer Deposits
Slide 24: Liquidity Overview
Liquidity Overview Liquidity Coverage Ratio (TL +FC)(1)(2) 191,45% 177,88% 180,18% 134,38% 141,35% 129,10% 121,27% 163,38% 111,30% 119,52% 126,43% 122,49% 115,53% 108,50% 100% 100% 100% 100% 90% 90% 90% 2018 Q2 2018 Q3 2018 YE 2019 Q1 2019 Q2 2019 Q3 2019 YE LCR (TL + FC) (Bank Only) LCR (TL + FC) (
Slide 25: Deposit Structure
Deposit Structure Deposit Structure and Durations TL + FC Time Deposit TL+FC Retail Time Deposit 9,34% (Monthly Average) 14,72% (Monthly Average) 1,92% 14,07% Retail 39,39% Below 500.000 TL Corporate & Commercial 500.000-1M TL SME 46,54% 74,02% Above 1M TL Agriculture Total customer deposits incre
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 December 2017
Slide 27: Income Statement and Profitability
Income Statement and Profitability
Slide 28: Profit and Loss
Profit and Loss TRY MM 2018 YE 2019 YE Interest Income 4.416 4.203 Interest Expense 2.906 3.024 Net Interest Income 1.510 1.179 Net fees and Commisions Income 360 383 Personnel Expenses 468 547 Dividend Income 1 1 Net Trading Income/Loss (117) (136) Other Operating Income 89 493 Total Operating Prof
Slide 29: Revenues In Detail
Revenues In Detail Net Interest Income / Margin Net Interest Income (TRY MM) Net Interest Margin (%) 4.416 4.203 1.510 5,80% 5,90% 5,53% 1.179 4,60% 4,07% 5,44% 5,62% 5,30% 3,27% 3,57% 4,27% 3,77% 3,22% -2.906 2,80% -3.024 2018 YE 2019 YE 2018 Q2 2018 Q3 2018 YE 2019 Q1 2019 Q2 2019 Q3 2019 YE Inter
Slide 30: Ratios
Ratios Cost to Income Ratio Cost / Income (%) – Bank Only 79,40% 79,76% 64,15% 64,79% 63,05% 58,42% 57,24% 2018 Q2 2018 Q3 2018 YE 2019 Q1 2019 Q2 2019 Q3 2019 YE Cost of Risk NPL Coverage Cost of Risk (%) – Bank Only NPL Coverage (%) – Bank Only 4,30% 76,74% 76,41% 3,39% 74,46% 73,60% 3,12% 68,55%
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% 13,31% 13,86% 13,40% 13,53% 13,41% 12,87% 12,40% 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% 9,18% 9,09% 9,12% 8,80% 8,56
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
Şekerbank T.A.Ş. — Investor Presentation (December 2019) on 6ix