Turkiye Sinai Kalkinma Bankasi A.s. · BIST:TSKB
Turkiye Sinai Kalkinma Bankasi A.s — Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — FY2021 Earnings Presentation
27 slides from Turkiye Sinai Kalkinma Bankasi A.s's earnings presentation, 2022
Slide 1: Created with a trial version of Syncfusion Essential PDF
Created with a trial version of Syncfusion Essential PDF
Slide 2: TSKB at a Glance
TSKB at a Glance 4 Turke' als Bank Group 40.3% yy yy Aree Shareholding = Vakifbank GE 51.4%} Fitch LTFC B B+ Free Float* & Other Moody’sLTIR B3 B2 SAHA Corporate Governance Rating ZY YYYyyy Sustainalytics ESG 13,6 Low Risk As of December31, 2021 Risk Rating y *https://www.borsaistanbul.com/en/sayfa/
Slide 3: A Unique Business Model
A Unique Business Model = Long term tenor in liabilities: 11 years * Medium term in assets: 5 years = Diversified funding tools = Amortized loan book = Multi-disciplinary assessment during allocation = Sector specific research analysts during allocation and monitoring period = Strong collateralizati
Slide 4: Main Stakeholders of the Bank
Main Stakeholders of the Bank A trustworthy partner in; Large Corporates, MidCap Companies & SME's Its field experience Cooperation in various areas such as; corporate Its capacity to introduce innovative themes with respect to loans, investment banking activities and advisory investment projects Sa
Slide 5: Sustainability is Well Integrated into Our Business Model
Sustainability is Well Integrated into Our Business Model health and safety © Supporting less developed regions Support for employment in Turkey; ® Encouraging women participation to the economy ERB Support transition to low ye carbon economy © Providing financing to operational Environmental & Soci
Slide 6: 2021YE Performance & 2022YE Guidance
2021YE Performance & 2022YE Guidance Financial Guidance 2021YE (%) m 2022YE (%) . . (Bank Only) Guidance YE-21 Results (%) Guidance 2022YE Guidance Drivers Growth FX Adjusted Loan Growth <2 -0.8 Contraction Subdued investmentappetite Profitability Net Interest Margin (*) ~45 47 ~4.0 Consistentloan a
Slide 7: Robust core banking income generation capability ensures sustainable earnings growth
Robust core banking income generation capability ensures sustainable earnings growth Net Banking Income-TRY mn Annual Evolution of Net Banking Income vs Provisions - 2,889 0) 1,207 yD Strong core bankingincome 1,755 1,810 90% 681 expansion 636 supports 1,271 provisioning 343 = base 116 183 308 co) 3
Slide 8: Banking Sector vs TSKB
Banking Sector vs TSKB Loans/Assets CAR 76.0% NPL 20.8% 18.3% 55.2% 3.0% 3.29% Banking Sector TSKB Banking Sector TSKB Banking Sector TSKB NIM ROE Cost to Income Hd 30.3% 14.4% 47% 3.8% 8.4% Banking Sector TSKB Banking Sector TSKB Banking Sector TSKB ro Repo Majority of the funding Syndication & 2 1
Slide 9: Syndication & Other DFI Funding Eurobond
-236 -458 -590 -330 -511 -350 -56 -100 -2,192 -750 -300 Syndication & Other DFI Funding Eurobond Tier 2 Money Market Funding
Slide 10: Long Term DFI Funding Base
Long Term DFI Funding Base Outstanding DFI Funding Base - YE-21 IBRD Yearly Multilateral Funding Agreements - USD mn EIB AIB
Slide 11: Outstanding Project Themes Shaping Future Loan Book
11 Outstanding Project Themes Shaping Future Loan Book Energy and Resource Efficiency Women’s Employment and Equal Opportunity Renewable Energy Midcap Financing Supporting Exporters Regional Development Supporting Employment Sustainable Agriculture Industrial Development Sustainable Tourism Occupati
Slide 12: Resilient asset composition
Resilient asset composition Asset Composition - TRY bn 4Q-20 30-21 40-21 mLoans mSecurities sCash&MM_ mNonlEAs & Other Average Maturity - Years Working Capital Loans) 2.6 APEX Loans (NNN 3.5 ) Investment Loans [NNN 6.6 Total Loans-TRY bn Currency Breakdown 63.9 Ea) x 45.5 39.1 41 Eg a yp 4.75 4.85 4
Slide 13: Risk Management Pillars
Risk Management Pillars Credit Risk * Monitoring the clients individually with analysing the financials * Preparing monitoring reports for the clients at least once a year * Keeping track of internal and external (if it is done) ratings of the customers, reviewing the internal ratings annually = Act
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Slide 15: Loan book sector breakdown
Electricity Generation 39.7% Finance 12.6% Other** 8.6% Electricity/Gas Distr. 6.8% Tourism 6.6% Metal & Machinery 5.3% Health & Education 4.9% • Construction & Construction Materials 3.7% • • Telecom & Logistics 3.6% Non-Residential Real Estate 2.8% Food & Beverage 2.3% Chemistry & Plastics 2.1% Au
Slide 16: Renewable energy portfolio by source
1.6 bn 1.9 bn 1.9 bn 1.9 bn 1.9 bn 1.9 bn 2% 4% 6% 6% 7% 6% 5% 5% 8% 5% 6% 9% 32% 35% 37% 35% 37% 39% 14% 17% 18% 19% 20% 19% 46% 37% 35% 35% 31% 24% 2016 2017 2018 2019 2020 2021 Hydro Geothermal Wind Biomass Solar • •
Slide 17: Asset quality remains intact
@—* Coverage Ratio 17 Asset quality remains intact Stage | Loans (mio TL) Stage Il Loans 4Q-20 3Q-21 40-21 4Q-20 30-21 4Q-21 Gross Amount Provisions Gross Amount Provisions 54,124 551 7,704 1,437 Stage 2 Loans Sector Percentage Coverage Tourism 26% 16.1% Nonew Electricity/Gas Distribution 17% 32.1%
Slide 18: Security book supporting Bank's profitability
18 Security book supporting Bank’s profitability Total Securities Portfolio Breakdown TRY Securities Portfolio Breakdown* TRY 13.0bn TRY 9.1 bn TRY73bn 5329 4545 71% se Floating - 7 4Q-20 30-21 4Q-21 yy TRY ( Dae ) iy * Auditreport values are taken into account mTRY (mn mn) SECURITIES / ASSETS: 15.0
Slide 19: Income Statement Highlights
Income Statement Highlights TRY mn YE-20 YE-21 YoY 3Q-21 40-21 QoQ s trong Net Interest Income 1,801 2,529 40% 679.9 907.3 33% contribution of fees & Trading Income 116 495 326% -10.0 342.8 nm. commissions Net Fees & Commissions 50 71 41% 15.3 20.00 31% Stellarcore banking income Other Income (Inc.
Slide 20: Healthy and Consistent NIM Performance
432% 40-20 Annualized, 20 Healthy and Consistent NIM Performance / Annualized NIM Annualized NIM* (excluding FX Gains/Losses) 439% BE 4.06% 4.11% 3.94% 30-21 40-21 4Q-20 3Q-21 4Q-21 NIM computation: (NI-swapcosts+ fx gains&losses/(IEA-accruals) = Robust margin performance continues = 220 mioTL extra
Slide 21: Strong internal capital generation supports our solvency metrics
Strong internal capital generation supports our solvency metrics Capital Ratios Without BRSA Temporary Measures Evolution of RWA and Equity - TRY bn 76.9 12.0% 56.8 Wa 479 8.5% 11.8 60 «89 66 100 68 = = = YE 2020 30-21 YE 2021 YE 2020 30-21 YE 2021 mTier|(CET1) m=CAR With BRSA Temporary Measures ~ C
Slide 22: Sustainability Developments in 2021 and Long-Term Targets
22 San) Sustainability Developments in 2021 and Long-Term Targets Funding 3'4 Sustainable Eurobond Issuance Sustainability-linked Syndication Loan Sustainable bilateral agreement with Citi Geothermal Development Project Loan Agreement with IBRD a Reporting = First Climate Risks Report = 5thIntegrate
Slide 23: 2S BS Q gf x
2S BS Q gf x
Slide 24: Balance Sheet
Balance Sheet 31/12/2020 30/09/2021 31/12/2021 LS Cash and Banks 1,481 1,191 2,672 3,431 4,003 1,526 3,715 5,241 Securities 4,564 2,983 7,547 5,116 4,031 9,147 5,896 6,730 12,626 Loans (Gross) 4,136 34,984 39,120 4,134 41,417 45,551 4,072 59,830 63,902 Provisions -529 “1,223 “1,752 -583 “1,731 -2,31
Slide 25: Detailed Income Statement
25 Detailed Income Statement TRY mn 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 26: Key Performance Indicators
26 Key Performance Indicators ROE* ROA 16.1% 16.7% 13.0% 1.9% 1.6% 2020 3Q-21 YE-21 2020 3Q-21 Tier-I** CAR** 16.6% 11.3% 10.3% 6.6 Hl 8.9% L y 2020 3Q-21 YE-21 2020 3Q-21 *ROE: Annualized Net Income for the period / Average Total Equity * Excluding BRSA temporary measures 1.6% YE-21 15.3% Cost to I
Slide 27: TSKB Financial Institutions & Investor Relations
27 ool Oe TSKB Financial Institutions & Investor Relations TSKB Financial Institutions & Investor Relations ir@tskb.com.tr www.tskb.com Meclisi Mebusan Cad. 81 Findikli 34427 istanbul
Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — FY2021 Earnings Presentation on 6ix