Turkiye Vakiflar Bankasi Turk Anonim Ortakligi · BIST:VAKBN
Turkiye Vakiflar Bankasi Turk Anonim Ortakligi — Türkiye Vakıflar Bankası T.A.O. (VakıfBank) — FY2022 Earnings Presentation
25 slides from Turkiye Vakiflar Bankasi Turk Anonim Ortakligi's earnings presentation, Feb 14, 2023
Slide 1: Earnings Presentation BRSA Bank-Only YE22
Earnings Presentation BRSA Bank-Only YE22 February 14, 2023
Slide 2: 2022 Earnings and profitability
Earnings Presentation Bank-Only YE22 2022 Earnings and profitability Net Income (TL million) ROAE(%) Reported Adjusted* Reported Adjusted* Adj. with 9.9 51.8 72.4 51.9 free prov.* 475% 746% 50% 61% vs vs 34.0 sector avg. sector avg. 30.2 371% 41,245 26% TL 9.5 billion free 26.1 provisions 24,017 TL
Slide 3: Key highlights of 2022
Earnings Presentation Bank-Only YE22 Key highlights of 2022 Strong profitability despite heavy free provisions YE22 net income would be TL 41.3 billion Annual ROAE would be 52% if TL 24 YE22 net income is up by 475% YoY TL 41.3 if adjusted with additional free provision 52% adjusted with additional
Slide 4: 2022 P&L details
Earnings Presentation Bank-Only YE22 2022 P&L details TL 17.2 YoY 2022 4Q22 QoQ billion free provisions in Net Interest 2022 277% 73,715 34,330 119% Income Free Provisions Net Fees and 3,595 140% 10,793 17% Commissions 2017 +TL 500 mio 23% 149 Dividend Income 723 (64%) 2018 +TL 530 mio Net Trading 2
Slide 5: Solid NIM performance
Earnings Presentation Bank-Only YE22 Solid NIM performance CPI Expectation Net Interest Margin (NIM %) +4.0 ppt 10.9 CPI-linkers portfolio reached +5.3 ppt 129% 6.8 of equity 5.8 5.6 2.8 2021 2Q22 3Q22 4Q22 2022 Total Money Market Funding Swap Adjusted Net Interest Margin (%) 4Q21 1Q22 2Q22 3Q22 4Q2
Slide 6: Stellar fee & commission income growth
Earnings Presentation Bank-Only YE22 Stellar fee & commission income growth Net Fee & Commission Income (TL million) Net Fee & Commission Income Breakdown Cash Loans Non-Cash Loans Payment Systems 140% 48% 16% 25% 10,793 Insurance Other 4,501 3,079 3,595 8% 3% 17% 2021 3Q22 4Q22 2022 Fee/Opex Ratio
Slide 7: All time low annual cost/income ratio
Earnings Presentation Bank-Only YE22 All time low annual cost/income ratio Opex (TL million) Cost/Income Ratio (%) 89% (16.6 ppt) 34.7 17,932 19.8 18.1 9,508 15.7 6,604 (4.1 4,480 ppt) 47% 2021 3Q22 4Q22 2022 2021 3Q22 4Q22 2022 HR Cost (TL million) Breakdown of OPEX Non-HR Cost (TL million) 81% 94%
Slide 8: Lending strategy driven by short-term & floating rate TL loans
Earnings Presentation Bank-Only YE22 Lending strategy driven by mainly short-term & floating rate TL business loans remained intact Portfolio Breakdown Currency Breakdown 69% 31% QoQ Loan Growth TL Loans FC Loans ($) 4Q22 14% Com. & Corp 3Q22 12% 24% 16% TL 516 billion 2Q22 11% 12% 4% QoQ Growth 9%
Slide 9: Breakdown of loan portfolio
Earnings Presentation Bank-Only YE22 Breakdown of loan portfolio Sectoral Breakdown of Cash Loans Breakdown of FC Loans Retail Loans Manufacturing Breakdown of Project 14% Finance 23% Other (inc. 15% Energy business and 29% retail credit cards) 4Q22 26% Export Project 10% Construction Loans Finance
Slide 10: Asset quality remained intact with all time high coverage ratios
Earnings Presentation Bank-Only YE22 Asset quality remained intact with all time high coverage ratios NPL (TL million)* Stage II Loans Breakdown (TL million) Stage II 2,959 14.5 18.3 19.1 24.4 Coverage 2,205 Ratio (%) Share in total 10.83 19,521 20,274 loans (%) 9.48 9.20 8.26 77,124 Total Stage II
Slide 11: Well-balanced deposit portfolio
Earnings Presentation Bank-Only YE22 Well-balanced deposit portfolio Total Deposits (TL billion) Breakdown of Deposits Market 11.1% 11.6% 11.9% 12.7% Share 60% 54% 40% 46% 1,127.7 Sector 956.3 447.0 TL Deposits FC Deposits TL Deposits FC Deposits 787.7 451.4 $ 23.9 590.9 FC 77% Retail Deposit 400.7
Slide 12: Well diversified external funding
Earnings Presentation Bank-Only YE22 Well diversified external funding Breakdown of Wholesale Funding Local Bonds Other 2.4% 2.6% TL 100.7 billion* sustainable finance provided AT I Issuance 8.8% as of YE22 in the balance sheet Eurobond 29.4% Repo Transactions IFI 6.6% IFI Borrowings 12% Sustainable
Slide 13: Solvency ratios
Earnings Presentation Bank-Only YE22 Solvency ratios Capital Adequacy Ratio (%) Required CET1 Solvency ratios CET I •9.96 12.84 11.36 11.69 11.52 level 8.5% Solvency ratios including free (%) without BRSA provision amount of forbearance Tier I •12.88 15.57 13.68 13.90 13.55 Required Tier I TL 19 bil
Slide 14: Appendix
Earnings Presentation Bank-Only YE22 Appendix Pg. 15 Sustainable banking approach Pg. 16 Sustainable loan products Pg. 17 The first Turkish bank incorporated sustainability approach to its provisioning policy Pg. 18 Improved efficiency with enhanced digital platforms Pg. 19 Composition of assets & l
Slide 15: Sustainable banking approach
Earnings Presentation Bank-Only YE22 Sustainable banking approach Indices Initiatives Sustainability Rating Score: 48 in 2022 B Score in 2022 1st assessment in 2015 B- Score in 2022 1st assessment in 2022 Sustainability Reporting 15
Slide 16: Sustainable loan products
Earnings Presentation Bank-Only YE22 Sustainable loan products Women in Business Loan For a business that is managed or owned by women, having less than 250 employees and completing the year with a profit with Green Mortgage Loan attractive interest rates Aiming to support the reduction of resid
Slide 17: The first Turkish bank incorporated sustainability approach to its provisioning policy
Earnings Presentation Bank-Only YE22 The first Turkish bank incorporated sustainability approach to its provisioning policy Proactive provisioning policy in accordance with CBAM (Carbon Border Adjustment Mechanism) and ‘Fit for 55’ principles To eliminate the transformation risk of these companies,
Slide 18: Improved efficiency with enhanced digital platforms
Earnings Presentation Bank-Only YE22 Improved efficiency with enhanced digital platforms Branch 949 8% Branches # of active* digital Internet banking customers Banking reached ~6.7 mio ~6.7 million 45% Digital Banking Customers Non-branch # of transaction made Mobile transaction through digital plat
Slide 19: Composition of asset&liabilities
Earnings Presentation Bank-Only YE22 Composition of asset&liabilities Breakdown of Assets (%) Currency Breakdown of Total Assets 4Q22 Other 19.9 The biggest listed bank of Turkey in terms of Interbank asset size with 2.4 58% 12% market share 42% 4Q22 Loans The share of IEA 55.5 Securities 80% TL FC
Slide 20: Well-positioned security portfolio
Earnings Presentation Bank-Only YE22 Well-positioned security portfolio Total Securities (TL million) Portfolio Structure 66.5% Breakdown of FC Securities 372,588 321,791 15.8% 33% 7% 304,335 158,593 100% 104,454 125,127 223,737 60% 17,096 73,862 14,865 15,189 16,404 196,899 2021 4Q22 185,016 181,47
Slide 21: Retail Lending Portfolio
Earnings Presentation Bank-Only YE22 Retail Lending Portfolio General Purpose Consumer (TL billion) Residential Mortgages (TL billion) Credit Card Loans (TL billion)* 19.2% 11.9% 139% 56.4 59.4 56.6 56.1 57.1 42.3 33.3% 55.6 54.0 6.0% 48.3 50.5 35.0 49.9 49.3 (2.9%) 26.8 23.6 4Q21 1Q22 2Q22 3Q22 4Q2
Slide 22: Diversified funding sources via non-deposit funding
Earnings Presentation Bank-Only YE22 Diversified funding sources via non-deposit funding Syndication Eurobonds and Private Placements USD 1.6 billion outstanding USD 3.3 billion outstanding Eurobonds and USD 134.8 million Nov’22: USD 560 million equivalent syndicated loan, SOFR outstanding Private
Slide 23: Unconsolidated Key Financial Ratios
Earnings Presentation Bank-Only YE22 Unconsolidated Key Financial Ratios 2021 4Q21 3Q22 4Q22 2022 Profitability ROAE 8.5% 15.9% 26.1% 34.0% 30.2% ROAA 0.5% 0.9% 1.7% 2.2% 1.8% Cost / Income 34.7% 25.6% 19.8% 15.7% 18.1% Cost / Assets 0.9% 1.1% 1.3% 1.6% 1.1% Fee / Cost 47.3% 49.5% 68.7% 54.4% 60.2%
Slide 24: Unconsolidated Balance Sheet
Earnings Presentation Bank-Only YE22 Unconsolidated Balance Sheet (TL-thousand, %) YE21 3Q22 YE22 TL USD TL USD TL USD TL USD YoY QoQ YoY QoQ Cash & Balances with Central 144,148,987 10,757,387 166,081,366 8,967,676 268,935,221 14,358,528 86.6% 61.9% 33.5% 60.1% Bank Assets Interbank 28,220,738 2,10
Slide 25: Unconsolidated Income Statement
Earnings Presentation Bank-Only YE22 Unconsolidated Income Statement (TL thousand, %) 2021 3Q22 4Q22 2022 YoY QoQ Net Interest Income 12,323,517 14,667,219 33,480,990 70,326,695 470.7% 128.3% (Inc. Swap Cost) Swap Cost -7,219,864 -1,002,728 -848,615 -3,388,468 (53.1%) (15.4%) Net Fee & Com. Income 4
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