Turkiye Sinai Kalkinma Bankasi A.s. · BIST:TSKB
Turkiye Sinai Kalkinma Bankasi A.s — Türkiye Sinai Kalkınma Bankası A.Ş. (TSKB) — Q1 2022 Earnings Presentation
27 slides from Turkiye Sinai Kalkinma Bankasi A.s's earnings presentation, 2022
Slide 1: TSKB The Industrial Development Bank of Turkey
TSKB The Industrial Development Bank of Turkey FI&IR Presentation 1Q 2022 Bank-only Results ESC. Esc “| REGIONAL INDUSTRY TOP RATED (TOP RATED g Corporate Banking Investment Banking Advisory Services
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 YY Sustainalytics ESG 13,6 Low Risk As of May 17, 2022 Risk Rating y *https://www.borsaistanbul.com/en/sayfa/65 11 1/
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 se
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: 2022YE Guidances vs 1Q22 Results
2022YE Guidances vs 1Q22 Results Financial Guidance 2022YE (%) 1Q22 (%) Notes (Bank Only) Guidance Results Growth FX Adjusted Loan Growth Contraction -8.7 Subdued FX loan demand and heavy redemptions Profitability Net Interest Margin (*) ~4.0 5.2 Upside potential Fees & Commissions Growth ~30 195 St
Slide 7: Robust Yearly Core Banking Income Expansion
Robust Yearly Core Banking Income Expansion Net Banking Income-TLmn 13 ZV 1,360 hs 1,207 671 167% 681 671 509 312 312 343 3 Tas 377 199 377 40-21 10-22 — =NetBanking Income exc.CPl&qrading = 1Q-21 10-22 Trading Gain/Loss = CPlincome Net Banking Income vs Provisions - TL mn 1,207 866 509 289 10-21 40
Slide 8: Banking Sector vs TSKB
Banking Sector vs TSKB BANKING SECTOR 20.4% Banking Sector 20.5% TSKB Cost to Income 23.8% Banking Sector Deposit619 Equity — ae 74% TSKB Funds Borrowed 11% 3% Subordinated bonds and loans (ATI + Tier Il) 3% Loans/Assets NPL 70.6% 56.6% Banking Sector TSKB Banking Sector NIM ROE iba Lea 31.8% 33.4%
Slide 9: Eurobond DFI Funding Syndication & Other
• • 441 350 608 750 194 450 126 100 2,219 2022 2023 2024 >=2025 Eurobond DFI Funding Syndication & Other Money Market Funding
Slide 10: Long Term DFI Funding Base
10 IBRD AIB Kfw CDB IDB AFD CEB EBRD OEB 5.0% 4.9% 4.7% =a | Boao i 2.2% IFC I 1.2% 0.4% 0.3% Long Term DFI Funding Base Outstanding DFI Funding Base - 1Q-22 42.4% Yearly Multilateral Funding Agreements - USD mn 2016 2017 2018 2019 2020 2021 1022
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
APE Resilient Asset Composition 10-21 40-21 10-22 mSecurities =Cash&MM_ mNon|EAs & Other mLoans Asset Composition - TL bn Average Maturity - Years APEX Loans [NNN 3.4 Working Capital Loans 9) 3.5 Investment Loans [NNN 6.5 ) 5.5 years Investment Loans, 66% Total Loans - TL bn Currency Breakdown 63.9
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 42.8% Finance 8.1% Other** 8.0% Electricity/Gas Distr. 6.6% Tourism 6.6% Metal & Machinery 5.4% Health & Education 5.2% Construction & Construction Materials 3.7% Logistics 3.4% • Non-Residential Real Estate 2.8% • Food & Beverage 2.4% • Chemistry & Plastics 2.1% Automotive 1.
Slide 16: Renewable Energy Portfolio by Source
1.6 bn 1.9 bn 1.9 bn 1.9 bn 1.9 bn 1.8 bn 4% 6% 6% 7% 8% 10% 5% 5% 5% 6% 9% 9% 35% 37% 35% 37% 39% 38% 17% 18% 19% 20% 19% 19% 37% 35% 35% 31% 24% 24% 2017 2018 2019 2020 2021 1Q-22 Hydro Geothermal Wind Biomass Solar • •
Slide 17: Asset Quality Remains Intact, Further Improved Coverages
Asset Quality Remains Intact, Further Improved Coverages Stage Ill Loans —e Coverage Ratio Stage | Loans Stage Il Loans ig 18.7% 18.8% 53.9% 53.2% 92% of 1.2% 1.2% 7/7/77 1.0% Stage 3 ——___ .( ype Loans are restructured 70% of Stage 2&3 Loans are 10-21 40-21 10-22 10-21 40-21 10-22 eee eee, Me Restr
Slide 18: Well-managed Security Book Supports our Bank's Profitability
18 Well-managed Security Book Supports our Bank's Profitability Total Securities Portfolio Breakdown TRY 14.8 bn TRY 13.0 bn 602 532 TL7.8bn 391 4,668 5,978 6,026 41% 10-21 4Q-21 10-22 m TRY (mn) YP ($ mn) SECURITIES / ASSETS: 16% Strategically managed securities portfolio * Remaining Duration: 1.9
Slide 19: Income Statement Highlights
Income Statement Highlights TLmn 1Q-21 4Q-21 1Q-22 QoQ YoY Strong Net Interest Income 430.3 907.3 1,092.9 20% 154% contribution of fees & Trading Income 99.7 342.8 312.1 -9% 213% commissions Net Fees & Commissions 10.7 20.0 316 58% 195% Sustainable profitability Other Income (Inc. Dividend) 32.1 11.
Slide 20: Healthy and Consistent NIM Performance Exceeding our Guidance
Healthy and Consistent NIM Performance Exceeding our Guidance Annualized NIM 5.24% 3.94% 3.36% = Robust margin performance continues He Lisle HELE = 2022 October to October CPI valuation assumption is revised to 49% from 28.2%. Annualized NIM = 480 mioTL extra revenue generated from CPI assumption 5
Slide 21: Capital Adequacy Ratio Movement
12.0% 8.5% 0.7 - 3.6 0.46 - 0.1 12.8 8.9 4Q-21 Δ RWA Δ MtM Subordinated Debt Net Profit 1Q-22
Slide 22: Sustainability Developments in 1Q-22 and Long-term Targets
Sustainability Developments in 1Q-22 and Long-term Targets Impact Oriented BPR) Integrated Annual Report Positive impact we created Short, medium and long-term targets UNEP FI Responsible Banking Principles WEF Stakeholder Capitalism metrics Ecording Website with the digital assistant Social Impact
Slide 23: Appendix
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Slide 24: Balance Sheet
24 Balance Sheet 31/03/2021 31/12/2021 31/03/2022 Cash and Banks Securities Loans (Gross) Provisions Subsidiaries Other Total ST Funds LT Funds Securities Issued Repo & MM Other Tier 2 Equity Total 2,078 4,672 3,622 -567 1327 1387 12,518 2,540 3,131 40,408 -1,416 90 1,014 45,767 2,013 32,843 11,847
Slide 25: Detailed Income Statement
25 Detailed Income Statement TLmn 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* 33.4% 16.7% YE-21 1Q-22 Tier-l** 12.8% ' - YE-21 1Q-22 *ROE: Annualized Net Income for the period / Average Total Equity * Excluding BRSA temporary measures 1.6% YE-21 15.3% ROA CAR** 2.8% 1Q-22 14.0% Cost to Income 8.4% 74% YE-21 1Q-22 NIM 5.2% 47% YE-21 1Q-22
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 Sinai Kalkınma Bankası A.Ş. (TSKB) — Q1 2022 Earnings Presentation on 6ix