Turkiye Vakiflar Bankasi Turk Anonim Ortakligi · BIST:VAKBN
Turkiye Vakiflar Bankasi Turk Anonim Ortakligi — Türkiye Vakıflar Bankası T.A.O. (VakıfBank) — Q3 2024 Earnings Presentation
25 slides from Turkiye Vakiflar Bankasi Turk Anonim Ortakligi's earnings presentation, Nov 6, 2024
Slide 1: Earnings Presentation BRSA Bank-Only 3Q24
Earnings Presentation BRSA Bank-Only 3Q24 November 6, 2024
Slide 2: 3Q24 Earnings and profitability
Earnings Presentation Bank-Only 3Q24 3Q24 Earnings and profitability Net Income (TL billion) ROAE (%) 81% vs. 27.2 Sector avg. of 5% 19.5 w/o any free 16.4 15.4 15.3 vs. provision reversal in 15.0 Sector avg. of 9% 3Q24 contraction 7.2 8.0 TL 8.5 billion free provisions in the b/s as of 12% 9M24 9M2
Slide 3: Key highlights of 9M24
Earnings Presentation Bank-Only 3Q24 Key highlights of 9M24 Total asset size exceeded USD100 billion level for the first time USD 100 Total asset size exceeded USD 100 billion level for the 14% TL loans are up by 6.6% QoQ and 14% YtD billion first time which is up by 17% YoY 24% Total loans are up b
Slide 4: 3Q24 P&L details
Earnings Presentation Bank-Only 3Q24 3Q24 P&L details 3Q24 9M24 QoQ TL million vs. TL million YoY 6% Net Interest 56,117 140% 19,789 Income 15% Net Fees and 33,175 104% 12.041 w/o any free Commissions provision (99%) 1 116 reversal in Dividend (42%) 3Q24 Income 106% Net Trading (10,145) (157%) 453 F
Slide 5: Visible NIM expansion & best-in-class TL core spread improvement
Earnings Presentation Bank-Only 3Q24 Visible NIM expansion & best-in-class TL core spread improvement CPI Expectation NIM With realized Oct.-Oct. CPI, NIM NIM would be: 5.30% 3.02% 3.03% 3.01% 3Q24 NIM: 4.58% Swap 3.95% 3Q24 Swap Adj. NIM 2.37% adj. NIM: 1.31% 1.25% 3.94% 4Q23 1Q24 2Q24 3Q24 ➢ Addit
Slide 6: Another strong quarter on net fee & commission income driven by payment system fees
Earnings Presentation Bank-Only 3Q24 Another strong quarter on net fee & commission income driven by payment system fees Net Fee & Commission Income Breakdown (TL billion) Insurance 104% Insurance 9.1% 4.9% Cash Loans Cash Loans 34.5% Payment 44.4% Payment System 33.2 9M23 System 9M24 34.1% vs. Sect
Slide 7: Operating Expenses
Earnings Presentation Bank-Only 3Q24 Operating Expenses Opex (TL billion)* Breakdown of Opex 82% 51.2 vs. Non-HR Sector avg. HR Cost Cost of 14% 40% 9M24 60% 28.1* 17.6 18.8 6% 9M23 2Q24 3Q24 9M24 HR Cost (TL billion) Non-HR Cost (TL billion) 73% 98% 30.6 20.7 17.6* 10.5 7.0 8.0 10.6 10.8 14% 2% 9M2
Slide 8: Well-balanced loan composition
Earnings Presentation Bank-Only 3Q24 Well-balanced loan composition Portfolio Breakdown VB Sector VB Sector QoQ Loan Growth YtD growth: 24% QoQ (%) QoQ (%) YtD (%) YtD (%) Total Loan Growth 8.6 8.4 23.7 28.6 3Q24 8% 56% Com.&Corp. 2Q24 10% TL Loan Growth 6.6 6.0 14.2 19.8 TL 1,042 1Q24 4% billion 4Q
Slide 9: Breakdown of loan portfolio
Earnings Presentation Bank-Only 3Q24 Breakdown of loan portfolio Currency Breakdown Loans / Deposit Ratio (%) Loans/Deposits 76 80 79 80 84 88 86 95 82 85 83 64% 36% 76 74 66 68 TL Loans FC Loans ($) 7% 6% 12% QoQ Growth 4% 8% 3% 5% 4% 4Q23 1Q24 2Q24 3Q24 4Q23 1Q24 2Q24 3Q24 4Q23 1Q24 2Q24 3Q24 TL Y
Slide 10: Normalizing net CoR levels and asset quality metrics
Earnings Presentation Bank-Only 3Q24 Normalizing net CoR levels and asset quality metrics NPL (TL million) Stage II Loans Breakdown (TL billion) 7.8 7.9 8.0 Share in total 6.7 loans (%) 148.8 Total Stage II 12,385 618 2,686 Loans 33,393 134.2 64.8 116.4 56.0 Restructured 44% 92.5 55.2 42% 24,312 56.
Slide 11: Focus on granularity is on track with increasing shares of retail & demand deposits
Earnings Presentation Bank-Only 3Q24 Focus on granularity is on track with increasing shares of retail & demand deposits Total Deposits (TL billion) Breakdown of Deposits 36% 69% 63% 31% 37% 2,305 Sector 2,152 1,962 708 TL Deposits FC Deposits 702 TL Deposits FC Deposits 1,701 $ 20.7 708 $ 21.4 626
Slide 12: YtD international funding amount: USD 8.6 billion
Earnings Presentation Bank-Only 3Q24 YtD international funding amount: USD 8.6 billion Breakdown of International Funding Tier II Private Placement 3.7% Eurobond of which USD 750 million Eurobond 13.7% 14.5% Short term redemption in Feb. 25 $6.9 billion Other International Coverage Free FX liquidity
Slide 13: Solvency ratios
Earnings Presentation Bank-Only 3Q24 Solvency ratios Capital Adequacy Ratio (%) Solvency ratios Including free (%) w/o BRSA provision impact forbearance Required CET1 CET I 11.37 11.73 10.52 10.54 10.73 level 8.5% CET I 9.39 9.79 Tier I 13.23 13.64 12.17 13.12 13.36 Required Tier I Tier I 11.76 12.1
Slide 14: Appendix
Earnings Presentation Bank-Only 3Q24 Appendix Pg. 15 Sustainable banking approach Pg. 16 Sustainable loan products Pg. 17 Sustainable customer base thanks to enhanced digital platforms Pg. 18 Asset size exceeded USD 100 billion level for the first time Pg. 19 Well positioned TL security portfolio Pg
Slide 15: Sustainable banking approach
Earnings Presentation Bank-Only 3Q24 Sustainable banking approach Indices & initiatives Firsts in sustainable banking The first Turkish bank to have its targets validated by Science Based Targets initiative (SBTi) Scope 1 & Scope 2 51% Scope 3 Electricity Scope 3 Scope 3 generation with Electricit
Slide 16: Sustainable loan products
Earnings Presentation Bank-Only 3Q24 Sustainable loan products Women in Business Loan Green Mortgage Loan For a business that is managed or Aiming to support the reduction of owned by women, having less than residential energy consumption 250 employees and completing the and greenhouse gas emissions
Slide 17: Sustainable customer base thanks to enhanced digital platforms
Earnings Presentation Bank-Only 3Q24 Sustainable customer base thanks to enhanced digital platforms Branch 959 8% Branches # of active* digital Internet banking customers Banking reached 49% ~7.9 million ~7.9 mn Non-branch # of transaction made Mobile Digital transaction Banking through digital Bank
Slide 18: Asset size exceeded USD 100 billion level for the first time
Earnings Presentation Bank-Only 3Q24 Asset size exceeded USD 100 billion level for the first time Breakdown of Assets (%) Currency Breakdown of Total Assets Exceeded USD 100 billion level for the first time 3Q24 Other 23.3 The biggest listed bank Loans in terms of 52.0 asset size with Interbank 38%
Slide 19: Well positioned TL security portfolio
Earnings Presentation Bank-Only 3Q24 Well positioned TL security portfolio Total Securities (TL billion) Portfolio Structure 23% 810.2 743.3 5% 9.0% 43% 0.3% 659.8 8.7% 54% 576.8 345.3 41% 332.4 57% 344.4 2.3 312.8 5.8 34.3 29.7 462.6 3Q23 3Q24 405.1 234.3 281.1 Trading AFS HTM Trading AFS HTM 3Q23
Slide 20: Breakdown of retail loan portfolio
Earnings Presentation Bank-Only 3Q24 Breakdown of retail loan portfolio General Purpose Consumer (TL billion) Residential Mortgages (TL billion) Credit Card Loans (TL billion)* 13% 11% (12%) 156.4 151.5 156.4 137.9 (3.3%) 91.7 88.8 113.3 85.7 77.9 80.3 59.6 57.5 55.2 53.0 50.7 3.6% (4.3%) 3Q23 4Q23
Slide 21: Diversified funding sources via non-deposit funding
Earnings Presentation Bank-Only 3Q24 Diversified funding sources via non-deposit funding Sustainable-linked syndication Eurobonds and Private Placements USD 1.6 billion outstanding USD 3.3 billion outstanding Eurobonds* and USD 2.6 billion outstanding Private May’24: USD 934 million equivalent syndi
Slide 22: Unconsolidated Key Financial Ratios
Earnings Presentation Bank-Only 3Q24 Unconsolidated Key Financial Ratios 9M23 2023 2Q24 3Q24 9M24 Profitability ROAE 15.4% 18.0% 15.3% 16.4% 19.5% ROAA 1.0% 1.1% 0.9% 0.9% 1.1% Cost / Income 35.2%* 33.7%* 52.5% 49.0% 42.7% Cost / Assets 1.5%* 1.4%* 2.2% 2.1% 1.9% Fee / Cost 57.9%* 63.6%* 59.5% 64.2%
Slide 23: Unconsolidated Balance Sheet
Earnings Presentation Bank-Only 3Q24 Unconsolidated Balance Sheet (TL thousand, %) 3Q23 2Q24 3Q24 TL USD USD USD USD TL TL TL YoY QoQ YoY QoQ equivalent equivalent equivalent Cash & Balances with Central 335,064,092 12,221,079 591,900,126 18,041,720 696,809,067 20,381,507 108.0% 17.7% 66.8% 13.0% Ba
Slide 24: Unconsolidated Income Statement
Earnings Presentation Bank-Only 3Q24 Unconsolidated Income Statement (TL thousand, %) 9M23* 2Q24 3Q24 9M24 YoY QoQ Net Interest Income 23,362,232 18,625,737 19,789,299 56,116,929 140.2% 6.2% Swap Cost -3,280,987 -10,933,553 -4,205,858 -25,177,423 667.4% 61.5% Net Fee & Com. Income 16,271,869 10,505,
Slide 25: For Earnings Presentations: Investor Relations
For Earnings Presentations: A member of BIST Sustainability Index Investor Relations Finanskent Mahallesi Finans Caddesi No:40/1 Ümraniye / İstanbul E-mail: investorrelations@vakifbank.com.tr Tel (90-216) 724 2685 Fax (90-216) 724 3941 www.vakifbank.com.tr Disclaimer Notice: This report has been pre
Türkiye Vakıflar Bankası T.A.O. (VakıfBank) — Q3 2024 Earnings Presentation on 6ix