Turkiye Sinai Kalkinma Bankasi A.s. · BIST:TSKB
Turkiye Sinai Kalkinma Bankasi A.s — Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — Q1 2021 Earnings Presentation
28 slides from Turkiye Sinai Kalkinma Bankasi A.s's earnings presentation, 2021
Slide 1: The Industrial Development Bank of Turkey FI&IR Presentation 1Q-21
The Industrial Development Bank of Turkey FI&IR Presentation 1Q-21 Bank-only Results Corporate Banking Investment Banking Advisory Services
Slide 2: TSKB at a Glance
TSKB at a Glance Ratings TSKB Tiirkiye mis Bank Group 407 Shareholding Fitch LTFC B+ BB- mVakifbank Structure Moody’sLTIR B3 B2 Free Float & Other SAHA Corporate 9.56/10 Governance Rating TRY 3,8 bn MCAP Sustainalytics ESG 16,7 Risk Rating Low Risk As of 17th May, 2021 CORPORATE BANKING INVESTMENT B
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 Support for employment in Turkey; ® Encouraging women participation to the economy ERB Support transition to low ye carbon economy © Providing financing to operational health and safety © Supporting less developed regions Environmental & Soci
Slide 6: Recent Developments on Sustainable Banking
Recent Developments on Sustainable Banking 18K Suetanable Finance Framewort 34 Sustainable Eurobond Issuance USD 350 million First Eurobond out of Turkey Oversubscription of almost 6x 1/3 of allocated demand linked to ESG 0 new issue premium Price improvement of over 50 bps Wepp > SCIENCE \ bancotgs
Slide 7: 2021 Guidance and TSKB's priorities for the year
2021 Guidance and TSKB's priorities for the year Financial Guidance 2021E (%) 1Q21 Results (Bank Only) Growth FX Adjusted Loan Growth 3-5 AYA) Profitability Sustainable Fees & Commissions Growth ~20 -50.3 Delivering Jtorman ie Stakeholder performance Net Interest Margin (adj*.) ~4.0 41 Capitalizatio
Slide 8: 1Q21 Key Highlights
1Q21 Key Highlights Net Banking Income - TRY mn Quarterly YoY 509 509 411 35% ty KYLE) 358 260 101 83 8 40-20 10-21 10-20 10-21 IE Net Banking Income exc, CPI & Trading I Trading Gain/Loss CPI income Net Profit- TRY mn Quarterly YoY ey, 207 47%, 4Q-20 10-21 10-20 10-21 Net Banking Income vs Provisio
Slide 9: Banking Sector vs TSKB
Banking Sector vs TSKB CAR Loans/Assets NPL 18.0% Sy 76.0% 3.8% 3.8% 60.7% Banking Sector TSKB Banking Sector TSKB Banking Sector TSKB Cost to Income NIM ROE HG 47.2% 2 His 10.6% 2.7% 11.2% | | LE T5K6 Banking Sector TSKB Banking Sector TSKB Repo & Depo Majority of the funding Syndication & pononed
Slide 10: Syndication & Other DFI Funding Eurobond
-219 - - - -521 -559 -438 -300 * -350 -300 -2,583 -750 -300 2021 2022 2023 >=2024 Syndication & Other DFI Funding Eurobond Tier 2
Slide 11: Long Term DFI Funding Base
Long Term DFI Funding Base IBRD EIB Kfw AIB IDB AFD CDB CEB JBIC IFC EBRD OEB OPIC CITIBANK 11 Outstanding DFI Funding Base - 10-21 38.5% Yearly Multilateral Funding Agreements - USD mn 5.3% 5.1% 3.2% 2017 2018 2019 2020 2.7% i yy 2021 - New DFI Funding Agreements 0.8% worth of USD 400 mio in pipeli
Slide 12: Outstanding Project Themes Shaping Future Loan Book
12 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 13: Resilient Asset Composition
Ales Resilient Asset Composition Asset Composition - TRY bn 10-20 4Q-20 10-21 mloans mSecurities =Cash&MM mNon EAs & Other Average Maturity - Years Working Capital Loans INI 2.6 APEX Loans [NN 3.8 ) Investment Loans I 6.8 5.3 years Total Loans - TRY bn Currency 44.0 Breakdown 9 Hg 36 > 83% 34.2 4.1
Slide 14: Risk Management Pillars
Risk Management Pillars * Monitoring the clients individually with analysing the financials * Preparing monitoring reports forthe clients at least once a year * Keeping track of internal and external (if it is done) ratings of Credit the customers, reviewing the internal ratings annually Risk * Acti
Slide 15: ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
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Slide 16: SDG-Linked Loans Account for Nearly 90% of the Portfolio
SDG-Linked Loans Account for Nearly 90% of the Portfolio Loans by sector 10-21 96 L@anoWOINy Metal & Machinery; 4.6% ett 505° 0c 89% of which is Renewable Energy, where 88% benefits from Feed in Tariff Se Hep cpp wep @y Bio Outstanding Risk 253 Projects 30% 19% 36% 8% 7% 5.193 MW SPP Substantially S
Slide 17: 1.6 bn 1.9 bn 1.9 bn
1.6 bn 1.9 bn 1.9 bn 1.9 bn 1.9 bn 1.9 bn 2% 4% 6% 6% 7% 7% 6% 5% 5% 5% 6% 8% 32% 35% 37% 35% 37% 36% 14% 17% 18% 19% 20% 19% 46% 37% 35% 35% 31% 30% 2016 2017 2018 2019 2020 2021 Q1 Hydro Geothermal Wind Biomass Solar • •
Slide 18: Asset Quality
18 Asset Quality 1.3% 1.2% re 28 3 n a2 De a) ages 11.1% 40-20 47.0% 446% mu [Miliillle ed oc DG £9 g4 40-20 10-21 ©—* Coverage Ratio Toss Share Coverage Provi mount in Total Ratio (-) Stage 1 37,187 84.5% 1.2% 465 Stage 2 5,153 11.7% 14% 719 Stage 3 1,690 3.8% 47% 795 Gross Loans 44,030 100.0% 45%
Slide 19: 1Q-20 4Q-20 1Q-21
▪ 15.9% 13.6% ▪ 11.8% ▪ 1Q-20 4Q-20 1Q-21
Slide 20: Takeaways from the Income Statement
Takeaways from the Income Statement TRY mn 1Q-20 4Q-20 QoQ YoY Net Interest Income 370.2 507.2 -15% 16.2% Stellar quarterly Trading Income 33.5 -47.6 nm. nm. performance Net Fees & Commissions 215 11.6 7% -50.3% Continuous contribution of Other Income (Inc. Dividend) 5.3 2.9 nm. nm. fees & commissio
Slide 21: Steady NIM
Steady NIM Quarterly NIM Annualized NIM 45% 41% 41% 41% 41% 3.6% 10-20 40-20 10-21 10-20 2020 10-21 NIM Evolution Quarterly Li 413 Pa 2 a 40-20 Net FX Loans Net TL Loans TL Sec. exc.CP! CPI Linkers FX Securities FX Gains/Losses 10-21
Slide 22: 4Q-20 Δ RWA Δ MtM
12.0% 8.5% - 1.4 - 0.38 -0.12 0.4 11.3 9.8 4Q-20 Δ RWA Δ MtM Dividend Payment Net Profit 1Q-21
Slide 23: Key Performance Indicators
23 Key Performance Indicators ROE* 14.9% 13.0% [ 2020 1Q-21 Tier-l** 11.3% 7 ) 2020 1Q-21 “ROE: Annualized Net Income for the period / Average Total Equity * Excluding forbearence 2020 ROA CAR** 1Q-21 Cost to Income 11.3% 2020 45% 2020 NIM 11.2% 19-21 4.1% 1Q-21
Slide 24: 2S BS Q gf x
2S BS Q gf x
Slide 25: Balance Sheet
Balance Sheet 31/03/2020 31/12/2020 31/03/2021 A a A a Cash and Banks 2,644 2,868 1,481 1,191 2,672 2,078 2,540 4618 Securities 4,528 2,687 7,215 4,564 2,983 7,547 4,672 3,131 7,803 Loans (Gross) 2,955 31,276 34,231 4,136 34,984 39,120 3,622 40,408 44,303 Provisions -315 -737 1,052 529 -1,223 -1,752
Slide 26: Detailed Income Statement
Detailed Income Statement TRY mn 1Q-20 Net Interest Income inc. Swap Cost 370.2 Net Interest Income 397.4 CPI Linkers 82.5 Swap Costs (-) 27.2 Net Commissions 21.5 Other Income 5.3 Dividends 43 Other 1.0 Trading & FX gain/loss 33.5 FX gain/loss (ECL Hedging) 39.8 MtM gain/loss 42.8 Trading gain/loss
Slide 27: A Long Award-Wining Track Record
A Long Award-Wining Track Record Banking ingBFinancing Category Finalist 2019) Finance for the Future Energy Finance Deal ofthe Year (2019) ‘Sustainability Leaders 50 List place (2020) Fast Company Magazine Structured Loan Deal -Third place (2019) BondsfiLoans Turkey ‘Asia's Top Sustainability Inter
Slide 28: ool
28 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
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