Albaraka Turk Katilim Bankasi A.s. · BIST:ALBRK
Albaraka Turk Katilim Bankasi A.s — Albaraka Türk Participation Bank — Q4 2023 Earnings Presentation
20 slides from Albaraka Turk Katilim Bankasi A.s's earnings presentation, 2024
Slide 1: Q4'23 Investor Presentation
Q4’23 Investor Presentation Albaraka Türk Participation Bank HİZMETE ÖZEL
Slide 2: Macroeconomic Outlook: Tackling high inflation is still first priority
Macroeconomic Outlook: Tackling high inflation is still first priority The global hiking cycle peaked in 2023. The pace of slowing in inflation will affect timing and extent of interest rate cuts in 2024. Maintaining tight stance in monetary policy is expected for Turkiye until a significant improve
Slide 3: Banking Sector Overview: Remains sound and sustainable
6 Banking Sector Overview: Remains sound and sustainable The participation banking sector continues to grow at a faster pace than the conventional banking sector and increasing its share in the sector. At the same time, participation banks, which increased their profitability faster than conventiona
Slide 4: Albaraka Türk Snapshot: Strengthened financials brought noteworthy results
Albaraka Türk Snapshot: Strengthened financials brought noteworthy results Significant growth achived in net profit along with strong asset quality. Income – Cost Dynamics Return on Avg. Equity & Assets* Net Profit TL Billion % TL Million +81.6% +57.8% 2022 2022 20.1 2023 2023 33.4 +103.6% +76.6% +1
Slide 5: Sustainable improvement in profitability achieved by strong operational performance
Sustainable improvement in profitability achieved by strong operational performance ROAA and ROAE kept improving at Q4’23. Total Operational Income Net Profit TL Billion TL Million +66.7% +151.1% 17.6 3,429 11.1% 12.8% 10.6 27.7% +0.1% 15.7% 6.1% 1,365 967 968 27.3% 48.4% 50.9% 2022 2023 Q3’23 Q4’23
Slide 6: Asset Growth continues to be driven by an increase in TL assets
6 Asset Growth continues to be driven by an increase in TL assets Share of TL assets reached to 53% in total assets thanks to well managed «Liraization» strategy. Composition of Total Assets Currency Breakdown of Total Assets TL Billion , % TL/USD Billion, % +58.7% +58.7% 232.2 +85.8% FC - TL 232.2
Slide 7: Growth in funded credits driven by TL performing credits
7 Growth in funded credits driven by TL performing credits Funded credits portfolio become healthier on basis of increasing TL performing credits. Total Funded Credits Currency Breakdown of Performing Credits* TL Billion - Inc. f.Leasing. TL million . excl. expected credit losses(provisions) TL Bill
Slide 8: Asset quality improved significantly, and also backed by high provisioning policy
8 Asset quality improved significantly, and also backed by high provisioning policy While provisioning ratios remained at high level, accumulated free provisions almost doubled at Q4’23. Non Performing Credits Development NPL Ratio TL Billion % NPL Ratio 0.57 Net NPL Ratio 2.5 1.94 2.15 2.0 1.77 1.6
Slide 9: Securities portfolio continues to support profitability
6 Securities portfolio continues to support profitability Growth in total securities portfolio went up by %59 YoY. The portfolio income increased by 65% YoY. Total Securities Portfolio Securities Yield* TL Billion % Available for Sale +58.7% 14 Marketable Securities 56.2 10.7 10.8 10.7 Held to Matur
Slide 10: Solid funds collection remain main sources of funding with increased TL accounts
10 Solid funds collection remain main sources of funding with increased TL accounts Share of FX funds reduced below 50% in total collected funds thanks to well managed FX deleveraging strategy. Composition of Total Liabilities Composition of Collected Funds TL Billion TL Billion +58.7% 232 +43.6% +4
Slide 11: TL funds collection continue to increase, CA remain high and reduce cost of funding
TL funds collection continue to increase, CA remain high and reduce cost of funding CA/Total Funds Collection stood at 47% as end of Q4’23 which is higher than both banking and participation banking sectors averages. Current Accounts Participation Accounts TL Billion – Annual Growth % TL Billion – A
Slide 12: Robust growth in profitability resulted thanks to strengthened fundamentals
86 Robust growth in profitability resulted thanks to strengthened fundamentals Despite rising cost of funding, strong profit share income and fees & commission income helped generate high income in 2023. Yearly Net Fees and Commission Income TL Million Fees and Commisions Recieved +249.3% 2022 5.4 F
Slide 13: Well managed A&L and OPEX led to sustainable yield & cost improvement
6 Well managed A&L and OPEX led to sustainable yield & cost improvement Net profit share margin standed at a very high level, strong fee income and efficient cost management supported profitability to increase YoY. Income-Cost Dynamics Net Profit Share Margin* TL Million % +66.7% 17,613 +54.2% 11.1%
Slide 14: Strong performance on all income items as well as efficient cost management
6 Strong performance on all income items as well as efficient cost management YoY QoQ Notes (TL Million) 2022 2023 % Q3’23 Q4’23 % Although cost of funding increased. NPSI continued to increase due to Net Profit Share Income 5,382 8,530 58.5% 1,826 3,642 99.5% higher credits and securities yields an
Slide 15: Boosted internal capital generation further supports capital adequacy ratios
Boosted internal capital generation further supports capital adequacy ratios CAR is at comfortable levels by support of additional USD 100 million Tier-2 as well as increasing profitability. Capital Adequacy Ratio Capital Breakdown % % AT-1 22.3 Tier-2 Core Capital 17.5 17.3 16.7 7.5% 4.4% 14.9 12.4
Slide 16: Financial Ratios – Sector Comparison
6 Financial Ratios – Sector Comparison Percent (%) 2022 2023 Albaraka Turk Participation Banks Banking Sector Albaraka Turk Participation Banks Banking Sector CAR 14.9 20.5 19.5 17.3 21.4 18.8 NPL Ratio 1.9 1.4 2.1 1.7 1.0 1.6 Provisioning Ratio (Stage 3)* 95.8 99.8 86.7 98.5 99.8 82.0 Loan/Deposits
Slide 17: Summary Balance Sheet
6 Summary Balance Sheet (TL Million) 2022 2023 Growth (%) (TL Million) 2022 2023 Growth (%) Cash and Balances with Funds Collected 112,676 161,806 43.6% 24,865 49,084 97.4% Central Bank Funds Borrowed 4,412 30,536 592.1% Banks 7,340 14,585 98.7% Borrowings from Money Market Placements 1,726 0 - 7,81
Slide 18: Summary Income Statement
6 Summary Income Statement (TL Million) 2022 2023 Growth (%) Profit Share Income 11,052 20,074 81.6% Profit Share Expense 5,670 11,544 103.6% Net Profit Share Income 1,432 8,530 495.7% Net Fees and Commissions Income 645 2,251 249.3% Fees and Commissions Received 1,035 2,766 167.3% Fees and Commissi
Slide 19: Thank You
THANK YOU... 18 alBaraka’O
Slide 20: Disclaimer
6 DISCLAIMER THIS PRESENTATION AND THE INFORMATION CONTAINED HEREIN IS CONFIDENTIAL AND MAY NOT BE REPRODUCED. CIRCULATED. DISTRIBUTED OR PUBLISHED (IN WHOLE OR IN PART) OR DISCLOSED BY RECIPIENTS TO ANY OTHER PARTY. BY VIEWING THIS PRESENTATION. YOU AGREE TO BE BOUND BY THE FOREGOING LIMITATIONS. T
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