Turkiye Sinai Kalkinma Bankasi A.s. · BIST:TSKB
Turkiye Sinai Kalkinma Bankasi A.s — Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — FY2018 Earnings Presentation
24 slides from Turkiye Sinai Kalkinma Bankasi A.s's earnings presentation, 2019
Slide 1: Investor Presentation 2018YE–BRSA Bank only Results
Created with a trial version of Syncfusion Essential PDF Investor Presentation 2018YE–BRSA Bank only Results
Slide 2: Distinctive Banking Model
Distinctive Banking Model Access to Turkey Ministry of Privately owned Development Integrated Business Model with Treasury and Finance guaranteed and Investment Bank Sustainability Principles funding policy Long lasting relationships with Strong risk management Development Finance Solid capital stru
Slide 3: TSKB at a Glance
TSKB at a Glance Overview Ratings First and only Private Development Bank in Turkey TSKB Turkey TRY 38.3 bn asset size 371 employees, 2 branches Fitch LTFC B+ BB 13th bank in terms of asset size Moody’s LTIR B2 Ba3 3.3% market share in LTFC corporate loans TRY 2.4 bn MCAP* Corporate Gove
Slide 4: Main Business Lines supporting the Bank’s mission
Main Business Lines supporting the Bank’s mission Products and Services of the Group Corporate Banking Investment Banking Advisory Services Direct loan financing – industrial Strategic financial consultancy – LT Manages own securities portfolio investments, energy and resource efficiency, part
Slide 5: Key take-aways from 2018
Key take-aways from 2018 Net Profit 661 Strong topline revenue TL mn 596 NIM generation 50% 4.9% 1,343 11% Prudent Risk Management 895 YoY ROE 16.0% Healthy solvency metrics -299 ROA 2.0% 128% -682 Sound liquidity 2017 Net Banking Income CAR @ 16.2% 2018 Provisions&Tax TL mn Quarterly Net Ba
Slide 6: Banking Sector vs TSKB
Banking Sector vs TSKB CAR Loans/Assets NPL 17.3% 73.7% 3.7% 16.2% 64.5% 2.1% Banking Sector TSKB Banking Sector TSKB Banking Sector TSKB Cost to Income NIM ROE 34.0% 16.0% 4.9% 3.9% 10.8% 13.6% Banking Sector TSKB Banking Sector TSKB Banking Sector TSKB * Sector data as of December 31, 2018 Long Te
Slide 7: Strong and Well-diversified FX Liquidity
Strong and Well-diversified FX Liquidity Total Funding: $6,281 mn • 93% of the Total Funding is Long Term • Short term funding: 7% New DFI Funding DFI Funding / (including syndication, Repo & Money Market) Lines totalling LT Funding $600 mn 73% Funding / Total Liabilities (exc equity) USD mn 6,499 6
Slide 8: Long Term DFI Funding
Long Term DFI Funding Outstanding DFI Funding Base Yearly Multilateral Funding Agreements USD mn IBRD 37% EIB 28% 986 KFW 12% 660 733 600 IDB 83% of DFI Funding 463 7% 340 guaranteed by Turkey 160 CEB 5% Ministry of Treasury and 2012 2013 2014 2015 2016 2017 2018 AFD 4% Finance 2017 IFC 2% 2018 EBRD
Slide 9: Outstanding Project Themes
Outstanding Project Themes Social Infrastructure: Midcap Health, Education & Capacity Clean Transportation Building Energy and Resource Efficiency Renewable Energy Environmental Industrial SME Support Pollution Abatement Development in Industry Climate Change Sustainable Tourism Research & Developme
Slide 10: Healthy Solvency Metrics
Healthy Solvency Metrics Capital Adequacy Ratio TL mn Evolution of RWA and Equity Tier I (CET 1) CAR 17.1% 16.2% 35,723 14.3% 26,767 12.0% 19,926 8% 13.5% 12.5% 2,922 3,100 3,528 4,804 4,155 6,059 11.1% 2016 2017 2018 RWA Core Equity Total Capital 2016 2017 2018 CAR Evolution Limits (%) 2018 2019 Ca
Slide 11: Well-managed Asset Composition
Well-managed Asset Composition Asset Composition TL bn TL mn Total Loans 38.3 8% 22,343 27% 28,226 Currency 28.9 14% Breakdown 4% 6% 2,193 24.0 2,233 16% 8% 8% 8% 18% 5% 68% 5,370 5,062 92% 70% 67% 2016 2017 2018 4Q-17 4Q-18 FX Loans ($) TRY Loans FX Loans TRY Loans Securities Cash & MM Non IEAs 62%
Slide 12: Sectoral Exposures under Focus
Sectoral Exposures under Focus Breakdown of Performing Loans Electricity Generation 34% Electricity Generation; Finance 11% 85% Renewable Energy; 91% in Feed in Tariff 85% Logistics 10% Electricity/Gas Distribution 7% Construction 5% Finance; 85% APEX Loans 85% Metal and Machinery 5% Chemistry and P
Slide 13: Renewable Energy and Energy&Resource Efficiency
Renewable Energy and Energy&Resource Efficiency Renewable Energy Portfolio (Outstanding) ($) 1.3 bn 1.4 bn 1.5 bn 1.6 bn 1.9 bn 1.9 bn 6% 7% 7% 6% 6% 5% 5% 18% 22% 34% 32% 35% 3% 37% 253 of 290 RE are in operation 9% 14% 17% 6,066 mw installed capacity is financed:, 18% • 5,263 mw are in operati
Slide 14: Feed-in Tarriff Mechanism for RE Projects
Feed-in Tarriff Mechanism for RE Projects Guaranteed Sales Prices & Incentives for Local Equipments Guaranteed Sale Price Incentives for Local Equip. Type (USD cent/kWh) (USD cent/kWh) Hydro Power Plant 7,3 1,0—2,3 Wind Power Plant 7,3 0,6—3,7 Geothermal Power Plant 10,5 0,7—2,7 Biomass Power Plant
Slide 15: Classification of Loans under IFRS9
Classification of Loans under IFRS9 30.09.2018 Cost of Risk Evolution (Quarterly) TL Mn. Gross Amount Share in Total Coverage Ratio Provisions (-) Stage 1 30,437 90.6% 0.4% 109 Stage 2 2,483 7.4% 13.2% 330 Sep’18 CoR Stage 3 678 2.0% 23.6% 160 109 bps Gross Loans (*) 33,598 100.0% 1.81% 599 Free Pro
Slide 16: Sustainable Income Contribution from Securities
Sustainable Income Contribution from Securities TL mn 309 TL Securities Portfolio Breakdown 303 322 Fixed Fixed Fixed %35 %33 %33 3,896 % 74 CPI CPI CPI 3,337 3,587 Linked Linked Linked %67 %40 %44 %46 Floating Floating Floating Floating %25 %23 %21 4Q-17 3Q-18 4Q-18 4Q-17 3Q-18 4Q-18 TL FX($) Secur
Slide 17: Further Widening of NIM with CPI Impact
Further Widening of NIM with CPI Impact Annualized NIM Quarterly NIM NIM NIM exc. CPI&Trading CPI normalized NIM 4.4% 5.4% 3.8% 4.1% 4.6% 4.1% 3.6% 3.8% 3.9% 4Q-18 4.9% 3.3% 3.4% 3.4% 3.3% 3.2% 3.1% 3.3% 3Q-18 3.1% 4.1% 2017 3.9% 1Q-17 2Q-17 3Q-17 4Q-17 1Q-18 2Q-18 3Q-18 4Q-18 Quarterly Spread 3.1 3
Slide 18: Sustained Quarterly Topline Revenue
Sustained Quarterly Topline Revenue TL mn 4Q-17 3Q-18 4Q-18 QoQ YoY Net Interest Income 270.6 371.5 513.7 38.3% 89.8% Notable CPI Linker impact Trading Income 38.6 47.2 -59.1 N.M. N.M. Loss from swap valuations&fx position for provisions was offset by currency impact over provisions Net Commissions
Slide 19: Key Performance Indicators
Key Performance Indicators ROE ROA Cost to Income 17.6% 18.4% 15.0% 16.0% 12.5% 10.8% 2.1% 2.3% 2.0% 2016 2017 2018 2016 2017 2018 2016 2017 2018 Free Capital CAR NIM 17.1% 4.9% 16.1% 3.9% 10.3% 10.1% 3.5% 8.5% 14.3% 2016 2017 2018 2016 2017 2018 2016 2017 2018 ROE; Annualized Net Income for the per
Slide 20: Expectations for 2019
Expectations for 2019 Financial Guidance (Bank Only) (%) 2019 E Main Agenda FX Adjusted Loan Growth ~5 items for 2019 Loans/Assets Ratio ~75 Loans/Long Term Funding Ratio* ~115 Prudent Risk Management Fees & Commissions Growth >35 OPEX Growth <25 Net Interest Margin (adj.)** 3.5-3.8 Moderate loan gr
Slide 21: TSKB Investor Relations
TSKB Investor Relations Meclisi Mebusan Cad. 81 Fındıklı 34427 İstanbul ir@tskb.com.tr www.tskb.com
Slide 22: Appendix
Appendix TEKB Turkiye Sinai Kalkinma Bankas! www.tskb.com.tr
Slide 23: Appendix: Cumulative Income Breakdown
Appendix: Cumulative Income Breakdown (TRY mn) 2017 2018 YoY Net Interest Income 922.1 1,435.9 56% Trading Income - Adj. 65.8 42.7 -35% Net Commissions 14.4 19.0 32% Dividend & Other 24.6 8.0 -68% Net Banking Income 1,027.0 1,505.6 47% OPEX - 132.4 - 162.9 23% Operating Profit 894.5 1,342.8 50% Prov
Slide 24: Appendix: Balance Sheet
Appendix: Balance Sheet 31/12/2017 30/09/2018 31/12/2018 (TRY mn) TRY FX TOTAL TRY FX TOTAL TRY FX TOTAL Cash and Banks 11 843 854 14 1,547 1,561 600 1,340 1,940 Securities 3,342 1,208 4,550 3,591 1,795 5,387 3,894 1,585 5,479 Loans (Gross) 2,192 20,152 22,344 2,493 31,105 33,598 2,233 25,994 28,227
Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — FY2018 Earnings Presentation on 6ix