Sekerbank T.a.s. · BIST:SKBNK
Sekerbank T.a.s — Q1 2019 Earnings Presentation
30 slides from Sekerbank T.a.s's earnings presentation, Mar 31, 2019
Slide 1: Şekerbank T.A.Ş.
Şekerbank T.A.Ş. Presentation on the Consolidated Financial Results as of 31.03.2019
Slide 2: Table of content
Table of content 1. Şekerbank At a Glance 2 2. Balance Sheet Structure and Asset Quality 8 3. Funding Structure and Liquidity 14 4. Income Statement and Profitability 20 5. Capital Adequacy 24 1
Slide 3: Şekerbank At a Glance
Sekerbank At a Glance Sekerbank &5
Slide 4: 65 years of Experience in Community Banking
65 years of Experience in Community Banking Foundation and Strategy Our Vision To become the “leading bank in financing small enterprises” among Turkey’s top ten private banks in terms of asset size. Our Vision With the “Community Banking” understanding from village to city, we are a modern bank tha
Slide 5: Milestones
Milestones • First Bank to receive • Signed the Declaration on ‘Corporate Governance Sustainable Finance Founded as the “Sugar Beet Rating’ in Turkey. Turkey’s first 5-year • İssued a 10-year, variable- Cooperative Bank” in • First micro-finance syndicated loan facility rate, lira-denominated Eskişe
Slide 6: Well-Established Network
Well-Established Network İstanbul 49 Sinop Kastomunu Zonguldak Samsun Artvin >10 Branches Çankırı Ordu TrabzonRize Çorum Amasya Giresun Tokat G.Hane Bayburt Çanakkale Bursa Bilecik AnkaraKırıkkale Ankara Erzurum 6-10 Branches Balıkesir Ankara Iğdır Eskişehir 28 Yozgat Sivas Erzincan Ağrı Kütahya Kır
Slide 7: Strategy and Transformation Program
Strategy and Transformation Program Strategic Focus Areas SME Focus Broad-based Retail Deposit Focus Prioritizing Small Business and Agricultural Banking while Enhancing the widespread and solid deposit structure by increasing productivity in Large SMEs further diversifying the funding structure Sus
Slide 8: Key Financial Highlights
Key Financial Highlights 31 March 2019 (TRY MM) Bank-only Consolidated Total Assets 32.256 33.934 Net Loans 21.185 22.492 SME Loans/Total Loans 55,73% 54,53% Deposits 24.745 24.567 Loan/Deposit Ratio 85,61% 91,55% Shareholders’ Equity 2.282 2.365 Tier I Ratio 9,64% 9,09% Capital Adequacy Ratio (CAR)
Slide 9: Balance Sheet Structure and Asset Quality
Balance Sheet Structure and Asset Quality
Slide 10: Balance Sheet Structure
Balance Sheet Structure Total Assets Liabilities and Equity TL dominated loan structure Solid and broad-based deposit structure Total Assets – (TRY MM) Liabilities and Equity – (TRY MM) Loans Breakdown Deposits Breakdown 33.934 33.934 5,85% 0,08% 3,67% 8,32% 6,97% 14,00% 12,02% 35,32% 16,97% 13,30%
Slide 11: Loan Structure
Loan Structure Loan Growth (MM) 22.615 23.278 23.900 22.492 22.063 21.957 5.324 6.026 6.324 6.506 5.919 6.020 2017 YE* 2018 Q1 2018 Q2 2018 Q3 2018 YE 2019 Q1 Cash Loans Non-Cash Loans Net Loans in Local & Foreign Currency and Total Loans (MM) 23.278 23.900 22.063 22.615 21.957 22.492 16.762 16.882
Slide 12: Cash Loan Structure
Cash Loan Structure Highly Diversified Loan Book as of 2019 Q1 Cash Loans Breakdown by Sector (%) 2,90% 6,73% 11,07% Agricultural 3,28% Manufacturing 11,34% Construction 17,16% Services Wholesale and retails trade Tourism 15,07% Transportation & Telecommunication Financial Institutions 18,48% Other
Slide 13: Loans and Provision Coverage Ratios (Bank Only)
Loans and Provision Coverage Ratios (Bank Only) Provisions / Gross Loans Stage I Loans to Gross Loans 0,70% 0,63% 0,60% 0,58% 0,56% 0,53% 6,76% 7,19% 5,65% 5,65% 5,75% 6,09% 85,82% 86,55% 84,97% 83,24% 80,88% 80,27% 50, 00% 2017 YE* 2018 Q1 2018 Q2 2018 Q3 2018 YE 2019 Q1 2017 YE* 2018 Q1 2018 Q2 20
Slide 14: Asset Quality (Bank-Only)
Asset Quality (Bank-Only) NPL Exposure Maintained Stable 3,77% 3,81% 1.6 00 3,42% 3,30% 3,28% NPL 2018 Q1 Addition Collection NPL 2019 Q1 3,24% 1.5 00 1.4 00 1.3 00 1.2 00 1.1 00 1.0 00 900 800 1.228 700 1.076 1.122 1.180 1.228 600 1.039 829 1.017 1.039 500 400 300 200 1.018 100 0,0 0% 0 2017 YE* 20
Slide 15: Securities
Securities Composition by Type 2.827 2.937 3.232 3.793 4.092 3.596 2,65% 2,97% 2,25% 2,09% 2,09% 3,49% As of 2019 Q1, Securities / Total Assets: 10,79% 3,68% 7,69% 9,42% 14,12% 14,58% 49,38% (*) The Bank has classified the Fair Value through Comprehensive Income Marketable Securities Portfolio amo
Slide 16: Funding Structure and Liquidity
Funding Structure and Liquidity
Slide 17: Funding Overview
Funding Overview Diversified Funding Source Base Deposits by Currency (%) Total Liabilities Evolution (TRY MM ) Deposits by Currency (Consolidated - %) 33.130 32.178 34.420 35.954 32.965 33.934 1.671 37,47% 43,30% 45,21% 44,15% 44,05% 45,98% 1.311 1.245 873 2.458 1.044 2.405 1.606 2.365 2.791 2.367
Slide 18: Loan/Deposit Ratios
Loan/Deposit Ratios Total Loan / Deposit Ratio 110,96% 110,39% 108,14% 96,72% 95,71% 91,55% 102,50% 104,22% 102,43% 90,07% 89,06% 85,61% 2017 YE 2018 Q1 2018 Q2 2018 Q3 2018 YE 2019 Q1 Bank-Only Consolidated TRY Loans / Deposits Ratio FC Loans / Deposits Ratio 145,35% 143,20% 134,82% 75,86% 113,21%
Slide 19: Liquidity Overview
Liquidity Overview Liquidity Coverage Ratio (TL +FC)(1)(2) 191,45% 177,88% 180,18% 121,27% 163,38% 108,34% 107,35% 111,30% 108,50% 119,52% 103,67% 101,26% 100% 90% 90% 90% 90% 80% 2017 YE 2018 Q1 2018 Q2 2018 Q3 2018 YE 2019 Q1 LCR (TL + FC) (Bank Only) LCR (TL + FC) (Consolidated) Regulatory Limit
Slide 20: Deposit Structure
Deposit Structure Deposit Structure and Durations 1,52% TL + FC Time Deposit 9,87% TL+FC Retail Time Deposit (Monthly Average) (Monthly Average) 23,72% 17,14% Retail Corporate & Commercial 14,50% 61,79% Below 500.000 TL 71,46% SME 500.000-1M TL Above 1M TL Agriculture Total Deposits Increased by 2
Slide 21: Borrowings
Borrowings Balanced mix between retail and institutional funding through covered bonds, loans from IFIs, subordinated loans, trade finance and syndicated borrowings Proven Access to Diversified Sources of Funding Recent Issuances Summary June 2017: USD 85MM Tier 2 Private Placement Ratings Overv
Slide 22: Income Statement and Profitability
Income Statement and Profitability
Slide 23: Profit and Loss
Profit and Loss TRY MM 2018 Q1 2019 Q1 Interest Income 906 1.080 Interest Expense 549 866 Net Interest Income 357 214 Net fees and Commisions Income 93 98 Personnel Expenses 104 134 Dividend Income 0 0 Net Trading Income/Loss (50) 16 Other Operating Income 19 30 Total Operating Profit 315 224 Expect
Slide 24: Revenues In Detail
Revenues In Detail Net Interest Income / Margin Net Interest Income (TRY MM) Net Interest Margin (%) 1.080 906 357 214 5,69% 5,37% 5,80% 5,90% 5,53% 5,64% 5,62% 3,27% 5,23% 5,44% 5,30% -549 -866 3,00% 2018 Q1 2019 Q1 2017 YE 2018 Q1 2018 Q2 2018 Q3 2018 YE 2019 Q1 Interest Income Interest Expense Ne
Slide 25: Ratios
Ratios Cost to Income Ratio Cost / Income (%) – Bank Only 79,40% 61,87% 62,07% 64,15% 58,42% 57,24% 2017 YE 2018 Q1 2018 Q2 2018 Q3 2018 YE 2019 Q1 Cost of Risk NPL Coverage Cost of Risk (%) – Bank Only NPL Coverage (%) – Bank Only 3,36% 73,40% 74,46% 76,74% 73,60% 76,41% 72,03% 2,00% 1,68% 1,76% 1,
Slide 26: Capital Adequacy
Capital Adequacy SekerbankS5
Slide 27: Capital Adequacy Overview
Capital Adequacy Overview Tier 1 & Capital Adequacy Ratios (%) Bank-only Consolidated 15,40% 15,14% 14,33% 14,13% 14,29% 14,33% 13,65% 13,47% 13,53% 13,41% 12,75% 12,65% Min. 12% CAR Recommendation 12,07% 11,25% 11,22% 10,88% 10,80% 10,66% 10,72% 10,17% 10,25% 10,20% 9,64% 9,09% Min. 8% CAR Requirem
Slide 28: Capital Adequacy Overview
Capital Adequacy Overview Risk Weighted Assets (MM TL) & Leverage Ratio (%) Bank-only Consolidated 6,63% 6,46% 7,0 0% 40. 000 7,0 0% 39. 900 39. 800 6,41% 39. 700 6,39% 39. 600 39. 500 39. 400 39. 300 39. 200 39. 100 39. 000 6,27% 38. 900 38. 800 38. 700 38. 600 38. 500 38. 400 6,17% 38. 300 38. 200
Slide 29: Contact Details
Contact Details Sekerbank T.A.Ş. Zeki Önder Executive Vice President Tel: +90 212 344 07 36 zeki.onder@sekerbank.com.tr Financial Institutions, Structured Finance & Investor Relations Oya Sarı Head of Financial Institutions, Structured Finance and Investor Relations Tel: +90 212 319 71 58 oya.sari@s
Slide 30: Legal Notice For Investors
Legal Notice For Investors The information in this document has been obtained by Sekerbank T.A.Ş. (“Sekerbank”) from sources believed to be reliable. However, Sekerbank cannot guarantee the accuracy, completeness or correctness of such information. This document has been issued for information purpo