Turkiye Vakiflar Bankasi Turk Anonim Ortakligi · BIST:VAKBN
Turkiye Vakiflar Bankasi Turk Anonim Ortakligi — Türkiye Vakıflar Bankası T.A.O. (VakıfBank) — FY2019 Earnings Presentation
27 slides from Turkiye Vakiflar Bankasi Turk Anonim Ortakligi's earnings presentation, Feb 14, 2020
Slide 1: Earnings Presentation BRSA Bank-Only YE 2019
Earnings Presentation BRSA Bank-Only YE 2019 February 14, 2020
Slide 2: 4Q19 Earnings and Ratios
INVESTOR RELATIONS Earnings Presentation Bank-Only YE 2019 4Q19 Earnings and Ratios Net Income (TL million) Pre-Provisioning Operating Profit (TL million)* Quarterly 6.7% 16.1% ROAE 1,280.3 9,104 3,455 8,466 70.4% TL 852 million 2,028 154.4% free provisions 503.2 in the balance sheet 2018 2019 3Q19
Slide 3: Key Highlights of 4Q19
INVESTOR RELATIONS Earnings Presentation Bank-Only YE 2019 Key Highlights of 4Q19 Solid NIM expansion • The highest quarterly NIM during the year: 4Q19 NIM materialized at 5.38% vs. 4.08% in 3Q19, up by 131 bps QoQ thanks to core spread increase; TL core spreads were up by 266 bps QoQ, FC core s
Slide 4: Ownership Structure Change
INVESTOR RELATIONS Earnings Presentation Bank-Only YE 2019 Ownership Structure Change As of December 2019, the shares of Group A and B (58.51%) has been transferred to the Ministry of Treasury and Finance BEFORE AFTER Free Float Free Float 25.22% 25.22% The Ministry Others Others of Treasury 0.17% G
Slide 5: 4Q19 P&L Details
INVESTOR RELATIONS Earnings Presentation Bank-Only YE 2019 4Q19 P&L Details 3,979 51 (2,584) 4,035 18,496 (6,619) 13,015 (8,265) 2019 (810) 2,802 Net Interest Net F&C Dividend Net Trading Other Income Total Operating Provisions Taxes Net Income Income Income Income Income Revenue Expenses % vs 2018
Slide 6: High quality revenue breakdown
INVESTOR RELATIONS Earnings Presentation Bank-Only YE 2019 High quality revenue breakdown Total Revenues – Revenue Breakdown (TL million) 16.2% Other+Trading Dividend Other+Trading Dividend 16.7 0.8% 18,496 7.8% 0.3% 15,911 Net F&C 21.5% 2019 Net F&C 2018 14.4% NII NII 68.1% 70.4% 2018 2019 Core Ban
Slide 7: Solid NIM expansion promising better profitability
INVESTOR RELATIONS Earnings Presentation Bank-Only YE 2019 Solid NIM expansion promising better profitability Net Interest Margin (NIM %) Swap Adjusted Net Interest Margin (%) 4.30 5.38 4.14 4.30 4.41 4.08 3.55 131 bps 3.10 3.22 2.67 2.87 2.19 154 bps 2018 2019 1Q19 2Q19 3Q19 4Q19 2018 2019 1Q19 2Q1
Slide 8: Eye-catching fee performance with a well diversified base
INVESTOR RELATIONS Earnings Presentation Bank-Only YE 2019 Eye-catching fee performance with a well diversified base Net Fee & Commission Income (TL million) – Fee Breakdown 73.5% Insurance Inquiry & Expertise Insurance 5% 3,979 8% 10% Inquiry & Expertise Cash Loans 7% 39% Other Other 1% 2,293 2% 20
Slide 9: Effective Cost Management
INVESTOR RELATIONS Earnings Presentation Bank-Only YE 2019 Effective Cost Management Operating Expenses (TL million) Breakdown of OPEX 36.9 951 943 35.8 Cumulative Opex C/I Ratio (%) Growth 12.7% 8 branches have been closed in 2018 2019 2019 6,619 5,873 63% 57% 37% 43% 2018 2019 2018 2019 Quarterly
Slide 10: Well diversified & stable loan breakdown
INVESTOR RELATIONS Earnings Presentation Bank-Only YE 2019 Well diversified & stable loan breakdown Segment Breakdown of Loans (TL billion) Currency Breakdown of Loans (TL billion) Portfolio Breakdown (%) 274.8 259.9 16.3 259.9 274.8 250.0 250.0 26.5 24.0 15.6 SME 15.2 221.6 66.0 221.6 89.3 25.2 Oth
Slide 11: Breakdown of Loan Portfolio
INVESTOR RELATIONS Earnings Presentation Bank-Only YE 2019 Breakdown of Loan Portfolio Sector Breakdown of Cash Loans Breakdown of Construction Loans Manufacturing Retail Loans 16.5% 20.7% Stage III Stage II TL 2.2 billion TL 9.1 billion Construction Other (inc. 8.2% Limited concentration 9.2% bus
Slide 12: Solid B/S position on the back of NPL recognition period
INVESTOR RELATIONS Earnings Presentation Bank-Only YE 2019 Solid B/S position on the back of NPL recognition period NPL (TL million)* Sector Breakdown of Stage III Loans 3,842 876 17,314 Construction Wholesale & Retail Manufacturing 14,348 13.0% Trade 17.2% 22.6% Real Estate 3.6% Logistic & NPL 3Q19
Slide 13: Strong position with the highest coverage ratio among peer group
INVESTOR RELATIONS Earnings Presentation Bank-Only YE 2019 Strong position with the highest coverage ratio among peer group Net Expected Credit Losses Net Cost of Risk (bps) (Thousand TL) 2019 264 204 193 Expected Credit Losses 8,212,337 169 65 46 Stage I 1,287,414 Stage II 1,713,451 Cumulative Quar
Slide 14: Strong deposit growth above sector average
INVESTOR RELATIONS Earnings Presentation Bank-Only YE 2019 Strong deposit growth above sector average Total Deposits (TL billion) Breakdown of Deposits 251.5 229.6 214.3 108.0 57% 179.4 95.5 49% 51% $ 18.1 43% 97.7 $ 16.9 69.8 $ 17.0 FC Sector $ 13.2 TL TL Deposits FC Deposits TL Deposits FC Deposit
Slide 15: Pioneer bank of Turkey in international debt capital markets
INVESTOR RELATIONS Earnings Presentation Bank-Only YE 2019 Pioneer bank of Turkey in international debt capital markets Breakdown of Wholesale Funding Local Bonds Other In January 2020, VakıfBank issued a 7.1% 2.0% new Eurobond with an amount of AT I Issuance Eurobond USD 750 million, 15.0% 10.7% th
Slide 16: Comfortable solvency ratios with strong buffers
INVESTOR RELATIONS Earnings Presentation Bank-Only YE 2019 Comfortable solvency ratios with strong buffers Capital Adequacy Ratio (%) TL 852 million Tier I 13.75 12.23 13.98 13.81 13.59 free provision 16.99 17.01 17.01 16.61 15.25 BRSA Rec. 12% The effect of The effect of TL 0.1 decrease 4Q19 1 ppt
Slide 17: Appendix
INVESTOR RELATIONS Earnings Presentation Bank-Only YE 2019 Appendix Pg. 18 Further strenghtened sustainable banking approach in the global platforms Pg. 19 Adding more value through digitalization Pg. 20 Composition of Assets&Liabilities Pg. 21 Well balanced Securities Portfolio Pg. 22 Retail Lendin
Slide 18: Further strenghtened sustainable banking approach in the global platforms
INVESTOR RELATIONS Earnings Presentation Bank-Only YE 2019 Further strenghtened sustainable banking approach in the global platforms Since 2015, VakıfBank have The first Turkish been reporting to the Carbon In 2020, in public institution Disclosure Project Bloomberg to sign the (CDP – Women’s Gender
Slide 19: Adding more value through digitalization
INVESTOR RELATIONS Earnings Presentation Bank-Only YE 2019 Adding more value through digitalization ~88% of all banking transactions executed via non-branch channels 943 4,245 Call Center Branches ATMs Mobile Banking 1.7 32.6 ATM 3,613K 3,306K 30.5 Active Online Active Mobile 4Q19 Banking Customers
Slide 20: Composition of Asset & Liabilities
INVESTOR RELATIONS Earnings Presentation Bank-Only YE 2019 Composition of Asset & Liabilities Breakdown of Assets (%) TL/FC Mix in Total Assets Other 4Q19 15.7 Interbank 1.4 The share of IEA 38% 84.3% 62% 4Q19 Securities in total assets 17.4 65.5 Loans FC TL Breakdown of Liabilities (%) TL/FC Mix in
Slide 21: Well balanced security portfolio
INVESTOR RELATIONS Earnings Presentation Bank-Only YE 2019 Well balanced security portfolio Total Securities (TL million) Portfolio Structure MtM gains under AFS portfolio 48.8% Breakdown of FC Securities (TL128 TL 983 ~TL 1.3 73,016 million) million billion Share of Fixed: 100% 63,856 64,100 2018
Slide 22: Retail Lending Portfolio
INVESTOR RELATIONS Earnings Presentation Bank-Only YE 2019 Retail Lending Portfolio General Purpose Consumer (TL billion) Residential Mortgages (TL billion) Credit Card Loans (TL million)* 38.1% 22% 21% 27.3 29.2 10,825 24.5 24.7 10,315 23.6 9,772 21.2 8,944 8,836 7.0% 21.1 4.9% 19.4 19.2 19.0 11.9%
Slide 23: Diversified funding sources via non-deposit funding
INVESTOR RELATIONS Earnings Presentation Bank-Only YE 2019 Diversified funding sources via non-deposit funding Syndication Eurobonds USD 2.3 billion outstanding Nov’19: USD 580 million equivalent syndicated loan, Libor +2.25%, USD 3 billion outstanding Euribor +2.10% for 1 year, 28 banks from 17 c
Slide 24: Unconsolidated Key Financial Ratios
INVESTOR RELATIONS Earnings Presentation Bank-Only YE 2019 Unconsolidated Key Financial Ratios 2018 4Q18 3Q19 4Q19 2019 Profitability ROAE 16.1% 15.2% 6.7% 16.1% 9.1% ROAA 1.4% 1.2% 0.5% 1.3% 0.7% Cost / Income 36.9% 45.6% 38.6% 30.2% 35.8% Cost / Assets 1.8% 2.3% 1.7% 1.7% 1.6% Fee / Cost 39.0% 38.
Slide 25: Unconsolidated Balance Sheet
INVESTOR RELATIONS Earnings Presentation Bank-Only YE 2019 Unconsolidated Balance Sheet YE18 3Q19 YE19 TL USD (thousand) TL USD TL USD TL USD YoY QoQ YoY QoQ Cash & Balances with 32,254,489 6,108,805 30,946,802 5,479,143 36,495,220 6,128,500 13.1% 17.9% 0.3% 11.9% Central Bank Interbank 5,018,593 95
Slide 26: Unconsolidated Income Statement
INVESTOR RELATIONS Earnings Presentation Bank-Only YE 2019 Unconsolidated Income Statement (TL-thousand, %) 2018 3Q19 4Q19 2019 YoY QoQ Net Interest Income 10,840,687 3,301,982 4,597,974 13,014,712 20.1% 39.2% Net Fee & Com. Income 2,293,210 1,097,237 1,047,406 3,978,688 73.5% (4.5%) Dividend Income
Slide 27: For VakıfBank IR
For Earnings For VakıfBank IR Presentations: Application: A member of BIST Sustainability Index Investor Relations Saray Mahallesi Dr. Adnan Buyukdeniz Cad. A1 Blok No: 7a Umraniye/Istanbul (Akyaka Park Mall) E-mail: investorrelations@vakifbank.com.tr Tel (90-216) 724 2685 Fax (90-216) 724 3941 www.
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