Turkiye Vakiflar Bankasi Turk Anonim Ortakligi · BIST:VAKBN

Turkiye Vakiflar Bankasi Turk Anonim Ortakligi — Türkiye Vakıflar Bankası T.A.O. (VakıfBank) — Q1 2015 Earnings Presentation

25 slides from Turkiye Vakiflar Bankasi Turk Anonim Ortakligi's earnings presentation, May 7, 2015

  1. Slide 1: Earnings Presentation BRSA Bank-Only 1Q 2015

    Earnings Presentation VakıfBank IR App. Available at BRSA Bank-Only 1Q 2015 May 7, 2015

  2. Slide 2: 1Q 2015 Macro Highlights

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q15 1Q 2015 Macro Highlights FED removed the word "patient" from its forward guidance on its China's annual economic growth came in at 7% in 1Q15, which March FOMC meeting and did not change its policy rates. FED is the lowest figure since 1Q09. re

  3. Slide 3: 1Q 2015 VakıfBank Highlights

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q15 1Q 2015 VakıfBank Highlights Quarterly bank-only net income is 434.6 TL mn, which is up by Solid deposit franchise further strengthened thanks to 16.3% YoY. distribution network increase; demand deposits and retail deposits are up by 7.1% and 7

  4. Slide 4: 1Q 2015 Earnings and Ratios

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q15 1Q 2015 Earnings and Ratios Quarterly Reported Net Income (TL mn) Quarterly Comparable Net Income* (TL mn) Sector net 16.3% income growth 15% YoY vs 475.0 682.8 382.6 24.2% 434.6 373.6 349.2 347.7 1Q14 1Q15 ROAE (%) VB Sector 12.8 11.8 11.8 11.

  5. Slide 5: Well managed asset mix, share of loans peaked at 67%

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q15 Well managed asset mix, share of loans peaked at 67% Total Assets (TL bn) 21% Sector total Breakdown of Assets (%) asset growth vs 18.4% YoY 158.2 168.4 139.2 Quarterly Growth Other * 17.5 16.2 6.4% 17.5 Securities Loans Interbank 1.8 1.6 2.5 4

  6. Slide 6: Effective management of security portfolio

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q15 Effective management of security portfolio Total Securities (TL mn) Portfolio Structure 3.9 TL bn 6.3% Total equivalent 20.5 TL bn FC TL 23,558 24,385 34% Share of securities 22,932 3.5% 32% 34% 100% in total assets 5,256 6,855 6,871 28.2% decr

  7. Slide 7: Accelerated yet disciplined loan growth in target segments

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q15 Accelerated yet disciplined loan growth in target segments Total Loans (TL bn) FC Loans (USD bn) 26% 23% 112.5 104.3 12.4 12.0 7.8% 32.3 10.1 3.2% 89.3 27.9 21.6 15.6% 49.5% 1Q14 YE14 1Q15 Loan/Deposit (%) 76.4 5% 80.2 67.7 107.5 113.7 112.9 11

  8. Slide 8: Well diversified loan breakdown

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q15 Well diversified loan breakdown Breakdown of Loans (TL bn) Portfolio Shift (%) 26% SME 25.8 0.2 pps 26.0 89.3 104.3 112.5 6.4 6.9 7.3 Other 1 7.8% Retail 35.7 (3.6 pps) 32.1 SME 2 23.1 27.7 29.2 Com.&Corp. 38.5 3.4 pps 41.9 Mortgage 13.6 14.3 1

  9. Slide 9: Ongoing focus on higher margin products in retail

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q15 Ongoing focus on higher margin products in retail General Purpose Consumer (TL bn) Residential Mortgages (TL bn)* Strong presence in key 19.8% 7.1% retail segments thanks to 14.6 2.3 million 13.5 14.3 14.3 pay-roll accounts 13.6 11.9 1.8% 5.8%

  10. Slide 10: Sustainable and profitable growth in Credit Cards

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q15 Sustainable and profitable growth in Credit Cards Credit Card Loans (TL mn) Outstanding Credit Cards (mn #) Sector’s credit 9.3% card loan growth (4%) YoY vs 4,503 3.2 3.2 4,383 4,120 3.0 3.1 3.0 2.7% 1Q14 YE14 1Q15 1Q14 2Q14 3Q14 4Q14 1Q15 Mar

  11. Slide 11: Strong loan growth in high quality business segments and blue-chip project finance

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q15 Strong loan growth in high quality business segments and blue-chip project finance Commercial&Corporate (TL bn) Project Finance Loans (USD bn) 37.3% 36.6% 47.1 7.1 41.9 6.8 34.3 12.6% 4.2% 5.2 Share of commercial & corporate 1Q14 YE14 1Q15 1Q14

  12. Slide 12: Asset quality improvement on track

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q15 Asset quality improvement on track Reported NPL Ratio (%)* Comparable NPL Ratio (%) Mortgages NPL Ratio (%) 3.95 3.96 3.67 3.57 3.98 4.24 4.14 3.85 2.81 2.85 2.84 0.55 0.57 0.53 2.79 0.54 Sector 3.35 3.24 3.20 3.14 Sector 0.53 0.49 0.48 W/O Leg

  13. Slide 13: CoR numbers inside the budget thanks to strong NPL collections

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q15 CoR numbers inside the budget thanks to strong NPL collections NPL (TL mn)* Breakdown of New NPL Inflow (%) Other Credit Cards 4.7 415 219 4,170 3,974 12.8 SME Mortgage 31.6 3.4 GPC 12.6 Com.&Corp. NPL 4Q14 New NPL Collections NPL 1Q15 34.9 Spe

  14. Slide 14: Customer deposit driven well diversified funding structure

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q15 Customer deposit driven well diversified funding structure Breakdown of Liabilities (%) New Tier II issuance US$ 500 million with 10NC5 Other 5.0 5.1 4.9 First time ever Basel III Sub-Debt 1.4 1.4 2.2 Breakdown of Liabilities (TL bn) Bonds 4.6

  15. Slide 15: Solid growth on TL deposits

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q15 Solid growth on TL deposits Total Deposits (TL bn) TL Deposits (TL bn) 19.9% 20.8% Solid quarterly 99.7 83.1 91.8 65.7 70.4 TL deposit growth of 8.6% 7.2% 29.3 58.3 26.1 24.8 7.2% 12.3% FC 70.4 vs 58.3 65.7 TL 7.2% sector average of 1.3% 1Q14 Y

  16. Slide 16: Strong solvency ratios maintained thanks to timely issuance of LT2

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q15 Strong solvency ratios maintained thanks to timely issuance of LT2 Capital Adequacy Ratio (%) Core Tier I 11.3% 11.7% 11.4% 10.8% 14.0 14.3 14.0 14.2 Share of FX capital in total regulatory capital BRSA Recom. increased to 12% 16.6% in 1Q15 Min

  17. Slide 17: NIM, Spreads and Costs

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q15 NIM, Spreads and Costs Yields (%) Cost of Deposits (%) TL Loans TL Securities TL Deposits FC Deposits (49 bps) 2 bps 11.66 11.97 6 bps 11.48 (224 bps) 9.52 7.25 7.23 1.79 7.98 1.66 7.28 1.60 6.90 3Q14 4Q14 1Q15 3Q14 4Q14 1Q15 3Q14 4Q14 1Q15 3Q1

  18. Slide 18: Earnings breakdown

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q15 Earnings breakdown Net Interest Income (TL mn) Other Income (TL mn) 17.1% 24.7% 1,240 279.3 1,059 224 228.5** 22.2% 1Q14 1Q15 1Q14 4Q14 1Q15 Core Banking Revenues* (TL mn) Breakdown of Total Revenues (%) 22% 0.9 3.3 19.3 15.0 1,469 Core Banking

  19. Slide 19: Solid fee growth fuelled by loan growth and payment systems

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q15 Solid fee growth fuelled by loan growth and payment systems promise better than budget figures Net Fee and Commission Income (TL mn) Breakdown of Net Fee and Commission Income (%) 1Q15 Inquiry&Expertise Insurance 57.6% 6% 4% Cash Loans 228.7 Ot

  20. Slide 20: Comparable opex growth is in line with the operating budget

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q15 Comparable opex growth is in line with the operating budget Operating Expenses (TL mn) Comparable Opex 16.6% 855.3 Fee 1Q15 Comparable 820.8 1Q15 Reimbursement OPEX 4.2% 52.5 TL mn 802.8 TL mn 733.6 11.1% Fee 1Q14 Comparable 1Q14 Reimbursement

  21. Slide 21: VakıfBank with numbers

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q15 VakıfBank with numbers Distribution Channels & Customer (#) 1Q2015 Efficiency (‘000 TRY) 1Q2015 Branches 902 Assets per Employee 11,192 ATMs 3,289 Assets per Branch 187,069 Personnel 15,044 Loans per Employee 7,478 POS Terminals 161,993 Loans p

  22. Slide 22: Balance Sheet

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q15 Balance Sheet YoY QoQ (TL-mio, %) 1Q2014 YE2014 1Q2015 Growth Growth Cash & Balances with Central Bank 19,802 21,885 21,179 7.0% (3.2%) Interbank 2,552 2,571 4,198 64.5% 63.3% Assets Securities 22,931 23,558 24,385 6.3% 3.5% Loans 89,308 104,34

  23. Slide 23: Income Statement

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q15 Income Statement YoY QoQ (TRY-Thousand, %) 1Q2014 4Q2014 1Q2015 Growth Growth Net Interest Income 1,059,148 1,346,154 1,240,163 17.1% (7.9%) Net Fee & Com. Income 145,105 191,100 228,679 57.6% 19.7% Dividend Income 64,956 322 62,130 (4.4%) 1919

  24. Slide 24: Diversified funding source via Non-Deposit Funding

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1Q15 Diversified funding source via Non-Deposit Funding Sub-debt January, 2015 •US$ 500 million equivalent subordinated notes (Tier II) were issued with a yield of 6.95%. Coupon rate has been set at 6.875%, maturity of the notes is 10 years. DPR Sec

  25. Slide 25: Investor Relations contact and disclaimer

    A member of BIST Sustainability Index Investor Relations Çamlık Cad. Çayır Çimen Sok. No:2 Kat:6 34330 1. Levent-İstanbul / Turkey E-mail: investorrelations@vakifbank.com.tr Tel (90-212) 316 7336 Fax (90-212) 316 7126 www.vakifbank.com.tr Disclaimer Notice: This report has been prepared by VakıfBank

Türkiye Vakıflar Bankası T.A.O. (VakıfBank) — Q1 2015 Earnings Presentation on 6ix