Sekerbank T.a.s. · BIST:SKBNK
Sekerbank T.a.s — Q3 2022 Earnings Presentation
20 slides from Sekerbank T.a.s's earnings presentation, Sep 30, 2022
Slide 1: Şekerbank T.A.Ş. Consolidated Financial Results
Şekerbank T.A.Ş. Consolidated Financial Results as of September 30, 2022
Slide 2: 69 years of Experience in Community Banking
69 years of Experience in Community Banking Şekerbank was founded 69 years ago to support rural development and the agricultural industry and has always preserved its principle of responsible banking. The Bank has been enhancing its founding mission of community banking to the perspective of sustain
Slide 3: Deep-rooted and Widespread Branch Network
Deep-rooted and Widespread Branch Network Broadbased deposit structure and strong customer base in SME & Agro Serving at the 238 same location for Branches over half of Deep expertise in SME & Agricultural 51% throughout Türkiye SME Loan share a century Banking in total loan portfolio 1 Trak ya R e
Slide 4: Şekerbank Positioning in the Sector
Şekerbank Positioning in the Sector 1 Deep Know-How In SME 2 Higher NIM due to Effective 3 Sound Liquidity with Stable Deposits1 and Agricultural Banking 1 Management of Funding Cost1 Loan to Deposit Ratio SME Loans to Total Loans, Q3 2022 (%) Annualized NII to Avg Int. Earning Assets, Q3 2022 (%) (
Slide 5: The positive pace achieved in 2021 continues in Q3 2022
✓ Prudent loan growth and TL dominated portfolio ✓ Significant recovery in asset quality The positive ➢ High performance in collections pace achieved ➢ Healthy inflow in loans through renewed risk infrastructure in 2021 ➢ Prudent Provisioning Policy continues also ✓ Solid, broad-based and liquid fun
Slide 6: Prudent and TL dominated loan growth
Prudent and TL dominated loan growth ➢ Şekerbank adopted a diversified, widespread and TL dominated growth strategy in 2021 and the third quarter of 2022 continued to decrease its FX loans. Segment Breakdown of Loans2 Currency Breakdown of Gross Loans2 (Consolidated, accruals included) (Mn TL) (Cons
Slide 7: Considerable recovery in asset quality
Considerable recovery in asset quality ➢ With high concentration placed on increasing asset quality, the NPL has been improving steadily since the beginning of 2021. Stage-3 (NPL) Ratio Development1 Stage-2 Loan Ratio Development1 10,2% 11,0% 9,9% 7,0% 10,2% 7,7% 6,4% 6,9% 8,5% NPL Ratio 8,1% Stage-
Slide 8: Prudent provisioning policy and high collection performance
Prudent provisioning policy and high collection performance ➢ Şekerbank, which has always adopted a prudent provisioning policy for its loan portfolio, also increased its free provision to 950 Mn TL in the third quarter of 2022. ➢ Thanks to its highly collateralized loan portfolio, the bank’s collec
Slide 9: Significant healthy inflow in loans through renewed underwriting infrastructure
Significant healthy inflow in loans through renewed underwriting infrastructure within the Transformation Program %92 of the total loan amount that was A Decision Support System «DSS» based on statistical analytical models for disbursed since Jun.19 was in the medium, low and very low risk profile c
Slide 10: Protected securities portfolio against interest and FX fluctuations
Protected securities portfolio against interest and FX fluctuations ➢ As of September 2022, Securities / Total Assets: 12,9% ➢ Securities in FC have been classified at fixed rates Composition by Classification1 TL denominated Securities1 FC denominated Securities1 Fina ncial Assets Financial Assets
Slide 11: Solid, broad-based and liquid funding structure
Solid, broad-based and liquid funding structure ➢ The Bank has improved its liquidity even furthe r a nd decreased its funding cost by prioritising Retail&SME deposits rathe r than large-size corporate deposits. The liquidity coverage ratios have always been well above the required levels as a resul
Slide 12: 100% ESG related foreign borrowings structure
100% ESG related foreign borrowings structure ➢ The Bank has longstanding relationships with IFIs thanks to its sustainable banking know-how, which also reflects on its diversified and long-term foreign borrowing structure. The first SME backed covered bond in the world ▪ EBRD, FMO, TSKB & IBRD and
Slide 13: Significant improvement in sustainable profitability
Significant improvement in sustainable profitability ➢ The Bank’s profitability figures have been improving steadily in line with the considerable improvement in cost of credit risk and satisfactory NIM levels based on surpassing funding costs and effective OPEX management. Net Profit/Loss Cost to I
Slide 14: Main determinants of the profitability
Main determinants of the profitability Cost of Risk has been decreasing Provision expenses for loans have Thanks to the broad-based deposit structure in line with the very limited transfer to decreased significantly net interest margin has increased mainly problematic loans… based on surpassing the
Slide 15: Improvement in capital adequacy ratios
Improvement in capital adequacy ratios ➢ The Bank’s capital ratios have reached to satifactory levels as of September 30, 2022 by generating diversified and TL dominated loan growth; additionaly enhancing its internal capital generation capacity via improving profitability performance. Capital Adequ
Slide 16: A digital banking infrastructure focused on SME & Agricultural banking
A digital banking infrastructure focused on SME & Agricultural banking Digital Mobile solutions that applications that surround the expand access to rural finance Instant credit allocation to small businesses and The 1st Bank The 1st Bank farmers in the field through the tablet channel that offers t
Slide 17: Enhancing sustainable development banking competencies
Enhancing sustainable development banking competencies Bank only, as of September 2022 Sustainable 8.3% 99% Agriculture Share of agricultural of the farmers that we provide loans in total cash loans services are small farming families 70% TL 18.1 Small Businesses billion and Employment Share of the
Slide 18: Contact Details
Contact Details Sekerbank T.A.Ş. Aybala Şimşek Executive Vice President Strategy, Transformation and Financial Institutions Financial Institutions & Investor Relations Oya Sarı Head of Financial Institutions and Investor Relations Tel: +90 212 319 71 58 oya.sari@sekerbank.com.tr Ayben Akyürük Invest
Slide 19: Legal Notice For Investors
Legal Notice For Investors Legal Notice 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 info
Slide 20: Thank you...
J ie Thank you... kg