Turkiye Sinai Kalkinma Bankasi A.s. · BIST:TSKB
Turkiye Sinai Kalkinma Bankasi A.s — Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — Q2 2024 Earnings Presentation
21 slides from Turkiye Sinai Kalkinma Bankasi A.s's earnings presentation, Aug 1, 2024
Slide 1: The Industrial Development Bank of Türkiye Earnings Presentation 2Q-24
The Industrial Development Bank of Türkiye Earnings Presentation 2Q-24 Bank-only Results “Please note that any kind of recording including but not limited to screenshots, video recording, recording via external devices etc. of this presentation it is strictly forbidden for all participants.” Corpora
Slide 2: Superior 2Q-24 Performance at a Glance
Superior 2Q-24 Performance at a Glance • Best-in-class ROE Outstanding Profitability • FX Loan Spread 28% QoQ 39% YoY earnings growth • Core NIM expansion • Diversified fee income performance • New DFI agreements and syndication loan with %156 roll-over ratio Strong FX Funding • USD 1,1 bn Unwithdra
Slide 3: 1H-24 Performance & YE-24 Guidance
1H-24 Performance & YE-24 Guidance Financial Guidance 1H-24 Figures Previous YE24 Guidance Revised YE24 Guidance (Bank Only) % % % Growth FX Adjusted Loan Growth 6.7 High Single Digit Low Teens Profitability Net Interest Margin 5.9 ~6 - Fees & Commissions Growth 115 > avg. CPI - Return On Equity 37.
Slide 4: Differentiating Continuous Profitability
Differentiating Continuous Profitability Net Profit - TL mn Yearly Quarterly +39% +28% 4,403 2,469 1,934 3,172 Strong coverage and free provision reserves to support profitability 1H-23 1H-24 1Q-24 2Q-24 Total coverage ratio stands at 5.9% ROE Stock of free provisions 1.75 bn TL 42.1% 34.7% 37.1
Slide 5: Income Statement Highlights
Income Statement Highlights TL mn 1H-23 1H-24 YoY 1Q-24 2Q-24 QoQ Continuous Net Interest Income 3,932 5,302 35% 2,541 2,760 9% Earnings Growth Trading Income 1,638 685 -58% 459 226 -51% (+39% yoy, +28% qoq) Net Fees & Commissions 137 294 115% 130 164 26% Remarkable NII generation Other Income (Inc.
Slide 6: Supported by new engagements, funds secured in 2024 reach USD 1.1 billion
Supported by new engagements, funds secured in 2024 reach USD 1.1 billion Funding / Total Liabilities (exc. Equity & Oth.) Yearly Multilateral Funding Agreements – USD mn 4% 3% 3% Guaranteed DFI 2% 4% 8% 4% 6% Funding 6% Unguaranteed DFI 22% Funding 22% Securities Issued 22% 11% Subordinated 11% Deb
Slide 7: Resilient Asset Composition
Resilient Asset Composition Asset Composition – TL bn Total Loans – TL bn 207.2 Loan Growth 198.7 Currency 176.9 2% 3% 151.2 Breakdown YtD QoQ 6% 144.4 2% 8% 11.8 130.1 11.1 8% 8% 18% +7% +5% 17% 11.3 16% 4.1$ 4.3$ 92% +3% +5% 73% 73% 4.0$ 74% 4Q-23 1Q-24 2Q-24 4Q-23 1Q-24 2Q-24 Loans Securities Cas
Slide 8: SDG-Linked loans account for 91% of the portfolio
SDG-Linked loans account for 91% of the portfolio Loans by sector 2Q-24 92% of which is Renewable Energy, Electricity Generation REL*; 31% 33.9% where 79% benefits from Feed in Tariff WPP HPP GPP BIO SPP Finance 9.3% Outstanding Risk 270 Projects 6,418 MW 37% 15% 19% 10% 19% Metal & Machinery 8.8% T
Slide 9: Leading position on provision coverage among industry
Leading position on provision coverage among industry Improvement Improvement of coverage of coverage from from 28% to 83% Total Coverage: 5.9% Coverage Ratio 10% to 34% since 2018 Stage I Loans Stage II Loans since 2018 Stage III Loans Total Free Provisions: TL 83.1% 94.0% 1,75 bn 6.0% 78.0% 77
Slide 10: Well oriented asset liability management
Well oriented asset liability management Total Securities Portfolio Breakdown TL Securities Portfolio Breakdown* TL 37.4 bn Fixed Fixed Fixed 1.4 years TL 33.9 bn 18% 26% 28% TL 27.8 bn 583 51% in FX 549 CPI CPI 72% CPI 3.8 years 74% 534 62% 61% Floating Float 18,333 Float Float 13% 1.6 years 16,205
Slide 11: Sustainable and Resilient NIM
Sustainable and Resilient NIM Annualized NIM 7.0% Net Interest Income inc. Swap Cost (TL bn) 5.7% 5.9% 3,046 2,541 2,760 +9% 2.4% qoq 942 837 874 1.8% 1.9% CPI Impact CPI Income Core NIM NII excl. CPI 2,927 2,873 4.6% Swap Cost 2,815 3.9% 4.0% (1,223) (987) (711) 4Q-23 1Q-24 2Q-24 4Q-23 1Q-24 2Q-24
Slide 12: Further strengthened solvency metrics support our real loan growth targets
Further strengthened solvency metrics support our real loan growth targets Capital Ratios Without BRSA Temporary Measures Evolution of RWA and Equity – TL bn 19.5% 20.3% 184.4 18.6% 174.6 152.1 18.4% 19.2% 17.4% 34.0 37.5 20.6 28.3 22.4 25.6 2023 1Q-24 2Q-24 2023 1Q-24 2Q-24 Tier I Ratio CAR RWA Cor
Slide 13: Sustainable Banking Developments
Sustainable Banking Developments IDFC Steering Group meeting hosted by TSKB in Istanbul Reporting Integrated Annual Report (1Q-24) Share in the loan Climate Report portfolio (1Q-24) 91% 60% 20 years in Türkiye Awards SDG-linked loans Climate & Environment Women and Men Equality Promoter UN Global Co
Slide 14: Appendix
Appendix
Slide 15: Balance Sheet
Balance Sheet 31.12.2023 31.03.2024 30.06.2024 TL mn TL FX TOTAL TL FX TOTAL TL FX TOTAL Cash and Banks 7,427 7,699 15,126 10,236 5,554 15,789 6,203 6,599 12,802 Securities 12,177 15,663 27,839 16,208 17,707 33,915 18,343 19,056 37,399 Loans (Gross) 11,299 118,839 130,137 11,051 133,311 144,362 11,8
Slide 16: Detailed Income Statement
Detailed Income Statement TL mn 1H-23 1H-24 YoY 1Q-24 2Q-24 QoQ Net Interest Income inc, Swap Cost 3,932 5,302 35% 2,541 2,760 9% Net Interest Income 3,830 7,512 96% 3,764 3,747 0% CPI Linkers 1,388 1,712 23% 837 874 4% Swap Costs 102 -2,210 -2267% -1,223 -987 -19% Net Commissions 137 294 115% 130 1
Slide 17: Appendix: ESG Ratings
Appendix: ESG Ratings Sustainalytics ESG Risk Rating CDP Climate Change Moody’s ESG Fitch ESG Credit Sustainable Fitch ESG LSEG Score Credit Impact Score Relevance Score Entity Score ESG Score Range 0-40+ A/D- 1-5 1-5 1-5 (0-100) A+/D- Score 6.9 A- 2 3 3 (61/100) A Negligible risk category Leadershi
Slide 18: Appendix: Stage 2 Loans Breakdown
Appendix: Stage 2 Loans Breakdown Stage 2 Loans Sector % Coverage (%) Tourism 45 41 Electricity/Gas Distribution 19 41 96% of Electricity Electricity Generation 15 14 Generation loans Non-residential Real Estate 8 29 are Renewable Metal and Machinery 6 31 Telecom/Logistics 4 10 Automotive Supply Ind
Slide 19: Appendix: IEA Evolution
Appendix: IEA Evolution Interest Earning Assets 183 189 161 Interest Earning Assets were up by 3% QoQ and 37% YoY, 135 142 122 which was driven by • High FX denomination 24 32 35 • Growth strategy 15 15 12 4Q-23 1Q-24 2Q-24 Liquid Assets Securities Loans 19
Slide 20: Appendix: Net Cost of Risk Calculation
Appendix: Net Cost of Risk Calculation Provisions (TL mn) 2Q24 Stage 1* 41 Stage 2** 314 Stage 3 296 Reversals*** (TL mn) -58 Net CoR 84 bps Currency Impact 57 bps Net CoR excl. Currency Impact 27 bps *Stage 1 provision costs are adjusted with TL 45.7 mn provisions set aside for securities. **Stage
Slide 21: Disclaimer
DISCLAIMER This presentation document is prepared for informational purposes only and contains certain forward-looking comments, opinions, and forecasts. These reflect the views of Türkiye Sınai Kalkınma Bankası A.Ş. ("TSKB") as of the date of this presentation and contain certain assumptions. Altho
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