Turkiye Sinai Kalkinma Bankasi A.s. · BIST:TSKB
Turkiye Sinai Kalkinma Bankasi A.s — Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — Q2 2020 Earnings Presentation
29 slides from Turkiye Sinai Kalkinma Bankasi A.s's earnings presentation, August 2020
Slide 1: Created with a trial version of Syncfusion Essential PDF
Created with a trial version of Syncfusion Essential PDF
Slide 2: A Unique Business Model
A Unique Business Model = Long term tenor in liabilities: 11 years * Medium term in assets: 5 years = Diversified funding tools = Amortized loan book = Multi-disciplinary assessment during allocation = Sector specific research analysts during allocation and monitoring period = Strong collateralizati
Slide 3: TSKB at a Glance
TSKB at a Glance Ratings TSKB Tiirkiye mis Bank Group 40.7% Shareholding Fitch LTFC B+ BB- mVakifbank Structure Moody’sLTIR B3 B2 Free Float & Other SAHA 9.56/10 = TRY 3.1 bn MCAP* = 27% of free float belongs to foreign investors *As of August 5, 2020 CORPORATE BANKING INVESTMENT BANKING ADVISORY SE
Slide 4: Main Stakeholders of the Bank
Main Stakeholders of the Bank A trustworthy partner in; Large Corporates, MidCap Companies & SME's Its field experience Cooperation in various areas such as; corporate Its capacity to introduce innovative themes with respect to loans, investment banking activities and advisory investment projects se
Slide 5: Sustainability is Well Integrated into Our Business Model
Sustainability is Well Integrated into Our Business Model Support for employment in Turkey; ® Encouraging women participation to the economy ERB Support transition to low ye carbon economy © Providing financing to operational health and safety © Supporting less developed regions Environmental & Soci
Slide 6: TSKB Sustainability Journey
TSKB Sustainability Journey @ Borsa isTANBUL SUSTAINABILITY + _ First Integrated Report of the + “Equal Steps’, equal opportunity digital platform Turkish finance sector * Founding Signatories of the ‘Principles for Responsible GRI G4 Sustainability Report * — Globally first Sustainable Tier II Bank
Slide 7: 2020 Guidances
2020 Guidances FX Adjusted Loan Growth 1.5 3-5 Flat Loan/Assets 75 ~75 Confirmed Fees & Commissions Growth 128 >50 Confirmed OPEX Growth 8.0 <20 <15 Net Interest Margin (adj.) 43 ~4.0 Confirmed Return On Tangible Equity 12.4 >16 >14 Return On Assets 15 1.7-1.9 Confirmed Cost/Income Ratio 12.0 <15 Co
Slide 8: Key Highlights of 2Q-20
Key Highlights of 2Q-20 & CoR* 107 bps Net Banking Income vs Provisions Net Profit Annualized ROE & ROTE*** TRY mn TRY mn 16% YoY) YoY i i 9% (9% Q00) 10-20 20-20 1H-19 1H-20 10-20 20-20 2019 10-20 20-20 ™ Net Banking Income Provisions mROE mROTE *Net Cost of Risk is calculated for the first M of th
Slide 9: Banking Sector vs TSKB
Banking Sector vs TSKB *Excluding forebearence ‘AR* Loans/Assets 17.7% 75.0% 16.6% 62.9% Banking Sector TSKB Banking Sector TSKB Cost to Income NIM 32.1% 4.5% 43% 12.0% Banking Sector TSKB Banking Sector TSKB aw Repo & Depo Majority of the funding o % Funds e Borrowed is deposits with an FA [ Deposi
Slide 10: Tier 2 Eurobond DFI Funding
-176 * -157 -103 -511 -473 -418 -300 -300 ** -350 -2,195 Tier 2 Eurobond DFI Funding -400 Syndication -300 3Q-20 2020 2021 2022 2023 >=2024
Slide 11: Long Term DFI Funding Base
11 Long Term DFI Funding Base Outstanding DFI Funding Base - 2Q-20 Yearly Multilateral Funding Agreements - USD mn 986 IBRD 39.6% 733 EIB yy 340 ws mM |e DY Byyuyy Ey 1°) AFD 4.8% CEB 3.8% JBIC 3.2% Successful roll-over New funding from of the syndicated AIIB as part of the IFC 2.1% loan facility as
Slide 12: Outstanding Project Themes Shaping Future Loan Book
12 Outstanding Project Themes Shaping Future Loan Book Energy and Resource Efficiency Women’s Employment and Equal Opportunity Renewable Energy Midcap Financing Supporting Exporters Regional Development Supporting Employment Sustainable Agriculture Industrial Development Sustainable Tourism Occupati
Slide 13: Resilient Asset Composition
Ales Resilient Asset Composition Asset Composition - TRY bn 47.2 46.8 42.0 20-19 40-19 10-20 20-20 mLoans Securities mCash&MM =NonlEAs & Other Average Maturity - Years Working Capital Loans [IM 1.7 APEX Loans SN 3.8 ) investment Loans I 6.9 Total Loans- TRY bn Currency Breakdown 34.2 35.1 31.4 30 11
Slide 14: Credit and operational risk monitoring
▪ Monitoring the clients individually with analysing the financials ▪ Effective internal control systems to prevent, detect and ▪ Preparing monitoring reports for the clients at least once a manage the operational risks which results in a very low level year of losses in connection with operational
Slide 15: Project analysis, monitoring and collateralization
▪ Detailed technical analysis of the investment projects Monitoring and Collateralization ▪ Capacity determination of the investments ▪ Review and justification of the business model ▪ Loan concentration is prudently watched during loan allocation and ▪ Establishing & reporting KPIs monitoring proce
Slide 16: Sustainability-Themed Loans Account for 74% of the Portfolio
Sustainability-Themed Loans Account for 74% of the Portfolio Loans by sector 20-20 Finance; Other: 92 Textile, %2 Automative,%1 Packaging, 93 Other 16 Electricity Generation; 87% of which is Renewable Energy, Energy and Resource Efficiency 150 PROJECTS - 5% of the Portfolio Energy Efficiency Number
Slide 17: Renewable energy loan breakdown by source
1.3 bn 1.4 bn 1.5 bn 1.6 bn 1.9 bn 1.9 bn 1.9 bn 7% 6% 2% 6% 6% 6% 6% 6% 5% 5% 5% 5% 22% 34% 32% 3% 35% 37% 35% 35% 9% 14% 17% 18% 19% 21% 69% 51% 46% 37% 35% 35% 33% 2014 2015 2016 2017 2018 2019 2Q-20 Hydro Geothermal Wind Biomass Solar • • •
Slide 18: Intact Asset Quality
Intact Asset Quality 0.82% yoy SS Share Coverage Fis mount in Total Ratio & £8 Stage1 30,018 85.6% 1.00% a Stage2 3,839 11% 12.96% Stage3 1,195 3.4% 37.69% 450 Gross Loans 35,052 100.0% 3.56% 1,249 : =) as go Av 10-20 20-20 so ss Stage3 Loans Electricity Generation 26.8% 7.0% REL 22.3% 5.0% Not REL
Slide 19: Security Book
Security Book TRY7.2bn TRY 7.2 bn TRY Securities Portfolio Breakdown TRY 6.6 bn TRY 5.8 bn Fixed %33 %68 4,043 4,432 4,528 4,601 64% Floating Float %18 20-19 40-19 10-20 20-20 20-19 40-19 =TRY (mn) = YP ($mn) CURITIES / ASSETS: 15% Remaining Maturity: 1.8 yrs in Fixed bonds, 1.2 yrs in Floating bond
Slide 20: Takeaways from the Income Statement
Takeaways from the Income Statement TRY mn 1H-19 1H-20 YoY 1Q-20 2Q-20 QoQ Net Interest Income 770.7 797.8 4% 370.2 427.6 16% Strong NII Trading Income 24.1 64.8 n/m 33.5 313 -6% Generation Net Commissions 13.0 29.6 n/m 215 8.1 n/m Dividend & Other 35.6 78 n/m 1.9 5.9 n/m Banking Income 843.4 899.9
Slide 21: Strong & Steady NIM
Strong & Steady NIM Annualized NIM 3.9% 41% 42% : L L 2016 2017 2018* 2019 10-20 20-20 41% 43% TRY Security Yields** 17.2% sees TRY Sec. ty Yield 14.5% ——TRY Sec. Yield exc. CPI 20-19 40-19 10-20 20-20 21 *CPlrevenue adjusted “Bank's Oct.-Oct. CPI assumptic 410.2 10-20 Quarterly NIM Evolution Me 13.
Slide 22: Tier 1 (CET1) Evolution
12.0% 8.5% Tier 1 (CET1) Evolution - % - - 4Q-19 Δ RWA Δ MTM 2Q - Net Income 2Q-20
Slide 23: Key Performance Indicators
Key Performance Indicators ROE* lJ | nT 2018 =2019 10-20 20-20 ROTE** 18.1% 16.1% 13.4% 124% 2018 = 2019 10-20 20-20 *ROE: Annualized Net Income for the period / Average Total Equity. ROAA: Annualized Net Income for the period / Average Total Assets. ROA* 2.0% 1.7% 14% 1.5% 2018 =2019 10-20 20-20 CA
Slide 24: What Lies Ahead?
24 What Lies Ahead? Responsible development banking mission leads us to; + Focuson creating value for the inclusive and sustainable development * Create finance and advisory solutions powered by our experience in development and investment banking * Stronghold our visionary approach and well establi
Slide 25: 2S BS Q gf x
2S BS Q gf x
Slide 26: Balance Sheet
26 Balance Sheet TRY mn Cash and Banks Securities Loans (Gross) Provisions Subsidiaries Other Total ST Funds LT Funds Securities Issued Repo &MM Other Tier 2 Equity Total 2,437 7,216 35,052 -1,252 998 2,378 46,830 1,667 26,615 7,529 1,813 1,545, 2,153 30/06/2019 31/12/2019 30/06/2020 a A a ee 1,210
Slide 27: Detailed Income Statement
27 Detailed Income Statement TRY mn Net Interest Income including swap cost Net Interest Income CPI Linkers Swap Costs (-) Net Commissions Other Income From Subsidiaries Dividends Other Trading & FX gains/losses FX gains/losses MtM gains/losses Trading gains/losses Banking Income OPEX (-) Net Bankin
Slide 28: A Long Award-Winning Track Record
28 A Long Award-Wining Track Record Banking Awards Investing&Financing Category Finalist (2019) Finance for the Future Energy Finance Deal of the Year (2019) Bonds&Loans Tiirkiye M&A/Acquisition Finance - Second place (2019) Bonds&Loans Turkiye Structured Loan Deal - Third place (2019) Bonds&Loans T
Slide 29: TSKB Financial Institutions & Investor Relations
Pas TSKB Financial Institutions & Investor Relations TSKB Financial Institutions & Investor Relations ir@tskb.com.tr www.tskb.com Meclisi Mebusan Cad. 81 Findikli 34427 istanbul
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