Turkiye Vakiflar Bankasi Turk Anonim Ortakligi · BIST:VAKBN
Turkiye Vakiflar Bankasi Turk Anonim Ortakligi — Türkiye Vakıflar Bankası T.A.O. (VakıfBank) — Q3 2018 Earnings Presentation
27 slides from Turkiye Vakiflar Bankasi Turk Anonim Ortakligi's earnings presentation, Nov 9, 2018
Slide 1: Earnings Presentation BRSA Bank-Only 3Q18
VakıfBank IR App. Available at Earnings Presentation BRSA Bank-Only 3Q18 November 9, 2018
Slide 2: 3Q18 Earnings and Ratios
INVESTOR RELATIONS Earnings Presentation Bank Only 3Q18 3Q18 Earnings and Ratios Net Income (TL million) ROAE (%) 10.2% 1.96 ppt better 1.74 ppt better than sector than sector 3,110.1 2,822.1 16.60 1,224.8 1,073.8 1,051.4 14.64 14.93 984.9 13.19 896.7 700.7 40.6% Sector VB Sector VB 9M18 3Q18 Additi
Slide 3: Drivers of Strong Performance & Key Highlights of 9M18
INVESTOR RELATIONS Earnings Presentation Bank Only 3Q18 Drivers of Strong Performance & Key Highlights of 9M18 Effective NIM management • NIM expanded 75 bps QoQ to 4.95% from 4.20% in 2Q18. • 9M18 cumulative NIM came flattish at 4.22% vs 2017 average NIM of 4.24%. • CPI support increased in 3Q18, r
Slide 4: 9M18 P&L Details
INVESTOR RELATIONS Earnings Presentation Bank Only 3Q18 9M18 P&L Details 1,180 11,694 (3,951) 579 1,555 130 8,250 (3,924) (709) 9M18 3,110 Net Interest Net Fees and Dividend Net Trading Other Income Total Operating Provisions Taxes Net Income Income Commissions Income Income Revenue Expenses % vs 9M
Slide 5: Revenue breakdown
INVESTOR RELATIONS Earnings Presentation Bank Only 3Q18 Revenue breakdown Total Revenues (TL million) Revenue Breakdown (%) 35.0% 81.2% 4,632 Other Dividend Other Dividend 10.1 1.1 13.7 11,694 1.1 Trading Trading 3,205 4.9 1.4 8,660 2,557 44.5% Net F&C Net F&C 11.1 9M17 13.3 9M18 NII NII 70.6 72.8 9
Slide 6: NIM, Spreads and Costs
INVESTOR RELATIONS Earnings Presentation Bank Only 3Q18 NIM, Spreads and Costs Net Interest Margin (NIM %) Breakdown of Interest Income from Securities (TL million)** 1,989 4.95 4.33 4.24 4.22 4.20 828 842 758 ~TL 1.5 3.52 billion CPI 448 1,376 income 398 expected in 112 463 363 4Q18 336 430 379 395
Slide 7: Stellar fee growth supported by diversified fee sources
INVESTOR RELATIONS Earnings Presentation Bank Only 3Q18 Stellar fee growth supported by diversified fee sources Net Fee & Commission Income (TL million) Breakdown of Net Fee & Commission Income Money Money Insurance Transfer 6%Insurance Transfer 6% 5% 5% 62.2% Cash Loans Inquiry & Cash Loans Inquiry
Slide 8: Strong efficiency maintained despite high inflation driven cost growth
INVESTOR RELATIONS Earnings Presentation Bank Only 3Q18 Strong efficiency maintained despite high inflation driven cost growth Operating Expenses (TL million) Breakdown of OPEX Cost/Income (%) (3.4 ppt) 22.8% 3,951.0 37.2 33.8 3,217.9 53% 47% 9M18 HR Cost Non-HR Cost 9M17 9M18 9M17 9M18 Jaws Ratio (
Slide 9: Well diversified & stable loan breakdown
INVESTOR RELATIONS Earnings Presentation Bank Only 3Q18 Well diversified & stable loan breakdown Breakdown of Loans (TL billion) Portfolio Breakdown (%) Loan Portfolio Breakdown (TL billion) 235.8 14.4 245.4 210.1 Gross Loans 218.6 9.6 SME 26.9 24.2 14.8 12.9 Stage III 8.5 182.9 57.1 Stage II 8.5 17
Slide 10: Breakdown of Loan Portfolio
INVESTOR RELATIONS Earnings Presentation Bank Only 3Q18 Breakdown of Loan Portfolio Sector Breakdown of Cash Loans Breakdown of Construction Loans Manufacturing Construction Retail Loans 14% Stage III 20% TL 1.1 billion Construction 10% 4.4% Stage II 12.4% TL 3.1 billion Stage I Other 3Q18 Energy TL
Slide 11: Stage II Loans are rising due to macroeconomic developments
INVESTOR RELATIONS Earnings Presentation Bank Only 3Q18 Stage II Loans are rising due to macroeconomic developments Stage II Loans Breakdown (TL billion) Sector Breakdown of Stage II Loans Total Stage II 6.2 8.5 Loans 6.9 14.8 Restructured 11.5% 14.0% 16.1% 22.4% Other 10.9% Manufacturing 48.1% Reta
Slide 12: Yet NPL ratio remained flattish on a quarterly basis
INVESTOR RELATIONS Earnings Presentation Bank Only 3Q18 Yet NPL ratio remained flattish on a quarterly basis NPL (TL million)* Reported and Comparable NPL Ratios (%) 1,377 413 9,573 8,508 3.97 4.01 3.89 3.90 3.22 3.05 2.96 3.03 Sector NPL growth still under NPL 2Q18 New NPL Collections NPL 3Q18 cont
Slide 13: Further increased provisioning levels
INVESTOR RELATIONS Earnings Presentation Bank Only 3Q18 Further increased provisioning levels Net Expected Credit Losses Cost of Risk Ratios (bps) Net CoR 75 78 90 92 82 136 (Thousand TL) 9M18 159 Gross CoR 140 139 125 Expected Credit Losses 3,921,887 133 51 Stage III 2,181,567 Provision Reversals u
Slide 14: Customer deposits driven well diversified funding structure
INVESTOR RELATIONS Earnings Presentation Bank Only 3Q18 Customer deposits driven well diversified funding structure Total Deposits (TL billion) 3Q18 Loan/Deposit Ratios (%) 170.4 190.9 155.3 VB Sector 144 145.7 78.2 57.9 129 44.0 51.7 34% 41% 124 121 30% 33% FC 53% 15 ppt 47% lower TL LtD TL Ratio 1
Slide 15: Solid FC liquidity and diversified international funding
INVESTOR RELATIONS Earnings Presentation Bank Only 3Q18 Solid FC liquidity and diversified international funding Breakdown of International Funding Maturity Profile of External Debt (USD million) Covered Bond Eurobond 10% 21% Subordinated Nov.- Bond Dec. 321 2018 11% Short-Term Borrowing: %37 2019 3
Slide 16: Stellar solvency ratios amid challenging macro conditions
INVESTOR RELATIONS Earnings Presentation Bank Only 3Q18 Stellar solvency ratios amid challenging macro conditions Capital Adequacy Ratio (%) Solvency Ratios without BRSA Forbearances (%) 3Q18 15.26 11.98 15.02 11.81 Required Tier I 12.76 12.31 12.22 11.81 13.69 ~14.2 Tier 1 Level %8.64 17.23 ~17.6 C
Slide 17: Appendix
INVESTOR RELATIONS Earnings Presentation Bank Only 3Q18 Appendix Pg. 19 Composition of Assets&Liabilities Pg. 20 Well balanced Securities Portfolio Pg. 21 Retail Lending Portfolio Pg. 22 Strong growth in mobile platforms continues Pg. 23 VakıfBank with Numbers Pg. 24 Diversified Funding Sources via
Slide 18: Composition of Asset&Liabilities
INVESTOR RELATIONS Earnings Presentation Bank Only 3Q18 Composition of Asset&Liabilities Breakdown of Assets (%) TL/FC Mix in Total Assets Other* 17.2 Interbank 2.8 57% 43% 3Q18 FC Securities TL Loans 13.3 66.7 Breakdown of Liabilities (%) TL/FC Mix in Total Liabilities Repo** Bonds Funds Bor. 7.6 8
Slide 19: Well balanced security portfolio
INVESTOR RELATIONS Earnings Presentation Bank Only 3Q18 Well balanced security portfolio Total Securities (TL million) Portfolio Structure 55.3% TL FC 46,917 16% 34,972 ‘Share of total’ 30,213 32,253 34.2% 39,128 100% 8,991 28,060 83% 30% 16,766 42% 42% 80% 52% 1,648 5% 1,937 6% 19,574 61 90 65% 13,
Slide 20: Retail Lending Portfolio
INVESTOR RELATIONS Earnings Presentation Bank Only 3Q18 Retail Lending Portfolio General Purpose Consumer (TL billion) Residential Mortgages (TL billion) Credit Card Loans (TL million)* 11.6% 12.5% 26.1% 20.6 22.2 22.4 8,580 20.1 20.9 20.3 19.0 7,636 0.9% 18.1 7,123 (2.6%) 6,801 12.4% 3Q17 4Q17 2Q18
Slide 21: Strong growth in mobile platforms continues
INVESTOR RELATIONS Earnings Presentation Bank Only 3Q18 Strong growth in mobile platforms continues Active Mobile Banking Customers (#thousand)* Breakdown of Transactions 54.6% Call Center Mobile Banking 3.1% 2,388 20.1% 2,195 1,911 1,545 1,727 8.8% ATM 32.8% 3Q18 Internet 3Q17 4Q17 1Q18 2Q18 3Q18 1
Slide 22: VakıfBank with numbers
INVESTOR RELATIONS Earnings Presentation Bank Only 3Q18 VakıfBank with numbers Distribution Channels&Customer (#) 3Q18 Efficiency (‘000 TRY) 3Q18 Personnel 16,747 Assets per Employee 21,103 POS Terminals 229,704 Assets per Branch 372,011 Outstanding Credit Cards 4.5 mn Loans per Employee 14,083 Tota
Slide 23: Diversified funding sources via Non-Deposit Funding
INVESTOR RELATIONS Earnings Presentation Bank Only 3Q18 Diversified funding sources via Non-Deposit Funding US$ 1.5 billion outstanding April 2018 US$ 1.291 million equivalent syndicated loan with 1 year and 2 year tranches, all in cost as Libor + 1.30% and Euribor +1.20% for 1 year and Libor + Synd
Slide 24: Unconsolidated Key Financial Ratios
INVESTOR RELATIONS Earnings Presentation Bank Only 3Q18 Unconsolidated Key Financial Ratios 9M17* 2017* 2Q18 3Q18 9M18* Profitability ROAE 18.1% 17.5% 16.8% 14.9% 16.6% ROAA 1.6% 1.5% 1.5% 1.2% 1.3% Cost / Income 37.2% 37.2% 42.1% 28.9% 33.8% Cost / Assets 1.7% 1.6% 1.8% 1.5% 1.5% Fee / Cost 29.8% 3
Slide 25: Unconsolidated Balance Sheet
INVESTOR RELATIONS Earnings Presentation Bank Only 3Q18 Unconsolidated Balance Sheet 3Q17 YE17 2Q18 3Q18 TL USD (thousand) TL USD TL USD TL USD TL USD YoY QoQ YoY QoQ Cash & Balances with 26,242,801 7,366,359 28,644,824 7,577,996 35,533,591 7,765,887 35,775,875 5,962,646 36.3% 0.7% (19.1%) (23.2%) C
Slide 26: Unconsolidated Income Statement
INVESTOR RELATIONS Earnings Presentation Bank Only 3Q18 Unconsolidated Income Statement (TL-thousand, %) 9M17 2Q18 3Q18 9M18 YoY QoQ Net Interest Income 6,302,521 2,571,782 3,372,167 8,250,120 30.9% 31.1% Net Fee & Com. Income 958,825 511,491 599,991 1,555,339 62.2% 17.3% Dividend Income 93,501 73,0
Slide 27: Investor Relations contact and disclaimer
A member of BIST Sustainability Index With this recycling paper, following items have been saved annually; Investor Relations Saray Mahallesi Dr. Adnan Buyukdeniz Cad. A1 Blok 60 kg of landfill No: 7a Umraniye/Istanbul 14 kg of CO2 and greenhouse gases (Akyaka Park Mall) E-mail: investorrelations@va
Türkiye Vakıflar Bankası T.A.O. (VakıfBank) — Q3 2018 Earnings Presentation on 6ix