Turkiye Vakiflar Bankasi Turk Anonim Ortakligi · BIST:VAKBN

Turkiye Vakiflar Bankasi Turk Anonim Ortakligi — Türkiye Vakıflar Bankası T.A.O. (VakıfBank) — H1 2018 Earnings Presentation

26 slides from Turkiye Vakiflar Bankasi Turk Anonim Ortakligi's earnings presentation, Aug 7, 2018

  1. Slide 1: Earnings Presentation BRSA Bank-Only 1H18

    VakıfBank IR App. Available at Earnings Presentation BRSA Bank-Only 1H18 August 7, 2018

  2. Slide 2: Strong Earnings Performance

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H18 Strong Earnings Performance Net Income (TL million) ROAE (%) 0.2% 19.8% 1H18 1.9 ppt better than 2,121.4 2,125.3 sector 1,051.4 1,073.8 896.7 17.23 15.35 2.1% 1H17 1H18 2Q17 1Q18 2Q18 VB Sector 2Q18 NPL Coverage Ratio Total LCR 1.2 ppt better t

  3. Slide 3: Drivers of Strong Performance & Key Highlights of 1H18

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H18 Drivers of Strong Performance & Key Highlights of 1H18 Effective NIM Management •NIM expanded 21 bps QoQ to 4.15% from 3.94% in 1Q18. •TL core spreads are up by 17 bps QoQ. •FC core spreads are up by 72 bps QoQ. •Strong NIM achieved despite Vak

  4. Slide 4: 1H18 P&L Details

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H18 1H18 P&L Details 810 7,062 (2,614) 117 301 955 4,878 (1,790) (533) 1H18 2,125 Net Interest Net Fees and Dividend Net Trading Other Income Total Operating Provisions Taxes Net Income Income Commissions Income Income Revenue Expenses % vs 1H17 +8

  5. Slide 5: Revenue breakdown

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H18 Revenue breakdown Total Revenues (TL million) Revenue Breakdown (%) 15.7% Other Dividend Other Dividend 7,062 1.7 13.5 11.4 1.0 6,103 Trading Trading 3,205 2,836 4.3 1.9 13.0% Net F&C Net F&C 9.9 1H17 13.5 1H18 NII NII 69.1 73.7 1H17 1H18 2Q17

  6. Slide 6: NIM, Spreads and Costs

    INVESTOR RELATIONS Earnings Presentation Bank Only 1H18 NIM, Spreads and Costs TL Core Spreads (%) FC Core Spreads (%) 14.01 14.07 15.01 13.32 9.38 9.46 10.23 TL Loan Yields 6.61 8.50 TL Deposit Costs 5.92 5.67 5.20 FC Loan Yields 2.04 2.17 2.14 2.36 FC Deposit Costs 4.82 4.63 4.61 4.78 4.25 +17 bps

  7. Slide 7: Eye-catching fee growth supported by diversified fee sources

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H18 Eye-catching fee growth supported by diversified fee sources Net Fee&Commission Income (TL million) Breakdown of Net Fee&Commission Income (%) Money Transfer Insurance 58.5% Inquiry&Expertise 5 7 Cash Loans 8 955.3 30 Other 1 1H18 602.8 Payment

  8. Slide 8: Strong efficiency maintained despite high inflation driven cost growth

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H18 Strong efficiency maintained despite high inflation driven cost growth Operating Expenses (TL million) Fee/Opex (%) 2,614.0 Annual Opex 36.5 Growth 24.8% 2,094.2 28.8 7.7 ppt 1H17 1H18 1H17 1H18 Cost/Income (%) Quarterly Opex 1,350.4 Growth 6.9

  9. Slide 9: Well diversified & stable loan breakdown

    INVESTOR RELATIONS Earnings Presentation Bank Only 1H18 Well diversified & stable loan breakdown Breakdown of Loans (TL billion) Portfolio Breakdown (%) Loan Portfolio Breakdown (TL Billion) 210.1 195.4 12.9 218.6 182.9 Gross Loans 203.3 8.5 12.1 7.9 8.5 167.1 SME 26.7 25.1 Stage III 11.9 52.8 Stage

  10. Slide 10: Breakdown of Loan Portfolio

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H18 Breakdown of Loan Portfolio Sector Breakdown of Cash Loans Breakdown of Construction Loans Construction Manufacturing Stage III 14% 3.7% TL 860.9 million Retail Loans 5.1% Stage II 22% TL 1.2 billion Construction Stage I TL 21.2 billion 11% 91.

  11. Slide 11: Prudent Definition of IFRS reflected on Stage II Loans

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H18 Prudent Definition of IFRS reflected on Stage II Loans Stage II Loans Breakdown (TL Billion) Sector Breakdown of Stage II Loans Total Stage II 6.9 6.2 8.5 Loans Restructured 11.5% 14.0% 22.4% Other Manufacturing 13.5% 11.7% Past Due 31 48.1% Da

  12. Slide 12: NPL Details

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H18 NPL Details NPL (TL million)* Reported and Comparable NPL Ratios (%) 1,010 447 7,945 8,508 15 bps 4.04 4.01 improvement 3.91 3.89 YoY 3.10 3.03 2.96 2.90 Sector NPL 1Q18 New NPL Collections NPL 2Q18 NPL growth still 1H17 YE17 1Q18 1H18 under co

  13. Slide 13: Strong collateralization and NPL collection performance put Net COR below guidance

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H18 Strong collateralization and NPL collection performance put Net COR below guidance Net Expected Credit Losses Net Cost of Risk (bps) 82 66 67 (Thousand TL) 1H18 50 Expected Credit Losses 1,788,150 Stage III 1,297,556 1H17 1Q18 2Q18 1H18 Provisi

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

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H18 Customer deposits driven well diversified funding structure Total Deposits (TL billion) 1H18 Loan/Deposit Ratios (%) 162.1 170.4 155.3 VB Sector 151 141.3 54.1 57.9 128 40.6 51.7 123 124 23 ppt FC 115 lower TL 55% 45% LtD Ratio 94 compared TL t

  15. Slide 15: Solid solvency&liquidity ratios maintained despite challenging environment

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H18 Solid solvency&liquidity ratios maintained despite challenging environment Capital Adequacy Ratio (%) Liquidity Ratios 2Q18 Required 1Q18 July 18 CET1 12.80 12.79 12.33 12.22 11.81 CET 1 Level 16.19 %7.14 Total LCR 107% 123% 15.74 15.52 15.37 1

  16. Slide 16: Appendix

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H18 Appendix Pg. 17 Composition of Assets&Liabilities Pg. 18 Well balanced Securities Portfolio Pg. 19 Retail Lending Portfolio Pg. 20 Strong growth in mobile platforms continues Pg. 21 VakıfBank with Numbers Pg. 22 Diversified Funding Sources via

  17. Slide 17: Composition of Asset&Liabilities

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H18 Composition of Asset&Liabilities Breakdown of Assets (%) TL/FC Mix in Total Assets Other* 16.3 Interbank 2.4 38% 1H18 62% YP Securities TL Loans 12.6 68.7 Breakdown of Liabilities (%) TL/FC Mix in Total Liabilities Repo** Funds Bor. 8.2 Bonds 1

  18. Slide 18: Well balanced security portfolio

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H18 Well balanced security portfolio Total Securities (TL million) Portfolio Structure 31.2% 38,499 TL FC 34,143 22% 32,253 29,352 12.8% 100% 8,992 28,060 34% 44% 30.6% 16,766 25,753 72.9% 52.0% 75.4% ‘Share of total’ 1,669 5.7% Fixed Floating CPI

  19. Slide 19: Retail Lending Portfolio

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H18 Retail Lending Portfolio General Purpose Consumer (TL billion) Residential Mortgages (TL billion) Credit Card Loans (TL million)* 17.5% 19.5% 22.6% 20.6 21.2 22.2 7,636 20.9 7,157 18.9 19.6 7,123 4.8% 19.0 17.5 6.6% 6,227 6.7% 1H17 YE17 1Q18 2Q

  20. Slide 20: Strong growth in mobile platforms continues

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H18 Strong growth in mobile platforms continues Active Mobile Banking Customers (#thousand)* Breakdown of Transactions (%) 56.8% Call Center 2,195 3 1,911 1,727 1,400 1,545 14.8% ATM Mobile Banking 32 26 1Q18 2Q17 3Q17 YE17 1Q18 2Q18 Internet 21 Br

  21. Slide 21: VakıfBank with numbers

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H18 VakıfBank with numbers Distribution Channels&Customer (#) 1H18 Efficiency (‘000 TRY) 1H18 Personnel 16,491 Assets per Employee 18,558 POS Terminals 224,040 Assets per Branch 320,131 Outstanding Credit Cards 4.4 mn Loans per Employee 12,740 Tota

  22. Slide 22: Diversified funding sources via Non-Deposit Funding

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H18 Diversified funding sources via Non-Deposit Funding US$ 2.4 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

  23. Slide 23: Unconsolidated Key Financial Ratios

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H18 Unconsolidated Key Financial Ratios 1H17 2017 1Q18 2Q18 1H18 Profitability* ROAE 20.8% 17.5% 17.4% 16.8% 17.2% ROAA 1.9% 1.5% 1.5% 1.5% 1.5% Cost / Income 34.3% 37.2% 32.8% 42.1% 37.0% Cost / Assets 1.8% 1.6% 1.8% 1.8% 1.7% Fee / Cost 28.8% 30.

  24. Slide 24: Unconsolidated Balance Sheet

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H18 Unconsolidated Balance Sheet 1H17 YE17 1Q18 1H18 TL USD (thousand) TL USD TL USD TL USD TL USD YoY QoQ YoY QoQ Cash & Balances with 26,244,627 7,477,102 28,644,824 7,577,996 30,855,501 7,804,920 35,533,591 7,765,887 35.4% 15.2% 3.9% (0.5%) Cent

  25. Slide 25: Unconsolidated Income Statement

    INVESTOR RELATIONS Earnings Presentation_Bank Only 1H18 Unconsolidated Income Statement (TL-thousand, %) 1H17 1Q18 2Q18 1H18 YoY QoQ Net Interest Income 4,498,140 2,306,171 2,571,782 4,877,953 8.4% 11.5% Net Fee & Com. Income 602,788 443,857 511,491 955,348 58.5% 15.2% Dividend Income 63,565 44,413

  26. Slide 26: 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

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