Turkiye Vakiflar Bankasi Turk Anonim Ortakligi · BIST:VAKBN

Turkiye Vakiflar Bankasi Turk Anonim Ortakligi — Türkiye Vakıflar Bankası T.A.O. (VakıfBank) — Q3 2019 Earnings Presentation

26 slides from Turkiye Vakiflar Bankasi Turk Anonim Ortakligi's earnings presentation, Nov 8, 2019

  1. Slide 1: Earnings Presentation BRSA Bank-Only 3Q 2019

    VakıfBank IR App. Available at Earnings Presentation BRSA Bank-Only 3Q 2019 November 8, 2019

  2. Slide 2: 3Q19 Earnings and Ratios

    INVESTOR RELATIONS Earnings Presentation Bank Only 3Q19 3Q19 Earnings and Ratios Net Income (TL million) Pre-Provisioning Operating Profit (TL million)* Despite quarterly effective tax rate of 31.6% 6,972.8 503.2 2,027.7 5,010.6 367.6 TL 852 million 36.9% free provisions in the balance 836.5 sheet 9

  3. Slide 3: Key Highlights of 3Q19

    INVESTOR RELATIONS Earnings Presentation Bank Only 3Q19 Key Highlights of 3Q19 Sound NIM expansion • Reported 3Q19 NIM materialized at 4.08% vs. 3.55% in 2Q19 • Reported 3Q19 NIM would be 4.25% without any CPI adjustment*. • Swap adjusted NIM reached 2.87% in 3Q19 vs. 2.19% in previous quarter. Robu

  4. Slide 4: 9M19 P&L Details

    INVESTOR RELATIONS Earnings Presentation Bank Only 3Q19 9M19 P&L Details 3,249 12,626 (4,846) 2,931 51 (2,022) 8,417 (5,842) 9M19 (415) 1,522 Net Interest Net F&C Dividend Net Trading Other Income Total Operating Provisions Taxes Net Income Income Income Income Income Revenue Expenses % vs 9M18 +2%

  5. Slide 5: High quality revenue breakdown

    INVESTOR RELATIONS Earnings Presentation Bank Only 3Q19 High quality revenue breakdown Total Revenues – Revenue Breakdown (TL million) 8% Other+Trading Dividend Other+Trading Dividend 15.0 1.1 12,626 9.7 0.4 11,694 NII Net F&C 9M18 9M19 66.7 13.3 Net F&C NII 23.2 70.6 9M18 9M19 Core Banking Revenues

  6. Slide 6: NIM, Spreads & Swap

    INVESTOR RELATIONS Earnings Presentation Bank Only 3Q19 NIM, Spreads & Swap Net Interest Margin (NIM %) Swap Adjusted Net Interest Margin (%) In line with Expected to the guidance be in line with 4.22 4.30 4.30 4.95 4.22 the guidance 3.71 4.95 4.08 >4 3.55 2.63 >3 53 bps 2.87 2.19 68 bps 9M18 2018 9

  7. Slide 7: Eye catching fee income growth further accelerated via retail lending

    INVESTOR RELATIONS Earnings Presentation Bank Only 3Q19 Eye catching fee income growth further accelerated via retail lending Net Fee & Commission Income (TL million) – Fee Breakdown 88.5% Insurance Insurance Inquiry & Expertise Quarterly Net Fee & Commission Income 2,931 8% 10% 6% Growth 28.3% Inqu

  8. Slide 8: Opex breakdown and Cost/Income Ratios

    INVESTOR RELATIONS Earnings Presentation Bank Only 3Q19 Opex breakdown and Cost/Income Ratios Operating Expenses (TL million) Branch number Breakdown of OPEX 38.4 5 branches have Cumulative Opex been closed in C/I Ratio (%) 33.8 Growth 22.7% 3Q19 59% 4,846 41% 950 951 3,951 946 9M18 57% 43% 9M19 9M1

  9. Slide 9: Well diversified & stable loan breakdown

    INVESTOR RELATIONS Earnings Presentation Bank Only 3Q19 Well diversified & stable loan breakdown Segment Breakdown of Loans (TL billion) Currency Breakdown of Loans (TL billion) Portfolio Breakdown (%) 259.9 259.9 250.0 250.0 24.2 24.7 235.8 15.6 SME 15.2 235.8 Other1 14.4 221.6 221.6 Retail 24.2 24

  10. Slide 10: Breakdown of Loan Portfolio

    INVESTOR RELATIONS Earnings Presentation Bank Only 3Q19 Breakdown of Loan Portfolio Sector Breakdown of Cash Loans CGF Loans Manufacturing Retail Loans 15% 20% (TL bn) 2018 2Q19 3Q19 Construction Total CGF 10% 26.6 31.9 32.4 Guarantee Limit Other 3Q19 Originated Amount 28.9 35.4 36.1 Energy 13% Outs

  11. Slide 11: NPL recognition move strengthens balance sheet position

    INVESTOR RELATIONS Earnings Presentation Bank Only 3Q19 NPL recognition move strengthens balance sheet position NPL (TL million)* Sector Breakdown of Stage III Loans 2,662 761 14,348 Construction 12,447 Wholesale & Retail Trade 12.4% Manufacturing 24.9% 17.7% Real Estate 4.3% NPL 2Q19 New NPL Collec

  12. Slide 12: Conservative coverage ratios maintained despite increase in NPL inflows

    INVESTOR RELATIONS Earnings Presentation Bank Only 3Q19 Conservative coverage ratios maintained despite increase in NPL inflows Net Expected Credit Losses Net Cost of Risk (bps) 360 (Thousand TL) 9M19 204 201 Expected Credit Losses 5,807,804 169 168 65 Stage I 1,013,913 Stage II 1,870,015 Cumulative

  13. Slide 13: Customer deposits driven well diversified funding structure

    INVESTOR RELATIONS Earnings Presentation Bank Only 3Q19 Customer deposits driven well diversified funding structure Total Deposits (TL billion) Breakdown of Deposits 229.6 214.3 190.9 58% 179.4 48% 52% 95.5 42% 97.7 $ 16.9 78.2 69.8 $ 17.0 Sector $ 13.0 $ 13.2 TL Deposits FC Deposits TL Deposits FC

  14. Slide 14: Further diversified long term wholesale funding transactions

    INVESTOR RELATIONS Earnings Presentation Bank Only 3Q19 Further diversified long term wholesale funding transactions Breakdown of Wholesale Funding Local Bonds Other 6.7% 1.0% First ever TLREF indexed Tier II Notes issuance AT I Issuance Eurobond 15.1% with an amount of TL 725 million out of 11.1% T

  15. Slide 15: Strong solvency ratios amid challenging macro conditions

    INVESTOR RELATIONS Earnings Presentation Bank Only 3Q19 Strong solvency ratios amid challenging macro conditions Capital Adequacy Ratio (%) The effect of 0.1 TL decrease Tier I 11.98* 13.75 12.23 13.98 13.81 /increase in USD/TL parity The effect of on CAR is 1 ppt interest 16.99 17.01 17.01 BRSA 15.

  16. Slide 16: Appendix

    INVESTOR RELATIONS Earnings Presentation Bank Only 3Q19 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 3Q19 Composition of Asset & Liabilities Breakdown of Assets (%) TL/FC Mix in Total Assets Other 3Q19 14.8 Interbank 1.4 The share of IEA 37% 85.2% 63% 3Q19 Securities in total assets 16.6 67.2 Loans FC TL Breakdown of Liabilities (%) TL/FC Mix in To

  18. Slide 18: Well balanced security portfolio

    INVESTOR RELATIONS Earnings Presentation Bank Only 3Q19 Well balanced security portfolio Total Securities (TL million) Portfolio Structure 36.6% TL FC 63,856 64,100 18% 49,054 46,917 46,666 46,349 100% 72% 42% 39,981 73% ‘Share of total’ 40% 39,128 82% 83% 100 0% 97 90 71 0% 0% 0% 17,091 17,653 7,69

  19. Slide 19: Retail Lending Portfolio

    INVESTOR RELATIONS Earnings Presentation Bank Only 3Q19 Retail Lending Portfolio General Purpose Consumer (TL billion) Residential Mortgages (TL billion) Credit Card Loans (TL million)* 21.8% 3.7% 20.2% 27.3 24.5 24.7 21.1 10,315 22.4 20.3 9,772 21.2 19.4 19.2 19.0 8,580 8,944 8,836 10.6% 5.6% 11.0%

  20. Slide 20: Strong growth in mobile platforms continues

    INVESTOR RELATIONS Earnings Presentation Bank Only 3Q19 Strong growth in mobile platforms continues Active Mobile Banking Customers (#thousand)* Breakdown of Transactions (%) 30.5% Call Center 2.0 Mobile Banking 3,117 2,769 2,921 2,570 29.7 ATM 2,388 6.7% 32.2 3Q19 3Q18 4Q18 1Q19 2Q19 3Q19 Branch In

  21. Slide 21: VakıfBank with numbers

    INVESTOR RELATIONS Earnings Presentation Bank Only 3Q19 VakıfBank with numbers Distribution Channels&Customer (#) 3Q19 Efficiency (‘000 TRY) 3Q19 Personnel 16,865 Assets per Employee 22,938 POS Terminals 325,543 Assets per Branch 408,927 Outstanding Credit Cards 5.0 mn Loans per Employee 15,413 Tota

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

    INVESTOR RELATIONS Earnings Presentation Bank Only 3Q19 Diversified funding sources via Non-Deposit Funding US$ 2.30 billion outstanding April 2019 US$ 1.100 million equivalent syndicated loan, all in cost as Libor + 2.50% and Euribor +2.40% with participation of 38 banks from 17 countries. Syndicat

  23. Slide 23: Unconsolidated Key Financial Ratios

    INVESTOR RELATIONS Earnings Presentation Bank Only 3Q19 Unconsolidated Key Financial Ratios 9M18 2018 1Q19 1H19 9M19 Profitability ROAE 16.6% 16.1% 9.1% 7.1% 6.9% ROAA 1.3% 1.4% 0.8% 0.6% 0.6% Cost / Income 33.8% 36.9% 32.1% 38.3% 38.4% Cost / Assets 1.5% 1.8% 1.7% 1.7% 1.7% Fee / Cost 39.4% 39.0% 6

  24. Slide 24: Unconsolidated Balance Sheet

    INVESTOR RELATIONS Earnings Presentation Bank Only 3Q19 Unconsolidated Balance Sheet 3Q18 2Q19 3Q19 TL USD (thousand) TL USD TL USD TL USD YoY QoQ YoY QoQ Cash & Balances with 35,775,875 5,962,646 35,884,469 6,229,943 30,946,802 5,479,143 (13.5%) (13.8%) (8.1%) (12.1%) Central Bank Interbank 10,065,

  25. Slide 25: Unconsolidated Income Statement

    INVESTOR RELATIONS Earnings Presentation Bank Only 3Q19 Unconsolidated Income Statement (TL-thousand, %) 9M18 2Q19 3Q19 9M19 YoY QoQ Net Interest Income 8,250,120 2,769,984 3,301,982 8,416,738 2.0% 19.2% Net Fee & Com. Income 1,555,339 855,486 1,097,237 2,931,282 88.5% (28.3%) Dividend Income 129,58

  26. Slide 26: Investor Relations

    A member of BIST Sustainability Index Investor Relations Saray Mahallesi Dr. Adnan Buyukdeniz Cad. A1 Blok No: 7a Umraniye/Istanbul (Akyaka Park Mall) E-mail: investorrelations@vakifbank.com.tr Tel (90-216) 724 2685 Fax (90-216) 724 3941 www.vakifbank.com.tr Disclaimer Notice: This report has been p

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