Turkiye Sinai Kalkinma Bankasi A.s. · BIST:TSKB
Turkiye Sinai Kalkinma Bankasi A.s — Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — Q3 2021 Earnings Presentation
27 slides from Turkiye Sinai Kalkinma Bankasi A.s's earnings presentation, November 2021
Slide 1: Created with a trial version of Syncfusion Essential PDF
Created with a trial version of Syncfusion Essential PDF
Slide 2: TSKB at a Glance
TSKB at a Glance Z Turkey nls Bank Group 40.7% Ratings TSKB Sovereign Lyle oe Shareholding 50.994 Z “ G Structure Fitch LTFC B: BB. Free Float* & Other Moody’sLTIR B3 B2 SAHA Corporate 959/10 Governance Rating YY yy Sustainalytics ESG 13,6 Low Risk As of November 2, 2021 Risk Rating y *https://www.b
Slide 3: 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 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 Sa
Slide 5: Sustainability is Well Integrated into Our Business Model
Sustainability is Well Integrated into Our Business Model health and safety © Supporting less developed regions Support for employment in Turkey; ® Encouraging women participation to the economy ERB Support transition to low ye carbon economy © Providing financing to operational Environmental & Soci
Slide 6: Guidance revisions
Guidance revisions Financial Guidance 2021E (%) 0 9 (Bank Only) 2021E (%) Revis 9M-21 Results (%) Growth Delivering Sreteinette FX Adjusted Loan Growth 3-5 <2 0.5 Stakeholder panna. Profitability Capitalization Fees & Commissions Growth ~20 ~35 32 Net Interest Margin (*) ~4.0 ~4.5 44 Return On Equit
Slide 7: Strong profitability performance, further backed by CPI-linker revenues
Strong profitability performance, further backed by CPl-linker revenues Net Banking Income- TRY mn 200 1,682 19% | 1,344 LE 913 164 267 9M-20 9M-21 BE Net Banking Income exc. CPI & Trading I Trading Gain/Loss EE CPlincome Net Profit- TRY mn 526 9M-20 9M-21 1,344 15.3% 16.1% 12.9% 30-20 1H-21 30-21 T
Slide 8: Banking Sector vs TSKB
Banking Sector vs TSKB CAR Loans/Assets 75.8% NPL 19.1% 59.8% 173% 3.4% 3.8% Banking Sector TSKB Banking Sector TSKB Banking Sector TSKB Cost to Income NIM ROE 47.2% 16.1% 44% 12.2% 2.7% Banking Sector SKB Banking Sector TSKB Banking Sector TSKB Repo & Depo Majority of the funding Syndication & e a
Slide 9: Comfortable FX liquidity and maturity profile
Comfortable FX liquidity and maturity profile Funding / Total Liabilities (exc. Equity & Oth.) -USDmn 5,953 6,138 6,235 5,802 5% A% 5% 5% 1% Ax 1% 1% mGuarenteed DFl Funding = Unguarenteed DF Funding 19% 23% 19% 19% Securities Issued = Subordinated Debt m Syndication & Other Repo &Money Market ~80%
Slide 10: Long Term DFI Funding Base
Long Term DFI Funding Base Outstanding DFI Funding Base - 3Q-21 IBRD 39.6% Yearly Multilateral Funding Agreements - USD mn EIB Kfw AIB DB 5.1% IDB 4.9% LS?) 4.7% CEB 2.7% JBIC 2.5% IFC | 1.4% EBRD 0.6% OEB | 0.3%
Slide 11: Outstanding Project Themes Shaping Future Loan Book
11 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 12: Resilient asset composition
APE Resilient asset composition Asset Composition - TRY bn 20-21 30-21 mLoans mSecurities =Cash&MM mNonIEAs & Other Average Maturity - Years Working Capital Loans NIN 2.7 APEX Loans [III 3.6 investment Loans I 6.7 ) 5.2 years Total Loans- TRY bn Currency Breakdown pie) 45.5 4.2 41 ») 9% 4.9$ 4.7$ 91
Slide 13: Risk Management Pillars
Risk Management Pillars * Monitoring the clients individually with analysing the financials * Preparing monitoring reports forthe clients at least once a year * Keeping track of internal and external (if it is done) ratings of Credit the customers, reviewing the internal ratings annually Risk * Acti
Slide 14: ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Slide 15: Loan sector breakdown
Electricity Generation; 39.1% Electricity/Gas Distr.; 6.8% • Tourism; 6.9% • Finance; 12.3% Other; 8.9% •
Slide 16: Renewable energy loans by source
1.6 bn 1.9 bn 1.9 bn 1.9 bn 1.9 bn 1.9 bn 2% 4% 6% 6% 7% 7% 6% 5% 5% 5% 6% 9% 32% 35% 37% 35% 37% 39% 14% 17% 18% 19% 20% 19% 46% 37% 35% 35% 31% 26% 2016 2017 2018 2019 2020 2021 3Q Hydro Geothermal Wind Biomass Solar • •
Slide 17: Asset quality remains intact
Stage Loans Stage2 Loans Stage3 Loans 17 Asset quality remains intact Gross Share 0.9% Stage-2 Loans Breakdown Coverage: 20.8% Electricity Generation 20-21 30-21 Coverage: 6.5% 54.9% 500% __—e Tourism 25% Coverage: 13.9% *Other: Non-residential Real Estate, Metal&Machinery, Automotive and others. 20
Slide 18: Security book supporting Bank's profitability
Security book supporting Bank’s profitability Total Securities Portfolio Breakdown TRY Securities Portfolio Breakdown* TRY 9.1 bn TRY78bn TRY 8.2 bn 72% Floatin 4,668 4,764 5,088 ime y HER ZEEE ZEEE y 19-21 20-21 30-21 * Auditreport values are taken into account =TRY (mn) = YP ($ mn) Security Yields
Slide 19: Takeaways from the Income Statement
Takeaways from the Income Statement TRY mn 9M-20 9M-21 YoY 2Q-21 3Q-21 QoQ Stellarcore Net Interest Income 1,293.9 1,621.3 25% 511.1 679.9 33% banking income Trading Income 163.7 151.7 -7.3% 62.0 -10.0 nm. generation St Net Fees & Commissions 38.6 509 32% 249 153 -39% contribution of Other Income (I
Slide 20: Steady NIM Performance
Steady NIM Performance 4.50% 4.00% 3.50% 3.4% - 20-21 Net FXLoans Net TLLoans TL Sec. exc.CPl CPI Linkers 20 *Annualized NIM computation: (NIl-swap costs- fx gains&losses)/(IEA-accruals) 41% FX Securities 466 30-21 4.50% 4.00% 3.50% 3.00% Annualized NIM** 44% 41% Se) 1Q-21 20-21 30-21 NIM to overbea
Slide 21: Capital adequacy movement
12.0% 8.5% 0.5 - - 0.06 - - 0.04 10.3 10.0 2Q-21 Δ RWA Δ MtM Net Profit 3Q-21
Slide 22: Recent developments on ESG and Sustainable Banking
Recent developments on ESG and Sustainable Banking ESG Risk Rating Update 13.6 @) sustainatytics— ESG Risk Rating a | 3.1 points improvement Ww Low Risk 1% place in Turkey 6* place in subindustry 54th place in industry ‘Momingstar company RATED 721 ESG Risk Management T 10.7 points improvement Stron
Slide 23: Appendix
2S BS Q gf x
Slide 24: Balance Sheet
Balance Sheet 30/12/2020 30/06/2021 30/09/2021 A A Cash and Banks 1,481 1,191 2,672 1,775 1,631 3,406 3,431 4,003 Securities 4,564 2,983 7,547 4,733 3,450 8,183 5,116 4,031 9,147 Loans (Gross) 4,136 34,984 39,120 4,227 42,194 46,421 4,134 41417 45,551 Provisions -529 “1,223 “1,752 607 “1,575 -2,182
Slide 25: Detailed Income Statement
25 Detailed Income Statement TRY mn Net Interest Income inc. Swap Cost Net Interest Income CPI Linkers Swap Costs (-) Net Commissions Other Income Dividends Other Trading & FX gains/losses FX gains/losses MtM gains/losses Trading gains/losses Banking Income OPEX (-) Net Banking Income ECL (-) Stage
Slide 26: Key Performance Indicators
Key Performance Indicators ROE* ROA Cost to Income 149% 15.3% 16.1% 13.0% 1.9% [ [ L MOO: 11.3% 11.2% 11.0% iq.99% 2020 10-21 20-21 30-21 2020///10-21/ 20-21 30-21 2020 10-21 20-21 30-21 Tier-l** CAR** sy 11.3% 16.6% 4.5% 44% r 10.3% 41% 4.2% ! 9.8% 10.0% 15.0% 15.2% — 15:6% L [ 2020 =10-21 20-21 3Q
Slide 27: TSKB Financial Institutions & Investor Relations
27 ool Oe TSKB Financial Institutions & Investor Relations TSKB Financial Institutions & Investor Relations ir@tskb.com.tr www.tskb.com Meclisi Mebusan Cad. 81 Findikli 34427 istanbul
Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — Q3 2021 Earnings Presentation on 6ix