Turkiye Sinai Kalkinma Bankasi A.s. · BIST:TSKB
Turkiye Sinai Kalkinma Bankasi A.s — Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — Q3 2024 Earnings Presentation
33 slides from Turkiye Sinai Kalkinma Bankasi A.s's earnings presentation, November 2024
Slide 1: Corporate Banking Investment Banking Advisory Services
Corporate Banking Investment Banking Advisory Services
Slide 2: TSKB at a Glance
TSKB at a Glance 4 Turkey wis Bank Group Ratings TSKB UA Lyle oe Shareholding Z fakifban! Structure Fitch LTFC B+ BB- Free Float* & Other Moody’sLTIR BI B1 SAHA Corporate Governance Rating Yj YY Sustainalytics ESG 7.5 Negligible Risk ‘As of November 1" 2024 Risk Rating Wits, CORPORATE BANKING INVEST
Slide 3: A Unique Business Model
A Unique Business Model = Long term tenor in liabilities: 11.2years * Medium term in assets: 4.7 years = Diversified funding tools = Amortized loan book = Multi-disciplinary assessment during allocation = Sector specific research analysts during allocation and monitoring period = Strong collateraliz
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 loans, investment banking activities and advisory services Ministry of Treasury and Finance Its capacity to introduce innovative the
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: TSKB Sustainability Journey
TSKB Sustainability Journey - | First Carbon Neutral Bank of Turkey Environmental Factor in Credit Appraisal Process Environmental Management System Yy coy 1980 1990 2005 2007 2008 2009 First Environmental Loans | + UNEP FI + ISO 14001 Certificate + Launch of www. cevreciyiz.com 0Og cevreciyiz. * ce
Slide 7: • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Slide 8: Sustainable Banking Developments
Sustainable Banking Developments Stakeholder Workshop Financial, Impact - Double and Dynamic Materiality Analysis External and Internal . Stakeholders eevee Le nisi 28 Positive and Negative Impacts ti be coal a a Risks and Opportunities ransition to a low-carbon an climate-resilient future * 6-month
Slide 9: Differentiating 3Q-24 Performance at a Glance
Differentiating 3Q-24 Performance at a Glance + Best-in-class ROE Continuous Earnings Growth, Robust FX Loan Spread Steady NIM evolution *Core NIM expansion + Diversified fee income performance *New DFI agreements and USD 350 mn Eurobond issue Strong FX Funding *USD 1,1 bn Unwithdrawn DFI funding *F
Slide 10: Financial Guidance (Bank Only)
Financial Guidance 9M24 Figures Previous YE24 Guidance Revised YE24 Guidance (Bank Only) % % % Growth FX Adjusted Loan Growth 11.5 Low Teens - Profitability Net Interest Margin 6.1 ~6 - Fees & Commissions Growth 44 > avg. CPI - Return On Equity 37.4 ~40 - Efficiency OPEX Growth 84 > avg. CPI - Solve
Slide 11: Distinguished and Robust Profitability
Distinguished and Robust Profitability Net Profit-TL mn Yearly tas] Quarterly +40% 7,036 © Strong coverage and free provision reserves to support profitability 9M-23 9OM-24 20-24 30-24 Y Total coverage ratio stands at 5.2% DO ¥ — Stock of free 37.4% Ay} 3M-24 6M-24 9M-24 TSKB
Slide 12: Banking Sector vs TSKB
AP Banking Sector vs TSKB CAR* 25,0% 18,2% L Banking Sector *Reported figures Cost to Income 43,7% az. 14,4% Banking Sector Repo % | [Syndication 5 6% oe Funds 2 Borrowed uu 8% al Deposit rc) 63% Securities Issued 4 3% x € Equity Subordinated bonds ao 9% ‘Other | and loans (ATI + Tier I) 7% 2% Loans
Slide 13: Funding Maturity Profile
-223 -233 -3 -340 -494 -442 -29 -55 -2,563 ✓ -650 ✓ -300 ✓ 2024 2025 >=2026 ✓ ✓ Syndication & Other DFI Funding Eurobond & PP Subordinated Debt Money Market Funding ✓ ✓ ✓
Slide 14: Long Term DFI Funding Base
Long Term DFI Funding Base Outstanding DFI Funding Base - 3Q-24 IBRD AIIB Kfw JBIC EIB AFD IsDB CDB IFC EBRD 1,9% OFB H1,0% CEB | 0,7% 14 Yearly Multilateral Funding Agreements - USD mn 2018 2019 2020 2021 2022 2023 = 9M2024
Slide 15: Outstanding Project Themes Shaping Future Loan Book
VS 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 16: Resilient Asset Composition
16 Resilient Asset Composition Asset Composition - TL bn 10-24 20-24 30-24 = Loans = Securities = Cash &MM mNon IEAs & Other 3Q-24 Loans by Currency TL; 6.6% USD; 49.5% EUR; 43.9% Total Loans - TLbn Loan Growth CAE 166.9 Breakdown 151.2 A : I). y oe oe 10-24 20-24 30-24 =m FX Loans ($) eTLLoans No M
Slide 17: Risk Management Pillars
Risk Management Pillars Credit Risk * Monitoring the clients individually with analysing the financials * Preparing monitoring reports for the clients at least once a year * Keeping track of internal and external (if it is done) ratings of the customers, reviewing the internal ratings annually = Act
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Slide 19: Loan Breakdown by Sector
Electricity Generation 32,7% Finance 9,9% Metal & Machinery 8,4% Tourism 7,1% Health 5,6% Logistics 5,0% Chemistry & Plastics 4,6% Textile 4,3% Electricity/Gas Distr. 4,3% Construction & Construction Materials 4,3% Food & Beverage 2,7% Paper and Forestry Products 2,5% Other** 8,6%
Slide 20: Renewable Energy Loans by Source
1.9 bn 1.9 bn 1.9 bn 1.9 bn 1.7 bn 1.6 bn 1.7 bn 6% 6% 7% 8% 11% 5% 5% 6% 15% 20% 9% 11% 12% 37% 10% 35% 37% 39% 36% 37% 39% 18% 19% 20% 19% 19% 19% 18% 35% 35% 31% 24% 23% 17% 13% 2018 2019 2020 2021 2022 2023 9M-24 Hydro Geothermal Wind Biomass Solar • •
Slide 21: ✓ ✓ ✓ ✓ ✓ 149,808 13,354 4,604 3,745 3,144
✓ ✓ ✓ ✓ ✓ 149,808 859 13,354 4,604 3,745 3,144
Slide 22: Security Yields
Security Yields 75,6% 80,4% Excluding CPI CPI 58,6% 57,7% 56,9% 48,4% 43,1% 47,8% 47,5% 42,8% 42,6% 41,5% 45,0% 42,2% 31,5% 22,6% 17,3% 18,8% 19,1% 18,9% 19,4% 19,9% 1Q-22 2Q-22 3Q-22 4Q-22 1Q-23 2Q-23 3Q-23 4Q-23 1Q-24 2Q-24 3Q-24
Slide 23: Remarkable earnings with strong solvency and liquidity
Remarkable earnings with strong solvency and liquidity rtm om2s ome (UWS «20-28 saz (RBA Net Interest Income 6,518 8,500 30% 2,760 3,198 16% Continuous Earnings Growth Trading Income 1,893 879 54% 226 195 -14% (+40% yoy, +7% qoq) Net Commissions 287 413 44% 164 119 -28% Other Income (Inc. Dividend)
Slide 24: Solid and Resilient NIM
Solid and Resilient NIM Net Interest Income inc. Swap Cost (TL bn) Annualized NIM 3,046 2,760 3,198 7.0% 6.1% 5.9% ——" 2.4% = CPI Income = CPI Impact = Nilexcl. CPI Core NIM m Swap Cost 2,453 4.6% (425) 4Q-23 20-24 30-24 “Eye Boyes yy *IEA Evolution can be seen in the Appendix v Strong and resilient
Slide 25: CAR Evolution
25,0 CAR Evolution 1,17 20,0 0,20 0,12 0,08 0,02 1,72 - 15,0 20,3 20,2 10,0 2Q-24 Δ Market Risk Δ Credit Risk Δ MtM Δ Operational Subordinated Δ Tier II Net Profit 3Q-24 Risk Debt
Slide 26: Appendix
2S BS Q gf x
Slide 27: Balance Sheet
Balance Sheet 31.03.2024 30.06.2024 30.09.2024 mmm KR TOTALS |) TK TOTALS KOT Cash and Banks 10,236 5,554 15,789 6,203 6,599 12,802 2,179 5,977 8,156 Securities 16,208 17,707 33,915 18,343 19,056 37,399 21,092 19,137 40,230 Loans (Gross) 11,051 133311 144,362 11,816 139,373 151,189 10,971 155,937 16
Slide 28: Detailed Income Statement
Detailed Income Statement TLmn 9M-23 9M-24 Yoy 2Q-24 3Q-24 QoQ Net Interest Income inc. Swap Cost 6,518 8,500 30% 2,760 3,198 16% Net Interest Income 6,482 11,135 72% 3,747 3,623 3% CPI Linkers 2,515 2,882 15% 874 1,171 34% Swap Costs 36 -2,635 n.m. -987 425 -57% Net Fees & Commissions 287 413 44% 1
Slide 29: Appendix: ESG Ratings
Appendix: ESG Ratings U)sustainarvics Wepp Sustainalytics ESG Risk Rating CDP Climate Change Score Range 0-40+ A/D- Score 75 A- Negligible risk category Leadership First place in Turkiye 12th place among global development banks TOP RATED Pas Moopy’s Moody's ESG Credit Impact Score a5 2 Neutral-to-l
Slide 30: Appendix: Stage Loans Breakdown
30 Appendix: Stage 2 Loans Breakdown Stage 2 Loans Sector % Coverage (%) Tourism 49 4l Electricity/Gas Distribution 18 42 Electricity Generation 12 13 Non-residential Real Estate 8 29 Metal and Machinery 6 32 Telecom/Logistics 4 9 Automotive Supply Industry 3 20 TOTAL 100 34 * Hard collateral & prov
Slide 31: Appendix: IEA Evolution
31 Appendix: IEA Evolution Interest Earning Assets 202 | | ; 10-24 20-24 30-24 mLiquid Assets mSecurities =Loans v Interest Earning Assets were up by 7% QoQ and 32% YoY, which was driven by * High FX denomination * Growth strategy
Slide 32: Provisions
Provisions (TL mn) 9M24 Stage 1* -268 Stage 2** 598 Stage 3 271 Reversals*** (TL mn) -280 Net CoR 29 bps Currency Impact 67 bps Net CoR excl. Currency Impact -39 bps
Slide 33: Disclaimer
DISCLAIMER This presentation document is prepared for informational purposes only and contains certain forward-looking comments, opinions, and forecasts. These reflect the views of Turkiye Sinai Kalkinma Bankasi A‘S. ("TSKB") as of the date of this presentation and contain certain assumptions. Altho
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