Turkiye Sinai Kalkinma Bankasi A.s. · BIST:TSKB
Turkiye Sinai Kalkinma Bankasi A.s — Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — Q4 2024 Earnings Presentation
34 slides from Turkiye Sinai Kalkinma Bankasi A.s's earnings presentation, February 2025
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 February 4° 2025 Risk Rating Wits, CORPORATE BANKING INVESTM
Slide 3: A Unique Business Model
A Unique Business Model = Long term tenor in liabilities: 10.9 years * Medium term in assets: 4.9 years = Diversified funding tools = Amortized loan book = Multi-disciplinary assessment during allocation = Sector specific research analysts during allocation and monitoring period = Strong collaterali
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 - I
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: 2024 Sustainability Snapshots
2024 Sustainability Snapshots Q1-24 Q3-24 Listed in Global 100 Most Sustainable A nce oped lpi July Corporations in the World nou! P 4 P by Corporate Knights out plan by the end of 2035 o Mecting in rominimee ~~ , February August Establishment of Climate Publishment of Updated Change and Sustainabil
Slide 9: Financial Guidance (Bank Only)
Financial Guidance YE24 Figures YE24 Guidance (Bank Only) % % Growth FX Adjusted Loan Growth 11.6 Low Teens Profitability Net Interest Margin 6.3 ~6 Fees & Commissions Growth 13 > avg. CPI Return On Equity 38.5 ~40 Efficiency OPEX Growth 88 > avg. CPI Solvency* Capital Adequacy Ratio 21.8 ~20.0 Tier
Slide 10: TSKB's Differentiating Performance Highlights Among the Sector
TSKB’s Differentiating Performance Highlights Among the Sector c.12% Record high FX Solid loan growth funding surpassing performance with Continuous Earnings Growth given the 1.7 bn USD with the Bank’s solid and Pemerdiroen se more than 1.8 bn USD diversification focus resilient core NIl * 300 mln U
Slide 11: Superior QoQ and YoY Earnings Performance
Superior QoQ and YoY Earnings Performance Net Profit-TL mn Yearly OQ Quarterly 7,041 Strong coverage, maintained and increased free provision stock will YE-23 12M-24 30-24 40-24 further support profitability TG ¥ Total coverage ratio ty Yi stands at 4.8% ROE / wloTl300mn 39.6% { — freeprovisions —}
Slide 12: Banking Sector vs TSKB
Banking Sector vs TSKB CAR* 26.9% 19.7% L Banking Sector *Reported figures Cost to Income 42.2% ae 13.8% Banking Sector Repo | syndication Deposit BANKING SECTOR AP Borrowed 7% 1% 62% Securities Issued 3% Equity Subordinated bonds 9% Other) ) 2nd loans (ATI + Tier It) 8% 2% Funds 9% Loans/Assets i 7
Slide 13: Funding Maturity Profile
-324 ✓ -442 -350 -185 -186 -650 ✓ -20 -300 ✓ -94 -2,519 ✓ -214 -20 ✓ ✓ -19 ✓ 1 to 12 months 1 to 3 years 3 to 5 years >5 years ✓ DFI Funding Eurobond & PP Money Market Funding Subordinated Debt Syndication & Other ✓
Slide 14: Long Term DFI Funding Base
Long Term DFI Funding Base Outstanding DFI Funding Base - 4Q-24 18RD Yearly Multilateral Funding Agreements - USD mn 46.3% AIlB Kfw JBIC AFD IsDB 2018 2019 2020 2021 2022 2023 2024 CDB IFC EBRD 3.5% OEB Ho.9% CEB | 0.4%
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: Loan Maturity Profile - USD mn
Loan Maturity Profile - USD mn 2,033 305 846 251 75 31 63 333 299 168 119 222 1 to 12 months 1 to 3 years 3 to 5 years >5 years APEX & Other Working Capital Loans Investment Loans
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
Slide 18: ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Slide 19: Loan Book Sector Breakdown
Electricity Generation 32.5% Metal & Machinery 8.8% • • Finance 8.8% • Logistics 6.6% • • Electricity/Gas Distr. 6.2% Health 5.4% Tourism 4.9% Chemistry & Plastics 4.5% Construction & Construction… 4.0% Textile 4.0% Food & Beverage 2.7% Paper and Forestry Products 2.4% Other** 9.5%
Slide 20: Renewable Energy Generation Mix
1.9 bn 1.9 bn 1.9 bn 1.9 bn 1.7 bn 1.6 bn 1.5 bn 6% 6% 7% 8% 11% 5% 5% 6% 15% 21% 9% 11% 12% 37% 35% 9% 37% 39% 36% 37% 40% 18% 19% 20% 19% 19% 19% 17% 35% 35% 31% 24% 23% 17% 13% 2018 2019 2020 2021 2022 2023 2024 Hydro Geothermal Wind Biomass Solar • •
Slide 21: ✓ ✓ ✓ ✓ ✓ 151,347 11,398 3,883 3,673 3,215 • • • •
✓ ✓ ✓ ✓ ✓ 151,347 929 11,398 3,883 3,673 3,215 • • • • • • • •
Slide 22: Security Yields
Security Yields 75.6% 80.4% Excluding CPI CPI 58.6% 57.7% 56.9% 48.4% 46.9% 47.8% 47.5% 43.1% 42.8% 42.6% 41.5% 42.2% 31.5% 45.0% 46.5% 18.8% 19.1% 18.9% 19.4% 19.9% 22.6% 17.3% 1Q-22 2Q-22 3Q-22 4Q-22 1Q-23 2Q-23 3Q-23 4Q-23 1Q-24 2Q-24 3Q-24 4Q-24
Slide 23: Remarkable Earnings Performance with Strong Solvency and Liquidity
Remarkable Earnings Performance with Strong Solvency and Liquidity TLmn Net Interest Income Trading Income Net Commissions Other Income (Inc. Dividend) Banking Income OPEX (-) Net Banking Income Provisions (-) Income From Participations Tax Provisions (-) Net Profit Based on MIS data 12M-23 9,564 2,
Slide 24: Cumulative Annualized NIM
Cumulative Annualized NIM 1.9% 1.9% 2.0% 1.8% CPI Impact Core NIM 3.9% 4.0% 4.2% 4.3% 3M24 6M24 9M24 12M24 ✓ ✓ ✓ ✓ ✓
Slide 25: CAR Evolution
Sustained and above sector solvency metrics despite strong real loan growth Capital Ratios Without BRSA Temporary Measures 21.8% 20.6% i ‘ity — 18.6% 19.0420-2% Evolution of RWA and Equity- TL bn 17.4% 203.4 203.0 152.1 a... 28.3 EVID) BV 2023-YE 30-24 2024-YE 2023-YE 30-24 2024-YE Tier |Ratio mCAR
Slide 26: Financial Guidance (Bank Only)
Financial Guidance YE25 Guidance (Bank Only) % Growth FX Adjusted Loan Growth Low Teens Profitability Net Interest Margin ~5 Fees & Commissions Growth ~ CPI Return On Equity ~30 Efficiency OPEX Growth > CPI Solvency* Capital Adequacy Ratio ~21.0 Tier I Ratio ~20.0 Asset Quality NPL Ratio < 2.5 Net C
Slide 27: 2S BS Q gf x
2S BS Q gf x
Slide 28: Balance Sheet
Balance Sheet 31.12.2023 30.09.2024 31.12.2024 mom KR TOTALS | TK TOTALS KOT Cash and Banks 7,427 7,699 15,126 2,179 5,977 8,156 1,928 10,553 12,480 Securities 12,177 15,663 27,839 21,092 19,137 40,230 22,207 19,275 41,483 Loans (Gross) 11,299 118,839 130,137 10,971 155,937 166,908 13,888 152,529 16
Slide 29: Detailed Income Statement
Detailed Income Statement TLmn 12M-23 12M-24 Yoy 3Q-24 4Q-24 QoQ Net Interest Income inc. Swap Cost 9,564 11,968 25% 3,198 3,469 8% Net Interest Income 10,239 15,136 48% 3,623 4,002 10% CPI Linkers 3,457 4,248 23% 1,171 1,365 17% Swap Costs -675 -3,168 369% -425 -533 26% Net Fees & Commissions 453 5
Slide 30: Appendix: ESG Ratings
30 Appendix: ESG Ratings U)sustainarvics Wepp Sustainalytics ESG Risk Rating CDP Climate Change Score Range 0-40+ A/D- Score 74 A- Negligible risk category Leadership First place in Turkiye 13th place among global development banks \ IT TAN ) INDUSTRY ( ) REGIONAL ( Sr , ita Moopy’s Moody's ESG Cred
Slide 31: Appendix: Stage Loans Breakdown
31 Appendix: Stage 2 Loans Breakdown Stage 2 Loans Sector % Tourism 27 Electricity/Gas Distribution 17 Electricity Generation 15 Non-residential Real Estate 9 Metal and Machinery 7 Telecom/Logistics 4 Automotive Supply Industry 3 Health 1 Other 17 TOTAL 100 Coverage (%) 20 49 + Hard collateral & pro
Slide 32: Appendix: IEA Evolution
Bey Appendix: IEA Evolution Interest Earning Assets 202 161 4Q-23 30-24 mLiquid Assets mSecurities = Loans 208 4Q-24 v Interest Earning Assets were up by 3% QoQ and 29% YoY, which was driven by * High FX denomination * Growth strategy
Slide 33: Provisions
Provisions (TL mn) 12M24 Stage 1* -174 Stage 2** 357 Stage 3 370 Reversals*** (TL mn) -308 Net CoR 17 bps Currency Impact 77 bps Net CoR excl. Currency Impact -60 bps
Slide 34: 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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