Turkiye Sinai Kalkinma Bankasi A.s. · BIST:TSKB
Turkiye Sinai Kalkinma Bankasi A.s — Türkiye Sinai Kalkınma Bankası A.Ş. (TSKB) — Q1 2023 Earnings Presentation
29 slides from Turkiye Sinai Kalkinma Bankasi A.s's earnings presentation, May 2023
Slide 1: The Industrial Development Bank of Türkiye: 1Q-23 Bank-only Results
The Industrial Development Bank of Türkiye FI&IR Presentation 1Q-23 Bank-only Results Corporate Banking Investment Banking Advisory Services
Slide 2: TSKB at a Glance
TSKB at a Glance 4 Turkey tis Bank Group 40.2% Ly Ly) Gy Lyle oe Shareholding baae Z fakifban! AKG AN Fitch LTFC B- B Free Float® & Other Moody’sLTIR B3 B3 SAHA Corporate Governance Rating yy YY Sustainalytics ESG 7.9 Negligible Risk As of May,8th 2023 Risk Rating Zp CORPORATE BANKING INVESTMENT BAN
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 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 and Results
Sustainable Banking Developments and Results es Bie Lee Integrated Annual Report Allocation and Impact Reportin 9 P P ig Updated and assured Stakeholder Participation and Materiality + 5thedition Analysis with double materiality concept * 2021 Sustainability Bond * Risk and Opportunities Analysis on
Slide 9: 1Q-23 At a Glance
1Q-23 At a Glance 1.5% Loan Growth & + 1.5% FX-adjusted loan growth + TL 50 million extra free provisions + NPL down to 2.6% Well-pro' ned Intact Asset Quality + FX LCR: 379% + ~80% ESG-linked funding + Additional EUR 100 million new loan agreement F meth + Stable core banking income generation Soli
Slide 10: Financial Guidance (Bank Only)
Financial Guidance 1Q-23 (%) YE-23 (%) (Bank Only) Figures Guidance Growth FX Adjusted Loan Growth 1.5 ~5 Profitability Net Interest Margin* 5.9 >5 Fees & Commissions Growth 102 ~100 Return On Equity ** 42 ~35 Efficiency OPEX Growth 178 ~90 Cost/Income Ratio 14.6 <13 Solvency*** Capital Adequacy Rat
Slide 11: Strong profitability is maintained, given the differentiating business model
11 Strong profitability is maintained, given the differentiating business model Net Banking Income-TL mn Net Banking Income vs Provisions - TL mn 2,003 1,757 Core 23% _ 1757 Revenues up 835 1,757 . GEER AVY 73 46% yoy OK 983 103 103 [119] 1,095 377 671 671 377 10-22 40-22 10-23 40-22 10-23 Medic A J
Slide 12: Banking Sector vs TSKB
AP Banking Sector vs TSKB CAR* 18.7% 17.8% Banking Sector TSKB *Reported figures Cost to Income 34.9% 14.6% Banking Sector TSKB Repo| {syndication Fs nds S rn ae Borrowed = 9% 6 y ‘i irl Deposit cise Securities Issued 2 3% 3 f Subordinated bonds < wy Other) ] 2nd loans (ATI Tier I) ™% 3% Loans/Asset
Slide 13: Comfortable FX Liquidity and Maturity Profile
Comfortable FX Liquidity and Maturity Profile Funding / Total Lia ities (exc. Equity & Oth.) - USD mn Maturity Profile of External Debt - USD mn % % m Guaranteed DFI Unguaranteed DF Don 22% 16% Funding Securities Issued 10% 12% Bed) wSubordinated Debt m Syndication & Other mRepo &Money Market Y 58%
Slide 14: Long Term DFI Funding Base
Long Term DFI Funding Base Outstanding DFI Funding Base - 1Q-23 IBRD Lys Yearly Multilateral Funding Agreements - USD mn AIL New Loan Agreements + KfW| EUR 100 million Kfw f JBIC F AFD 5.0% 7 oe Bao 8 oo IDB 4.0% 2016 2017 2018 2019 2020 2021 2022 2023 IFC 3.6% EBRD | | 2.0% CEB 1.6% OEB | 0.2% 14 T
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
Resilient Asset Composition Asset Composition-TL bn Total Loans - TL bn Currency Breakdown 77 » 9% 64.2 2.9 4.2$ Dy 10-22 4Q-22 10-23 Yi yy YY Loans mSecurities =Cash&MM_ mNon IEAs & Other FX Loans($). = TRY Loans 1Q-23 Loans by Currency & Type Remaining Average Maturity - Years APEX Loans, TRY, 9%
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 37.9% Finance 9.9% Metal & Machinery 8.9% Tourism 5.7% Health & Education 5.6% Electricity/Gas Distr. 5.1% Logistics 4.9% Construction & Construction Materials 3.6% • Chemistry & Plastics 3.2% • Food & Beverage 2.5% • Non-Residential Real Estate 1.8% Automotive 1.1% Telecom &
Slide 20: Renewable Energy Portfolio by Source
1.6 bn 1.9 bn 1.9 bn 1.9 bn 1.9 bn 1.7 bn 1.6 bn 4% 6% 6% 7% 8% 11% 13% 5% 5% 5% 6% 9% 11% 13% 35% 37% 35% 37% 39% 36% 36% 17% 18% 19% 20% 19% 19% 19% 37% 35% 35% 31% 24% 23% 20% 2017 2018 2019 2020 2021 2022 1Ç-23 Hydro Geothermal Wind Biomass Solar • •
Slide 21: Health Sector Financing
73,159 744 8,647 2,465 2,046 % 37 41.4 8 6 8.9 5 17.9 Health 1 47 10 20.8 28.5
Slide 22: Securities Yield and CPI
80.4% 75.6% TL Sec. Yield exc. CPI CPI • 58.6% 42.8% 47.8% • 23.2% 16.6% 19.6% 13.0% 19.4% 17.0% 17.3% 18.8% 19.1% 18.9% 13.6% 15.3% 16.4% 1Q-21 2Q-21 3Q-21 4Q-21 1Q-22 2Q-22 3Q-22 4Q-22 1Q-23
Slide 23: Income Statement Highlights
Income Statement Highlights TLmn Net Interest Income Trading Income Net Fees & Commissions Other Income (Inc. Dividend) Banking Income OPEX (-) Net Banking Income Provisions (-) Income From Participations Tax Provisions (-) Net Profit Based on MIS data 1Q-22 4Q-22 10-23, 1,093 2,010 1,584 377 73 103
Slide 24: Framed contraction in NIM due to sustainable business model
24 Framed contraction in NIM due to sustainable business model Annualized NIM Quarterly NIM 7.51% 6.8% 5.19% 5.9% 5.2% = CPI impact = Core NIM 1.67% 3.53% 10-22 4Q-22 10-23 19-22 4Q-22 10-23
Slide 25: Capital Adequacy Ratio Movement
12.0% 8.5% 0.65 1.51 - 0.23 2.34 1.17 0.16 16.7 17.0 4Q-22 Δ Market Risk Δ Credit Risk Δ MtM Δ Operational Subordinated Net Profit 1Q-23 Risk Debt
Slide 26: 2S BS Q gf x
2S BS Q gf x
Slide 27: Balance Sheet
27 Balance Sheet Cash and Banks Securities Loans (Gross) Provisions Subsidiaries Other Total ST Funds LT Funds Securities Issued Repo & MM Other Subordinated Debt Shareholders’ Equity 5,508 21,295 84,032 5,271 4,084 3,199 112,848 3,343 67,343 14,538 4,072 5,697 3,816 14,039 31/03/2022 31/12/2022 31/
Slide 28: Detailed Income Statement
28 Detailed Income Statement TLmn 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 29: TSKB Financial Institutions & Investor Relations
29 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 Sinai Kalkınma Bankası A.Ş. (TSKB) — Q1 2023 Earnings Presentation on 6ix