Turkiye Vakiflar Bankasi Turk Anonim Ortakligi · BIST:VAKBN
Turkiye Vakiflar Bankasi Turk Anonim Ortakligi — Türkiye Vakıflar Bankası T.A.O. (VakıfBank) — Q3 2023 Earnings Presentation
26 slides from Turkiye Vakiflar Bankasi Turk Anonim Ortakligi's earnings presentation, Nov 9, 2023
Slide 1: Earnings Presentation BRSA Bank-Only 3Q23
Earnings Presentation BRSA Bank-Only 3Q23 November 9, 2023
Slide 2: 3Q23 Earnings and profitability
Earnings Presentation Bank-Only 3Q23 3Q23 Earnings and profitability Net Income (TL billion) Core Banking Revenue (TL billion) NII + Trading Income (TL billion) 222% 94% TL 6.7 billion free provision buffer 15.6 15.0 22.2 21.4 845% ROAE 26% 9.5 11.1 6.9 1.0 9M22 9M23 2Q23 3Q23 2Q23 3Q23 2Q23 3Q23 Pr
Slide 3: Key highlights of 3Q23
Earnings Presentation Bank-Only 3Q23 Key highlights of 3Q23 Profitability supported by core banking revenues TL 15 Annual and quarterly net income materialized at TL 15 billion billion and TL 9.5 billion, respectively 26.2% Quarterly ROAE came at 26.2% Quarterly core banking revenues are up by 221.7
Slide 4: 3Q23 P&L details
Earnings Presentation Bank-Only 3Q23 3Q23 P&L details 3Q23 9M23 TL million TL million vs. QoQ YoY Net Interest 760% 15,148 Income 23,362 (41%) Net Fees and 16,272 37% 7,038 126% Commissions 189 Dividend 198 2,507% (34%) Income Net Trading 17,806 (33%) 6,256 Income 474% 30,046 (37%) 3,646 Other Incom
Slide 5: NIM, CPI linkers and money market funding
Earnings Presentation Bank-Only 3Q23 NIM, CPI linkers and money market funding CPI Expectation Quarterly NIM (%) Potential impact of CPI linkers on 4Q23 NIM ~ ~ ~ ~ ~ +123 bps NIM 5.6 ~ ~ ~ ~ ~ 3.2 1.8 0.4 Swap Adj. NIM 5.2 ~ ~ ~ ~ ~ 1.6 2.7 0.3 ~ ~ ~2% ~2% ~0.5% 3Q22 1Q23 2Q23 3Q23 Total Money Mark
Slide 6: Stellar fee generation performance with accelerated quarterly payment system contribution
Earnings Presentation Bank-Only 3Q23 Stellar fee generation performance with accelerated quarterly payment system contribution Net Fee & Commission Income Breakdown (TL billion) Insurance Insurance 7.4% 8.9% 126% Cash Loans Cash Loans Payment 46.2% System 44.4% 29.2% 9M22 9M23 16.3 Payment System 34
Slide 7: Convergence of C/I ratio to normalised level of ~30% area
Earnings Presentation Bank-Only 3Q23 Convergence of C/I ratio to normalised level of ~30% area Opex (TL billion)* Cost/Income Ratio (%)* 148% 43.8 28.1 37.2 35.2 31.5 32.4 (11.4 ppt) 11.3 9.6 10.5 9% 9M22 2Q23 3Q23 9M23 1Q23 2Q23 3Q23 1H23 9M23 HR Cost (TL billion) Breakdown of Opex (%) * Non-HR Cos
Slide 8: Selective business lending driven TL loan growth
Earnings Presentation Bank-Only 3Q23 Selective business lending driven TL loan growth Portfolio Breakdown Credit Card and Overdraft QoQ Loan Growth (%) VB Sector VB Sector 3% QoQ QoQ YoY YoY (%) (%) (%) (%) 3Q23 7 Com. & Corp TL 739 50% 8.9 7.0 74.1 2Q23 25 Total Loan Growth 56.7 billion 1Q23 11 4Q2
Slide 9: Breakdown of loan portfolio
Earnings Presentation Bank-Only 3Q23 Breakdown of loan portfolio Currency Breakdown Loans by Interest Structure 70% 30% TL FC TL Loans FC Loans ($) 3Q23 79% 70% 24% 23% QoQ Growth 4% 21% 30% 12% 10% 1% 0% -4% 4Q22 1Q23 2Q23 3Q23 4Q22 1Q23 2Q23 3Q23 Fixed Rate Floating Rate Sectoral Breakdown of Cash
Slide 10: Net CoR is in line with initial budget excluding proactive earthquake related provisioning
Earnings Presentation Bank-Only 3Q23 Net CoR is in line with initial budget excluding proactive earthquake related provisioning NPL (TL million)* Stage II Loans Breakdown (TL billion) Stage II 19.1 24.4 22.1 22.9 Coverage 1,956 Ratio (%) 696 1,807 Share in 21,143 20,597 9.2 8.3 6.9 6.7 total loans (
Slide 11: Well-balanced deposit portfolio
Earnings Presentation Bank-Only 3Q23 Well-balanced deposit portfolio Total Deposits (TL billion) Breakdown of Deposits (%) 78% 63 59 37 41 1,700.6 Sector 1,402.2 21% 626.5 TL Deposits FC Deposits TL Deposits FC Deposits 1,127.7 573.2 $ 22.8 956.3 $ 22.0 447.0 FC $ 23.9 TL 77 451.4 $ 24.4 1,074.2 23
Slide 12: Timely executed and diversified funding transactions
Earnings Presentation Bank-Only 3Q23 Timely executed and diversified funding transactions Breakdown of International Funding Sustainable Funding AT I Issuance Repo 8.5% Transactions IFI USD 5.8 billion Eurobond 13% vs sustainable lending IFI Borrowings portfolio within the 29.7% 16% scope of SFF 6.6
Slide 13: Solvency ratios
Earnings Presentation Bank-Only 3Q23 Solvency ratios Capital Adequacy Ratio (%) Reported solvency Solvency ratios ratios including free (%) w/o BRSA Required CET1 provision amount of CET I 11.69 11.52 12.58 11.33 11.37 level 8.5% forbearance TL 6.7 billion Tier I 13.90 13.55 14.32 13.36 13.23 Requir
Slide 14: Appendix
Earnings Presentation Bank-Only 3Q23 Appendix Pg. 15 Sustainable banking approach Pg. 16 Sustainable loan products Pg. 17 Firsts in sustainable banking Pg. 18 Sustainable customer base thanks to enhanced digital platforms Pg. 19 Composition of assets & liabilities Pg. 20 Well positioned TL security
Slide 15: Sustainable banking approach
Earnings Presentation Bank-Only 3Q23 Sustainable banking approach Indices Initiatives Sustainability Rating ❑ Score: 48 in 2022 ❑ B Score in 2022 ❑ 1st assessment in 2015 ❑ B- Score in 2022 ❑ 1st assessment in 2022 Sustainability Reporting 15
Slide 16: Sustainable loan products
Earnings Presentation Bank-Only 3Q23 Sustainable loan products Green Mortgage Loan Women in Business Loan ➢ Aiming to support the reduction of residential ➢ For a business that is managed or owned by energy consumption and greenhouse gas women, having less than 250 employees and emissions from the r
Slide 17: Firsts in sustainable banking
Earnings Presentation Bank-Only 3Q23 Firsts in sustainable banking The first Turkish bank to have its targets Proactive provisioning policy in accordance with CBAM validated by (Carbon Border Adjustment Mechanism) and Science Based Targets initiative (SBTi) ‘Fit for 55’ principles Scope 1 & Scope 2
Slide 18: Sustainable customer base thanks to enhanced digital platforms
Earnings Presentation Bank-Only 3Q23 Sustainable customer base thanks to enhanced digital platforms Branch 941 10% Branches # of active* digital Internet banking customers Banking reached ~7.5 mio ~7.5 million 51% Digital Banking Non-branch Customers # of transaction made Mobile transaction through
Slide 19: Composition of asset & liabilities
Earnings Presentation Bank-Only 3Q23 Composition of asset & liabilities Breakdown of Assets (%) Currency Breakdown of Total Assets The biggest listed bank 3Q23 Other in terms of asset size 17 with 11.6% market Interbank share among Turkish banks 2 63% 37% 3Q23 Loans The share of IEA 56 Securities 83
Slide 20: Well positioned TL security portfolio
Earnings Presentation Bank-Only 3Q23 Well positioned TL security portfolio Total Securities (TL billion) Portfolio Structure 79.3% 576.8 5% 5% 39% 474.2 8.7% 54% 21.7% 312.8 41% 56% 372.6 321.8 251.5 158.6 125.1 29.7 15.2 17.1 29.0 3Q23 3Q22 234.3 181.5 196.9 193.7 Trading AFS HTM Trading AFS HTM 3Q
Slide 21: Retail lending portfolio
Earnings Presentation Bank-Only 3Q23 Retail lending portfolio General Purpose Consumer (TL billion) Residential Mortgages (TL billion) Credit Card Loans (TL billion)* 38.9% 7.1% 167.7% 113.3 98.5 77.9 75.2 58.0 59.6 71.4 55.6 54.0 54.9 72.7 15.0% 59.4 3.6% 56.4 56.1 2.8% 42.3 3Q22 4Q22 1Q23 2Q23 3Q2
Slide 22: Diversified funding sources via non-deposit funding
Earnings Presentation Bank-Only 3Q23 Diversified funding sources via non-deposit funding Sustainable-linked syndication Eurobonds and Private Placements USD 1.4 billion outstanding USD 3.4 billion outstanding Eurobonds and USD 504.2 million outstanding ▪ May’23: USD 815 million equivalent syndicated
Slide 23: Unconsolidated Key Financial Ratios
Earnings Presentation Bank-Only 3Q23 Unconsolidated Key Financial Ratios 9M22 2022 2Q23 3Q23 9M23 Profitability ROAE 29.2% 30.2% 2.9% 26.2% 15.4% ROAA 1.7% 1.8% 0.2% 1.6% 1.0% Cost / Income 19.8% 18.1% 43.8% 32.4% 35.2%* Cost / Assets 1.1% 1.1% 1.8% 1.7% 2.2% Fee / Cost 63.5% 60.2% 53.3% 67.3% 57.9%
Slide 24: Unconsolidated Balance Sheet
Earnings Presentation Bank-Only 3Q23 Unconsolidated Balance Sheet (TL-thousand, %) 3Q22 2Q23 3Q23 TL USD USD USD TL TL TL YoY QoQ equivalent equivalent equivalent Cash & Balances with Central 166,081,366 8,967,676 229,435,856 8,805,271 335,064,092 12,221,079 101.7% 46.0% Bank Assets Interbank 48,466
Slide 25: Unconsolidated Income Statement
Earnings Presentation Bank-Only 3Q23 Unconsolidated Income Statement (TL thousand, %) 9M22 2Q23 3Q23 9M23 YoY QoQ Net Interest Income 36,845,705 1,312,944 12,827,095 20,081,245 (45.5%) 877.0% (Inc. Swap Cost) Swap Cost -2,539,853 -448,944 -2,320,721 -3,280,987 29.2% 416.9% Net Fee & Com. Income 7,19
Slide 26: For Earnings Presentations: Investor Relations
For Earnings Presentations: A member of BIST Sustainability Index Investor Relations Finanskent Mahallesi Finans Caddesi No:40/1 Ümraniye / İstanbul 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 pre
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