Turkiye Sinai Kalkinma Bankasi A.s. · BIST:TSKB
Turkiye Sinai Kalkinma Bankasi A.s — Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — FY2016 Earnings Presentation
26 slides from Turkiye Sinai Kalkinma Bankasi A.s's earnings presentation, February 2017
Slide 1: Investor Presentation 2016 YE – BRSA Bank only Results
Created with a trial version of Syncfusion Essential PDF Investor Presentation 2016 YE –BRSA Bank only Results
Slide 2: TSKB @ a Glance
TSKB @ a Glance Ownership Structure First and only Private Development Bank in Turkey TRY 24.0 bn asset size Free Float 357 employees, 2 branches İş Bank and Others Group 40.97% 19th bank in terms of Asset size 50.65% 3.3% market share in LTFC corporate loans TRY 3.0 bn MCAP* 59.6% of
Slide 3: TSKB’s Historical Shareholding Structure
TSKB’s Historical Shareholding Structure İş Bankası 24% Osmanlı Bankası 16% Yapı ve Kredi Bankası 12% Selanik Bankası 4% T. Ticaret Bankası 4% Garanti Bankası 3.86% Akbank 2% Banks 77.86% Banka Komerçiyale İtalyana 2% Banka di Roma 2% Hollantse Bank Uni. 2% Tutum Bankası 2% T. İmar Bankası 2% T. Kre
Slide 4: Primary Strengths
Primary Strengths One of the leading Turkish Ability to fund itself from leading development and investment supranational FIs/ long-term loans banks with an 17% market share guaranteed by the Turkish Treasury in its peer group comprise c. 54% of total funding Strong supportive long-term Prudent bala
Slide 5: Main activities in support of mission
Main activities in support of mission Products and Services of the Group Corporate Banking Investment Banking Advisory Services Direct loan financing for industrial investments, energy and resource Managing own securities portfolio and Strategic Consultancy, LT partnership to efficiency, renew
Slide 6: Sustainability is core to our activities
Sustainability is core to our activities Financing for renewable energy projects Support for low carbon Support for employment economics Sustainable banking for Turkey’s sustainable growth Environmental risk evaluation Energy and resource for all investment projects efficiency in production Responsi
Slide 7: Financial Highlights
Financial Highlights Sustainable Profitability & Net Interest Margin TRY mn 132.0 115.5 114.8 117.0 118.0 110.0 2016 profit TL 476 mn , 17.1% higher than 2015 94.2 82.4 4Q-2016 profit TL 110 mn, 3.9% 3.9% 3.9% RoE @ 17.6%, 5-years average @ 18% 3.6% 3.7% 3.4% 3.1% 3.1% NIM@ 3.5% C/I ratio
Slide 8: Banking Sector vs TSKB
Banking Sector vs TSKB CAR Loans/Assets NPL 15.6% 72.2% 64.2% 3.2% 14.3% 0.3% Banking Sector TSKB Banking Sector TSKB Banking Sector TSKB Cost to Income NIM ROE 17.6% 40.1% 13.3% 3.8% 3.5% 15.0% Banking Sector TSKB Banking Sector TSKB Banking Sector TSKB * Sector data as of Dec. 16 Long Term DFI Dep
Slide 9: Asset Composition
Asset Composition FX Total Assets Growth (FX adjusted) TRY YoY QoQ 22,870 24,002 Loans 8.2% -0.1% 20,735 15,701 69.9 % Securities, Cash&MM -13.4% -18.3% 73.4% 76.8% 70.6% Total Assets 1.8% -5.0% FX Assets 1.3% 0.3% 29.4% 26.6% 30.1% 23.2% TRY Assets 0.7% -19.3% 2014 2015 3Q-16 2016 2015 TRY Loans; 2
Slide 10: Liabilities Composition
Liabilities Composition FX Total Liabilities TRY Growth (FX Adjusted) 24,002 YoY QoQ 22,870 20,735 Funding 5.1% -2.0% 15,701 74.4% 74.9%% 81.1% Equity 17.7% 2.0% 70.8% FX Liabilities 6.2% -0.6% 29.2% 25.6% 25.1% 18.9% TRY Liabilities -14.6% -21.0% 2014 2015 3Q-16 2016 2016 2015 Eurobond Eurobond 14.
Slide 11: Funding Structure
Funding Structure 6,513 USD mn 6,097 5,797 5,628 1,001 Total Funding: 1,027 412 USD 5,797 mn 1,057 1,026 704 999 Repo &Money Market Securities Issued 385 506 554 520 Syndication & P/N etc. 87% of the Total Funding is Long Term Unguarenteed LT Funding Guarenteed LT Funding 3,672 3,571 3,592 3,548 FX
Slide 12: Long Term DFI Funding
Long Term DFI Funding Outstanding Funding Base IBRD 38% 87% of DFI Funding EIB guaranteed by 30% KFW Turkish Treasury 10% IDB 8% CEB 5% IFC 2% 2015 AFD 3% 2016 EBRD 2% OPIC 1% DFI Funding - 2016 Amount Theme OEB 0% EIB 100 mio EUR SME and Midcap EIB 100 mio EUR Energy and Environment AFD 100 mio EUR
Slide 13: Shareholders’ Equity
Shareholders’ Equity Equity Capital Adequacy Ratio 17.7% 18.2% TRY mn CAR Tier I 14.7% 15.2% 14.3% 2,870 2,928 2,489 17.0% 2,288 14.4% 14.0% 13.5% 2014 2015 3Q-16 2016 2014 2015 3Q-16 2016 Equity Movement Risk Weighted Assets TRY mn TRY mn Credit Risk Operational Risk Market Risk 476 2,928 2,489 -60
Slide 14: Loan Portfolio
Loan Portfolio Loans by Sector Loans by Type 67% Investment Loans Electricity Production 35% Electricity/Gas Distribution 10% 25% Working Capital Loans Finance 14% Logistics 5% 8% APEX Metal and Machinery 5% Chemistry and Plastics 5% Loan Portfolio (mn USD) FX adj growth of 8.2% Non-residentia
Slide 15: Renewable Energy and Energy&Resource Efficiency
Renewable Energy and Energy&Resource Efficiency Renewable Energy Portfolio (Outstanding) 1.3 bn USD 1.4 bn USD 1.5 bn USD 1.6 bn USD 7% 7% Solar Projects 6% 6% are on the 138 of 211 RE are in operation 18% 22% agenda 34% 32% 3% 5,332 mw installed capacity is 9% 14% financed:, Hydros’ risk • 4,37
Slide 16: Renewable Support Mechanism by YEKDEM Law
Renewable Support Mechanism by YEKDEM Law Guaranteed Sales Prices & Local Machinery Incentives Guaranteed Sale Price Local Machinery Incentives Type (USD cent/kWh) (USD cent/kWh) Hydro Power Plant 7,3 1,0—2,3 Wind Power Plant 7,3 0,6—3,7 Geothermal Power Plant 10,5 0,7—2,7 Biomass Power Plant 13,3 0
Slide 17: Robust Asset Quality
Robust Asset Quality 195 NPL Ratio TRY mn 178 179 171 140 145 133 123 0.6% 0.5% 0.4% 60 60 60 59 0.4% 53 48 48 48 0.4% 0.3% 0.2% 0.2% 2009 2010 2011 2012 2013 2014 2015 2016 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16 3Q-16 4Q-16 Group II Loans NPL * Average NPL ratio for last 5 years is 0.3% TRY mn 1Q-15 2
Slide 18: Securities Portfolio
Securities Portfolio TRY mn By maturity Duration is 2.6 yrs in Fixed & Floating < 1 Year 1<3 3<5 >5 340 bonds, 5.2 yrs in CPIs. FX($) 240 344 69% is in AFS portfolio. 17% TRY % 73 11% of TRY portfolio funded by repo 8% 3,213 Private sector bonds: 5% of total 50% 2,929 2,840 portfolio 25% TRY
Slide 19: Income Statement
Income Statement YoY (TRY mn) 2015 2016 Distribution of Banking Income Change Adj. Net Interest Income 614.3 714.9 16.4% 29% Net Commisions 11.4 8.6 -24.6% 60% 62% 8% Dividend Income 33.6 30.1 -10.4% 23% Other Operating Income 18.8 15.1 -19.9% 15% 15% Net Banking Income 678.1 768.7 13.4% 10% 8% 40%
Slide 20: Income Breakdown
Income Breakdown Net Interest Income Breakdown Weight of Banking Income Net Interest Income Loans 48% 47% 61% 57% 2014 89.3% Liquid Assets 2015 90.4% 39% 43% 52% 53% 2016 93.0% 2014 2015 3Q-16 2016 Commission Income Breakdown-Gross TRY mn Net Commissions 12.1 13.8 8.9 12.0 Brokerage 2% 4% 2014 1.9%
Slide 21: Net Interest Margin
Net Interest Margin Annual NIM Quarterly NIM 4.2% 3.9% 3.9% 3.9% 3.9% 3.7% 3.6% 3.6% 3.4% 3.5% 3.1% 3.1% 4Q-14 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16 3Q-16 4Q-16 2014 2015 2016 NIM Evolution Cumulative NIM Evolution Quarterly 372 15 - 23 - 11 11 - 14 353 24 - 16 - 21 386 - 32 - 11 342 YE-2015 Net Loans
Slide 22: Key Performance Indicators
Key Performance Indicators ROE Core-ROE ROAA Cost to Income 18.0% 15.4% 15.0% 17.7% 18.2% 17.0% 17.4% 18.3% 18.4% 17.6%17.5% 14.3% 2.6% 2.2% 2.2% 2.1% 2014 2015 3Q-16 2016 2014 2015 3Q-16 2016 2014* 2015 3Q-16 2016 *14.1% excluding one-off Free Capital Interest Income/AIEA Interest Expense/AIBL 12.3
Slide 23: Appendix: Balance Sheet
Appendix: Balance Sheet 31/12/2015 31/12/2016 (TRY mn) TRY FX TOTAL TRY FX TOTAL Cash and Banks 1,121 1,305 2,426 240 856 1,096 Securities 2,840 995 3,835 3,214 1,188 4,402 Loans 1,000 12,675 13,675 1,280 16,042 17,322 Subsidiaries 306 10 316 382 19 401 Other 137 345 482 254 527 781 Total 5,404 15,3
Slide 24: Appendix: Quarterly Income Breakdown
Appendix: Quarterly Income Breakdown (TRY mn) 1Q-2016 2Q-2016 3Q-2016 4Q-2016 QoQ Interest Income 306.6 294.8 330.4 361.8 9.5% Interest on Loans 184.6 194.9 209.6 252.4 20.4% Interest from Securities 95.5 74.3 90.9 87.8 -3.4% Interest from Liquid Assets (net) 26.6 25.7 29.9 21.6 -27.7% Interest Expe
Slide 25: Appendix: 2017 Forward Looking Expectations
Appendix: 2017 Forward Looking Expectations (%) 2016 Guidance 2016 Realization 2017 Guidance FX Adjusted Loan Growth 12 8.2 10-13 Loans/Assets Ratio 68 72 ✔ 70 Net Interest Income Growth - 16.4 >12 Net Fees & Commissions Growth 30 -25 >20 Net Interest Margin ~3.9 3.5 >3.5 Return On Equity 17-18 17.6
Slide 26: TSKB Investor Relations
TSKB Investor Relations ir@tskb.com.tr | www.tskb.com
Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — FY2016 Earnings Presentation on 6ix