Turkiye Sinai Kalkinma Bankasi A.s. · BIST:TSKB
Turkiye Sinai Kalkinma Bankasi A.s — Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — Q3 2017 Earnings Presentation
26 slides from Turkiye Sinai Kalkinma Bankasi A.s's earnings presentation, October 2017
Slide 1: Investor Presentation 3Q2017 – BRSA Bank only Results
Created with a trial version of Syncfusion Essential PDF Investor Presentation 3Q2017 –BRSA Bank only Results
Slide 2: TSKB @ a Glance
TSKB @ a Glance Ownership Structure First and only Private Development Bank in Turkey TRY 27.2 bn asset size Free Float 377 employees, 2 branches İş Bank and Others Group 40.91% 19th bank in terms of Asset size 50.71% 3.4% market share in LTFC corporate loans TRY 3.3 bn MCAP* 59% of fr
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 17.5% market guaranteed by the Turkish Treasury share in its peer group comprise c. 53% of total funding Strong supportive long-term Prudent ba
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 161 151 141 132 115 117 118 110 3Q-2017 profit TL 452.3 mn , 23.3% higher than 3Q-16 82 RoE @ 19.1%, 5-years average @ 18% 3.9% 3.9% 3.9% 3.8% 3.8% 3.4% 3.6% NIM@ 3.76% 3.1% 3.1% C/I ratio @ 13.8% 3Q-15 4Q-15 1Q-16 2
Slide 8: Banking Sector vs TSKB
Banking Sector vs TSKB CAR Loans/Assets NPL 17.2% 17.5% 76.0% 66.0% 3.1% 0.3% Banking Sector TSKB Banking Sector TSKB Banking Sector TSKB Cost to Income NIM ROE 39.0% 19.1% 15.5% 3.8% 3.8% 13.8% Banking Sector TSKB Banking Sector TSKB Banking Sector TSKB * Sector data as of Agu 17 Long Deposits; Ter
Slide 9: Asset Composition
Asset Composition Total assets increased by 13.4% TRY mn 27,225 25,794 3% Growth (FX adjusted) 3% 5% 3% 24,002 22,870 6% 7% 6% QoQ YTD YoY 3% 3% 3% 6% 6% 16% 15% 3% 16% 15% Loans 3.6% 12.9% 13.4% 12% 12% 18% 19% 8% 8% 7% 8% Securities&Other 6.5% -3.1% -20.9% 18% 18% 5%5% Total Assets 3.9% 8.5% 3.2%
Slide 10: Funding Structure
Funding Structure 6,505 USD mn 6,097 579 5,797 Total Funding: 1,027 412 1,010 USD 6,505 mn Repo &Money Market 999 704 300 Securities Issued 289 319 422 506 520 603 Subordinated Debt 87% of the Total Funding is Long Syndication & P/N etc. Term Unguarenteed DFI Funding 3,571 3,548 3,590 T. Guarenteed
Slide 11: Long Term DFI Funding
Long Term DFI Funding Outstanding Funding Base IBRD 37% 86% of DFI Funding EIB 30% guaranteed by KFW 12% Turkish Treasury IDB 8% CEB 4% IFC 2% AFD 3% 2016 EBRD 1% 3Q-17 CITI 1% OEB 1% DFI Funding - 2016 Amount Theme JBIC 1% EIB 100 mio EUR SME and Midcap EIB 100 mio EUR Energy and Environment AFD 10
Slide 12: Outstanding Project Themes
Outstanding Project Themes Social Infrastructure: Midcap Health, Education & Capacity Clean Transportation Building Energy and Resource Efficiency Renewable Energy Environmental Industrial SME Support Pollution Abatement Development in Industry Climate Change Sustainable Tourism Research & Developme
Slide 13: Shareholders' Equity
Shareholders’ Equity Equity Capital Adequacy Ratio TRY mn 17.5% 17.5% CAR 14.9% Tier I 14.3% 3,390 3,182 12.0% 2,928 2,489 14.0% 13.5% 12.8% 12.5% 6.0% 2015 2016 2Q-17 3Q-17 2015 2016 2Q-17 3Q-17 Equity Movement Risk Weighted Assets TRY mn TRY mn Credit Risk Operational Risk Market Risk 452.3 3,390
Slide 14: Loan Portfolio
Loan Portfolio Loans by Sector Electricity Production 35% 88% Corporate Loans w. >1 year maturity Finance 13% 6% Working Capital Loans w. <1 year maturity Electricity/Gas Distribution 8% FX adj growth of 6% APEX 12.9% Non-residential Real Estate 6% Logistics 6% Disbursements by Themes & Sector
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 1.8 bn USD 7% 7% 6% 6% 5% 18% 22% 34% 32% 168 of 299 RE are in operation 3% 37% 9% 5,668 mw installed capacity is financed:, 14% 17% • 4,501 mw are in operation (7
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 NPL Ratio TRY mn 195 194 183 171 169 0.6% 0.5% 0.4% 0.4% 0.4% 53 53 53 0.3% 48 48 0.3% 0.2% 0.2% 2009 2010 2011 2012 2013 2014 2015 2016 3Q-17 3Q-16 4Q-16 1Q-17 2Q-17 3Q-17 NPL Group II Loans * Average NPL ratio for last 5 years is 0.3% TRY mn 3Q-16 4Q-16 1Q-17 2Q-17 3Q-17 178 2
Slide 18: Securities Portfolio
Securities Portfolio TRY mn By maturity Duration is 2.9 yrs in Fixed & Floating 340 323 < 1 Year 1<3 3<5 >5 342 346 bonds, 4.6 yrs in CPIs. FX($) 342 66% is in AFS portfolio. 11% TRY Private sector bonds: 6% of total 36% 17% 3,213 3,262 % 74 portfolio 3,102 2,949 2,830 36% TRY Securities / Ass
Slide 19: Quarterly Income Breakdown
Quarterly Income Breakdown (TRY mn) 3Q-16 1Q-17 2Q-17 3Q-17 QoQ YoY Net Interest Income 189.2 209.0 205.7 232.7 13.2% 23.0% High volume&solid loan spreads Trading Income-Adj. - 6.7 11.3 12.1 3.9 -67.9% N/A Swap valuations&derivative trading create volatility Net Commissions 1.9 2.2 3.6 3.1 -14.1% 64
Slide 20: Cumulative Income Breakdown
Cumulative Income Breakdown TRY mn Net Interest Income Breakdown Sept-16 Sept-17 30 47% 47% 52% 18 2 9 30 53% 53% 48% 6 3Q-16 2016 3Q-17 Loans Liquid Assets 647 527 Net Profit Net Profit 3Q-17; 452 Commission Income Breakdown-Gross 3Q-16; 367 TRY mn 8.9 11.9 14.1 105% 3% 5% 12% 85% OPEX; -87 OPEX; -
Slide 21: Net Interest Margin
Net Interest Margin Annual NIM Quarterly NIM 3.6% 3.8% 3.8% 3.8% 3.9% 3.9% 3.8% 3.8% 3.5% 3.4% 3.6% 3.1% 3Q-16 2016 1Q-17 2Q-17 3Q-17 1Q-16 2Q-16 3Q-16 4Q-16 1Q-17 2Q-17 3Q-17 376 381 376 381 20 Based on Adj Net Interest Income excluding valuation gain/loss. Quarterly and Annual Adj. Net Interest In
Slide 22: Key Performance Indicators
Key Performance Indicators ROAE ROAA Cost to Income 18.3% 19.1% 15.8% 17.0% 17.6% 14.3% 15.0% 13.8% 2.2% 2.2% 2.1% 2.4% 2015 3Q-16 2016 3Q-17 2015 3Q-16 2016 3Q-17 2015 3Q-16 2016 3Q-17 Free Capital Interest Income/AIEA Interest Expense/AIBL 10.6% 10.5% 7.1% 10.1% 10.3% 6.3% 6.6% 6.6% 3.2% 3.5% 3.0%
Slide 23: Appendix: 2017 Forward Looking Expectations
Appendix: 2017 Forward Looking Expectations 2017 Guidances (%) Previous Revised FX Adjusted Loan Growth 10-13 ~15 Loans/Assets Ratio 70 >75 Net Interest Income Growth >12 >20 Net Fees & Commissions Growth >20 >20 Net Interest Margin >3.5 >3.5 Return On Equity 17-18 ~18 Return On Assets ~2.0 ~2.2 Cos
Slide 24: Appendix: Balance Sheet
Appendix: Balance Sheet 30/09/2016 31/12/2016 30/09/2017 (TRY mn) TRY FX TOTAL TRY FX TOTAL TRY FX TOTAL Cash and Banks 1,371 1,157 2,528 240 856 1,096 169 906 1,074 Securities 3,102 1,020 4,122 3,214 1,188 4,402 3,262 1,143 4,406 Loans 1,830 13,523 15,353 1,280 16,042 17,322 2,046 18,637 20,684 Sub
Slide 25: Appendix: Cumulative Income Breakdown
Appendix: Cumulative Income Breakdown (TRY mn) 3Q-16 4Q-16 3Q-17 YoY Net Interest Income 527.1 715.8 647.5 22.8% Trading Income - Adj. - 12.5 - 0.9 27.2 N/A Net Commissions 6.4 8.6 8.9 39.2% Dividend & Other 44.6 45.2 20.3 -54.4% Net Banking Income 565.6 768.7 703.9 24.5% OPEX - 87.3 - 115.6 - 98.0
Slide 26: TSKB Investor Relations
TSKB Investor Relations ir@tskb.com.tr | www.tskb.com
Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) — Q3 2017 Earnings Presentation on 6ix