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2019 Year-End Investor Presentation Albaraka Trk Participation Bank - - PowerPoint PPT Presentation
2019 Year-End Investor Presentation Albaraka Trk Participation Bank - - PowerPoint PPT Presentation
2019 Year-End Investor Presentation Albaraka Trk Participation Bank 11 February 2020 Agenda 1 Financial Highlights 2 Market Comparison Appendix 3 3 Albaraka Turk 2019 Year-End at a Glance Key Ratios Balance Sheet Y-Y (Million
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Albaraka Turk – 2019 Year-End at a Glance 3
Balance Sheet Key Ratios (Million TRL) 2018 2019 Y-Y (%) % 2018 2019 Y-Y (bps) Total Assets 42.223 51.392 21,7
Total Funded Credits (Net)
26.185 29.749 13,6 CAR 14,66 14,97 31 Total NPLs 1.889 2.222 17,6 Deposits (incl. Interbank) 28.623 39.769 38,9 Tier 1 9,98 10,66 68 Shareholder’s Equity 3.261 3.822 17,2 NPL 6,88 7,19 31 Income Statement (Million TRL) 2018 2019 Y-Y (%) Net Profit Share Income 1020 823
- 19,3
Provisioning Stage III 47,31 42,61 470 Net Fees & Commissions 198 300 51,3 Provisions for Loan Loss 608 790 30,0 Net Profit Share Margin 2,86 2,10
- 76
Operating Expenses* 1.161 1.112
- 4,2
Net Profit 134 63
- 52,7
Cost/Income 59,93 55,89
- 404
* including personnel expenses
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218 237 134 64
2016 2017 2018 2019
Net Profit
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2019 Main Highlights (Million TRL)
2,86 2,62 2,28 1,58 2,10
Q4'18 Q1'19 Q2'19 Q3'19 Q4'19
Net Profit Share Margin*
* Trailing for last 4 quarters
4
42.224 44.594 43.886 46.295 51.392 26.185 26.498 27.771
27.140
29.749 28.623 30.628 33.045 34.794 39.769
Q4'18 Q1'19 Q2'19 Q3'19 Q4'19
Total Assets Total Funded Credits Total Collected Funds 7,56 % 8,40 2,42 % 2,26 4,68 % 4,31
2018 2019
Common Equity Tier I Additional Tier I Additional Tier II
14,97 % 14,66 %
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Funded Credits; 57,9% Securities Portfolio; 12,1% Other Liquid Assets*; 25,2% Other Assets; 4,7%
1.230 1.789 2.062 1.895 2.015 619 549 1.435 1.562 1.994 1.117 1.195 1.615 2.024 2.234
Q4'18 Q1'19 Q2'19 Q3'19 Q4'19
Available for sale Held to Maturity Other Marketable Securities
2.875 5.112 5.481 6.243
7
Asset Composition
Composition of Total Assets (2019) Liquid Assets (Million TRL)
5
Total Securities Portfolio (Million TRL) Securities Yield (%) 8,75 10,06 11,60 12,92 12,84
Q4'19 Q3'19 Q2'19 Q1'19 Q4'18
(*) Profit share income received from securities for the last 4Q/5Q average securities
13.466 15.510 12.663 15.266 17.215
31,9% 34,8% 28,9% 33,0% 32,5%
Q4'18 Q1'19 Q2'19 Q3'19 Q4'19
Liquid Assets % of Total Assets
*Liquid Assets includes Cash and Cash Equivalents, Financial Assets Measured at Fair Value through Profit/Loss, Financial Assets Measured at Fair Value through Other Comprehensive Income and Derivative Financial Assets. * Other Liquid Assets includes Cash and Cash Equivalents and Derivative Financial Assets
2.965
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325 102
- 35
182
2018 Profit Share Income Fees & Comm Trading Income Others 2019
4.032
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Operating Performance Breakdown
Net Profit Share Income (Quarterly) (Million)
Key Movements in Income (Million TRL)
Cost & Yield Movement (%)
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10,09% 10,58% 10,76% 10,33% 10,92%
2,86% 2,62% 2,28% 1,58% 2,10% 6,78% 7,17% 7,46% 7,61% 7,13%
Q4'18 Q1'19 Q2'19 Q3'19 Q4'19
Credit Yield Net Profit Share margin Cost of Collected Funds
4.607 158 196 144 108 376
Q4'18 Q1'19 Q2'19 Q3'19 Q4'19
217 293 395
- 68
- 95
- 96
Fees and Commissions Received Fees and Commissions Paid
149 2018
Net Fees and Commission Income (Million)
2017 198 300 2019
% 33,5 % 51,3
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*USD equivalent
Total Funded Credits (including financial leasing, million) Yield on Performing Credits (%)
Profit share income received from credits for the last 4Q/4Q average credits
Funded Credits Portfolio
Q4’18 Q1’19 Q2’19 Q3’19 Q4’19 Corporate Credits 41.7 41.9 47.1 47.5 48.9 SME Credits 48.1 48.6 44.2 43.9 42.1 Retail Credits 10.2 9.6 8.7 8.6 9.0
48% 35% 17% 1% TRL USD* EUR* Other Composition of Total Funded Credits (%) Currency Composition of Total Funded Credits* (2019)
*Including USD & EUR indexed credits According to BRSA definition
7
Q4’18 Q3’19 Q4’19
QoQ Y-Y
TL Credits, TL
12,092 12.492 14.205 13,7% 17,5%
FC Credits, $*
1,933 2.222 2.259 1,7% 16,8%
FC Indexed, $*
735 379 364
- 4,0%
- 50,6%
Total Credits, TL
26,185 27.141 29.749 9,6% 13,6%
15,1% 19,4% 10,4% 11,4% 6,4% 5,9%
Q4'18 Q1'19 Q2'19 Q3'19 Q4'19
Yield on TL Loans, adjusted, trailing Blended Yield, adjusted Yield on FX Denominated Loans, trailing
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73,7% 77,5% 78,6% 78,4% 80,9% 19,4% 15,2% 14,1% 13,8% 11,9% 6,9% 7,4% 7,3% 7,7% 7,2%
Q4'18 Q1'19 Q2'19 Q3'19 Q4'19
Group I Group II Group III
29.103 6,88 7,36 7,31 7,74 7,19
Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Gross Funded Credits by Groups (including financial leasing, million)
216 218 213 183 231
Q4'18 Q1'19 Q2'19 Q3'19 Q4'19
Cost of Risk (bps) NPL Ratio (%)
Specific provisions for credits for last 4Q/ 5Q average credits Including financial leasing & accruals and rediscounts
Provisioning (Stage III)
Asset Quality 8
27.442
893 1.069 1.104 1.152 947 47,3% 52,3% 51,9% 52,2% 42,6%
0,0% 10,0% 20,0% 30,0% 40,0% 50,0% 60,0% 70,0%
Q4'18 Q1'19 Q2'19 Q3'19 Q4'19
Lifetime ECL Impaired Credits (Stage 3) (Million TRL) Provisioning Ratio (%)
27.778 28.491 30.881
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NPL Formation Trend (Quarterly)
Asset Quality 9
439 315 154 243 529 253 78 70 164
64
186 237 84 79 465 272 369 128 119
4Q'18 Q1'19 Q2'19 Q3'19 Q4'19
Additions (million TRL) Recoveries (million TRL) Net NPL Formation (million TRL) Net NPL Formation Rate (bps)
NPL Inflow Sector Distribution (2019) 3,2% 14,0% 19,9% 11,4% 18,1% 7,2% 26,2% Communication Construction&Real Estate* Manufacturing Others Trading Hotels & Restaurants Energy
26,4% 14,0% 36,6% 10,5% 1,3% 11,2%
Manufacturing Others Construction&Real Estate* Trading Transportation Energy Stage II Credits Sector Distribution (2019)
3.665 2.222 4.246 1.513
85
947 Stage 2 Stage 2 Stage 3 Stage 3 Risk amount Collateral Provision Stage II-III Coverage (Million TRL)
*Includes construction of power plant projects
677
*Includes construction of power plant projects
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24% 25% 16% 15% 13% 23% 23% 27% 27% 30% 53% 52% 57% 58% 57% Q4'18 Q1'19 Q2'19 Q3'19 Q4'19
Fund Borrowed* Current Accounts Participation accounts
Composition of Total Liabilities (2019,%) Composition of Funding Base (Million TRL) 77,4% 11,5% 7,4% 3,6% Funds Collected Wholesale Funding Shareholders' Equity Others 45.697
22%
37.452
Funding Profile 10
*Fund Borrowed includes Funds Borrowed , Borrowings from Money Market and Subordinated Loans
40.881
(Million TRL) 2018 2019 Y-Y Growth % Funds Collected (incl. Bank deposits)
28.623 39.769 38,9
Wholesale Funding
8.828 5.928
- 32,9
Funds Borrowed
6.852 4.535
- 33,8
Syndicated Loans
1.665
- Wakala
1.211 979
- 18,2
Issued Lease Certificates & Sukuk
3.463 2.743
- 18,5
Other
514 813 24,5
Sub-Ordinated Debt (Tier 2)
1.204 1.375 14,2
Interbank
772 18
- 97,6
Shareholders’ Equity
3.261 3.822 17,2
Paid in Capital
900 1.350* 50,0
Other Liabilities
1.510 1.873 24,0
Total Liabilities
42.224 51.392 21,7
39.978
205 250
100 200 300
2025 >2030
Tier 1 Sukuk (Perpetual) Tier 2 Sukuk Maturity Profile of Liabilities (Million USD) 39.231
*The registration process of capital increase has been continuing.
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7,13% 7,61% 7,46% 7,17% 6,78% 14,67% 15,26% 14,11% 12,63% 11,31% 2,14% 2,35% 2,50% 2,56% 2,47% 0,30% 0,40% 0,68% 0,94% 1,21%
Q4'19 Q3'19 Q2'19 Q1'19 Q4'18
Blended TL FC Precious Metal
37 37 20 6
TRL USD EUR Others
Total Funds Collected (Million TRL) Cost of Funds Collected*
*USD equivalent of FC accounts *Profit share expense to depositors for the last 4Q/5Q average participation accounts
Currency Composition of Funds Collected (2019,%) Maturity Composition of Funds Collected (2019,%)
35 19 39 4 4 Current Acc. Up to 1 month Up to 3 months Up to 1 year >1year
Funding Profile (Collected Funds) 11
2018 2019 Y-Y Funds Collected 28.623 39.769 38,9% Current Accounts 8.729 13.902 59,3% Current Accounts TL 2.810 4.199 49,5% Current Accounts, FC, $ 1.121 1.637 46,0% Participation Accounts 19.895 25.867 30,0% Participation Accounts TL 8.970 10.497 17,0% Participation Accounts FC, $ 2.069 2.593 25,3%
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Q4’18 Q1’19 Q2’19 Q3’19 Q4’19
Growth (%)
Y-Y
Letter of Guarantee
8.575 8.304 8.251 8.192 8.718 1,7%
Letter of Credit
1.230 1.423 1.328 1.180 1.330 8,2%
Others*
242 424 409 347 383 158,6%
Total:
10.046 10.151 9.998 9.722 10.431 3,8%
Off Balance Sheet Composition (%) LGs*-to-Total Assets
20,3% 18,6% 18,8% 17,7% 17,0% Q4'18 Q1'19 Q2'19 Q3'19 Q4'19
Guarantees & Sureties (TRL million)
*Revocable credit limits not included.
Off Balance Sheet Growth 12
*Below 20% of LGs to Total Assets is targeted
69 40 60 55 69 10 7 10 8 10 21 53 30 37 21
Q4'18 Q1'19 Q2'19 Q3'19 Q4'19
LG LC Others
12.444 20.648 14.832 12.675 13.753
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14
Income- Cost Dynamics 13
(Million TRL) Y-Y Notes 2018 2019 % Net Profit Share Income
1,020 823
- 19,3%
Profit Share income increased by 10,7% While Profit share Expenses incresed by 26,0% YoY. Downward cost of funding in 2020 is expected to lead stronger Net Profit Share Income. Net Fee Income
198 300 51,3%
Circa 51,3 % Y-o-Y expansion in this line item is mostly driven by higher POS commissions and custody services, despite the deceleration in economic activity leading to slower growth in Funded Credits. Net Trading Income
359 324
- 9,8%
The FX gains has declined due to the decrease in demand caused by FX tax and closing a long position related to Tier I issuance of 205 mln $. Other Income
361 543 50,6%
Provision reversals from stage 2 credits and write – off amount led to other operating income being above last year. Provisioning
608 790 30,0%
Provisioning expenses related to Stage 3 credits put pressure on the provisioning expenses in 2019 Nevertheless, our total coverage ratio dropped to 50.9%, while Stage-3 coverage ratio decreases to 42.6%. Personnel Expenses
536 667 24,5%
Impact of CPI &compensation for people leaving the Bank. Other Costs
625 445
- 28,8%
Headline cost growth remained far below 11,84% inflation. Net Profits
134 63
- 52,7
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Agenda
1
Financial Highlights
2
Market Comparison
3
Appendix
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Percent % 2018 2019
Albaraka Türk Participation Banks Banking Sector Albaraka Türk Participation Banks Banking Sector CAR
14,66 15,76 17,27 14,97 18,04 18,43
NPL Ratio
6,88 3,74 3,81 7,19 4,53 5,27
Provisioning Ratio (Stage 3)
47,31 63,30 68,32 42,61 63,88 65,17
Loan/Deposits
91,48 96,62 117,25 74,80 78,21 106,00
Asset Yield
8,29 9,64 10,49 8,24 10,14 11,11
Asset Spread
2,72 3,23 3,37 2,04 3,49 3,80
Net Profit Share Margin
2,86 4,21 4,26 2,10 3,99 4,41
Op Costs / Avg. Assets
2,89 2,10 1,84 2,43 2,11 1,99
Cost/Income*
59,93 35,70 34,39 55,89 35,84 36,65
Credits / Branches (000‘TRL)
113,848 121,472 219,358 129,344 145,358 250,464
Staff / Branches
17,34 14,08 17,96 16,48 13,60 17,99
CA / Deposits
30,49 32,75 21,32 34,96 33,53 24,71
*Cost: Operating Costs, Income: NPSI, Net Fees and Commissions Income, Other Income Net Trading Income
Financial Ratios - Sector Comparison 15
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Agenda
1
Financial Highlights
2
Market Comparison
3
Appendix
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(Million TRL)
2018 2019 Growth
Cash and Balances with Central Bank
5.918 8.796 48,6%
Banks
5.217 4.187
- 19,7%
Financial Assets
2.949 6.226 111,1%
Funded Credits
26.185 29.749 13,6%
Cash Credits
25.174 28.415 12,9%
NPL
1.889 2.222 17,6%
Provisions (Stage III)
893 947 5,9%
Net Financial Leasing Receivables
380 244
- 35,8%
Associates
40 70 76,5%
Fixed Assets
687 1.547 125,2%
Assets Held For Sale and Investment
650 124
- 80,8%
Other Assets (inc. Tax Assets)
578 692 19,8%
Total Assets
42.224 51.392 21,7%
Funds Collected
28.623 39.769 38,9%
Funds Borrowed
6.852 4.535
- 33,8%
Debts
2.192 1.756
- 19,9%
Provisions (inc. Taxes)
90 135 49,3%
Tier II Sukuk
1.204 1.375 14,2%
Shareholders’ Equity
3.261 3.822 17,2%
Capital
900 900 0,0%
Capital Reserves (inc. Premium)
846 1.345 59,0%
Profit Reserves
1.301 1.430 9,9%
Total Liabilities
42.224 51.392 21,7%
Summary Balance Sheet 17
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(Million TRL)
2018 2019 Growth
Profit Share Income
3.020 3.344
10,7%
Profit Share Expense
2.000 2.521
26,0%
Net Profit Share Income
1.020 823
19,3%
Net Fees and Commissions Income
198 300
51,3%
Fees and Commissions Received
293 395
34,9%
Fees and Commissions Paid
95 96
0,7%
Net Trading Income
359 324
- 9,8%
Other Operating Income
361 543
50,6%
Total Operating Profit
1.401 1.322
- 5,6%
Provisions for Loan Losses and Other Receivables
608 790
30,0%
Personnel Expenses
536 667
24,5%
Other Operating Expenses
625 445
- 28,8%
Operating Profit Before Tax
168 87
- 48,2%
Tax Provision
35 24
- 30,9%
Net Profit
134 63
- 52,7%
Summary Income Statement 18
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THANK YOU
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Disclaimer
THIS PRESENTATION AND THE INFORMATION CONTAINED HEREIN IS CONFIDENTIAL AND MAY NOT BE REPRODUCED, CIRCULATED, DISTRIBUTED OR PUBLISHED (IN WHOLE OR IN PART) OR DISCLOSED BY RECIPIENTS TO ANY OTHER PARTY. BY VIEWING THIS PRESENTATION, YOU AGREE TO BE BOUND BY THE FOREGOING LIMITATIONS. This presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase any securities of Albaraka Türk Katılım Bankası A.Ş., nor shall any part of it form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the securities
- f the Bank. The information contained in this document is published for the assistance of recipients, but is not to be relied upon authoritative or taken in substitution for the exercise of
judgment by any recipient. The Bank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this document or its content. Any purchase of shares of the Bank should be made solely on the basis of sound financial analysis on the part of the investor, with no liabilities arising against the Bank. The information used in preparing these materials was obtained from or through the Bank or the Bank’s representatives or from public sources. Although prepared in good faith and from sources believed to be reliable, no reliance may be placed for any purposes whatsoever on the information contained in this presentation or on its accuracy, completeness or fairness. The information in this presentation is subject to verification, completion and change. The projections, forecasts and estimates of the Bank contained herein are for illustrative purposes only and are based on management’s current views and assumptions. Such projections, forecasts and estimates involve known and unknown risks and uncertainties that may cause actual results, performance or events to differ materially from those anticipated in this
- presentation. The Bank expressly disclaims any obligation or undertaking to update or revise any projections, forecasts or estimates contained in this presentation to reflect any change in
events, conditions, assumptions or circumstances on which any such statements are based unless so required by applicable law. Investors should note many different risk factors could adversely affect the outcome and financial effects of the plans and projections described herein. As a result, you are cautioned not to place undue reliance on any forward-looking
- statements. The Bank, its advisers and each of their respective members, directors, officers and employees disclaim any liability in case projections and plans given in this document are not
realised.