INVESTOR PRESENTATION BRSA Unconsolidated Financial Statements Highlights 3.2.205 www.sekerbank.com.tr
CONTENTS About Şekerbank 3-7 Background / Milestones Strategy & Mission Ownership Ratings Geographical Coverage Financials of Şekerbank 8-24 Asset-Liability Structure & Key Ratios Loan Structure Securities Funding Structure Foreign Borrowing SME Covered Bond Program Summary of Financials Financials & Ratios Growth Plan Capital Adequacy Liquidity Duration Consolidation Contacts 2
BACKGROUND / MILESTONES 953: Founded as the Sugar Beet Cooperative Bank in Eskişehir 997: Initial Public Offering 2004: Head Office moved to İstanbul 20: Transfer of BTA Group shares to Samruk Kazyna, the National Welfare Fund of Kazakhstan 970 s: Shift to full service banking from cooperative banking 2007: First Bank to receive Corporate Governance Rating in Turkey 204: 203 GRI Report (Global Reporting Initiative) 953 204 956: Moved to Ankara and renamed as Şekerbank 980 s: Concentration in commercial banking 2007: Partnership with international investor: (BTA Group, Kazakhstan became 33.9% shareholder) 20-2: First SME backed Covered Bond issuance in the world 2002: Initiation of Restructuring: Change from a traditional commercial bank to a multi channel, diversified financial institution based on customer and segment focused practices 200: Equity investment of IFC: Personnel Social Security Foundation of Şekerbank and IFC signed an option agreement for IFC purchasing Şekerbank shares up to 5% 3
STRATEGY & MISSION SME Focus OBJECTIVE Product Excellence Community Banking Operational Excellence Responsive to local characteristics and needs (Regional focus) Introducing banking services to those who do not have a bank Growing together with its satisfied customers, employees and partners by creating value Becoming a partner of growing SME s [Reaching SME via TİM (Turkish Exporters Assembly), KOSGEB (Small and Medium Enterprises Development Organization) and etc.] Focusing on Product Differentiation, and Cross Selling with a Value Chain Concept Developing very Strong Deposit Base Key Strategy: Industry/Sector Specific Approach Providing simple products covering the customers all specific needs related to their industry/sector Supporting Energy Efficieny investments of all segments and sectors 4
OWNERSHIP Shareholders Share in Capital % Şekerbank T,A,Ş, Voluntary Pension Fund Samruk Kazyna, the National Well-fare Fund of Kazakhstan 40,388,833.70 35.44 224,353,46.50 9.37 BTA Securities JSC 26,295,033.47 0.9 Sugar Beet Cooperatives,009,32.08 0.09 Public Shares (Quoted on BIST) 395,953,404.25 34.9 Şekerbank Pension Fund Started operations in February 965 Consists of 7,923 members (current & retired employees) Income sources of the Personnel Pension Fund are premiums, rental income and income from portfolio investments Total,58,000,000.00 00.00 IFC has 6.07 % from the BIST (Borsa Istanbul) quoted shares. 5
RATINGS National Rating Foreign Currency Local Currency Financial Strength Rating Fitch A+(tur) BB- BB- Moody s A3.tr Ba2 Ba2 D- JCR AA-(Trk) BBB- BBB- Corporate Governance Rating 2007 2008 2009 200 20 202 202* 203 204 205 70.6 8.36 86.64 87.60 88.2 90.95 90.74 90.9 9.0 9.70 *The rating methodology has been changed in 203, In this respect, for the consistency, 202 rating re-evaluated and rated 90.74. In 204 Sekerbank changed the Corporate Governance rating agency to Kobirate. Between 2007 and 203, Sekerbank is rated by ISS Corporate Services (ICS)** Kobirate*** assigns a rating score of 90.9 to Sekerbank. This rating reflects a very good overall performance of the Bank regarding its current corporate governance structures as measured against the Principles of the Turkish Capital Markets Board. The full report can be reached at: http://www.sekerbank.com.tr/en/investorrelations/corporate-governance **ICS' works with more than,00 clients located in the U.S., Canada, U.K. Europe and Asia, as well as other established and emerging markets Worldwide. ISS Corporate Services and Institutional Shareholder Services are subsidiaries of MSCI Inc., a publicly traded company, ISS Corporate Services is headquartered in Rockville, MD and also has offices in London and Toronto. ***Established by 5 Turkish members in June 2008 after a two-year preparation period. Kobirate Uluslararası Kredi Derecelendirme ve Kurumsal Yönetim Hizmetleri A.Ş. (Kobirate International Credit Rating and Corporate Governance Service Inc.) is a Local Credit and Corporate Governance Rating Company with a fully-paid share capital of TL 200,000. The Kobirate Credit Rating Methodology, developed at international standards so as to cover the local factors, is systematic. It includes guiding and educating features due to its basic software Perfectrate. It has a parametric infrastructure feature allowing for immediate adaptability of any changes in basic indicators proposed by the Supervisory Authorities. 6
GEOGRAPHICAL COVERAGE Şekerbank has 30 branches in Turkey, Regional Offices: 3 in Istanbul, 8 regional in Anatolia as of September 30, 205. Average presence of a branch over 25 years, qualifying Şekerbank as one of the most established and trusted banking brands. Kırklareli Sinop Bartın Kastamonu Kastomunu 4 İstanbul Zonguldak Zonguldak 3 Artvin Tekirdağ Karabük Samsun Tekirdağ 58 Artvin Ardahan Edirne Kocaeli 2 2 Düzce 5 Trabzon Rize 6 Ordu 3 Trabzon Yalova 3 Bolu Çankırı Amasya 3 2 Çorum Giresun 2 Tokat 3 2 Tokat G.Hane G.Hane Bayburt Kars Bayburt Bursa Bilecik 4 Çanakkale 9 Ankara Erzurum Iğdır Iğdır 2 Kırıkkale Balıkesir Eskişehir 35 Yozgat Erzincan Erzincan Sivas 5 Ağrı 3 Kırşehir 2 Kütahya 2 Tunceli Tunceli Bingöl Muş Manisa Nevşehir Manisa Kayseri 6 Uşak Afyon Kayseri Ela Uşak Elazığ İzmir 6 Malatya Van Bitlis 2 5 Aksaray zığ Konya 7 8 Diyarbakır Isparta Niğde K.Maraş Siirt Aydın Denizli Adıyaman Batman Aydın Denizli 3 4 5 4 Burdur Adana Şırnak Hakkari 3 Mardin Adana Muğla Antalya 7 Osmaniye Ş.Urfa Karaman G.Antep 2 2 6 3 Kilis 4 İçel 6 Hatay 3 Rank Banks Provinces* that are covered İşbank/Denizbank 8 2 Garanti 8 3 Akbank 79 4 YKB 74 5 Şekerbank 7 6 Finansbank 7 7 TEB 7 8 ING BANK 65 9 HSBC 55 0 Anadolubank 25 * Turkey has 8 provinces Branches above 0 Branches between 6-0 Branches between 2-5 Single Branch 200 260 Branches 20-202 272 Branches 203-204 32 Branches 205 30 Branches No Branch 7
ASSET & LIABILITY STRUCTURE Asset Structure (Mln TRL) Liability Structure (Mln TRL) 24,46 2,87 24,46 2,87 7,76% 8,5% 2,30%,46% 68,55% 69,7%,39% 0,87% 205 204 Cash Loans Securities Other Ratios 3.2.205 LC Assets / Assets 78,78% Loans / Assets 68,55% Securities / Assets 2,30% Loan Loss Provision Ratio 53,96% NPL Ratio 5,84% 4,5% 5,3% 0,35%,29% 24,25% 9,68% 60,89% 63,90% 205 204 Deposits Borrowing Equity Other Ratios 3.2.205 Deposits / Liabilities 60,89% Deposits up to 3 months / Deposits 87,6% LC Deposits / Deposits 6,34% Loans / Deposits 2,58% Borrowings / Liabilities 24,25% Şekerbank 3.2.205 3.2.204 Capital Adequacy Ratio 3,66% 4,60% Int.Exp. / Int.Income 53,73% 53,42% 8
LOANS STRUCTURE Loan Progress by years (Mln TRL) Loan Breakdown by Segments 6.738 4.665 5.763 5.592 205 204 Cash Non Cash Retail Loans 9,9%,42% 7,6% 69,70% 9,20% 8,88% 205 204 Corporate SME Retail Loan per Branch (Thousands TRL) 6 7,6 0% 7,7 9% 55.607 6,3 5%,6 8% 3,9 3%,0 7%,6 5 % 2,7 3 %,0 9 % 2, 3 % 205 204 46.97 205 204 General Purpose Mortgage Auto Credit Card Other 9
LOANS STRUCTURE con t CUSTOMER SEGMENT TURNOVER NUMBER OF CUSTOMERS OUTSTANDING PORTFOLIO SEGMENT / TOTAL LOANS (TRL 000) CORPORATE >TL 00 mln 489 3.24.44 9,20% MEDIUM SIZE <TL 00 mln >TL 25 mln 9.569 6..366 SME SMALL <TL 25 mln >TL 5 mln 2.764.30.40 7,6% MICRO < TL 5 mln 44.4 2.098.399 AGRICULTURE 88.504 2.3.507 RETAIL 22.608.495.795 9,9% TOTAL 358.048 6.27.89 00,00% 9,9% 9,20% 7,6% Corporate SME Retail 0
LOANS STRUCTURE con t 3.2.205 Cash Loans in Sectors 6% 22% 3% 5% Construction Agriculture Manufacturing Industry Wholesale&Retail Trade 6% 4% 8% Transportation&Comm. 8% Health&Social Serv. Real Estate&Rent Services Other
SECURITIES Breakdown of Securities 205 204 42,25% 43,50% 57,42% 56,22% 0,33% AFS Trading HTM AFS Trading HTM 0,28% Fixed & Floating Securities (mln TRL) 205 0,00% 9,24% 25,6% 55,60% CPI Linker Floating Discounted Fixed Rates 2
FUNDING STRUCTURE Deposit Progress by Years (Mln TRL) Deposit Maturity Structure 4% 4% 4.868 3.539 86% 86% 205 204 Deposit per Branch (Thousands TRL) 205 204 Time Demand Deposit 49.394 6% 59% 43.393 205 204 39% 4% 205 204 FC LC Deposits by Segment 70,62% 9,76% 9,62% Time 44,04% 2,72% 43,24% Demand SME Corporate Retail 3
FUNDING STRUCTURE con t Borrowings (TRL 000 ) 205 204 Funds borrowed 2.220.233.55.828 Interbank money market takings 44.043 0 Istanbul Stock Exchange money market takings - - Funds provided under repurchase agreements.868.656.440.582 SME-backed Covered Bond 764.28 642.648 Local Bonds 425.588 494.389 Subordinated Loans 498.22 436.67 Total 5.920.959 4.70.8 4
FOREIGN BORROWINGS Type of Funding Outstanding Amount Covered Bond (FMO, IFC, EIB, Private Investors) 266.965.046 USD Subloan (ETDB, EBRD, EFSE, IFC, KfW) 69.54.900 USD Syndication 245.707.426 USD Int'l Trade 206.363.560 USD IFI's (OeEB, EBRD, ETDB, KfW, AFD, IFC) 89.702.90 USD Funds (ResponsAbility, GGF, GCPF, OPIC) 79.99.093 USD TOTAL.58.99.926 USD 5,6% 5,33% 7,48% 4,77% MSME Foreign Trade 29,82% Energy Efficiency Micro Finance Women in Business 5
SME COVERED BOND PROGRAM Aaa Aa Aa2 Aa3 A A2 The first ever Turkish covered bond transaction The first SME backed covered bond in the world SKBNK CB A3 Baa Baa2 Turkey Sovereign Baa3 Ba Şekerbank Ba2 Ba3 B B2 B3 The highest rating ever assigned to any Turkish transaction to date (A3) (International Scale Rating from Moody s) Designed as a program to create a sustainable longer term funding source for the SME portfolio 6
SUMMARY of FINANCIALS Assets (TRL 000 ) 205 204 Cash 2.78.76 2,302,0 Loans net 6.737.565 4,655,079 Securities 3.002.04 2,427,535 Other.895.84,802,564 Total 24.45.966 2,87,288 Liabilities (TRL 000 ) 205 204 Deposits 4.867.633 3,538,608 Borrowings 5.920.959 4,70,8 Equity 2.526.942 2,39,83 Other.00.432,086,749 Total 24.45.966 2,87,288 Income Statement (TRL 000 ) 205 204 Net Interest Income.056.385 977,980 Net Ops. Income.368.999,376,94 P&L Before Tax 85.246 280,70 Period P&L 02.649 223,969 7
FINANCIALS & RATIOS Profitability (TRL 000) 205 204 4% Fees & Commissions (TRL 000) 205 205 Interest on Loans 2.035.0.880.497 5,9 % 8,22%,9 % Banking Services 277.766 226.956 22,39% Interest on Securities 235.665 20.943,72% Fees from Non-Cash Loans 63.536 68.406-7,2% Net Interest Income.056.385 977.980 8,02% Fees & Comm. Rcvd 34.302 295.362 5,55% Net Comm. Income 285.96 245.69 6,37% Fees & Comm. Paid 55.386 49.67,5% Net Profit 02.649 223.969-54,7% Net Fees & Comm. 285.96 245.69 6,37% Funding Ratios 205 2, 7,4 % 204 28, % 28, Loans/ Deposits TRY Loans/ TRY Deposits 2,58% 08,25% 55,32% 60,65% Cost Ratios 205 204 Cost/Income 62,28% 58,% NIM 5,3% 5,68% Cost of Risk 205 204 FC Loans/ FC Deposits 44,77% 33,43% Cost of Risk,74%,28% 8
GROWTH PLAN Growth Plan (Thousands TRL) 205 Realized 206Projection 207 Projection 206 Growth 207 Growth Loans net 6.737.565 8.572.092 20.570.06 % % Deposits 4.867.633 6.499.625 8.94.69 % 0% Total Assets 24.45.966 26.268.055 28.965.090 8% 0% Securities 3.002.04 3.343.059 3.740.55 % 2% Equity 2.526.942 2.647.480 2.788.070 5% 5% Paid in Capital.58.000.58.000.58.000 0% 0% Net Interest Income.056.385.53.454.232.76 9% 7% Net Fees and Commissions 285.96 34.445 345.486 0% 0% Net Profit 02.649 20.538 40.59 7% 7% 9
CAPITAL ADEQUACY & LIQUIDITY The CAR and the Tier I Ratio higher than the regulatory limits set for those. Regulatory Limit (min) 3.2.205 3.2.204 3.2.203 Capital Adequacy 8%* 3.66% 4.60% 3.54% Tier I Ratio 6%.32%.80% 0.3% *BRSA s guidance is 2% A widespread as well as stable deposit base depicted by roll-over rates as high as 85 % lead to a symmetric structure with regards to the Bank s aggregate cash flow structure: 20
DURATION 205 204 Duration Loans 26 days 258 days Duration Total Assets 88 days 64 days Duration Time Deposits 42 days 44 days Duration Total Liabilities 73 days 64 days Duration GAP 4 months 3,5 months 2
CONSOLIDATON Company Capital Shareholding Ratio Şeker Securities 30,000,000 TRL 99.04% Şeker Leasing 45,000,000 TRL 54.3% Şeker Factoring 20,000,000 TRL 99.99% Şekerbank Kıbrıs 2,550,000 TRL 96.% Şeker Mortgage Finance 26,000,000 TRL 62.3% Şekerbank International Banking Unit 5,000,000 USD 95.80% Zahlungsdienste GmbH der Şekerbank T.A.Ş. 250,000 EUR 00.00% 22
CONTACTS Zeki Önder Executive Vice President International Banking Group Tel: +90 22 344 07 36 zeki.onder@sekerbank.com.tr Gülfer Tuncay Global Head of International Banking Group Tel: +90 22 39 7 55 INVESTOR RELATIONS & STRUCTURED FINANCE Oya Sarı Head of IR & Structured Finance Tel: +90 22 39 7 58 oya.sari@sekerbank.com.tr Anıl Çalım Junior Associate Tel: +90 22 39 7 57 anil.calim@sekerbank.com.tr Tuğçe Durakçı Executive Assistant Tel: +90 22 39 7 52/53 tugce.durakci@sekerbank.com.tr gulfer.tuncay@sekerbank.com.tr FINANCIAL INSTITUTIONS Ali Kemal Küçükcan Head of Financial Institutions Tel: +90 22 39 7 59 ali.kucukcan@sekerbank.com.tr Berrak Baharoğlu Senior Area Manager Tel: +90 22 39 73 08 berrak.baharoglu@sekerbank.com.tr Deniz Gemicibaşı Area Manager Tel: +90 22 39 7 60 deniz.gemicibasi@sekerbank.com.tr 23
LEGAL NOTICE FOR INVESTORS The information in this document has been obtained by Sekerbank T.A.Ş. ( Sekerbank ) from sources believed to be reliable. However, Sekerbank cannot guarantee the accuracy, completeness or correctness of such information. This document has been issued for information purposes only. The financial reports and statements announced by Sekerbank to the public and the relevant corporations are accepted to be the sole material. Sekerbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this document or its contents due to the misleading information in this document. All estimations contained in this document are the opinions of Sekerbank and can be subject to change without notice. This document can not be interpreted as an advice to the investors and Sekerbank can not be held responsible for the results of investment decisions made on account of this document. This document has been issued specially to the person, whom the document is concerned and may not be reproduced, distributed or shared with third parties for any purpose. 24