Sixty years of sustainable rythm in the Turkish economy Investor Presentation 2009
@ a Glance Ownership 42% İs Bank 50.1% Vakif Bank Free Float 8% Credit Ratings (Jan 2010) Fitch LTFC Moody s LTFC BB+ Ba3 Corporate Governance Rating SAHA 8.77/10 Main Subsidiaries Yatırım Finansman Securities Real Estate Appraisal İş Leasing 29% REIT Established in 1950 Largest private investment & development bank in Turkey Non deposit bank The 16th largest bank in Turkey with USD 4.6 billion asset size 320 employees, 3 branches 2 @ a Glance Banking Sector Business Lines Financials
Financial Highlights Assets Liabilities Long Term Loans 5 y %57 Long Term Funds 10 y %62 FX ROE : 19.5% NPL : 0.6% CAR : 24.9% % Financial Summary (USD mn) Assets 4,612 Liquid Assets (TRY) %30 Repo (TRY) %18 TRY Loans 2,642 Equity 695 Net Income 117 Paid in Capital 600 mn TRY Free Capital %11 3 @ a Glance Banking Sector Business Lines Financials
Banking Sector vs 2009 Banking Sector* Development & Investment Banking Group CAR 20.1% 24.9% Number of Banks: 13 Loan/assets 47.6% 57.3% NPL 5.3% 0.6% State t Banks: 3 Cost to income 34.9% 17.9% Private Turkish Banks: 6 NIM 5.5% 4.3% ForeignBanks: 4 ROAE 21% 19.5% s Asset Share : 25 % * 2009/09 BANKING SECTOR 62% Mevduat Deposits 62% Long Term Funding 4 62% of liabilities are deposits (Average maturity is less than 3 months) @ a Glance 62% of liabilities are long term funding (Average maturity is 10 years) Banking Sector Business Lines Financials
Business Lines MAIN MAIN BUSINESS LINES LINES Corporate Banking Investment Banking Treasury Key Subsidiaries Corporate Loans Corporate Finance ALM Yatırım Finansman Securities Apex Banking Brokerage Fixed Income REIT Project Finance Asset Management Spot&Derivative Trading Real Estate Appraisal Trade Finance TMU Real Estate Advisory Real Estate Brokerage 5 @ a Glance Banking Sector Business Lines Financials
Loans Total Loan Portfolio Loans by Types Loans by Sectoral Breakdown Apex Project 23% USD Finance 26 2.6 bn 32% Transp & Commun.; 7% Finance; 27% Corporate Loans 45% Energy; 29% Other; 24% 5 years of average maturity 57% of corporate loans are disbursed to mid sized SMEs. 98% foreign currency denominated 6 @ a Glance Banking Sector Business Lines Financials
Corporate Loans Corporate Lending and SME Loans Specific funds to finance investment projects of mainly small and mid size SMEs operating in the manufacturing industry, agricultural industry, construction, tourism and services sectors. Specific funds to promote Renewable Energy and Energy efficiency. Over the last 5 Leasing As an investment and development bank, can finance investments through leasing without establishing a separate leasing company. Trade Finance Through a strong diversified correspondent network, mainly in Europe and USA, Specific export and import transactions of our customers are financed. Acts as a guarantor or a borrower to meet the medium and longterm financing needs of the customers through ECA facilities. Non cash Loans, provides non cash loans to its customers for their tenders held in domestic and international markets. years, has financed almost half of the USD 5 billion SME investments and contributed to the creation of 13.000 new jobs. 7 @ a Glance Banking Sector Business Lines Financials
Project Finance Energy Renewable energy investments reached USD 3.8 billion, of which USD 1.4 billion is underwritten by. 85 projects with total installed capacity of 2,280280 MW in Hydro, Wind, Geothermal and Biomass. 45 of these projects aresyndicated d with other banks. More than 150 renewable energy projects have been evaluated. 15.5% Market share in total installed capacity of REL in Turkey Natural Gas Distribution USD 180 mn of financing was provided to 17 regions. 8 @ a Glance Banking Sector Business Lines Financials
Apex Banking 10 Commercial Banks 11 Leasing Companies 23% of lending through APEX scheme Placed through 21 intermediary financial institutions USD 1 bn APEX funds Reached 815 SMEs SMEs & Exporters 9 @ a Glance Banking Sector Business Lines Financials
Long term Funding Outstanding Funding Base European Investment Bank (EIB) USD mn 2.513 2.036 1.670 1.293 640 312 368 413 2.848 94 World Bank (IBRD) Japan Bank for Int l Cooperation (JBIC) Kreditanstalt für Wiederaufbau (KfW) Council of Europe Development Bank (CEB) 2005 2006 2007 2008 2009 Long term funds Short term funds International Finance Corporation (IFC) Agence Française de Développement (AFD) ICO of Spain 10 @ a Glance Banking Sector Business Lines Financials
Long term Funding Multilateral Funding Agreements (p.a.) 1,039 USD mn 93% 472 145 279 549 Long term funding through multinationals within the scope of country assistance programs. 2005 2006 2007 2008 2009 Average Maturity: 10 years 93 % of long terms funds guaranteed by Turkish Treasury EIB; 32% IBRD; 42% CEB; 8% AFD; 5% KFW; 5% 11 Outstanding Funds @ a Glance Banking Sector Business Lines Financials
Corporate Finance M&A Devam Ediyor Devam Ediyor Temmuz 2007 Ağustos 2008 Impressive track record of M&A buy side and sellside mandates in numerous industrial, commercial and infrastructure projects. TCDD İskenderun Limanı ÖİB'e Danışmanlık Otoyol ve Köprülerin Özelleştirilmesi ÖİB'e Danışmanlık Sabiha Gökçen Havaalanı 3,1 milyar ABD$ SEDAŞ&BEDAŞ LİMAK Holding Public Offering & Bond Issuance Satış Danışmanlığı Satış Danışmanlığı Alım Danışmanlığı Alım Danışmanlığı 3 IPOs in 2010 Devam Ediyor Devam Ediyor Devam Ediyor Devam Ediyor REIT s IPO will be in the first half of 2010 Will play an active role in corporate bond issuance once the markets gain momentum. Halka Arz Danışmanı ve Lider Yüklenici GYO Halka Arz Danışmanı ve Lider Yüklenici Şeker GYO Halka Arz Danışmanı ve Lider Yüklenici Halka Arz Danışmanı ve Lider Yüklenici Strategic Advisory company and asset valuations, feasibility studies, brand appraisals, strategic investments, establishment of new companies investment trusts. Firma Değerleme Firma Değerleme and Eker Süt 2009 2008 Rönesans Gayrimenkul Betek Boya 2007 Robert Bosch 2007 Firma Değerleme Fizibilite Çalışması 12 @ a Glance Banking Sector Business Lines Financials
Asset Management & Brokerage Asset Management Brokerage Conventional Investment Funds Private Asset Management Investment Trust Capital Guaranteed Funds under the Umbrella fund! Ranking 3rd as of 2009 Investment Advisory and brokerage services to private & institutional customers in equity, fixed income, FX and derivative products Trading Platform (TTP) and two branches to enhance secondary market activities 13 @ a Glance Banking Sector Business Lines Financials
Composition of Assets *USD Mn 4.195 4.096 4.612 36% 31% 38% 57% 63% 57% Liquid Assets Loans Loan/Asset ratio is 57% 64% of Assets are FX denominated, 74% of Liquid Assets are TRY government bonds. Other assets are subsidiaries and tangible assets. 7% 6% 5% 2007 2008 2009 Others Total Assets (TRY) 11% 14 @ a Glance Banking Sector Business Lines Financials
Loans More than 4,000 projects in the past No currency mismatch 52% in EUROs 46% in USDs 100% Coverage Ratio COLLATERAL BASE Other; 25% Mortgage; 38% Unsecured APEX; 18% Letter of Guarantee; Unsecured 4% cash; 8% Unsecured non cash; 7% 15 @ a Glance Banking Sector Business Lines Financials
Securities Portfolio TRY FX ($) Securities Portfolio 327 TRY Securities 276 303 1.379 1.315 1.943 48% 2007 2008 2009 2008 Zero Coupon Bonds 43% FX Floating 7% FX Fixed 19% TRY Floating 31% Duration is 8m in Zero coupon bonds, 3.2y in FRN s FX portfolio consists mainly of Eurobonds. 88% is in AFS portfolio 16 @ a Glance Banking Sector Business Lines Financials
Liabilities 4.195 4.096 4.612 17.1% 1% 13.0% 18.6% Repo 54.9% 72.6% 61.8% Long Term Funds Total FX borrowings: $3.7 bn Other Equity increased by 40% 12.9% 15.1% 2.3% 4.6% 15.1% 12.1% 1% Equity 2007 2008 2009 17 @ a Glance Banking Sector Business Lines Financials
Shareholder s Equity TRY mn 28% Capital Adequacy Ratio 40% 24.9% 24% 21% 22% 20% Equity Movement 2007 2008 2009 CAR Tier 1 750 76 40 175 1041 11.98% Free Capital Ratio 11.00% 8.49% Equity as of AFS MTM Equity MTM Net Profit Equity as of 2008 Gains Gains 2009 2009 2007 2008 2009 18 @ a Glance Banking Sector Business Lines Financials
Income Breakdown (TRYmn) 2008 2009 Change (%) Adj. Net Interest Income 213.6 251.1 18% Net Commissions 4.7 8.2 74% Dividend Income 23.9 19.0 21% Other Operating Income 10.2 15.2 49% Net Banking Income 252.4 293.5 16% Personnel Expenses 30.7 33.0 7% Adm. Expenses 13.1 15.2 16% Other Op. Expenses 8.1 7.0 13% Operating Profit 200.5 238.3 19% Provision Charges 52.4 27.7 22% Tax Provisions 29.1 35.7 23% Net Profit 119.0 174.9 47% Commissions Income Breakdown Banking Income %16 Total Expenses % 6 37% 34% 17% 14% 10% 16% 27% 20% 22% Brokerage Fund Management Corporate Finance Net Profit 36% 36% 45% Non cash Loans %47 19 2007 2008 2009 @ a Glance Banking Sector Business Lines Financials
Ratios 20 @ a Glance Banking Sector Business Lines Financials
Contact Us Investor Relations Meclisi Mebusan Caddesi No: 81 Fındıklı 34427 Istanbul Turkey Email: ir@tskb.com.tr Tel: +90 (212) 334 5124 5194 Fax: +90 (212) 334 5234 Internet: www.tskb.com Financial Institutions Meclisi Mebusan Caddesi No: 81 Fındıklı 34427 Istanbul Turkey Email: fi@tskb.com.tr Tel: +90 (212) 334 5126 Fax: +90 (212) 334 5234 Internet: www.tskb.com 21