INVESTOR PRESENTATION BRSA Unconsolidated Financial Statements Highlights 30.06.205 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 : Established in Eskişehir as the Sugar Beet Cooperative Bank 956 : Moved to Ankara and renamed as Şekerbank 970 s : Shifted to full service banking from cooperative banking OBJECTIVE 980 s : Concentrated in commercial banking 997 : Initial public offering 2002 : Initiated restructuring to change from a traditional commercial bank into multi channel, diversified financial institution based on customer and segment focused applications 2004 : Head Office moved to İstanbul 2007 : Conclusion of partnership agreement to sell 33.979% of shares to BTA (Bank Turan Alem) Group of Kazakhstan 2007 : First Corporate Governance rating 200 : IFC and Şekerbank Personnel Social Security Foundation signed an option agreement for IFC purchasing Şekerbank shares up to 5% 20 : Şekerbank shares held by BTA Group transferred to Samruk Kazyna, the National Welfare Fund of Kazakhstan 20-2 : First SME backed Covered Bond issuance in the world 204 : 203 GRI Report (Global Reporting Initiative) 3
STRATEGY & MISSION Community Banking with SME focus Being Close to Customers / product excellence OBJECTIVE Construction Focusing more on housing projects Managing cash flows of projects Financing existing projects Focus on cross selling opportunities Food & Agri Creating a Value Chain from farmers to retailers Focusing on areas with growth potential Data based specialization & providing distinctive products designed for customer needs with regional focus Pursuing close relations with Farmer Unions and other food organizations Tourism Becoming a partner of growing SME s Providing simple and user friendly products Reaching SME via TİM, KOSGEB and other institutions alike Serving tourism establishments, financing renovation, capacity increase and working capital requirements Serving restaurants, bus companies, local tour operations Focusing on cultural, educational, health and winter tourism Responsive to local characteristics and needs Introduces banking services to those who do not have a bank Grows together with its satisfied customers, employees and partners by creating value Gathers strength from its deep-rooted past Supporting Energy Efficieny investments of all segments and sectors Other Sectors Energy, Textiles, IT, Logistics, Chemicals, Manufacturing Reaching sub sectors through the value chain of main sectors SME Operational excellence Developing very Strong Deposit Base Focusing on Product Differentiation, and Cross Selling Expanding Retail Loans with a widespread customer portfolio Retail 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 8,49 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- *Fitch has upgraded the Outlook from Negative to Stable on 23 February 205. *Moody s assigned Counterparty Risk Assessment (CRA) rating as Ba (cr) on 28 May 205 Corporate Governance Rating 2007 2008 2009 200 20 202 202* 203 204 70.6 8.36 86.64 87.60 88.2 90.95 90.74 90.9 9.0 *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/english/governance.jsp **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 32 branches in Turkey, Regional Offices: 3 in Istanbul, 8 regional in Anatolia as of June 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 65 Artvin Ardahan Edirne Kocaeli 2 2 Düzce 5 Trabzon Rize 6 Ordu 3 Trabzon Yalova 4 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 36 Yozgat Erzincan Erzincan Sivas 5 Ağrı 3 Kırşehir 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 2 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 Akbank 79 3 Garanti 78 4 YKB 74 5 Şekerbank 7 6 ING Bank 7 7 Finansbank 68 8 HSBC 62 9 TEB 7 0 Anadolubank 27 * 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 32 Branches No Branch 7
ASSET & LIABILITY STRUCTURE Asset Structure (Mln TRL) Liability Structure (Mln TRL) 22,272 9,706 2,87 22,272 9,706 2,87 7,84% 6,90% 8,5%,67% 0,75%,46% 69,46% 70,% 69,7%,02% 2,24% 0,87% Q2205 Q2204 Q4204 Cash Loans Securities Other Ratios 30.06.205 LC Assets / Assets 79,79% Loans / Assets 69,46% Securities / Assets,67% Loan Loss Provision Ratio 49,30% NPL Ratio 5,36% 5,40% 5,4% 5,3%,03% 0,84%,29% 9,53% 6,75% 9,68% 64,04% 67,27% 63,90% Q2205 Q2204 Q4204 Deposits Borrowing Equity Other Ratios 30.06.205 Deposits / Liabilities 64,04% Deposits up to 3 months / Deposits 86,57% LC Deposits / Deposits 6,28% Loans / Deposits 08,47% Borrowings / Liabilities 9,53% Şekerbank 30.06.205 30.06.204 3.2.204 Capital Adequacy Ratio 4,3% 3,06% 4,60% Int.Exp. / Int.Income 52,22% 56,55% 53,42% Return on Equity 5,22% 6,90% 9,36% Return on Assets 0,58% 0,75%,06% 8
LOANS STRUCTURE Loan Progress by years (Mln TRL) Loan Breakdown by Segments 5.47 3.86 4.665 5.528 5.808 5.592 Q2205 Q2204 Q4204 Cash Non Cash Retail Loans 0,24% 2,27%,42% 7,40% 70,77% 69,70% 8,36% 6,96% 8,88% Q2205 Q2204 Q4204 Corporate SME Retail Loan per Branch (Thousands TRL) 7 0,3 4% 7 3,6 3% 7,7 9%,2 9 % 2,3 0 % 0,6 4 % 2, 2 %,0 9 % 2, 3 % 49.588 46.97 4,7 4%,3 4%,9 7%,6 5% 3,9 3%,0 7% 44.28 Q2205 Q2204 Q4204 Q2205 Q2204 Q4204 General Purpose Mortgage Auto Credit Card Other 9
LOANS STRUCTURE con t CUSTOMER SEGMENT TURNOVER NUMBER OF CUSTOMERS OUTSTANDING PORTFOLIO SEGMENT / (TRL 000) TOTAL LOANS CORPORATE > TL 00 mln 532 2,76,004 8.36% MEDIUM SIZE <TL 00 mln >TL 25 mln 0,02 5,599,884 SME SMALL <TL 25 mln >TL 5 mln 2,4 928,88 7.4% MICRO < TL 5 mln 29,270 4,209,25 RETAIL 23,369,539,532 0.24% TOTAL 355,594 5,038,489 00.00% 0,24% 8,36% 7,40% Corporate SME Retail 0
LOANS STRUCTURE con t 30.06.205 Cash Loans in Sectors 5% 2% 3% 4% Construction Agriculture Manufacturing Industry Wholesale&Retail Trade 7% 4% 7% 8% Transportation&Comm. Health&Social Serv. Real Estate&Rent Services Other Retail Loans (TRL 000 ) 30.06.205 30.06.204 General Purpose,204,449,296,96 Mortgage 252,380 20,86 Auto 22,035,209 Credit Card 94.284 205,54 Other 39,25 37,360 Total,72,363,76,455
SECURITIES Breakdown of Securities Fixed & Floating Securities (mln TRL) 2
FUNDING STRUCTURE Deposit Progress by Years (Mln TRL) Deposit Maturity Structure 3% 2% 4% 4.263 3.256 3.539 87% 88% 86% Q2205 Q2204 Q4204 Deposit Deposit per Branch (Thousands TRL) Q2205 Q2204 Q4204 Time Demand Deposit 45.76 6% 67% 59% 42.488 43.393 39% 33% 4% Q2205 Q2204 Q4204 Q2205 Q2204 Q4204 FC LC Deposits by Segment 70,66% 9,75% 9,59% Time 44,04% 2,72% 43,24% Demand SME Corporate Retail 3
FUNDING STRUCTURE con t Borrowings (TRL 000 ) 30.06.205 30.06.204 3.2.204 Funds borrowed.678.090 992.055.55.828 Interbank money market takings - - - Istanbul Stock Exchange money market takings - 3.074 - Funds provided under repurchase agreements.442.040.077.70.440.582 SME-backed Covered Bond 452.579 788.26 642.648 Local Bonds 37.042-494.389 Subordinated Loans 460.240 4.995 436.67 Total 4.349.99 3.300.420 4.70.8 4
FOREIGN BORROWINGS Type of Funding Amount Covered Bond (FMO, IFC, Private Investors) Subloan (ETDB, EBRD, EFSE, IFC, KfW) Syndication Int'l Trade IFI's (OeEB, ETDB, KfW, AFD, TSKB) Funds (ResponsAbility, GGF, GCPF, OPIC) TOTAL 73.392.239 USD 70.380.000 USD 33.520.000 USD 264.988.28 USD 229.000.000 USD 93.000.000 USD.064.280.520 USD 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 ) 30.06.205 30.06.204 3.2.204 06.204/06.205 2.204/06.205 Cash 2.455.40 2.4.908 2.302.0,80% 6,66% Loans net 5.47.43 3.85.606 4.655.079,99% 5,57% Securities 2.599.009 2.9.74 2.427.535 22,64% 7,06% Other.746.430.359.362.802.564 28,47% -3,% Total 22.272.280 9.706.050 2.87.288 3,02% 5,2% Liabilities (TRL 000 ) 30.06.205 30.06.204 3.2.204 06.204/06.205 2.204/06.205 Deposits 4.263.436 3.256.292 3.538.608 7,60% 5,35% Borrowings 4.349.99 3.300.420 4.70.8 3,80% 4,3% Equity 2.456.333 2.36.457 2.39.83 4,97% 2,70% Other.202.520.02.88.086.749 8,72% 0,65% Total 22.272.280 9.706.050 2.87.288 3,02% 5,2% Income Statement (TRL 000 ) 30.06.205 30.06.204 3.2.204 06.204/06.205 2.204/06.205 Net Interest Income 522.305 446.227 977.980 7,05% -46,59% Net Ops. Income 663.602 653.230.376.94,59% -5,8% P&L Before Tax 62.976 96.795 280.70-34,94% -77,56% Period P&L 62.705 73.750 223.969-4,98% -72,00% 7
FINANCIALS & RATIOS Profitability (TRL 000) 30.06.205 30.06.204 4% Fees & Commissions (TRL 000) 30.06.205 30.06.204 Interest on Loans 965.842 97.382 5,9 % 5,28%,9 % Banking Services 34.38 08.687 23,64% Interest on Securities 2.526 05.56 5,7% Fees from Non-Cash Loans 32.69 34.858-6,42% Net Interest Income 522.305 446.227 7,05% Fees & Comm. Rcvd 67.000 43.545 6,34% Net Comm. Income 4.88 22.840 5,45% Fees & Comm. Paid 25.82 20.705 2,62% Net Profit 62.705 73.750-4,98% Net Fees & Comm. 4.88 22.840 5,45% Funding Ratios 30.06.205 2, 7,430.06.204 % 28, % 28, Loans/ Deposits TRY Loans/ TRY Deposits 08,47% 04,22% 52,5% 34,5% Cost Ratios 30.06.205 30.06.204 Cost/Income 6,64% 58,04% NIM 5,77% 5,59% Cost of Risk 30.06.205 30.06.204 FC Loans/ FC Deposits 39,36% 42,36% Cost of Risk,43%,72% 8
GROWTH PLAN Growth Plan (Thousands TRL) 204 Realized 205 Projection 206 Projection 207 Projection 205 Growth 206 Growth 207 Growth Loans net 4,655,079 7,680,567 20,253,87 23,22,65 20.6% 4.6% 4.2% Deposits 3,538,608 5,995,3 8,274,868 20,852,648 8.% 4.3% 4.% Total Assets 2,87,288 25,63,695 28,643,59 32,564,398 8.8% 3.8% 3.7% Securities 2,427,535 2,792,534 3,83,489 3,629,77 5.0% 4.0% 4.0% Equity 2,39,83 2,72,34 3,097,372 3,569,60 3.4% 4.2% 5.2% Paid in Capital,087,87,25,000,25,000,25,000 3.5% 0.0% 0.0% Net Interest Income 977,980,78,280,399,478,609,335 20.5% 8.8% 5.0% Net Fees and Commissions 245,69 29,776 337,92 385,303 8.76% 5.57% 4.27% Net Profit 223,969 282,75 385,03 47,788 26.2% 36.2% 22.5% ROE 0.40%.4% 3.25% 4.5% ROA.3%.23%.43%.54% 9
CAPITAL ADEQUACY The Bank adopts «Risk Indicators» for both the CAR and the Tier I Ratio higher than the regulatory limits set for those. «Risk Indicators» are approved by the Board of Directors: Capital Adequacy : min 3 % Tier I Ratio : min 8 % Capital Adequacy Regulatory Limit Risk Limit 30.06.205 3.2.204 3.2.203 min 2% 3% 4,3% 4,60% 3,54% Tier I Ratio min 6% 8%,84%,80% 0,3% 20
LIQUIDITY 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: 2
DURATION 30.06.205 3.2.204 Duration Loans 275 days 258 days Duration Total Assets 87 days 64 days Duration Time Deposits 35 days 44 days Duration Total Liabilities 60 days 64 days Duration GAP 4,5 months 3,5 months 22
CONSOLIDATON Company Equity Shareholding Ratio Şeker Securities 30.000.000 TRL 99,04% Şeker Leasing 45.000.000 TRL 54,3% Şeker Factoring 6.000.000 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% 23
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 İrem Bulat Associate Tel: +90 22 39 7 54 irem.bulat@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 Area Manager Tel: +90 22 39 73 08 berrak.baharoglu@sekerbank.com.tr Deniz Gemicibaşı Assistant Area Manager Tel: +90 22 39 7 60 deniz.gemicibasi@sekerbank.com.tr Rasim Coşar Assistant Area Manager Tel: +90 22 39 75 8 rasim.cosar@sekerbank.com.tr 24
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. 25