investor presentation q2-2019 v2 · 2019-08-02 · ò 4 · 0dlq +ljkoljkwv 0loolrq75/ ï u í ð ï...
TRANSCRIPT
Q2-2019Investor Presentation
Albaraka Türk Participation Bank02 Aug 2019
Agenda
1 Financial Highlights
2 Market Comparison
3 Appendix
Albaraka Turk – Q2’19 At a Glance3
Balance Sheet Key Ratios
(Million TRL) Q4’18 Q2’19 YtD (%) % Q4’18 Q2’19 YtD (%)
Total Assets 42.223 43.886 3,9
Total Funded Credits (Net) 26.185 27.771 6,1CAR 14,66 13,83 -83
Total NPLs 1.889 2.128 12,7
Deposits (incl. Interbank) 28.623 33.045 15,5Tier 1 9,98 9,49 -49
Shareholder’s Equity 3.261 3.288 0,8
NPL 6,88 7,31 43Income Statement
(Million TRL) Q2’18 Q2’19 Y-Y (%)
Net Profit Share Income 498 340 -31,8Provisioning
Stage III47,31 51,87 456
Net Fees & Commissions 85 147 72,6
Provisions for Loan Loss 353 410 16,1 Net Profit ShareMargin
2,80 2,22 -58
Operating Expenses 207 211 2,1
Net Profit 196 50 -74,7Cost/Income 59,93 53,15 -678
6Q2’19 Main Highlights (Million TRL)
3,143,37
2,94
2,62
2,19
3,35 3,48
2,8
2,552,22
Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
NPSM (Exc. JV Projects)* Net Profit Share Margin*
* Trailing for last 4 quarters
4
40.45644.712
42.224 44.594 43.886
27.689 29.79726.185 26.498
27.771 27.71129.330
28.623 30.62833.045
Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
Total Assets Total Funded Credits Total Collected Funds
131
196
50
Q2'17 Q2'18 Q2'19
Net Profit
7,56 % 7,12
2,42 % 2,37
4,68 % 4,34
Q4'18 Q2'19
Common Equity Tier I Additional Tier I Additional Tier II
13,83 %14,66 %
1.1441.492 1.230
1.789 2.062
564515
619
549
1.435
941927 1.117
1.195
1.615
Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
Available for sale Held to Maturity Other Marketable Securities
2.875
2.6482.934
5.112
7Asset Composition
Composition of Total Assets (Q2’19) Liquid Assets (Million TRL)
5
Total Securities Portfolio (Million TRL) Securities Yield (%)
13,6412,9212,84
11,11
10,02
Q2'19Q1'19Q4'18Q3'18Q2'18
(*) Profit share income received from securities for the last 4Q/5Q average securities
10.920 12.580 13.465 15.484 12.650
27,0%28,1%
31,9%34,7%
28,8%
Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
Liquid Assets % of Total Assets
Funded Credits; 63,3%
Securities Portfolio;
11,6%
Other Liquid
Assets*; 20,5%
Other Assets; 4,6%
*Liquid Assets includes Cash and Cash Equivalents, Financial Assets Measured at Fair Valuethrough Profit/Loss, Financial Assets Measured at Fair Value through Other ComprehensiveIncome.
* Other Liquid Assets includes Cash and Cash Equivalents and Derivative Financial Assets
2.965
298 69 -9 56
1H'18 Profit ShareIncome
Fees &Comm
TradingIncome
Others 1H'19
1.986
6Operating Performance Breakdown
Income (Million TRL)
720 844 836
-471 -648 -692
Profit Share Income Profit Share Expense
250
Q4’18
Net Profit Share Income (Million TRL)
Key Movements in Income (Million TRL)
Cost & Yield Movement (%)
Q2’18
196 144
6
10,04% 10,47% 10,09% 10,58% 10,76%
3,35% 3,48% 2,80% 2,55%2,22%
6,08% 6,41% 6,78%7,17% 7,46%
Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
Credit Yield Net Profit Share margin
Cost of Collected Funds
69,6%70,0%
6,4%
8,1%
7,4%
5,7%16,7%
16,1%
1H'18 1H'19
Others
TradingIncome
Fees & Comm
Profit ShareIncome
2.400
1.9862.400
Q2’19
*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
Q2’18 Q3’18 Q4’18 Q1’19 Q2’19
Corporate Credits 39.6 41.4 41.7 41.9 47.1
SME Credits 49.2 48.9 48.1 48.6 44.2
Retail Credits 11.2 9.7 10.2 9.6 8.7
44%
36%
20%
TRL
USD*
EUR*
Composition of Total Funded Credits* (%) Currency Composition of Total Funded Credits* (Q2’19)
*Including USD & EUR indexed credits*According to BRSA definition
7
Q2’18 Q4’18 Q2’19 YtD YoY
TL Credits, TL 13.599 12.092 12.233 1,2% -10,0%
FC Credits, $* 1.771 1.933 2.233 15,5% 26,1%
FC Indexed, $* 1.319 735 460 -37,4% -65,1%
Total Credits, TL 27.689 26.185 27.771 6,1% 0,3%
13,4%
19,8%
10,0%11,9%
7,0%6,0%
Q2'18 Q3'18 Q4'18 Q1'19 Q2'19Yield on TL Loans, adjusted, trailingBlended Yield, adjustedYield on FX Denominated Loans, trailing
80,3% 76,2%73,7% 77,5% 78,6%
14,2% 17,6%
19,4% 15,2% 14,1%5,6%
6,2%
6,9% 7,4% 7,3%
Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
Group I Group II Group III
29.103
5,576,22
6,887,36 7,31
Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
Gross Funded Credits by Groups (including financial leasing, million)
227 232216 218 213
Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
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 Quality8
31.27227.442
28.887
9291.168
8931.069 1104
57,7%60,1%
47,3%52,3% 51,9%
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
Lifetime ECL Impaired Credits (Stage 3) (Million TRL) Provisioning Ratio (%)
27.778
NPL Formation Trend
Asset Quality9
209
454
439
315
154
44 117
253
78 70165
336
186
237
84
250
475
272
369
128
2Q'18 3Q'18 4Q'18 Q1'19 Q2'19
Additions (million TRL) Recoveries (million TRL)
Net NPL Formation (million TRL) Net NPL Formation Rate (bps)
NPL Inflow Sector Distribution 1H’19
Source: Albaraka Turk
8,8%12,6%
29,9%
14,8%
29,9%
4,0%
Communication Construction&Real EstateManufacturing OthersTrading Transportation
23,7%
13,5%
29,8%
10,1%3,7%
19,0%
Manufacturing OthersConstruction&Real Estate TradingTransportation Energy
Stage II Credits Sector Distribution 1H’19
5.212
2.128
4.390
1.382
78
1.104
Stage 2 Stage 2 Stage 3 Stage 3
Risk amount Collateral Provision
Stage II-III Coverage (Million TRL)
*Includes construction of power plant projects
24% 27% 24% 25% 16%
21% 21% 23% 23%27%
56% 52% 53% 52% 57%
Q2'18 Q3'18 Q4'18 Q1'19 Q2'19Fund Borrowed* Current Accounts Participation accounts
Composition of Total Liabilities (Q2’19,%) Composition of Funding Base (Million TRL)
75,3%
14,1%
7,5%2,5% Funds Collected
Wholesale Funding
Shareholders'EquityOthers
36.295
8,1%
40.155
Funding Profile10
*Fund Borrowed includes Funds Borrowed , Borrowings from Money Market and Subordinated Loans
39.231
(Million TRL) Q4’18 Q2’19 YtD GrowthFunds Collected (incl. Bank deposits) 28.623 33.045 15%
Wholesale Funding 8.828 6.185 -30%Funds Borrowed 6.852 3.979 -42%
Syndicated Loans 1.665 0 -100%Wakala 1.211 1.309 8%Issued Lease Certificates & Sukuk 3.463 2.363 -32%Other 514 306 -40%
Sub-Ordinated Debt (Tier 2) 1.204 1.316 9%Interbank 772 891 15%
Shareholders’ Equity 3.261 3.288 1%Paid in Capital 900 900 0%Tier 1 Sukuk 776 - -Other Liabilities 1.510 1.080 -28%Total Liabilities 42.224 43.886 3,9%
37.452
205
250
0 100 200 300
2025
>2030
Tier 1 Sukuk (Perpetual) Tier 2 Sukuk
Maturity Profile of Liabilities (Million USD)
39.978
34
39
22
4
TRL
USD
EUR
Others
7,46%7,17%6,78%
6,41%6,13%
14,11%12,63%
11,31%10,34%
9,58%
2,50%
2,56%2,47%2,33%2,13%
0,68%0,94%1,21%1,41%1,36%
Q2'19Q1'19Q4'18Q3'18Q2'18
Blended TL FC Precious Metal
Total Funds Collected (Million TRL)
Cost of Funds Collected**USD equivalent of FC accounts
*Profit share expense to depositors for the last 4Q/4Q average participation accounts
Currency Composition of Funds Collected (Q2’19,%)
Maturity Composition of Funds Collected (Q2’19, %)
33
19
41
3 4
Current Acc.
Up to 1 month
Up to 3 months
Up to 1 year
>1year
Funding Profile (Collected Funds)
11
Q4’18 Q2’19 YtD
Funds Collected 28.623 33.045 15,4%
Current Accounts 8.729 10.822 24,0%
Current Accounts TL 2.810 2.907 3,5%
Current Accounts, FC, $ 1.121 1.372 22,4%
Participation Accounts 19.895 22.223 11,7%
Participation Accounts TL 8.970 8.365 -6,7%
Participation Accounts FC, $ 2.069 2.402 16,1%
Total Funds 36.248 37.914 4,6%
Total Funds TL 14.385 14.615 1,6%
Total Funds FC, $ 4.141 4.038 -2,5%
Q2’18 Q3’18 Q4’18 Q1’19 Q2’19Growth (%)
YoY
Letter of Guarantee 8.004 8.910 8.575 8.304 8.251 3,1%
Letter of Credit 1.178 1.266 1.230 1.423 1.328 12,7%
Others* 137 205 242 424 409 198,5%
Total: 9.319 10.382 10.046 10.151 9.998 7,3%
Off Balance Sheet Composition (%) LGs*-to-Total Assets
19,8% 19,9% 20,3%
18,6% 18,8%
Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
Guarantees & Sureties(TRL million)
*Revocable credit limits not included.
Off Balance Sheet Growth12
*Below 20% of LGs to Total Assets is targeted
59 5869
4060
9 810
7
10
32 3421
5330
Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
LG LC Others
15.413 12.444 13.75313.544 20.648
14Income- Cost Dynamics
13
(Million TRL)
YoY Notes
Q2’18 Q2’19 %
Net Profit Share Income 498 340 -31,7%
Profit Share income increased by 22% While Profit share Expenses incresed by 52% YoY. Upward pricing of Funded Credits and downward cost of funding in 2H19 is expected to lead stronger Net Profit Share Income.
Net Fee Income 85 147 72,9%Circa 73 % 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 146 138 -5,5%$205 mln Tier-1 capital sukuk shaped stronger FX gains in the 2019 1H. This USD-denominated capital has acted as an organic hedge to TL depreciation.
Other Income 331 384 16,0%Provision reversals from stage 2 credits in first Quarter led to 2019 1Htotal operating income being above the same period of last year.
Provisioning 352 410 16,5%Provisioning expenses related to Stage 3 credits put pressure on the provisioning expenses 1H 19. Nevertheless, our total coverage ratio dropped to 62.6%, while Stage-3 coverage ratio increases to 51.9%.
Personnel Expenses 257 326 26,8% Impact of CPI, compensation for people leaving the Bank
Other Costs 207 212 2,4%Despite the continued branch expansion (+9 branches YoY) to 232headline cost growth remained far below 15,7% inflation.
Net Profits 196 50 -74,5% Worsening asset quality related higher provisioning expenses, rising cost of funding depressed net profit in 1H 201
Agenda
1 Financial Highlights
2 Market Comparison
3 Appendix
Percent % Q4’18 Q2’19
Albaraka TürkParticipation
BanksBanking Sector Albaraka Türk
ParticipationBanks
BankingSector
CAR 14,66 15,76 17,27 13,83 17,40 17,73
NPL Ratio 6,88 3,74 3,81 7,31 4,27 4,29
Provisioning Ratio (Stage 3) 47,31 63,30 68,32 51,87 68,87 67,61
Loan/Deposits 91,48 96,62 117,25 84,04 85,33 112,84
Asset Yield 8,29 9,64 10,49 8,55 8,44 11,60
Asset Spread 2,81 3,23 3,37 2,31 0,89 2,39
Net Profit Share Margin 2,80 4,21 4,26 2,22 3,24 4,25
Op Costs / Avg. Assets 2,89 2,10 1,84 2,86 2,03 1,84
Cost/Income* 59,93 35,70 34,39 53,15 34,44 35,72
Credits / Branches (000‘TRL) 113,848 121,472 219,358 119,702 132,379 235,770
Staff / Branches 17,34 14,08 17,96 16,74 13,86 17,92
CA / Deposits 30,49 32,75 21,32 32,75 33,67 23,55
*Cost: Operating Costs, Income: NPSI, Net Fees and Commissions Income, Other Income Net Trading Income
Financial Ratios - Sector Comparison15
Agenda
1 Financial Highlights
2 Market Comparison
3 Appendix
(Million TRL) Q4’18 Q2’19 GrowthCash and Balances with Central Bank 5.918 6.348 7,3%Banks 5.217 2.651 -49,2%Financial Assets 2.949 5.100 72,9%Funded Credits 26.185 27.771 6,1%
Cash Credits 25.174 26.697 6,0%NPL 1.889 2.128 12,7%Provisions 893 1.104 23,6%Net Financial Leasing Receivables 380 277 -27,1%
Associates 40 48 20,0%Fixed Assets 687 1.259 83,3%Assets Held For Sale and Investment 650 390 -40,0%Other Assets (inc. Tax Assets) 578 320 -44,6%
Total Assets 42.224 43.886 4,0%
Funds Collected 28.623 30,045 5,0%Funds Borrowed 6.852 3.979 -41,9%Debts 2.192 1.970 -10,1%Provisions (inc. Taxes) 90 111 23,3%Tier II Sukuk 1.204 1.316 9,3%Shareholders’ Equity 3.261 3.288 0,8%
Capital 900 900 0,0%Capital Reserves (inc. Premium) 846 870 2,8%Profit Reserves 1.301 1.431 10,0%
Total Liabilities 42.224 43.886 4,0%
Summary Balance Sheet17
(Million TRL) Q2’18 Q2’19 Growth
Profit Share Income 1.382 1.680 22%
Profit Share Expense 884 1.340 52%
Net Profit Share Income 498 340 -32%
Net Fees and Commissions Income 85 147 73%
Fees and Commissions Received 126 195 55%
Fees and Commissions Paid 41 48 17%
Net Trading Income 146 138 -5%
Other Operating Income 331 384 16%
Total Operating Profit 804 686 -15%
Provisions for Loan Losses and Other Receivables 353 410 16%
Other Operating Expenses* 464 538 16%
Operating Profit Before Tax 244 64 -74%
Tax Provision 48 15 -69%
Net Profit 196 50 -74%
Summary Income Statement18
* including personnel expenses
THANK YOU
DisclaimerTHIS 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
of 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.
Contact Us
Investor RelationsAddress : Saray Mahallesi Dr.Adnan Büyükdeniz Caddesi No:6 34768 Ümraniye/ İSTANBULE-mail : [email protected] : +90 216 666 03 03Fax : +90 216 666 16 20 Internet : www.albaraka.com.tr