Türkiye Is Bankasi (ISCTR) investor relations material

Executive summary

• Macroeconomic volatility from geopolitical tensions and rising energy prices led to higher April inflation and a cautious monetary policy stance.

• Maintains the largest branch and ATM network among private banks in Turkey, with a stable, diversified ownership structure and strong digitalization, as 97% of transactions are via non-branch channels.

• Recognized for digital banking excellence and sustainability leadership, including multiple international awards.

• Net period profit rose to 20,357,299 thousand TL for Q1 2026, up from 12,417,615 thousand TL year-over-year.

• Entered 2026 with a cautious approach in both retail and commercial segments, maintaining selective underwriting and strong provisioning buffers.

Financial highlights

• Total assets grew 6.7% year-over-year to TL 4,935,547 million as of Q1 2026.

• Net profit increased 64% year-over-year to TL 20,357 million, with return on equity at 19.2% and return on tangible equity at 23.1%.

• Net interest income rose 7.8% quarter-over-quarter and 135.9% year-over-year.

• Fee and commission income grew 41% annually, with credit card business comprising 66% of the fee base.

• Operating expenses, adjusted for pension provisions, grew 14% quarterly, expected to normalize by year-end.

Outlook and guidance

• Year-end guidance for TL loan growth in the mid-thirties, net interest margin at 5%, and fee income growth at 40% remain unchanged.

• Committed to TL 650 billion in sustainable finance and TL 250 billion for women entrepreneurs by 2028.

• Targets significant emission intensity reductions by 2030 and carbon neutrality by 2035.

• Baseline scenario assumes 400 basis points of rate cuts in the second half of the year, contingent on easing geopolitical risks.