Türkiye Vakiflar Bankasi Türk Anonim Ortakligi (VAKBN) investor relations material

Executive summary

• Q1 2026 net income was TRY 15 billion, with consolidated net income at TRY 17 billion, reflecting either a 66% increase or a 25% decrease year-over-year depending on the basis of comparison; higher operating expenses and provisions impacted results.

• Total revenues for Q1 2026 were TRY 85.6 billion, up 13% year-over-year, but down 9% sequentially.

• Maintained TRY 8 billion in free provisioning and conservative CPI valuation, providing a buffer against uncertainties.

Financial highlights

• Net interest income for Q1 2026 was TL 53.8 billion, up 156% year-over-year but down 19% sequentially.

• Net interest margin reported at 4.6% (swap-adjusted 4.1%), in line with full-year guidance.

• Fee income rose 26% year-over-year to TRY 19.3 billion, outperforming sector averages.

• Operating expenses increased 60% year-over-year, mainly due to higher promotional expenses.

• ROE/ROAE reported at 18.4%; adjusted for free provisioning, would reach 28%.

Outlook and guidance

• Downside risk to full-year net interest margin guidance due to higher funding costs and inflation.

• Guidance for other key metrics remains unchanged for now; updates expected after Q2 results.

• Management expects OpEx growth to normalize as promotional expenses decline.

• NIM evolved in line with guidance, despite conservative CPI assumptions.