Türkiye Halk Bankasi (HALKB) Q2 2025 earnings summary

Executive summary

• Total assets reached TRY 3.84 trillion as of June 2025, up 22% from December 2024 and 39.8% year-over-year, driven by securities and core banking growth.

• Net profit for H1 2025 was TRY 13.8 billion, up 12% year-over-year, with Q2-25 net income at TRY 4,981 million, up 44.8% YoY but down 29.4% QoQ.

• Net interest income surged 66.5% YoY and 40.3% QoQ, supported by strong loan and securities yields.

• SME loans accounted for 47–54% of the loan portfolio, maintaining sector leadership and supporting asset quality.

• Digital customer base grew 4% YoY to 6.6 million, with digitalization and new product launches supporting growth.

Financial highlights

• Interest income rose 44% YoY to TRY 436.8 billion, with net interest income at TRY 41.5 billion and net fee and commission income up 46.8% to TRY 27.7 billion.

• Net interest income for Q2-25 was TRY 22,916 million, up 40.3% QoQ; NIM improved to 3.6% from 2.9%.

• Operating expenses rose 22.5–22.8% QoQ, mainly from non-HR costs; cost/income ratio increased to 70%.

• Total deposits up 13.5% quarterly and 39.2% YoY, with TL deposits up 14.4% quarterly.

• Non-performing loans ratio increased to 2.8% from 2.1% at year-end 2024.

Outlook and guidance

• Management expects continued growth in assets and profitability, supported by digitalization, SME lending, and green transformation initiatives.

• Easing cycle and TL-driven deposit structure expected to benefit margins as funding costs decline.

• CPI linkers income expected to normalize, with TRY 40 billion projected for H2 2025 and a 30% valuation rate for 2025.

• Macroeconomic stability and disinflation are expected to support further improvements in financial performance.

• Prudent risk management and focus on digitalization to support future growth.