Türkiye Halk Bankasi (HALKB) Q3 2024 earnings summary

Executive summary

• Total assets reached up to TRY 3.0 trillion, growing 31% year-over-year, with the bank maintaining its position as the fourth largest in Türkiye and focusing on SME and real sector support.

• Net profit for the nine months ended September 2024 was TRY 15.7 billion, up 50% year-over-year, driven by strong net fee, commission, and interest income.

• The bank maintained a capital adequacy ratio of 13.93%, with shareholders' equity rising to TRY 159.96 billion, supporting ongoing lending and investment activities.

• Asset quality remained stable, with the NPL ratio at 2.1%, and the bank continued to lead in SME and tradespeople lending.

• The bank launched new digital and sustainability-focused products and issued significant bonds to strengthen its capital base.

Financial highlights

• Interest income rose 151.9% year-over-year to TRY 485.4 billion, with net fee and commission income up 121.8% to TRY 30.3 billion.

• Net income for Q3 was TRY 2.96 billion, down 14% sequentially but up 39.3% year-over-year.

• Total operating revenues increased 61.7% year-over-year to TRY 21,843 million.

• Operating expenses decreased 1.4% quarter-on-quarter due to cost-cutting measures.

• Total loans grew 14.5% to TRY 1.5 trillion, with deposits up 24.9% to TRY 2.4 trillion, supporting a loan-to-deposit ratio of 62.4%.

Outlook and guidance

• Management expects continued moderate global growth in 2025, with declining inflation and increased global demand as central banks cut rates.

• Positive real interest rates, improved current account balance, and a TL-enhanced balance sheet are expected to drive future profitability.

• Focus remains on supporting SMEs, entrepreneurs, and digital transformation, with new products and funds targeting sustainability and gender equality.