Türkiye Halk Bankasi (HALKB) Q3 2025 earnings summary

Executive summary

• Total assets surpassed TL 4 trillion, increasing up to 40.1% year-over-year and 10.4% quarter-on-quarter, driven by securities growth and robust core banking performance.

• Net income rose as much as 80.1% year-over-year to TRY 20.2 billion, with quarterly surges of 64% and 31.6% YoY growth to TRY 20.7 billion in the first nine months of 2025.

• SME loans remained a key segment, comprising up to 55% of commercial loans and a 14.4% market share, with strong growth in both SME and retail lending.

• ROE remained strong, reaching up to 18.5% YtD, and cost-to-income ratio improved to 66.4%.

• Shareholders' equity increased up to TRY 201.3 billion, up 43.5% year-over-year.

Financial highlights

• Net interest income nearly doubled year-over-year, with NIM improving to 3.6% YtD and net fee and commission income up 44.7%.

• Securities portfolio exceeded TRY 1 trillion, growing 12.8% quarter-on-quarter.

• Deposit base grew up to 37.6% year-over-year, with demand deposits reaching 24% of total.

• NPL ratio ranged from 2.4% to 3.8%, with coverage ratios rising to 66.1%.

• Operating expenses contracted 2.6% quarter-over-quarter, improving cost-to-income.

Outlook and guidance

• Continued growth expected in lending, especially to SMEs, and expansion in digital and green financing.

• Internal capital generation and strategic funding optimization to support capital base and profitability.

• Anticipation of positive impact from easing global financial conditions and strong external demand.

• CPI linkers' valuation rate set at 30% for 2025, reflecting inflation expectations.

• Establishment of Halk Katılım Bankası to enhance participation finance in 2026.