Türkiye Halk Bankasi (HALKB) Q4 2025 earnings summary

Executive summary

• Achieved robust revenue and asset growth in 2025, with total assets reaching up to TRY 4.5 trillion and strong contributions from core banking, subsidiaries, and securities-driven asset growth.

• Net interest income more than tripled year-over-year, with operating revenues up over 100% and disciplined cost management improving cost-to-income ratios.

• Maintained strong asset quality through prudent underwriting and proactive risk management, with improved NPL coverage.

• Capital adequacy ratios remained robust, with consolidated CAR up to 16.2% and CET1/Tier-1 ratios well above regulatory requirements.

• The independent auditor issued an unqualified opinion, confirming compliance with BRSA and TFRS standards.

Financial highlights

• Total assets rose up to 42.7% year-over-year, reaching TRY 4.3–4.5 trillion; quarterly growth was 6.5%.

• Net income for Q4-25 reached up to TRY 12.6 billion, with full-year net profit at TRY 28.9 billion; net interest income rose to TRY 96.5 billion.

• Net loans increased to TRY 2.0 trillion, with FX loans up 59.8% year-over-year and TL loans above sector growth.

• Deposits climbed to TRY 3.6 trillion, with demand deposits comprising 24.1% of total and savings/FX deposits each over 23%.

• Cost-to-income ratio improved to mid-60% levels, down from 80%.

Outlook and guidance

• Forecasting mid-30s total loan growth, low 30s TL loan growth, and mid-20s FX loan growth in USD terms for 2026.

• Net interest margin expected to exceed 4% in 2026, with exit NIM at 4.5–5%.

• Targeting above 40% net fees and commissions growth and mid-40s OpEx increase.

• Aiming to keep NPL ratio below 3.5% and anticipate ROE above CPI assumption.

• Focus on increasing green investments to 25% of investment loan portfolio annually.