Yapi ve Kredi Bankasi (YKBNK) Q2 2025 earnings summary

Executive summary

• Net profit for the first half of 2025 reached TL 23 billion, up 31% year-on-year, with core revenues rising 83% and return on tangible equity at 22.4%.

• Core business income remained resilient despite market volatility and disruptions in the rate cycle.

• Selective lending and agile pricing strategies drove market share gains in key loan and deposit products.

• Cash and non-cash loans grew 36% year-on-year to TL 2,249 trillion; total deposits reached TL 1,656 trillion.

• Non-performing loan (NPL) ratio stood at 3.2%, with provisions to gross loans at 3.4%.

Financial highlights

• Net interest margin improved 116 bps year-to-date, with core revenue margin at 6.5% and net interest income (including swap costs) up 240% year-on-year.

• Fee income increased 45% year-on-year to TL 52.15 billion, covering 96% of operating expenses for the first half.

• Operating expenses rose 52% year-on-year, mainly from inflation, customer acquisition, and HR investments; cost-to-average assets at 3.9%.

• Pre-provision profit doubled year-on-year to TL 40.34 billion.

• Loan-to-deposit ratio at 89% (total), with TL LDR at 93%.

Outlook and guidance

• Net interest margin improvement target revised to 200–225 bps for the year, with fee growth guidance raised to at least 40%.

• Cost increase guidance maintained below 50% year-on-year; asset quality cost guidance at 150–175 bps.

• ROE guidance maintained at mid-20s; TL loan growth expected below average inflation, with mid-teens growth in FX loans.

• NIM expected to rise above Q1 levels in Q3 and approach 4% by Q4, with peak NIM likely in H1 2026.

• Return on tangible equity expected in the mid-twenties percentage range.