Yapi ve Kredi Bankasi (YKBNK) Q4 2025 earnings summary

Executive summary

• Profit before tax nearly doubled in 2025, with net profit up 79% year-over-year, driven by strong core revenues, margin expansion, and robust asset-liability management.

• Maintained best-in-class asset quality, with NPL market share decreasing by 274-275bps and credit card NPL ratio ~30bps below private banks.

• Continued investments in technology and human capital, completing a major transformation enabling AI-driven risk management and hyper-personalization.

• Consolidated financial statements for 2025 were audited and found to present fairly the financial position and performance in accordance with BRSA and TFRS standards.

• The Group operates through a broad network, with 739 domestic branches and 1 overseas, and employs 15,634 people as of year-end.

Financial highlights

• Core revenues increased 81% year-over-year, with total revenues up 78% to TL 218 billion and net profit reaching TL 47.1 billion, up 62% year-over-year.

• Net interest margin expanded by 151bps year-over-year to 2.4% cumulatively, with Q4 at 2.6%.

• Fee income grew 50% annually, exceeding guidance, and net interest income rose to TL 161.1 billion.

• Trading income rose 67% year-over-year, driven by customer transactions and treasury activities.

• Earnings per share improved to TL 0.0557 from TL 0.0344.

Outlook and guidance

• 2026 guidance assumes inflation of 23-24% and policy rate near 29-30%, with TL loan growth targeted above 30% and FX loan growth in low single digits.

• Net interest margin expected to improve by over 100bps, fee growth to align with inflation, and cost growth targeted below 35%.

• ROE/ROTE targeted in the high 20s, at least 5% above inflation, and NPL ratio expected to remain below 4% in 2026.

• Cost of risk guided at 150-175bps.

• No dividend distribution proposal for 2025 as of the report date.