Türkiye Halk Bankasi (HALKB) investor relations material

Executive summary

• Total assets reached TRY 4.66 trillion as of March 2026, up 3.6% from December 2025, with robust asset and loan growth driven by core banking operations and disciplined cost management.

• Net profit for Q1 2026 was TRY 9.95 billion, a 36.9% increase year-over-year, with ROE at 17.77% and ROA at 0.88%.

• Loan growth accelerated, especially in Turkish lira and SME loans, with SME loans accounting for 56% of commercial loans and a 14.2% market share.

• Asset quality remained resilient despite market volatility, with proactive risk monitoring and diversified funding sources.

• Disciplined cost management led to a cost/income ratio improvement to 62.8%.

Financial highlights

• Net income for Q1 2026 was TRY 9.95 billion, up 36.9% YoY; net interest income doubled to TRY 38.1 billion.

• Total assets rose 3.3% quarter-over-quarter and 38.1% year-over-year, exceeding 4.4 trillion TL.

• Loan portfolio share increased to 47.5% from 44.9% sequentially; total loans grew 8.9% quarterly, TL loans up 9.8%.

• Deposit volume stood at TRY 3.49 trillion, down 3.2% from year-end 2025.

• NIM improved to 4.3% (swap-adjusted); cost-to-income ratio declined to 62.8%.

Outlook and guidance

• No change to 2026 guidance yet, but potential revisions possible if macro conditions shift.

• Disinflation trend expected to continue, with potential rate cuts in the second half of the year.

• Profitability expected to be hedged in the short run by a large CPI linkers portfolio.

• Management expects continued support for SMEs, women, and young entrepreneurs.

• No material financial impact expected from ongoing U.S. legal proceedings following a deferred prosecution agreement.