Türkiye Halk Bankasi (HALKB) investor relations material

Executive summary

• Total assets reached up to TRY 3.84 trillion as of June 2025, rising 39.8% YoY and 22% from December 2024, driven by securities and core banking growth.

• Net profit for H1 2025 was TRY 13.8 billion, up 12% YoY; Q2-25 net income was TRY 4,981 million, up 44.8% YoY but down 29.4% QoQ.

• SME loans comprised up to 54% of commercial loans, maintaining sector leadership and supporting asset quality.

• Digital customer base grew 4% YoY to 6.6 million, with digital transactions up 25% YoY and mobile banking at 77% of transactions.

• Expansion in cooperative, SME, and entrepreneurship segments, including significant financing for women and youth.

Financial highlights

• Net interest income rose 66.5% YoY to TRY 41.5 billion and 40.3% QoQ in Q2-25, with total operating revenues up 21% quarterly.

• Net fees and commissions reached TRY 27.7 billion, up 46.8% YoY.

• NIM improved to 3.6% in Q2-25 from 2.9% in Q1-25.

• Headline net income for the quarter was nearly 5 billion TL; ROE remained in the mid-teens.

• Operating expenses rose 22.8% QoQ, with cost/income ratio at 70% in Q2-25.

Outlook and guidance

• Management expects continued growth in assets and profitability, supported by digitalization, SME lending, and green transformation.

• Plans to be more active in external funding, including further offshore bond issuances and bilateral loans.

• Margin recovery anticipated as rate cuts lower funding costs and TL-driven deposit structure supports profitability.

• CPI-linkers remain a key profitability driver, with a 30% valuation rate for 2025.

• Expects normalization of front-loaded interest income from CPI linkers in coming quarters.