Türkiye Is Bankasi (ISCTR) investor relations material

Executive summary

• Operating environment was impacted by persistent geopolitical tensions, higher energy prices, and increased macroeconomic uncertainty in Türkiye.

• Maintained the largest branch and ATM network among private banks in Turkey, with a stable and diversified ownership structure and significant international presence.

• Demonstrated strong digitalization, with 97% of transactions via non-branch channels and 16 million mobile customers.

• Net profit for the first half of 2026 reached TL 30 billion, with total assets rising 10.1% to TL 5.1 trillion and shareholders' equity up 6.0% to TL 453 billion.

• Capital adequacy ratio stood at 15.4% as of June 30, 2026, reflecting a strong capital position.

Financial highlights

• Net interest income (including swap cost) surged 180.6% year-over-year to TL 53,924 million; net fees and commissions income rose 39.4% year-over-year to TL 83,301 million.

• Swap adjusted net interest income declined sequentially but rose 181% year-over-year on a cumulative basis.

• Loans increased 13.1% year-over-year to TL 2,606,420 million; deposits rose 9.7% to TL 3,397,986 million.

• Net profit for H1 2026 reached TL 30,013 million, up 0.7% year-over-year.

• Fee income grew 40% year-over-year, with diversified sources; OpEx growth moderated to 65% from 70% in Q1.

Outlook and guidance

• Year-end return on equity expected to rise to 20–25%, return on tangible equity to 25%, and tangible equity profitability to deliver a real return of ~30% according to CPI.

• Swap adjusted NIM guidance revised to 3.2%-3.4% for 2026, with recovery expected to continue into 2027.

• Full-year NPL ratio guidance around 4%, net cost of risk below 250 basis points.

• Committed to TL 650 billion in sustainable finance by 2028 and TL 250 billion for women entrepreneurs by 2028.

• CPI assumption for year-end 2026 is 30%, policy rate expected to be flattish at 36%; for 2027, CPI could fall to 25%, policy rate to 28%-29%.