Türkiye Is Bankasi (ISCTR) investor relations material

Executive summary

• Macroeconomic volatility from geopolitical tensions and rising energy prices led to higher April inflation and a cautious monetary policy stance.

• Maintains the largest branch and ATM network among private banks in Turkey, with a stable, diversified ownership structure and strong digitalization—97% of transactions via non-branch channels and 15.9 million mobile customers.

• Net profit reached TL 20.4 billion for Q1 2026, with total assets at TL 4.94 trillion, maintaining the largest private bank position in Türkiye.

• Central Bank suspended repo transactions, raised the effective funding rate to 40%, and maintained a tight policy, with normalization expected if geopolitical risks ease.

• Recognized for digital banking excellence and sustainability leadership, including multiple international awards.

Financial highlights

• Total assets grew 6.7% year-over-year to TL 4,935,547 million as of Q1 2026, with loans at TL 2,469,979 million and deposits at TL 3,267,809 million.

• Net profit increased 64% year-over-year to TL 20,357 million, with return on equity at 19.2%–22.1% and return on tangible equity at 23.1%.

• Net interest income rose 7.8% quarter-on-quarter and over threefold year-over-year; net fees and commissions income grew 41% annually.

• Operating expenses, adjusted for pension provisions, grew 14% quarterly, with cost/income ratio at 55.5%.

• NPL ratio at 3.5% at quarter-end, with improved asset quality and coverage ratios.

Outlook and guidance

• Year-end guidance for TL loan growth in the mid-thirties, net interest margin at 5%, and fee income growth at 40% remain unchanged.

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

• Targets significant emission intensity reductions by 2030 and carbon neutrality by 2035.

• Baseline scenario assumes 400 basis points of rate cuts in the second half of the year, contingent on easing geopolitical risks.

• No change in year-end 2026 expectations as of March 31, 2026.