Türkiye Vakiflar Bankasi Türk Anonim Ortakligi (VAKBN) investor relations material

Executive summary

• Achieved TL 30.1 billion net income in 1H26, up 30% year-over-year and 59% quarter-over-quarter, driven by CPI-linker revaluation and core spread improvement.

• Total consolidated assets rose 8.22% to TL 5,944 billion as of June 30, 2026, with performing loans up 12.77% to TL 3,384 billion and deposits up 3.30% to TL 3,595 billion.

• Net profit for the group was TL 33.7 billion, down 2.28% year-over-year, while capital adequacy ratio declined to 14.31% from 16.89% at year-end 2025.

• Digital transformation advanced, with 94% of transactions non-branch and 16.5 million digital banking customers.

• The bank executed major international funding transactions, including a USD 1.3 billion DPR deal and a USD 1.2 billion sustainability-linked syndicated loan, reinforcing its funding base.

Financial highlights

• Net interest income reached TL 109.4 billion, with net fee and commission income at TL 41.7 billion.

• Interest income was TL 571.8 billion, up from TL 473.6 billion year-over-year; interest expense rose to TL 462.4 billion.

• Operating expenses increased 57.4% year-over-year, mainly due to front-loaded promotion expenses.

• Cost/income ratio at 49.6% in 1H26, up from 38.3% in 1H25.

• NIM (swap-adjusted) at 3.7% in 1H26, with further expansion expected in 2H26.

Outlook and guidance

• NIM expansion anticipated in 2H26, supported by CPI-linker revaluation and improved TL core spreads.

• Management expects continued support for the real economy and sustainable growth, with a focus on expanding the funding base and maintaining asset quality.

• The bank aims to channel international funding towards production, exports, and digital transformation, especially in earthquake-affected regions.

• Front-loaded opex expected to normalize to sector average in 2H26.

• Conservative CPI estimate of 29% guides earnings projections.