Yapi ve Kredi Bankasi (YKBNK) investor relations material

Executive summary

• Net profit for H1 2025 reached TL 22.75 billion, up 31% year-over-year, with core revenues rising 83% and return on tangible equity at 22.4%.

• Core business income remained resilient despite market volatility and disruptions in the rate cycle.

• Selective lending and agile pricing strategies drove market share gains in loans and deposits.

• Asset quality outperformed peers, with NPL ratio at 3.1–3.2% and robust coverage.

• Capital adequacy and liquidity ratios remained strong, supporting growth and risk management.

Financial highlights

• Net interest margin improved 116 bps year-to-date, with core revenue margin up 161 bps to 6.5%.

• Net interest income (swap-adjusted) rose 240% year-over-year to TL 29.88 billion.

• Fees and commissions increased 45% year-over-year to TL 52.15 billion, covering 96% of operating expenses.

• Operating expenses rose 52% year-over-year, mainly from inflation and investments in human capital.

• Pre-provision profit doubled year-over-year to TL 40.34 billion.

Outlook and guidance

• NIM improvement target revised to 200–225 bps for the year; fee growth guidance raised to at least 40%.

• Loan growth expected below average inflation, with cost increase guidance maintained below 50%.

• Cost of risk guided at 150–175 bps; ROE guidance maintained at mid-20s.

• Continued focus on prudent risk management and profitability.