Akbank (AKBNK) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw strong financial performance with net profit reaching TL 13,734 million, RoE at 23.0%, and RoA at 2.0%, driven by robust fee income, digital innovation, and agile balance sheet management.

• Revenue rose 42% year-on-year to TL 50.5 billion, supported by advanced fee income and effective treasury management.

• Net active customer base increased 73% since 2021, reaching 14.6 million, with digital penetration at 87%.

• Maintained a solid capital position with a capital adequacy ratio of 18.95%, Tier 1 at 13.8%, and CET-1 at 12.5%.

• Continued focus on sustainable finance, providing TL 50 billion in 1Q25 and achieving a 70% sustainability share in wholesale funding.

Financial highlights

• Net income for Q1 2025 reached TL 13,734 million, up 49% year-on-year.

• Revenue totaled TL 50,499 million, up 42% year-on-year and 18% sequentially.

• Net interest income was TL 19,527 million; fee and commission income grew 62% year-on-year to TL 23,996 million.

• Cost/income ratio improved to 51.1% in Q1 2025.

• Liquidity coverage ratio averaged 143.85%, well above regulatory requirements.

Outlook and guidance

• 2025 guidance: TL loan growth above 30%, NIM (swap adjusted) around 5%, net fees & commissions growth ~40%, opex growth mid-40%, cost/income low-40%, NPL ~3.5%, ROE above 30%.

• 1Q25 actuals: TL loan growth 4.0%, NIM 2.3%, net fees & commissions growth 61.7%, opex growth 34.8%, cost/income 51.1%, NPL 3.3%, ROE 22.7%.

• Margin expansion is postponed due to reversal of the rate cut cycle and ongoing policy uncertainty.

• Cost of risk is expected at the upper end of the 150-200 basis points guidance.