Türkiye Is Bankasi (ISCTR) H2 2025 earnings summary

Executive summary

• Maintained leadership as the largest private bank in Turkey, with 11%-12% market share and a well-diversified portfolio, demonstrating resilience and adaptability in a challenging macro environment.

• Achieved strong financial performance in 2025, with robust net interest margin expansion, high fee growth, and disciplined cost management.

• Net profit for 2025 reached TL 67,440,675 thousand, up from TL 45,517,445 thousand in 2024, reflecting strong earnings growth year-over-year.

• Turkish economy grew moderately at 3.5% in 2025, with inflation ending at 30.89% and policy rate at 38% in December, further cut in January.

• Enhanced capitalization and comfortable capital buffers provide a solid base for future growth.

Financial highlights

• Net profit increased 65% quarter-on-quarter and 90% year-over-year, with full-year return on equity (ROE) at 19%.

• Net interest income rose 181.3% year-over-year to TL 96,922 mn; net fees and commissions up 47% to TL 134,351 mn.

• Operating profit surged 235.7% year-over-year to TL 80,246 mn.

• Total assets grew 39.1% year-over-year to TL 4,624,940 mn.

• Cost/income ratio improved to 55.0% in 2025 from 65.3% in 2024.

Outlook and guidance

• 2026 GDP growth expected at 4%, with year-end inflation forecasted at 23%-25% and policy rate at 30%.

• Full-year NIM guidance for 2026 is around 5%, with gradual expansion expected.

• Fee income targeted to grow 40% above inflation in 2026.

• OpEx growth guided at 40%-45% for 2026, mainly due to business development and salary agreements.

• NPL ratio expected to be around 4% and net cost of risk below 250 bps in 2026.