Türkiye Is Bankasi (ISCTR) Q1 2025 earnings summary

Executive summary

• Annual inflation declined in Q1 2025, with CBRT maintaining a tight monetary policy and making proactive rate adjustments to address market volatility.

• Achieved strong profitability and efficiency improvements in Q1 2025, with significant growth in net interest income and fee income year-over-year.

• Asset size reached TL 3.68 trillion, up 10.6% from year-end 2024, maintaining the position as Türkiye's largest private bank.

• Demonstrated resilient asset quality, with the lowest NPL ratio among peers and strong collection performance.

• Digital banking continued to expand, with 16.4 million digital customers and 89.6% of time savings deposits finalized digitally.

Financial highlights

• Net interest income rose 10.7% year-over-year to TL 17.7 bn; net fees and commissions up 39.2% to TL 27.0 bn.

• Operating profit increased 44.0% year-over-year to TL 15.1 bn.

• Net income for Q1 2025 was TL 12.4 bn, down 11.6% year-over-year due to higher provision charges.

• Total loans grew 37.4% year-over-year to TL 1.77 tn; deposits up 39.6% to TL 2.44 tn.

• Cost/income ratio improved to 55.4% from 65.3% a year ago.

Outlook and guidance

• Guidance remains unchanged; performance is on track with budget estimates.

• TL loan growth expected at ~35% for 2025; net interest margin to expand by 450 bps.

• Net fees and commissions growth projected at ~50% year-over-year; OPEX growth to track average CPI.

• NPL ratio expected around 3%; net cost of risk ~200 bps; capital adequacy ratio to remain above 15%.

• Continued focus on supporting SMEs, exporters, and climate finance projects.