Türkiye Is Bankasi (ISCTR) Q2 2024 earnings summary

Executive summary

• Celebrated 100th anniversary, emphasizing stability, trust, sustainable value, digitalization, and inclusive growth, including SME and women's empowerment initiatives.

• Maintained strong asset quality, capital, and liquidity in a challenging macroeconomic environment with high inflation and monetary tightening.

• Supported Turkish economy with TL 300 billion in sustainable finance and TL 100 billion for women entrepreneurs.

• Resilient profitability driven by fee generation, clean trading income, and subsidiaries.

• Total assets reached TL 2.89 trillion, up 17.6% from year-end 2023, maintaining position as Türkiye's largest private bank.

Financial highlights

• Net profit for H1 2024 was TL 29.2 billion, with return on average equity at 27.8%.

• Net interest income reached TL 24.6 billion; net fees and commissions income was TL 40.9 billion, up 200% year-over-year.

• Operating expenses rose 53% annually, totaling TL 31.2 billion, below inflation.

• Total assets grew 17.6% year-to-date to TL 2.89 trillion; loans up 23.8% and deposits up 11.2%.

• Paid-in capital increased from TL 10 billion to TL 25 billion, fully from internal sources.

Outlook and guidance

• Year-end annual inflation expected at 40%-45%, GDP growth at 3.5%.

• Full-year NIM (swap adjusted) guidance revised to 2%, with an expected 4% exit NIM by year-end.

• Return on equity guidance for full year around 30%.

• Cost of risk guidance revised to 100 basis points for year-end.

• OPEX growth to match average CPI; NPL ratio to remain around 2%.