Türkiye Is Bankasi (ISCTR) Q2 2025 earnings summary

Executive summary

• Strong performance in H1 2025 with net profit of TL 29.8 billion, total assets at TL 3.98 trillion, and shareholders' equity at TL 360.5 billion, supported by diversified revenue streams and subsidiaries.

• Maintained robust asset quality and capital/liquidity levels despite margin pressures and market volatility.

• Advanced digitalization and sustainability, including blockchain-based digital bond issuance and first IFRS-aligned sustainability report.

• Continued cost discipline and prudent provisioning preserved best-in-class asset quality.

• Re-entered the rate cut cycle with a strong balance sheet, positioning for future improvement.

Financial highlights

• Net income for H1 2025 rose 2.2% year-over-year to TL 29.8 billion; net interest income increased to TL 32.6 billion, and net fees and commissions reached TL 59.7 billion.

• Total assets expanded 19.6% year-to-date to TL 3.98 trillion; loans grew 22.0% and deposits rose 23.7% year-to-date.

• Operating expenses increased to TL 66.1 billion, with OpEx growth kept below 30% annually and fee coverage of OpEx surpassing 90%.

• Return on average equity for H1 stood at 18%; full-year ROE guidance revised to around 25%.

• Liquidity coverage ratio at 127%, FX LCR at 284%.

Outlook and guidance

• 2025 guidance: TL loan growth ~35%, NIM expansion ~350 bps, net fees & commissions growth ~50%, OPEX growth ~30%, NPL ratio ~3%, net cost of risk ~200 bps, CAR (w/o forbearance) >15%, ROAE ~25%.

• Policy rate expected to end year at 35%, with annual inflation slightly below 30% for 2025.

• Moderate economic growth of around 3% anticipated for 2025.

• The bank continues to focus on supporting the national economy, digital transformation, and sustainability initiatives.