Türkiye Is Bankasi (ISCTR) Q3 2026 earnings summary

Executive summary

• 9M operating income rose 47.0% YoY to TL 222.9bn, while net income fell 8.1% to TL 40.4bn as expenses and credit provisions increased.

• Consolidated 9M net profit was TL 59,059mn versus TL 60,291mn YoY; higher operating costs and credit-loss provisions weighed on earnings.

• Q3 margin recovery, easing funding costs and resilient fee generation supported performance; completion of the IRB transition strengthened capital ratios.

Financial highlights

• 9M net interest income including swap costs rose 106.7% YoY to TL 78.3bn; Q3 increased 20.4% QoQ to TL 24.4bn.

• 9M net fees and commissions grew 33.1% YoY to TL 127.5bn; Q3 declined 2.3% QoQ to TL 44.2bn.

• 9M total operating income rose 47.0% to TL 222.9bn; adjusted operating expenses increased 57.1% to TL 161.9bn.

• Consolidated 9M net interest income was TL 163,631mn and net fee income TL 118,618mn; net trading result was a TL 12,750mn loss.

• Total assets reached TL 5.3tn at September-end, up 15% YTD; consolidated quarter-end assets were TL 6.3tn.

Outlook and guidance

• FY26 guidance: TL loan growth in the mid-30% range, swap-adjusted NIM of 3.2–3.4%, fee growth ~40%, and adjusted OPEX growth in the mid-40% range.

• FY26 asset-quality targets were an NPL ratio ~4% and net cost of risk below 250 bps; Q3 actuals were 4.2% and 233 bps.

• Capital adequacy target was above 15%; actual bank-only CAR was 17.2%. ROE target was ~20% versus 12.3% actual, with downside risk under current trends.

• 2026 year-end CPI forecast was ~30% and GDP growth ~3%; preliminary 2027 CPI expectation was 25%, with disinflation and policy-rate declines expected to continue.

• 2027 fee growth ambition was above inflation; cost of risk was expected around current levels and total expense growth below inflation.