Türkiye Is Bankasi (ISCTR) Q4 2024 earnings summary

Executive summary

• Net profit for 2024 was TL 45.5 billion, down from TL 72.3 billion in 2023, reflecting a challenging operating environment, higher provisions, and a qualified audit opinion due to a TL 10 billion provision reversal.

• Total assets reached TL 3.32 trillion as of December 31, 2024, up from TL 2.45 trillion at the end of 2023, maintaining the largest private bank status in Turkey.

• Digitalization advanced with 16.7 million digital customers and 96.9% of transactions via non-branch channels.

• The bank operates as a broad financial supermarket with 21 participations and diversified business lines.

• The independent auditor issued a qualified opinion due to the reversal of a TL 10 billion free provision, which increased 2024 net profit by the same amount.

Financial highlights

• Total loans increased to TL 1.66 trillion from TL 1.17 trillion, and deposits rose to TL 2.13 trillion from TL 1.66 trillion year-over-year.

• Net fees and commissions income more than doubled to TL 91.4 billion from TL 42.4 billion year-over-year.

• Net interest income fell to TL 34.5 billion from TL 67.1 billion year-over-year, as interest expenses surged.

• Capital adequacy ratio stood at 19.65% (down from 21.60%), remaining well above regulatory minimums.

• Operating profit declined 62.2% to TL 23.9 billion for 2024.

Outlook and guidance

• Inflation accounting will be implemented from January 1, 2025, as per regulatory requirements.

• The bank targets TL 300 billion in sustainable finance by 2026 and TL 100 billion for women entrepreneurs by 2028.

• Focus remains on liquidity, capital strength, prudent risk management, and significant emission intensity reductions by 2030.