Türkiye Is Bankasi (ISCTR) Q4 2024 earnings summary

Executive summary

• 2024 saw decelerating inflation, a 250 bps policy rate cut, and continued economic rebalancing, with tight monetary policy impacting industrial production more than demand.

• Maintains largest private bank status in Turkey with stable ownership and extensive international presence.

• Digitalization focus: 16.7 million digital customers, 97% of transactions digital.

• Current account deficit-to-GDP fell below 1%, reserves reached historical highs, and budget deficit aligned with forecasts.

• Broad financial supermarket with 21 participations and diversified business lines.

Financial highlights

• Total assets grew 35.5% year-over-year to TL 3.32 trillion in 2024.

• Loans increased 41.4% to TL 1.62 trillion; deposits up 28.0% to TL 2.13 trillion.

• Asset repricing led to a 126% quarterly increase in slope-adjusted net interest income in Q4, and fee income grew 115% annually.

• Net income for 2024 was TL 45.5 billion, down 37.0% from previous year.

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

Outlook and guidance

• 2025 guidance targets 35% TL loan growth, 10% FX loan growth, and 50% fee income growth.

• Committed to TL 300 billion sustainable finance by 2026 and TL 100 billion for women entrepreneurs by 2028.

• Full-year NIM expected to expand by 450 bps to 4%, with an exit margin of 6%.

• Targets significant emission intensity reductions across key sectors by 2030 as part of Net Zero Banking Alliance.

• Return on equity targeted at around 30% for 2025.