Türkiye Is Bankasi (ISCTR) Q4 2025 earnings summary

Executive summary

• Maintained leadership as the largest private bank in Turkey with 11%-12% market share across major balance sheet items, demonstrating resilience and adaptability in a challenging macro environment.

• Achieved strong financial performance in 2025, with significant net interest margin expansion and robust fee generation outpacing inflation for five consecutive years.

• Maintained a well-diversified portfolio, prudent underwriting, and strong collection performance, supporting asset quality.

• Enhanced capitalization and comfortable capital buffers provide a solid base for future growth.

• Unconsolidated financial statements for 2025 were audited and present fairly in all material respects in accordance with BRSA and TFRS standards.

Financial highlights

• Net profit increased 65% quarter-on-quarter and 90% year-over-year, reaching TL 67,440,675 thousand, with full-year ROE at 19%.

• Net interest income rose 181.3% year-over-year to TL 96,921,529 thousand; fee income grew 47% annually to TL 134,351 mn.

• Operating profit surged 235.7% year-over-year to TL 80,246 mn.

• Total assets grew 39.1% year-over-year to TL 4,624,940,162 thousand.

• Cost/income ratio improved to 55.0% in 2025 from 65.3% in 2024.

Outlook and guidance

• 2026 GDP growth expected at 4%, with year-end inflation forecasted at 23%-25% and policy rate at 30%.

• Full-year NIM guidance for 2026 is around 5%, with gradual expansion expected.

• Fee income targeted to grow 40% above inflation in 2026; OpEx growth guided at 40%-45% for 2026.

• NPL ratio expected to be around 4% and net cost of risk below 250 bps in 2026.

• The Bank continues to prioritize liquidity, capital adequacy, and risk management amid evolving market and regulatory conditions.