Türkiye Sinai Kalkinma Bankasi (TSKB) Q3 2025 earnings summary

Executive summary

• FX loan growth reached USD 1.5 bn year-to-date, supporting year-end targets, with total assets and loans each up 31% to TL 310.2 billion and TL 221.2 billion, maintaining a loans-to-assets ratio of 71%.

• Net income rose 31% year-over-year to TL 9.37 billion, with ROE at 31.2% and ROA at 4.3%.

• Funding operations included a USD 350 mn Eurobond, USD 238 mn syndication, USD 300 mn IBRD-backed facility, and a syndicated loan renewal at a 120% roll-over ratio.

• ESG-aligned funding and sustainable development focus, with 93% of loans SDG-linked and support for climate, earthquake, and social impact projects.

• No new NPL inflow since 1Q2024, with stable asset quality and strong coverage ratios.

Financial highlights

• Net profit for 9M25 was TL 9,285 mn, up 32% year-over-year; net interest income rose 26% to TL 10,685 mn.

• Net interest income increased 9% year-over-year to TL 12.64 billion; net fee and commission income was TL 589 million, down 8%.

• Annualized NIM at 5.7%, exceeding expectations; cost-to-income ratio at 17.9%.

• Capital adequacy ratio at 24.8% as of September 2025, with Tier I ratio at 19.3%.

• Shareholders’ equity reached TL 43.5 billion, up 46% year-over-year.

Outlook and guidance

• FX-adjusted loan growth on track for low teens percentage by year-end; management expects to meet year-end targets.

• ROE guidance maintained at ~30%, with actual at 31.2%.

• NPL ratio expected below 2.5% by year-end, currently at 0.9%.

• Plans to sign additional funding agreements and continue supporting green, social, and digital transformation projects.

• Ongoing commitment to strengthening capital adequacy and profitability.