Türkiye Vakiflar Bankasi Türk Anonim Ortakligi (VAKBN) Q1 2026 earnings summary

Executive summary

• Q1 2026 net income was TL 15.0 billion, with consolidated net profit at TL 16,999 million; results reflect higher operating expenses and provisions, but core banking revenues remained strong.

• Annual net income growth was 66% excluding one-off provisioning reversal, but reported net income declined 21.83% year-over-year due to higher costs.

• Maintained TRY 8 billion in free provisioning and a strong liquidity position, with a liquidity coverage ratio of 168.25%.

• Capital adequacy ratio decreased to 14.26% from 16.89% at year-end 2025.

• Board approved new branch in Hungary and a digital deposit bank; held 72nd Annual General Meeting in April 2026.

Financial highlights

• Total revenues for Q1 2026 were TL 85.6 billion, up 13% year-over-year, driven by core banking revenues.

• Net interest income was TL 56,510 million, and net fee and commission income was TL 19,033 million, up 26% year-over-year.

• Operating expenses increased 60% year-over-year, mainly due to higher promotional expenses.

• Allowances for expected credit losses totaled TL 26,000 million.

• ROE/ROAE was 18.4%, and ROAA was 1.22%.

Outlook and guidance

• Downside risk to full-year net interest margin guidance due to higher funding costs and inflation.

• Guidance for other key metrics remains unchanged for now; updates expected after Q2 results.

• Management expects OpEx growth to normalize in coming quarters as promotional expenses decline.

• Focus on digital transformation and sustainability, with continued support for the real sector and households.