Türkiye Vakiflar Bankasi Türk Anonim Ortakligi (VAKBN) Q2 2025 earnings summary

Executive summary

• Net income for H1 2025 reached TL 30,063 million, up 57% year-over-year, outperforming the sector average of 35%.

• ROAE improved to 25.82% in H1 2025 from 21.2% in H1 2024, with ROAA at 1.4%.

• Core banking revenues rose 42% YoY and 25% QoQ, with fee and commission income up 55% YoY.

• TL deposit portfolio surpassed TL 2 trillion for the first time, with total deposits up 15.24% YtD.

• International funding reached USD 8.5 billion YtD, including a USD 750 million Eurobond.

Financial highlights

• Net interest income for H1 2025 was TL 48,978.6 million, up 34.8% YoY.

• Net fee and commission income for H1 2025 was TL 32,716.1 million, up 54.8% YoY.

• Cost/income ratio improved to 38% (sector: 41%).

• NIM expanded by 61 bps to 2.93% in Q2 2025, driven by TL core spread expansion.

• Operating expenses increased 62% YoY to TL 52.6 billion in H1 2025.

Outlook and guidance

• Revised full-year Turkish lira loan growth guidance to high 20s, in line with inflation.

• Fee income growth guidance increased from mid-20s to above 40% for the year.

• Net cost of risk guidance revised from 100 to 150 basis points for the year, with actual net CoR at 147 bps in H1 2025.

• Full-year average ROE guidance raised from mid-20s to high 20s.

• Focus on sustainable growth, funding diversification, and maintaining strong asset quality.