Türkiye Vakiflar Bankasi Türk Anonim Ortakligi (VAKBN) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 was TL 11.9 billion, up 20% QoQ, with YTD net income reaching TL 42 billion, a 54% YoY increase, outpacing sector growth of 45%.

• ROE averaged 23% YTD and 19% for Q3; ROAE improved to 23.2% in 9M25 from 19.5% in 9M24.

• Total assets surpassed TL 4,994 billion, making it the largest listed bank by asset size in Turkey.

• Maintained TL 4 billion in free provisions as a balance sheet buffer.

• Capital adequacy ratio stood at 14.69% at quarter-end.

Financial highlights

• Core banking revenue grew 56% YoY to nearly TL 140 billion; net fee and commission income share rose to 38%.

• Net interest income for 9M25 was TL 86.1 billion, up 53% YoY; fee and commission income grew 61% YoY and 19% QoQ.

• Pre-provisioning profit surged 147% YoY, reflecting conservative provisioning.

• NIM expanded by 68 bps QoQ to 3.6% in 3Q25; swap-adjusted NIM reached 3.1%.

• Operating expenses rose over 60% YoY, mainly due to non-HR expenses; cost/income ratio improved to 41.5%.

Outlook and guidance

• Q4 expected to deliver the strongest quarterly net income of 2025, driven by TL 16.5 billion additional interest income from CPI linkers.

• Turkish Lira lending growth for 2025 projected above 30%, in line with inflation.

• Hard currency lending growth achieved 18% YTD; little further growth expected in Q4.

• Net cost of risk guidance at 150 bps, with actual at 154 bps YTD.

• Focus on selective lending, innovative solutions, and sustainable growth.