Türkiye Vakiflar Bankasi Türk Anonim Ortakligi (VAKBN) Q4 2025 earnings summary

Executive summary

• Full-year net income reached TL 70.1 billion, up 73% year-over-year, significantly outpacing the sector average of 43%.

• Q4 2025 net income was TL 28.1 billion, up 136% year-over-year, with quarterly ROE exceeding 38% and annual ROE at 25.9%, both above sector averages.

• Pre-provision profit for the year was TL 133 billion, up 90% year-over-year.

• Strong market share gains in non-retail loans and demand deposits, supported by digital and sustainable banking initiatives.

• Total assets increased to TL 5,388,289,819 as of December 31, 2025.

Financial highlights

• Net interest income for 2025 was TL 152.4 billion, up 54% year-over-year, and net fee and commission income grew 56% to TL 72.7 billion.

• Pre-provision operating profit rose 90% to TL 132.0 billion in 2025.

• Cost/income ratio held at 40.1% for 2025, below the sector average of 40.9%.

• NPL ratio increased to 2.9% in 4Q25, with strong collections and coverage ratios maintained.

• Total equity increased to TL 322,380,656 (2024: TL 219,194,449).

Outlook and guidance

• 2026 Turkish lira lending growth expected at mid-20%, hard currency lending in single digits (USD terms).

• 2026 swap-adjusted net interest margin expected to average 4.5%, up 110 bps from 2025.

• Fee income growth expected above 40%; OpEx growth to exceed inflation.

• Net cost of risk budgeted at 150 bps for 2026.

• A new branch in Hungary is planned as part of the international growth strategy.