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; 4Q25 net income was TL 28.1 billion, up 136% year-over-year.

• 2025 ROAE was 25.9%, in line with guidance; 4Q25 ROAE reached 38.4%.

• Net income growth significantly outpaced the sector average, alongside strong margin and fee income growth.

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

Financial highlights

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

• Net interest income was TL 152.4 billion, up 54% year-over-year.

• Net fee and commission income grew 56% to TL 72.7 billion; 4Q25 fee income was TL 19.4 billion.

• Swap-adjusted NIM improved to 3.4% from 2.3% in 2024; reported NIM was 3.7%.

• 2025 cost/income ratio was 40.1%, below the sector average of 40.9%; operating expenses rose 61% to TL 118 billion.

Outlook and guidance

• 2026 TL lending growth expected in the mid-20% range; hard-currency lending growth in single digits in USD terms.

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

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

• 2026 net cost of risk budgeted at 150 bps; high-twenties ROE targeted.

• 2026 Oct-Oct CPI expectation was 18.5%, versus 32.9% realized in 2025.