Yapi ve Kredi Bankasi (YKBNK) Q3 2025 earnings summary

Executive summary

• Net profit for the first nine months reached TL 37.8 billion, up 69% year-over-year, with strong core revenue growth and improved profitability metrics.

• Core revenues rose 91% year-over-year, driven by robust net interest income and fee growth.

• Return on tangible equity improved to 23.7%, and return on assets to 1.7%.

• Asset quality outperformed peers, with declining NPL inflows and strong provisioning; NPL ratio at 3.3%-3.4%.

• The Group maintained strong liquidity, with total and foreign currency liquidity coverage ratios at 125% and 308%, respectively.

Financial highlights

• Revenues increased 23% quarter-on-quarter to TL 59 billion and 82% year-over-year to TL 153 billion.

• Net interest income including swap costs rose 258% year-over-year to TL 49.6 billion.

• Fee and commission income grew 50% year-over-year to TL 84.2 billion, with payment system fees up 56% annually.

• Operating expenses increased 52% year-over-year, reaching TL 86,737 million, with fee coverage of OpEx at 97% for the nine months.

• Pre-provision profit surged 145% year-over-year to TL 66.7 billion.

Outlook and guidance

• Net interest margin expected to improve by 200-225 bps, reaching close to 4% by year-end, with further gains into 2026.

• Cost of risk guidance for 2025 is 150–175 bps, expected to decline to 125–150 bps in 2026.

• Fee coverage of OpEx projected to normalize to 80–85% by end of 2026, with a declining trend starting next year.

• ROTE guidance reaffirmed at mid-20s, with 23.7% achieved.

• TL loan growth guidance for 2025 is below average inflation, with 30% year-to-date achieved.