Yapi ve Kredi Bankasi (YKBNK) Q4 2024 earnings summary

Executive summary

• Net profit for 2024 was TL 29.0 billion, down significantly year-over-year, with quarterly profit growth driven by margin expansion and strong top-line performance.

• Total assets reached TL 2.38 trillion as of December 31, 2024, up from TL 1.74 trillion at the end of 2023.

• ROE/ROTE reached 16% and ROA 1.3% for the year, with asset quality remaining resilient and coverage ratios enhanced.

• Internal capital generation and proactive pricing strategies improved solvency, with CET1 ratio at 11.5% and CAR at 15.2%-18.55%.

• Independent auditors issued an unqualified opinion, confirming compliance with BRSA and TFRS standards.

Financial highlights

• Net interest income rose to TL 75.9 billion, with net fees and commissions income more than doubling to TL 73.1 billion.

• Total revenues increased 31% quarter-on-quarter to 38 billion TL, driven by core revenues and trading.

• NIM widened by 150bps quarter-on-quarter, with exit NIM at around 2% and 2024 bank-only NIM at 0.73%.

• Operating expenses increased to TL 49.9 billion, up 66% year-over-year.

• Total loans increased to TL 1.21 trillion, with deposits at TL 1.27 trillion.

Outlook and guidance

• 2025 expected to be a transition year with ongoing macroprudential measures and regulatory caps on loan growth.

• Turkish Lira loan growth to remain below average inflation, with mid-teens foreign currency loan growth targeted.

• NIM expected to improve by 300bps to around 3.7% in 2025, with fee growth targeted at 25%-30%.

• Cost growth expected below 50%, and cost of risk guided at 150-175bps.

• Focus on maintaining strong capital and liquidity positions, with prudent risk management.