Yapi ve Kredi Bankasi (YKBNK) Q4 2024 earnings summary

Executive summary

• 4Q24 pre-tax income and net profit rose 62% and 32% quarter-on-quarter, driven by 155bps NIM expansion; quarterly net profit was TL 6.6bn.

• Full-year net profit was TL 29.0bn, down 57%, and pre-tax profit was TL 33.7bn, down 60%.

• Normalization continued as inflation ended 2024 at 44.4%; the Central Bank cut its policy rate twice to 45% while maintaining a tight stance.

• Asset quality remained resilient, with stabilizing unsecured-loan NPL inflows and stronger coverage; internal capital generation improved solvency.

Financial highlights

• Total revenues rose 31% quarter-on-quarter to TL 38bn, supported by core revenues and trading.

• Net interest margin expanded 150bps quarter-on-quarter; exit NIM was ~2%, while 2024 bank-only NIM was 0.73%.

• Core revenues were TL 104.8bn, down 6% year-on-year; fee and commission income rose 104% to TL 77.7bn.

• Operating costs increased 66% year-on-year, slightly above guidance; cost-to-average-assets was 3.7%, lowest among peers.

• Total assets grew 37% year-on-year to TL 2,554bn; loans rose 39% and customer deposits 25%.

Outlook and guidance

• 2025 TL loan growth expected below average inflation; FC loan growth targeted in the mid-teens, with regulatory caps constraining both.

• NIM expected to improve by ~300bps to ~3.7%; fee growth target is 25–30% and cost growth below 50%.

• Total cost of risk guided at 150–175bps; ROTE targeted in the mid-twenties.