Profit Soars: Bank Beats Estimates with 181% YoY Net Income Gain

As of August 4, 2026, the bank has demonstrated significant financial momentum. Cumulative net interest income experienced a substantial 181% year-on-year increase, with net interest margins maintained around 3% for the first half of 2026, and guidance revised upwards to 3.2%-3.4% for 2026.

Fee income saw a significant 39.4% year-on-year growth in the first half. This was highlighted by a 19% quarterly increase, the highest among competitors. Operating expenses grew by 65% year-over-year in the first half, a moderation from the previous quarter.

Profitability metrics showed strong performance, with a 14% Return on Equity (ROE) and 17% Return on Tangible Equity (ROTE) in the first half. The bank raised its year-end expectations to 20% for ROE and approximately 25% for ROTE.

Asset quality remained a strong point, with the Non-Performing Loan (NPL) ratio at 3.8% at the end of June, and full-year guidance projected around 4%. The Net Cost of Risk for the first half was 222 basis points, with full-year guidance below 250 basis points.

Capital adequacy was robust, with the Capital Adequacy Ratio (CAR) at 15.4% and the Common Equity Tier 1 (CET1) Ratio at 12.1% by the end of June. Loan growth was notable, with Total Loans growing 6.3% in Q2, reaching over 14% year-to-date. Retail loan growth stood at 16% year-to-date.

The deposit base reached TRY 3.4 trillion, with Turkish Lira deposits growing approximately 8% in Q2 and 11.4% year-to-date. The Fee to Operating Expense ratio increased to 83% in Q2.

Looking ahead, the bank successfully executed external funding activities, including a $1.3 billion sustainable syndicated facility and a $500 million Tier 2 Eurobond issuance, diversifying its funding sources. Management anticipates further profitability enhancement driven by net interest margin recovery and core banking income momentum.