Yahoo Finance

• Net Profit: $17.4 billion for the first half of 2024.

• Return on Tangible Equity: 19.5% as of the first half of 2024.

• Return on Assets: 1.7% for the first half of 2024.

• Revenue: TRY55.7 billion, a 6% increase year-over-year.

• Net Interest Margin: 1.5% as of the first half, with expectations to reach around 2% by year-end.

• Core Revenue Margin: 4.6%, with a forecast of around 6% for the full year.

• Net Fees Growth: 173% year-over-year, with guidance revised up to above 100% growth.

• Cost of Risk: Minus 3 basis points for the first half, with a year-end forecast below 75 basis points.

• Loan Growth: Turkish lira loans increased by 28% year-to-date; foreign currency loans increased by 18% year-to-date.

• Demand Deposit Growth: Turkish lira demand deposits increased by 43% year-to-date.

• Capital Adequacy Ratio: 14.3% with a 233 basis points buffer.

• CET1 Ratio: 10.9% with a 280 basis points buffer.

• Credit Card NPL Ratio: 1.4%, 50 basis points lower than the sector average.

• Total Coverage Ratio: 3.5% as of the first half.

• Warning! GuruFocus has detected 3 Warning Sign with IST:YKBNK.

Release Date: July 31, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Yapi Ve Kredi Bankasi AS (IST:YKBNK) reported a cumulative net profit of $17.4 billion with a return on tangible equity of 19.5% and return on assets of 1.7% for the first half of 2024.

• The bank has a strong customer base exceeding 16 million, with a focus on asset under management rather than free-lending, which supports long-term profitability.

• The bank's net interest margin is expected to improve, with a forecasted exit NIM of above 4.5% by the end of the year.

• Yapi Ve Kredi Bankasi AS has secured $7 billion worth of external funding within a year, strengthening its funding base for future growth.

• The bank's asset quality remains sound, with a well-covered portfolio and a collection ratio that increased by 50% compared to 2022, indicating effective collection strategies.

Negative Points

• The bank's net interest margin was at a low of 33 basis points in the first half due to higher Turkish lira funding costs and regulatory impacts.

• There is a potential for asset quality deterioration in 2025, particularly in the wholesale book, depending on the depth of market tightening.

• The bank experienced a 4 billion mark-to-market loss under equity in the quarter, driven by interest rate increases on its securities portfolio.

• Stage II loans showed a shift from regular to restructured loans, indicating some underlying stress in the loan portfolio.

• The effective tax rate for the second half is expected to be higher than the first half, potentially impacting net profitability.