Türkiye Vakiflar Bankasi Türk Anonim Ortakligi (VAKBN) investor relations material

Executive summary

• Q1 2026 net income was TRY 15 billion, with consolidated net profit at 16,999 million TL, reflecting a year-over-year decline of 21.83% and sequential drops due to higher operating expenses and provisions.

• Total consolidated assets rose 2.89% to 5,652 billion TL, with loans up 5.41% to 3,163 billion TL and deposits at 3,430 billion TL, down 1.44% from year-end 2025.

• Annual net income growth was 66% compared to Q1 2025, excluding last year's one-off provisioning reversal.

• Maintained TRY 8 billion in free provisioning, providing a buffer against uncertainties.

• Capital adequacy ratio stood at 14.26%, down from 16.89% at year-end 2025.

Financial highlights

• Total revenues for Q1 2026 were TRY 85.6 billion, up 13% year-over-year, driven by core banking revenues.

• Net interest income reached 56,510 million TL, up from 23,209 million TL in Q1 2025.

• Net fee and commission income was 19,033 million TL, up 26% year-over-year and outperforming sector averages.

• Operating expenses increased 60% year-over-year, mainly due to higher promotional expenses.

• ROE/ROAE reported at 18.4% and 19.41%, with ROAA at 1.22%.

Outlook and guidance

• Downside risk to full-year net interest margin guidance due to higher funding costs and inflation.

• Guidance for other key metrics remains unchanged for now; updates expected after Q2 results.

• Expectation for OpEx growth to normalize in coming quarters as promotional expenses decline.

• Management aims to maintain strong capital and liquidity positions amid global and domestic uncertainties.

• Focus on sustainable growth and digital transformation, with continued support for the real sector and households.