Albaraka Türk Katilim Bankasi (ALBRK) Q2 2025 earnings summary

Executive summary

• Net profit surged 387% year-over-year to TL 9.1 billion in 1H'25, supported by free provision reversals and strong operational income growth.

• Total assets rose 25.2% year-over-year to TL 388.7 billion, with funded credits and financial leasing receivables up 29.5%.

• Maintained a sound credit portfolio with a low NPL ratio of 1.4% at the end of 1H'25, outperforming the sector average.

• Funds collected through participation and current accounts reached TL 246.2 billion, up 20.2% from the prior year.

Financial highlights

• Net profit reached TL 9.1 billion, up 387% YoY; total operating profit before tax rose 289% YoY.

• Total assets at TL 388.7 billion, up 25% YtD; funded credits at TL 187.9 billion, up 30%.

• Net fees and commission income increased 43% YoY to TL 2.23 billion; net trading income turned positive, driven by capital market transactions.

• Securities yield rose by 177 bps YoY, supporting profitability.

• Earnings per share for the period was TL 3.64080.

Outlook and guidance

• Revised 2025 credit growth guidance to ~50% from ~35%, reflecting strong sector utilization.

• NPL ratio expected to remain below 2% for the year, with effective credit management.

• Net profit share margin target maintained at 2.5%, with second-half dynamics expected to support margin recovery.

• Return on equity guidance set at 25-30% for 2025.

• Management expects continued growth in asset quality and profitability, with a focus on digitalization and sustainability.