Türkiye Is Bankasi (ISCTR) H1 2026 earnings summary

Executive summary

• Operating environment impacted by persistent geopolitical tensions, higher energy prices, and macroeconomic uncertainty in Türkiye.

• Maintains the largest branch and ATM network among private banks in Turkey, with a stable and diversified ownership structure and significant international presence.

• Demonstrates strong digitalization, with 97% of transactions via non-branch channels and 16 million mobile customers.

• Recognized for digital banking excellence and sustainability leadership, with multiple international awards.

• Total assets increased to 5,091,171 million TL as of 30/06/2026, up from 4,624,940 million TL at 31/12/2025, reflecting robust balance sheet growth.

Financial highlights

• Net interest income (including swap cost) surged 180.6% year-over-year to TL 53,924 million; swap adjusted net interest income rose 181% year-over-year on a cumulative basis.

• Net fees and commissions income rose 39.4% year-over-year to TL 83,301 million; fee income grew 40% year-over-year, with diversified sources.

• Net income for 2026 H1 reached TL 30,013 million, up 0.7% year-over-year.

• Loans increased to 2,856,345 million TL from 2,549,280 million TL at year-end 2025; TL loans grew 6.3% in Q2, 14% year-to-date.

• Deposit base reached TRY 3,4 trillion, with TL share rising to 57%; total deposits grew to 3,397,986 million TL from 3,098,899 million TL at year-end 2025.

Outlook and guidance

• Year-end return on equity expected to rise to 20%, return on tangible equity to 25%.

• Swap adjusted NIM guidance revised to 3.2%-3.4% for 2026, with recovery expected to continue into 2027.

• Full-year NPL ratio guidance around 4%, net cost of risk below 250 basis points.

• Committed to TL 650 billion in sustainable finance by 2028 and TL 250 billion for women entrepreneurs by 2028.

• Targets significant emission intensity reductions across key sectors by 2030 and carbon neutrality by 2035.