Türkiye Sinai Kalkinma Bankasi (TSKB) Q1 2025 earnings summary

Executive summary

• Achieved FX-adjusted loan growth of 5.4% in 1Q25, with a strong focus on sustainable development and ESG initiatives.

• Net profit for Q1 2025 was TL 3,101 million, up 60% year-over-year, supported by robust net interest income and declining provision costs.

• Total assets reached TL 265.5 billion, up 31% year-over-year and 12% from year-end 2024.

• Maintained a resilient asset quality with no new NPL inflow and a significant improvement in the NPL ratio to 1.7%.

• Strengthened liquidity and diversified funding base through new partnerships, including EUR 50 mn from OPEC.

Financial highlights

• Net interest income (NII) increased 24% year-over-year to TL 3,151 mn, while NII excluding CPI linker income rose 15% quarter-over-quarter.

• Net banking income grew 33% year-over-year to TL 3,578 mn.

• Net interest income rose 4% year-over-year to TL 3,783 million.

• Operating expenses rose 37% year-over-year, in line with guidance.

• Cost-to-income ratio increased to 17.4% in Q1 2025 from 13.8% in 2024.

Outlook and guidance

• FX-adjusted loan growth is on track to reach low teens for YE25.

• Net interest margin (NIM) guidance of ~5% for YE25 is being exceeded, with 1Q25 NIM at 5.7%.

• Return on equity (ROE) is on track to meet or exceed ~30% for YE25, with 1Q25 ROE at 33%.

• Capital adequacy and Tier I ratios are expected to remain robust, supporting growth.

• Management anticipates maintaining strong asset quality and capital adequacy.