Türkiye Sinai Kalkinma Bankasi (TSKB) Q1 2026 earnings summary

Executive summary

• Achieved strong 1Q26 results with performance aligned to year-end targets, robust profitability, and resilience amid heightened geopolitical tensions and global energy price spikes.

• Maintained a prudent risk profile with no new stage 2 or NPL inflows and strong asset quality.

• Continued focus on sustainable finance, with SDG-linked loans comprising 93% of the portfolio and strategic emphasis on climate, circular economy, and social development financing.

• New funding agreements, including a EUR 150 million loan from AFD, supported sustainable initiatives.

Financial highlights

• Net profit for 1Q26 reached TL 2.9 bn, up 36% sequentially from 4Q25, despite a 7% year-over-year decline; total assets reached TL 353.8 bn, up 6% from end-2025.

• Loan portfolio expanded to TL 260.8 bn, up 8% from end-2025 and 35% year-over-year; loans-to-assets ratio at 74%.

• Net interest margin (NIM) stood at 4.5%, with annualized ROE at 22.8%.

• Net fees and commissions grew 77% year-over-year; OPEX increased 60% year-over-year, in line with average CPI.

• Capital adequacy ratio was 18.6% at end-March 2026.

Outlook and guidance

• FX-adjusted loan growth expected in the low teens for YE26.

• NIM guidance maintained at ~4.5% for the year; ROE target set at ~25% for YE26.

• Capital adequacy ratio (CAR) projected at ~19.0% for YE26.

• Asset quality metrics and cost of risk expected to remain stable; continued focus on green and social financing.

• SDG-related financing target raised to USD 15 bn and climate finance target to USD 5 bn by 2030; new social finance target of USD 3 bn for 2024-2030.