Türkiye Sinai Kalkinma Bankasi (TSKB) Q2 2024 earnings summary

Executive summary

• Achieved 28% sequential and 39% year-over-year net profit growth in 2Q24, with best-in-class ROE and strong FX funding position.

• Total assets reached TL 211.5 billion, up 42% year-over-year and 17% from year-end 2023.

• Loan portfolio grew 36% year-over-year to TL 152.7 billion, with a 72% loans-to-assets ratio.

• Maintained a sustainable development focus, with 91% of loans SDG-linked and ~80% ESG-aligned funding.

• The bank maintained strong asset quality and continued to support sustainable development initiatives.

Financial highlights

• Net profit reached TL 4,403 mn in 1H24, up 39% YoY; 2Q24 net profit was TL 2,469 mn, up 28% QoQ.

• Net interest income rose 35% YoY to TL 5,302 mn in 1H24; net fees and commissions grew 115% YoY.

• OPEX increased 88% YoY; provisions dropped 65% YoY, supporting profitability.

• Cost-to-income ratio rose to 15.6% in H1 2024 from 9.4% at end-2023.

• Non-performing loan (NPL) ratio was 2.7% as of June 2024.

Outlook and guidance

• Revised YE24 FX-adjusted loan growth guidance to low teens from high single digits.

• NIM expected around 6%; fees and commissions growth to exceed average CPI.

• OPEX growth to remain above average CPI; NPL ratio expected below 3%.

• The bank aims to maintain robust liquidity and support green and inclusive investments.

• Additional funding secured in July will support green investments, especially in earthquake-affected regions.