Türkiye Sinai Kalkinma Bankasi (TSKB) Q2 2025 earnings summary

Executive summary

• Achieved robust loan growth of 4.5% year-to-date and new long-term loan disbursements exceeding USD 1.1 billion in 1H25, with strong liquidity and no new NPL inflows.

• Maintained superior asset quality with NPL ratio at or below 0.9% and net cost of risk at -81 bps.

• Delivered ROE (adjusted) of 31.3% and net income up 47% year-over-year, with net profit for H1 2025 reaching TL 6,523 million.

• Secured significant new funding, including major DFI agreements and a USD 350 million Eurobond issuance.

• Türkiye Green Fund made its first equity investment in wind turbine manufacturing.

Financial highlights

• Net income reached TL 6,523 million in H1 2025, up 47% year-over-year and 9% quarter-on-quarter.

• Net interest income grew 32% year-over-year and 22% quarter-on-quarter; NIM at 5.7%, exceeding guidance.

• Net fees and commissions declined up to 45% YoY, reflecting market conditions.

• OpEx increased by nearly 60% year-over-year, mainly due to HR costs, with cost-to-income ratio ranging from 16.2% to 22.1%.

• Coverage ratio for loans at 3.6%, among the highest in the sector.

Outlook and guidance

• Confident in meeting loan growth targets, supported by approved pipeline projects and strong liquidity.

• Year-end NIM expected to remain above 5%, with ROE at 31.3% exceeding guidance.

• OPEX growth expected to remain above CPI, with cost of risk projected below 50 basis points.

• Focus remains on sustainable development, climate finance, and supporting inclusive growth.

• The bank aims to maintain robust asset quality and capital adequacy above sector averages.