Türkiye Sinai Kalkinma Bankasi (TSKB) Q3 2024 earnings summary

Executive summary

• Achieved 40% year-over-year net profit growth for 9M24, reaching TL 7,125 million, with 7% sequential growth in 3Q24.

• Maintained best-in-class ROE at 37.4% for 9M24, supported by robust FX loan spreads and core NIM expansion.

• Total assets reached TL 225.1 billion, up 35% year-over-year and 24% from year-end 2023.

• Loan portfolio grew 44% year-over-year to TL 168.7 billion, with a loans-to-assets ratio of 75%.

• Focused on sustainable development, with 60%–91% of the loan portfolio linked to SDG and climate/environmental goals.

Financial highlights

• Net interest income rose 70% year-over-year to TL 11,624 million for 9M24; up 16% sequentially in 3Q24.

• Net profit reached TL 7,125 million for 9M24, up 40% year-over-year; quarterly net profit up 7% in 3Q24.

• Shareholders' equity increased 55% year-over-year to TL 29.2 billion.

• OPEX grew 84% year-over-year, reflecting investment in operations; cost-to-income ratio increased to 14.4%.

• Trading income declined 54% year-over-year, while other income (including dividends) surged 345%.

Outlook and guidance

• Revised year-end 2024 guidance: FX-adjusted loan growth in low teens, NIM around 6%, ROE near 40%.

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

• Net cost of risk (excluding currency impact) projected below 50 bps.

• Management expects continued strong performance, supported by robust liquidity, capital structure, and ongoing funding diversification.

• Focus remains on sustainable development, green finance, and supporting post-earthquake recovery.