Türkiye Sinai Kalkinma Bankasi (TSKB) Q4 2025 earnings summary

Executive summary

• Year-end 2025 results exceeded guidance, meeting or surpassing most financial and operational targets, with strong alignment to growth strategy and development mission.

• Maintained above-market return on equity for the third consecutive year, with robust profitability and resilient asset quality.

• $2 billion in new cash loan disbursements supported the Turkish economy, with 11.2% FX-adjusted loan growth.

• Continued focus on sustainable growth, SDG-linked financing, and climate-related lending.

• Record year for DFI funding, totaling over $1.8 billion, enhancing liquidity and supporting sustainable development.

Financial highlights

• Net income reached TRY 11.4 billion for 2025, up 12% year-over-year; quarterly net income was TRY 2.1 billion.

• Net interest margin (NIM) was 5.6%, exceeding guidance; core NIM sustained at 4.7%.

• Return on equity (ROE) stood at 29.3% for the year; would have reached 32% if all free provisions were released.

• Cost-income ratio remained flat at 17.1%, the lowest in the industry.

• Core banking income expanded 37% year-over-year and 23% quarter-over-quarter.

Outlook and guidance

• 2026 guidance targets low-teens FX-adjusted loan growth, with focus on climate funds, renewable energy, and inclusiveness.

• NIM expected to normalize to 4.5% in 2026 due to lower CPI linker contribution.

• ROE guidance for 2026 is around 25%; operating expenses expected to grow above inflation but to normalize over time.

• Capital adequacy ratio projected at ~19%, maintaining strong solvency.

• NPL ratio and net cost of risk expected to remain stable at 2.5% and 50 bps, respectively.