Q4 2025 Yapi ve Kredi Bankasi AS Earnings Call Transcript
Key Points
- Yapi Ve Kredi Bankasi AS (IST:YKBNK) reported a significant increase in net profit, up by 79% to TRY 52 billion, adjusted for one-off tax regulation impacts.
- The bank achieved a strong core revenue margin improvement of 212 basis points, reaching 6.7%, driven by a 150 basis points increase in net interest margin.
- Asset quality remained resilient with net NPL inflows 32% lower than peers, and the NPL market share improved by 274 basis points.
- Turkish lira loan deposit spreads widened by 566 basis points, demonstrating effective loan and deposit pricing strategies.
- The bank's trading income increased by 67% year-over-year, showcasing sustainable trading performance and increased customer transactions.
- The bank experienced a sharp increase in NPLs over the quarter, primarily from company loans, with expectations of continued SME-related NPL inflows.
- The effective tax rate for 2026 is projected to be between 25% to 28%, following recent tax changes.
- Despite significant revenue growth, the CET1 ratio remains below 10%, with a buffer below 200 basis points, raising concerns about capital adequacy.
- The cost of risk guidance for 2026 is set at 150 to 175 basis points, with potential upside risks if rate cuts do not align with expectations.
- The bank's OpEx increased by 53% due to IT and human capital investments, which could pressure cost management if inflation exceeds expectations.
Ladies and gentlemen, thank you for standing by. I'm Konstantinos, your Chorus Call operator. Welcome, and thank you for joining the Yapı Kredi conference call and live webcast to present and discuss the Yapı Kredi 2025 financial results and 2026 guidance conference call and live webcast.
At this time, I would like to turn the conference over to Mr. Kursad Keteci, CSO, and Ms. Hilal Varol, Head of Investor Relations and Strategic Analysis. Mr. Keteci, you may now proceed.
Thank you. Good afternoon, and thank you all for joining our 2025 earnings and 2026 guidance call. Starting with the operating environment, 2025 was a year of rebalancing in Turkish economy. Tight monetary policy, coupled with ongoing macro-prudential measures resulted with improvement in inflation.
[Last year], inflation realized below 31% compared to 65% in 2023. We expect this inflation trajectory to sustain in 2026 also. Central Bank
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