Q2 2026 Yapi ve Kredi Bankasi AS Earnings Call Transcript
Key Points
- Yapi Ve Kredi Bankasi AS (IST:YKBNK) reported a 36% year-on-year increase in net profit for the first half of 2026, reaching TRY31 billion.
- The bank's net interest margin widened by 68 basis points year-to-date to 2.9%, outperforming peers and supporting strong top-line growth.
- A strategic partnership with Azimut Holdings Italy is expected to enhance asset management offerings and strengthen the capital base by approximately 70 basis points.
- The bank maintains a strong deposit base with best-in-class demand deposits, contributing to disciplined cost management and improved Turkish lira deposit spreads.
- Fee income grew 26% year-on-year, driven by robust increases in transaction fees, bancassurance, and investment product fees, despite lower payment systems growth.
- The bank's cost of risk, while elevated, is manageable, and management expects the worst quarter to be behind, with improving earnings in subsequent quarters.
- Asset quality deterioration persists, with increased NPL inflows in unsecured consumer loans and SMEs due to tight macroeconomic conditions.
- Cost of risk for 2026 may exceed the guided range of 150-175 basis points, potentially reaching slightly higher levels if macro tightening continues.
- Second-quarter net profit slipped due to global volatility, impacting overall profitability despite strong year-to-date performance.
- The bank faces a slowdown in recoveries, with average quarterly collections declining to TRY5.8 billion from TRY6.5 billion in 2025.
- Internal capital generation halted in the second quarter, though it is expected to resume from the third quarter.
- The bank's net interest margin tightened by 50 basis points quarter-on-quarter in Q2, reflecting the impact of higher funding costs and regulatory measures.
Ladies and gentlemen, thank you for standing by. I am Polina, 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 first-half 2026 financial results conference call and live webcast.
At this time, I would like to turn the conference over to Mr. KürÅad 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 first half of '26 earnings call.
I would like to start with our recent strategic initiative announcements regarding to our asset management activities. We have signed a partnership agreement with Azimut Holdings Italy. This transaction is expected to create first-of-its-kind strategic partnership in Turkey's asset management sector.
Our partnership includes sale of shares in
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