Q2 2026 Akbank TAS Earnings Call Transcript
Key Points
- Net income increased 38% year-on-year in the first half of 2026, demonstrating strong earnings growth.
- Fee income grew 35% year-on-year, fully covering quarterly operating expenses and supporting strong operating leverage.
- NPL market share among private banks reduced by 130 basis points year-to-date, reflecting disciplined risk management.
- Capital ratios improved to 16.4% total capital and 13.3% Tier 1, providing strategic flexibility.
- Sustainable financing target of 800 billion reached ahead of schedule, showing commitment to ESG goals.
- Return on equity guidance revised down to 23%-25% from high-20s due to slower margin recovery.
- Swap-adjusted NIM declined 25 basis points to 3% in Q2, with full-year guidance lowered to 3.2%-3.5% from around 4%.
- Higher funding costs persist for longer, delaying margin recovery and sustainable real ROE generation.
- Cost-to-income ratio guidance revised up to high-40s from low-40s due to net interest income dynamics.
- Asset quality deterioration signs visible across the sector, with net cost of risk at 220 basis points in first half.
Hello, everyone, and thank you for joining our second quarter earnings call. This is Kaan speaking. I hope you're all well. Let me start with what has changed since our last earnings call.
First of all, the operating environment has proven more challenging than we had anticipated with continued geopolitical tensions adding uncertainty to the global domestic outlook. At home, the disinflation process is progressing more gradually. The expected easing cycle has been pushed back and macro prudential measures have been tightened further.
At the same time, the continued rebuilding of the Central Bank's reserves remains an important source of confidence and reinforces the credibility of the broader policy framework. For the banking sector, the implications are clear. Higher funding costs are likely to persist for longer, delaying the pace of margin recovery, while asset quality remains a key area of focus in restrictive operating environment.
Taken altogether, these developments have also pushed out the timing of
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