Net profit from Yapı Kredi Bank in line with expectations

MEHMET ÖZDEMİR

Yapı Kredi Bank A.Ş. announced its financial results for the third quarter of 2026. The bank's net profit was 10.66 billion TL in the relevant period, slightly above the market expectation of 10.51 billion TL. While Yapı Kredi's net profit decreased by 29 percent on an annual basis, it remained flat on a quarterly basis. The bank's net profit in the first nine months of 2026 reached 41.7 billion TL, an increase of 10 percent compared to the same period last year, with the support of the strong increase recorded in the first quarter of the year.

Yapı Kredi's core banking revenues increased by 9 percent on a quarterly basis in the third quarter, reaching 63.6 billion TL. Core banking revenues increased by 25 percent on an annual basis compared to 50.8 billion TL recorded in the same quarter of the previous year.

The bank's net interest income, excluding swap costs, was 66.2 billion TL in the third quarter. Increasing swap costs limited the positive impact of the improvement in funding costs. The bank recorded 37 billion TL swap expenses in this quarter. Net interest income, including swaps, increased by 12 percent on a quarterly basis and reached 29.2 billion TL. The bank's net interest margin expanded by 23 basis points quarterly in the third quarter, reaching 2.7 percent.

The bank's net fee and commission income, excluding one-time items, increased by 6 percent on a quarterly basis and reached 34 billion TL. Net fee and commission income, including one-time expenses, decreased by 2 percent on a quarterly basis and reached 32.5 billion TL. Payment systems revenues, which make the highest contribution to commission revenues with a share of 65 percent, increased by 8 percent on an annual basis. A stronger growth was seen in items with a relatively low share in commission income. Money transfer fees increased by 43 percent annually, loan transaction fees by 34 percent, bancassurance fees by 65 percent, and investment product commissions by 65 percent.

The bank's operating expenses increased by 14 percent on a quarterly basis in the third quarter, reaching 43 billion TL. Operating expenses increased by 34 percent on an annual basis in the nine-month period, reaching 115 billion TL. Expenses related to growth, including customer acquisition activities, World points, advertising expenses and depreciation, increased by 36 percent on an annual basis. Personnel expenses increased by 32 percent and operating expenses increased by 30 percent on an annual basis.

Yapı Kredi's return on tangible equity decreased by 280 basis points from 23.4 percent in the previous quarter to 20.6 percent in the third quarter. The overdue receivables rate increased from 4.3 percent at the end of the first half of 2026 to 4.6 percent as of the third quarter.

expectations

Yapı Kredi expects over 30 percent growth in TL loans and low single-digit growth in foreign currency loans in 2026.

While the bank maintains its expectation of a 100 basis point improvement in net interest margin compared to 2025, it expects commission income to grow in line with inflation. Yapı Kredi also expects return on tangible equity to be in the mid-upper band of 20 percent.