1H22 Financial Results IR Release
On 26 July 2022, Yapı Kredi announced its consolidated results for the first six months of 2022based on Turkish accounting standards (Banking Regulation and Supervision Agency). The Bank’s cash and non-cash loans reached TL 731.5billion while total deposits reached to TL 526.7 billion. The Bank’s net income reached TL 19,181million indicating a return on average tangible equity of 49.9%.
Local currency driven loan and deposit growth with a solid liquidity
In the first half of the year, the Bank achieved 27% year-to-date growth in performing loans to TL 513.3 billion, mainly driven by Turkish Lira. During the same period, the Bank’s total customer deposit growth was at 25% year-to-date and reached TL 517.7 bi llion. Also, demand deposits in total remained at a high level with 42% within the scope of continuedfocus on small tickets in deposit ga thering. Accordingly, loan-to-deposits plus Turkish Lira bonds ratio reached to 96%. The Bank’s total and foreign currency liquidity c overage ratios realized at 180% and 595%, respectively.
Prudent and conservative asset quality approach
In the firstsixmonths of 2022, Yapı Kredi’s non-performing loan ratio improved to 3.6%.High level of provisions set aside, despite the limited net NPL inflows in the period.Accordingly, cumulative cost of risk (adjusted for hedged foreign currency impact) materialised at 92 basis points in the first half of 2022. Provisions to gross loans realized at 5.7%.
Strong capital ratios and ongoing internal capital generation
In the first six months of 2022,the capital ratios of the Bank were supported by ongoing i nternal c apital generation and by the contributions of being the first Turkish Bank adopting the IRB method. Hence, consolidated Capital Adequacy Ratio a nd Ti er-1 ratio increased to 16.7%and14.6%, respectively, excluding regulatory forbearances.
Solid top-line improving asset quality and strong liquidity
In the first six months of the year, Yapı Kredi recorded TL 31,205 million of core banking revenues. Thanks to the ongoing loan repricing efforts coupling withdecreasing deposit costs andthe support from CPI linker securities, swap adjusted net interest margin improved 61 basis points to 6.71%, in the second quarter of the year. Yapı Kredi recorded a substantial 76% improvement in year-over-year fee growth, reaching to TL 6,384 million. Operating costs increased by 70% year over year-below average inflation-to TL 8,064 million.All in all, the Bank achieved a net income of TL 19,181 million and 49.9% return on average tangible equity.
Enquiries:
Yapı Kredi Investor Relations & Yapı Kredi Sustainability
Investor Relations Email: yapikredi_investorrelations@yapikredi.com.tr