1H23 Financial Results IR Release
On 24 July 2023, Yapı Kredi announced its consolidated results for the first six months of 2023 based on Banking Regulation and Supervision Agency (BRSA) Accounting and Reporting Legislation. The Bank’s cash and non-cash loans reached to TL 1,054 trillion while total deposits reached to TL 955.9 billion. The Bank’s net income reached TL 24,117 million indicating a return on average tangible equity of 36.8%.
Local currency driven loan and deposit growth with a solid liquidity
In the first six months of 2023, the Bank achieved 21% year-to-date growth in performing loans to TL 732.3 billion, mainly driven by Turkish Lira. During the same period, the Bank’s total customer deposit growth was at 35% year-to-date and reached TL 940.7 billion. Also, demand deposits in total remained at a high level with 42% within the scope of continued focus on small tickets in deposit gathering. Accordingly, loan-to-deposits plus Turkish Lira bonds ratio realized at 76%. The Bank’s total and foreign currency liquidity coverage ratios realized at 161% and 522%, respectively.
Prudent and conservative asset quality approach
As of six months of 2023, Yapı Kredi’s non-performing loan ratio realized as 3.5%. During the period, collection performance remained strong and supported cost of risk. Accordingly, cumulative net cost of risk (adjusted for hedged foreign currency impact) materialised at 33 basis points in the first six months of 2023. Provisions to gross loans remained high 5.1%.
Strong capital ratios and ongoing internal capital generation
In the first six months of 2023, the capital ratios of the Bank were supported by ongoing internal capital generation. Hence, consolidated Capital Adequacy Ratio and Tier-1 ratio increased to 17.0% and 15.0%, respectively, excluding regulatory forbearances.
Well managed revenue performance supporting the bottom line
In the first six months of the year, Yapı Kredi recorded TL 39,304 million of core banking revenues. Due to developments in operating environment, TL loan yields were under pressure and funding costs were in an increasing trend in the quarter. Despite challenging conditions, Yapı Kredi managed to preserve its TL loan to deposit spread in positive territory. However still, compared to previous quarter, swap adjusted net interest margin contracted by 154 basis points to 3.65% (normalized with CPI linker income) on a quarterly basis in the second quarter. Yapı Kredi recorded a substantial 107% improvement in year-over-year fee growth, reaching to TL 13,189 million in the first half. Operating costs increased due to HR and business growth related costs by 17% on a quarterly basis. In the first six months, annual growth realized as 150% and costs reached to TL 20,124 million also negatively impacted by earthquake related costs and inflation pass through impact. All in all, the Bank achieved a net income of TL 24,117 million and 36.8% return on average tangible equity.
Enquiries:
Yapı Kredi Investor Relations & Yapı Kredi Sustainability
Investor Relations Email: yapikredi_investorrelations@yapikredi.com.tr