1Q23 Financial Results IR Release
On 28 April 2023, Yapı Kredi announced its consolidated results for the first three months of 2023 based on Banking Regulation and Supervision Agency (BRSA) Accounting and Reporting Legislation. The Bank’s cash and non-cash loans reached TL 918.1 billion while total deposits reached to TL 792.4 billion. The Bank’s net income reached TL 12,641 million indicating a return on average tangible equity of 39.7%.
Local currency driven loan and deposit growth with a solid liquidity
In the first three months of 2023, the Bank achieved 7% year-to-date growth in performing loans to TL 646.5 billion, mainly driven by Turkish Lira. During the same period, the Bank’s total customer deposit growth was at 12% year-to-date and reached TL 779.0 billion. Also, demand deposits in total remained at a high level with 40% within the scope of continued focus on small tickets in deposit gathering. Accordingly, loan -to-deposits plus Turkish Lira bonds ratio realized at 81%. The Bank’s total and foreign currency liquidity coverage ratios realized at 177% and 599%, respectively.
Prudent and conservative asset quality approach
In the first three months of 2023, Yapı Kredi’s non-performing loan ratio improved to 3.1%. During the period, net NPL inflows remained negative thanks to strong collections as well as limited NPL inflows. Accordingly, cumulative net cost of risk (adjusted for hedged foreign currency impact) materialised at 38 basis points in the first three months of 2023. Provisions to gross loans realized at 5.4%.
Strong capital ratios and ongoing internal capital generation
In the first three 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 realized at 16.5% and 14.8%, respectively, excluding regulatory forbearances.
Healthy, improving asset quality and strong liquidity
In the first three months of the year, Yapı Kredi recorded TL 21,315 million of core banking revenues. Due to the regulations, loan yields were under pressure and funding costs were in an increasing trend. Despite challenging conditions, Yapı Kredi managed to preserve its loan to deposit spread in positive territory. With the limited support from CPI linker securities, swap adjusted net interest margin contracted by 402 basis points to 5.63%, in the three months of the year. Yapı Kredi recorded a substantial 103% improvement in year-over-year fee growth, reaching to TL 5,788 million. Operating costs increased due to the inflation pass-through impact and earthquake related costs by 168% year over year to TL 9,256 million. All in all, the Bank achieved a net income of TL 12,641 million and 39.7% return on average tangible equity.
Enquiries:
Yapı Kredi Investor Relations & Yapı Kredi Sustainability
Investor Relations Email: yapikredi_investorrelations@yapikredi.com.tr