9M23 Financial Results IR Release
On 24 October 2023, Yapı Kredi announced its consolidated results for the first nine 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 1.146 trillion while total deposits reached to TL 1.007 trillion. The Bank’s net income reached TL 48,703 million indicating a return on average tangible equity of 45.5%.
Local currency driven loan and deposit growth with a solid liquidity
In the first nine months of 2023, the Bank achieved 31% year-to-date growth in performing loans to TL 795.8 billion, mainly driven by Turkish Lira. During the same period, the Bank’s total customer deposit growth was at 42% year-to-date and reached TL 984.1 billion. Also, demand deposits in total remained at a high level with 43% within the scope of continued focus on small tickets in deposit gathering. Accordingly, loan-to-deposits plus Turkish Lira bonds ratio realized at 78%. The Bank’s total and foreign currency liquidity coverage ratios realized at 197% and 408%, respectively.
Prudent and conservative asset quality approach
As of nine months of 2023, Yapı Kredi’s non-performing loan ratio realized as 3.3%. 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 31 basis points in the first nine months of 2023. Provisions to gross loans remained high 4.8%.
Strong capital ratios and ongoing internal capital generation
In the first nine 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 17.8% and 15.8%, respectively, excluding regulatory forbearances.
Well managed revenue performance supporting the bottom line
In the first nine months of the year, Yapı Kredi recorded TL 79,530 million of core banking revenues. Thanks to the ongoing loan repricing, below sector average pricing for TL deposits and strong TL demand deposit performance supporting cost of funding, TL loan to deposit spread expanded in the third quarter. Compared to previous quarter, swap adjusted net interest margin expanded by 33 basis points to 5.58% (normalized with CPI linker income) on a quarterly basis in the third quarter. On cumulative basis, net interest margin realized as 5.82%. Yapı Kredi recorded a substantial 128% improvement in year-over-year fee growth, reaching to TL 24,226 million in the first nine months. Operating costs increased by 11% on a quarterly basis. In the first nine months, annual growth realized as 131% and costs reached to TL 32,197 million also negatively impacted by earthquake related costs and inflation pass through impact. All in all, the Bank achieved a net income of TL 48,703 million and 45.5% return on average tangible equity.
Enquiries:
Yapı Kredi Investor Relations & Yapı Kredi Sustainability
Investor Relations Email: yapikredi_investorrelations@yapikredi.com.tr