On 29 April 2022, Yapı Kredi announced its consolidated results for the first three months of 2022 based on Turkish accounting standards (Banking Regulation and Supervision Agency). The Bank’s cash and non-cash loans reached TL 645.3 billion while total deposits reached to TL 476 billion. The Bank’s net income reached TL 7,259 million indicating a return on average tangible equity of 42.3%.
Local currency driven loan and deposit growth with a solid liquidity
In the first three months of the year, the Bank achieved 14% year-to-date growth in performing loans to TL 458 billion, mainly driven by Turkish Lira. During the same period, the Bank’s total customer deposit growth was at 14% year-to-date and reached TL 469.6 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 reached to 95%. The Bank’s total and foreign currency liquidity coverage ratios realized at 188% and 579%, respectively.
Prudent and conservative asset quality approach
In the first three months of 2022, Yapı Kredi’s non-performing loan ratio improved to 3.9%. Compared to 2021, non-performing loan inflows declined with strength in collections, resulting in improvement in cost of risk. Accordingly, cumulative cost of risk (adjusted for hedged foreign currency impact) materialised at 39 basis points in the first three months of 2022. Provisions to gross loans realized at 6.3%.
Strong capital ratios and ongoing internal capital generation
In the first three months of 2021, the capital ratios of the Bank were supported by ongoing internal capital generation and by the contributions of being the first Turkish Bank adopting the IRB method. Hence, consolidated Capital Adequacy Ratio and Tier-1 ratio increased to 15.5% and 13.3%, respectively, excluding regulatory forbearances.
Solid top-line improving asset quality and strong liquidity
In the first three months of the year, Yapı Kredi recorded TL 12,094 million of core banking revenues. Thanks to the ongoing loan repricing efforts coupling with strong demand deposit performance and the support from CPI linker securities, swap adjusted net interest margin improved 138 basis points to 5.02%, in the first quarter of the year. Yapı Kredi recorded a substantial 54% improvement in year-over-year fee growth, reaching to TL 2,847 million. Operating costs increased by 50% year over year -below average inflation- to TL 3,458 million. All in all, the Bank achieved a net income of TL 7,259 million and 42.3% return on average tangible equity.
Enquiries:
Yapı Kredi Investor Relations & Yapı Kredi Sustainability
Investor Relations Email: yapikredi_investorrelations@yapikredi.com.tr
Sustainability Email: sustainability@yapikredi.com.tr