On 2 May 2024, Yapı Kredi announced its consolidated results for the first three months of 2024 based on Banking Regulation and Supervision Agency (BRSA) Accounting and Reporting Legislation. The Group’s cash and non-cash loans reached to TL 1.518 trillion while total deposits reached to TL 1.240 trillion. The Group’s net income reached TL 10,302 million indicating a return on average tangible equity of 23.2%.
Maintaining solid financial fundamentals and controlled growth
In the first three months of 2024, the Group increased its cash loans in Turkish Lira and foreign currency. Compared to the end of 2023, TL loans increased by 16%, while foreign currency loans increased by 9% in US dollar terms. As a result, total performing loans reached TL 1.076 trillion. During the same period, the Group’s total customer deposit growth was at 12% year-to-date and reached TL 1.206 trillion. Also, customer demand deposits in total increased to 44% within the scope of continued focus on small tickets in deposit gathering and contribution of customer acquisition efforts. Accordingly, loan-to-deposits plus Turkish Lira bonds ratio realized at 86%. The Group’s total and foreign currency liquidity coverage ratios realized at 146% and 473%, respectively.
Maintaining prudent and conservative asset quality approach
As of first three months of 2024, Yapı Kredi’s non-performing loan ratio realized as 2.6%, thanks to strength in collections, limited inflows and TL 1 billion worth of NPL sales. During the period, besides the collection performance remained strong, the Group increased its provisions in order to sustain its prudent stance. Net cost of risk (adjusted for hedged foreign currency impact) materialised at 82 basis points in the first three months of 2024. Provisions to gross loans ratio remained strong at 3.8%.
Strong capital ratios
In the first three months of 2024, the capital ratios of the Group maintained to be strong. With the additional Tier-1 bond issuance of USD 500 million, which was successfully completed in April, the adjusted unconsolidated Capital Adequacy Ratio and Tier-1 ratio realized at 15.7% and 12.8%, respectively, excluding regulatory forbearances
Well managed revenue performance supporting the bottom line
In the first three months of the year, Yapı Kredi recorded TL 24,939 million of core banking revenues. Despite the ongoing loan repricing, increasing cost of TL deposits in the sector resulted in TL loan to deposit spread to narrow in the first quarter. However, with the contribution of demand deposit growth, TL loan to deposit spread maintained its positive level. Net interest margin realized as 1.29%. Yapı Kredi recorded a substantial 20% improvement in fee growth on a quarterly basis, reaching to TL 16,757 million in the first three months of 2024. Operating costs increased by 4% on a quarterly basis and reached to TL 17,343 million. As a result, fee coverage of operating costs ratio realized at 97%. All in all, the Group achieved a net income of TL 10,302 million and 23.2% return on average tangible equity
Enquiries:
Yapı Kredi Investor Relations & Yapı Kredi Sustainability
Investor Relations Email: yapikredi_investorrelations@yapikredi.com.tr