On 31 July 2024, Yapı Kredi announced its consolidated results for the first six 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 1.649 trillion while total deposits reached to TL 1.314 trillion. The Group’s net income stood at TL 17,406 million indicating a return on average tangible equity of 19.5%.
Solidifying the outlook for upcoming periods, solid fundamentals
In the first six months of 2024, the Group increased its Turkish Lira cash loans by 27% and foreign currency loans by 17%, in US dollar terms, compared to the end of 2023. As a result, total performing loans reached to TL 1.178 trillion. During the same period, the Group’s
Turkish Lira customer deposits increased 25% when foreign currency customer deposits came down 4% in US dollar terms. All incorporated total customer deposits reached to TL 1,264 trillion, as of first half 2024. Equally important, TL demand deposits up by a hefty 43% and TL customer demand deposits in total TL deposits increased to 24% within the scope of continued focus on small tickets in deposit gathering and contribution of efficient customers. Accordingly, loan-to-deposits plus Turkish Lira bonds ratio realized at 89%. The Group’s total and foreign currency liquidity coverage ratios realized at 141% and 557%, respectively.
NPL inflows under control when strong support from collections sustain
As of first six months of 2024, Yapı Kredi’s non-performing loan ratio realized as 2.7%, thanks to strength in collections, limited inflows and TL 1.2 billion worth of NPL sales. During the period, with the contribution of the strong collection performance, net cost of risk (adjusted for hedged foreign currency impact) materialised at -3 basis points in the first six months of 2024. Provisions to gross loans ratio stood at 3.3%.
Strong capital buffers
In the first six months of 2024, also supported by the additional Tier-1 bond issuance of USD 500 million, which was successfully completed in April, the consolidated Capital Adequacy Ratio and Tier-1 ratio realized at 14.3% and 11.9%, respectively, excluding regulatory forbearances.
Revenues impacted by the increasing interest rate environment
In the first six months of the year, Yapı Kredi recorded TL 44,753 million of core banking revenues. Despite the ongoing loan repricing, increasing cost of TL deposits in the sector resulted in narrower TL loan to deposit spread in the first half of the year. The swap adjusted net interest margin realized as 33 basis points. Yapı Kredi recorded a substantial 173% increase in net fees and commissions income on an annual basis, reaching to TL 35,958 million in the first six months of 2024. Operating costs, on the other hand, increased by a controlled 78% and stood at TL 35,891 million. As a result, fee coverage of operating costs ratio realized at as high as 100%. All in all, the Group achieved a net income of TL 17,406 million and 19.5% return on average tangible equity.
Enquiries:
Yapı Kredi Investor Relations & Yapı Kredi Sustainability
Investor Relations Email: yapikredi_investorrelations@yapikredi.com.tr