On 31 October 2024, Yapı Kredi announced its consolidated results for the first nine 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 1.744 trillion while total deposits reached to TL 1.370 trillion. The Group’s net income stood at TL 22,407 million indicating a return on average tangible equity of 16.4%
Solidifying the outlook for upcoming periods, solid fundamentals
In the first nine months of 2024, the Group increased its Turkish Lira cash loans by 26% and foreign currency loans by 29%, in US dollar terms, compared to the end of 2023. As a result, total performing loans reached to TL 1.225 trillion. During the same period, the Group’s Turkish Lira customer deposits increased by 28% when foreign currency customer deposits increased by 5% in US dollar terms. All incorporated total customer deposits reached to TL 1.347 trillion, as of nine months of 2024. Equally important, TL customer demand deposits up by a hefty 54% and TL customer demand deposits in total TL deposits increased to 26% 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 127% and 333%, respectively.
Prudent and conservative asset quality approach
As of first nine months of 2024, Yapı Kredi’s non-performing loan ratio realized as 3.0%, thanks to strength in collections and TL 4.0 billion worth of NPL sales. Yapı Kredi continued to set aside additional provisions according to its prudent provisioning strategy. Prudent provisioning coupled with continued strength in collections led net cost of risk (adjusted for hedged foreign currency impact) to materialise at 23 basis points in the first nine months of 2024. Provisions to gross loans ratio realized at 3.5%.
Strong capital buffers
In the first nine months of 2024, the capital ratios continued to remain comfortably above regulatory levels and consolidated Capital Adequacy Ratio and Tier-1 ratio realized at 14.8% and 12.3%, respectively, excluding regulatory forbearances.
Revenues impacted by the increasing interest rate environment
In the first nine months of the year, Yapı Kredi recorded TL 69,994 million of core banking revenues. In the first nine months of the year, TL loan-deposit spread was under pressure due to high interest rate environment and narrowed by 32 bps compared to last year . However thanks to the ongoing loan repricing, the controlled increase in the cost of deposits and strong demand deposit base TL loan deposit spread widened by 236 bps compared to previous quarter. The swap adjusted cumulative net interest margin realized as 31 basis points. Net fees and commissions income increased by 132% on an annual basis, reaching to TL 56,157 million in the first nine months of 2024. Operating costs, on the other hand, increased by a controlled 77% and stood at TL 57,096 million. As a result, fee coverage of operating costs ratio realized at as high as 98%. All in all, the Group achieved a net income of TL 22,407 million and 16.4% return on average tangible equity.
Enquiries:
Yapı Kredi Investor Relations & Yapı Kredi Sustainability
Investor Relations Email: yapikredi_investorrelations@yapikredi.com.tr