On 31 October 2022, Yapı Kredi announced its consolidated results for the first nine months of 2022 based on Turkish accounting standards (Banking Regulation and Supervision Agency). The Bank’s cash and non-cash loans reached TL 790.9 billion while total deposits reached to TL 635.0 billion. The Bank’s net income reached TL 35,316 million indicating a return on average tangible equity of 54.9%.
Local currency driven loan and deposit growth with a solid liquidity
In the first nine months of the year, the Bank achieved 39% year-to-date growth in performing loans to TL 560.7 billion, mainly driven by Turkish Lira. During the same period, the Bank’s total customer deposit growth was at 50% year-to-date and reached TL 617.3 billion. Also, demand deposits in total remained at a high level with 39% within the scope of continued focus on small tickets in deposit gathering. Accordingly, loan-to-deposits plus Turkish Lira bonds ratio reached to 87%. The Bank’s total and foreign currency liquidity coverage ratios realized at 163% and 587%, respectively.
Prudent and conservative asset quality approach
In the first nine months of 2022, Yapı Kredi’s non-performing loan ratio improved to 3.3%. High level of provisions set aside, despite the limited net NPL inflows in the period. Accordingly, cumulative cost of risk (adjusted for hedged foreign currency impact) materialised at 91 basis points in the first nine months of 2022. Provisions to gross loans realizedat 5.5%.
Strong capital ratios and ongoing internal capital generation
In the first nine months of 2022, 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 17.6% and 15.5%, respectively, excluding regulatory forbearances.
Solid top-line improving asset quality and strong liquidity
In the first nine months of the year, Yapı Kredi recorded TL 56,808 million of core banking revenues. Thanks to the strong ongoing loan deposit spread performance and the support from CPI linker securities, swap adjusted net interest margin improved 438 basis points to 7.55%, in the nine months of the year. Yapı Kredi recorded a substantial 86% improvement in year-over-year fee growth, reaching to TL 10,609 million. Operating costs increased by 93% year over year to TL 13,916 million. All in all, the Bank achieved a net income of TL 35,316 million and 54.9% return on average tangible equity.
Enquiries:
Yapı Kredi Investor Relations & Yapı Kredi Sustainability
Investor Relations Email: yapikredi_investorrelations@yapikredi.com.tr