EBRU USTA/BLOOMBERG HT MONEY AND CAPITAL MARKETS MANAGER
Yapı Kredi Bank recorded a net profit of 11.5 billion TL in the 2nd quarter of 2023, in line with the market expectation of 11.4 billion TL.
The net profit of the bank in the previous quarter was 12.64 billion TL, while it was 11.92 billion TL in the same quarter of the previous year. Thus, the net profit of the bank decreased by 9 percent on a quarterly basis and increased by 4 percent on an annual basis. The Bank had a net profit of 52.7 billion TL in the whole of 2022.
The tangible average return on equity of the bank was 36.8 percent in the first quarter of the year. Return on equity was 56.6 percent at the end of 2022. When inflation accounting was applied, average return on equity was calculated as mid-low single digits for this quarter.
Average return on assets was 3.6 percent.
The bank’s capital adequacy ratio rose from 16.5 percent to 17.0 percent as of the end of this quarter.
In the last quarter, TL loan growth was 16 percent and TL deposit growth was 42 percent. Positive TL credit-deposit spread continued to decrease in this quarter and was realized as 1.1 percent. TL loan-deposit spread was 1.8 percent in the previous quarter.
The bank’s cumulative net interest margin decreased from 9.10 percent at the end of 2022 to 4.34 percent this quarter. On a quarterly basis, NFM fell to 3.65 percent from 5.19 percent in the previous quarter.
Yapı Kredi Bank’s net interest income, including swap expenses, decreased by 32 percent on a quarterly basis and decreased by 32 percent on an annual basis to 10.6 billion TL. Revenues from CPI-indexed bonds this quarter; It fell from 9.67 billion TL to 8.28 billion TL. While the Bank’s TÜFEX volume was 74 billion TL at the end of June, the decrease in the rate used in asset valuation based on CPI from 45 percent to 40 percent for the first 6 months was effective in the decrease in interest income.
On the net fee and commission front, 7.4 billion TL revenue was achieved with an increase of 28 percent on a quarterly basis. Payment systems took part in commission incomes with a share of 41 percent. Operating expenses, on the other hand, increased by 17% on a quarterly basis and increased by 150% on an annual basis. The non-performing loan ratio of the bank increased from 3.2 percent to 3.7 percent.
The Bank has updated some of the targets it has set for 2023.
Yapı Kredi Bank made some updates in its future evaluations. Yapı Kredi revised its return on material equity target upwards from “high twenties levels” to over 30 percent. It has also been confirmed that mid-low decade levels will be reached for this year, according to inflation accounting. For this year, the bank’s TL loan growth is below 40 percent and FX growth has been confirmed as a “contraction”. Annual commission growth revised upwards from > 60% to > 90%, expense growth from > 100% to > 120%.