Earnings call transcript: Akbank Q3 2025 sees strong loan growth and revenue boost

Akbank reported a robust performance in its Q3 2025 earnings call, highlighting significant growth in loan segments and substantial revenue increases. The bank achieved a nine-month net income of TL 38,908 million, marking a 17% year-over-year increase. Currently trading at $1.40, InvestingPro analysis suggests the stock is fairly valued. With a market capitalization of $7.27 billion and an attractive P/E ratio of 7.08, Akbank’s executives expressed optimism about future growth, with expectations of improved net interest margins and continued loan expansion.

Key Takeaways

• Nine-month net income rose 17% year-over-year to TL 38,908 million.
• Total revenue increased by 48% year-over-year.
• Loan growth exceeded expectations, with a 28% increase in TL loans.
• Akbank maintained a low non-performing loan (NPL) ratio of 3.5%.
• The bank anticipates gradual improvements in net interest margins in 2026.

Company Performance

Akbank demonstrated strong financial performance in Q3 2025, driven by significant loan growth and a surge in total revenue. The bank’s return on equity reached 20.4%, and its return on assets was 1.8%, reflecting efficient utilization of resources. Akbank’s market share gains in both business banking and consumer lending highlight its competitive positioning in the Turkish banking sector.

Financial Highlights

• Revenue: TL 155,970 million, up 48% year-over-year
• Net income: TL 38,908 million, up 17% year-over-year
• Net interest income improved by 48% quarter-on-quarter
• Return on equity (ROE): 20.4%
• Return on assets (ROA): 1.8%

Outlook & Guidance

Akbank is optimistic about future growth, with expectations for loan growth to surpass initial guidance. The bank projects gradual improvements in net interest margins in 2026, although fee income growth may moderate. Akbank plans to maintain its disciplined cost control while focusing on digital solutions and customer engagement to drive sustainable profitability.

Executive Commentary

• "We continue to grow selectively and with discipline," stated Kaan, a senior executive, emphasizing the bank’s strategic approach to expansion.
• Ebru Güvenir, Financial Executive, noted, "Customer-centric growth will remain our main engine of sustainable profitability," underscoring the bank’s commitment to customer-focused strategies.
• Türker Tunalı, another Financial Executive, added, "The rate cut cycle will further help us to improve our net interest margin," highlighting the positive impact of monetary policy on the bank’s financial performance.

Risks and Challenges

• Economic Uncertainty: Potential fluctuations in the Turkish economy could impact loan demand and asset quality.
• Regulatory Changes: New banking regulations may affect operational costs and compliance requirements.
• Exchange Rate Volatility: Fluctuations in currency exchange rates could affect the bank’s foreign currency loans and deposits.
• Inflationary Pressures: Rising inflation could impact consumer spending and borrowing costs.

Akbank’s Q3 2025 earnings call showcased its strong financial performance and strategic initiatives to drive future growth. With a focus on disciplined expansion and customer-centric strategies, the bank is poised to navigate potential risks and capitalize on opportunities in the evolving economic landscape.

Full transcript - Akbank-EXCH (AKBNK) Q3 2025:

Kaan, Senior Executive, Akbank: Dear friends, hi, this is Kaan speaking. Thank you for joining our third quarter earning call. I’m speaking to you from Copenhagen. While I am on the road, I wanted to take a moment to connect with all of you and share my perspective on the current operating environment and how we are positioning ourselves for the period ahead. After my remarks, I will leave the floor to Türker Tunalı, Ebru Güvenir, and our IR team, who will go through the detailed financial results and handle the Q&A. Although I’m not able to stay for the entire call, I’m looking forward to catching up again soon. Before we dive into the numbers, I want to take a moment to talk about the broader macro environment, particularly what we are seeing in Türkiye. As you all know, the strong monetary tightening in April postponed the anticipated margin expansion.

Following today’s 100 bps rate cuts, we expect the policy easing to continue in measured steps. On the growth side, following a solid pace in Q2, economic activity shows signs of moderation in Q3. We envisage another period of mild economic growth this year, around 3.5%. Current account balance remains supportive for exchange rate stability. Looking forward, achieving lasting disinflation will be key to sustaining healthy growth across the real and financial sectors. Monetary measures have successfully restored financial stability, and the central bank restarted reserve accumulation in May. Gross reserve has surpassed its mid-March level by reaching $189 billion, while net reserves have steadily improved to around $57 billion. Domestic residents still favor Turkish assets, and deposit dollarization remains weak.

A fixed deposit share in the banking system has been stable, around 40% levels, on the back of two macroprudential measures keeping Turkish deposit rates higher than the policy rate. Foreign capital flows have been on the rise since May. Without doubt, global conditions generate a conducive environment for the continuance of the existing exchange rate regime and support financial market stability. Let’s move on to our bank. Let me start with our overall performance. During the quarter, we delivered healthy loan growth, accompanied by across-the-board market share gains, particularly in our core customer segments. This growth was quality-driven, fully aligned with our discipline and selective lending strategy, as well as the regulatory requirements. On the funding side, our dedication continued on expanding and deepening customer relationships.

This translated into market share gains in low-cost deposits and a strong performance in demand deposits, further enhancing the stability and efficiency of our funding base. This balanced development on both sides of the balance sheet supported a solid increase in net interest income, while our fee income also maintained its strong momentum. At the same time, we remained fully focused on asset quality and risk management. Our prudent underwriting standards, proactive monitoring, and well-diversified portfolio continue to support the resilience of our asset base. As a result, we maintain strong solvency, comfortably above regulatory thresholds. This solid foundation positioned well to capture growth opportunities ahead while continuing to safeguard the strength and stability of our franchise. We are executing today with discipline while transforming for tomorrow through a clear long-term vision. We have a strong, proven business model, which we continue to enhance and adopt as customer needs evolve.

Our business model brings together digital excellence, strong customer engagement, and strategic investment in technology and our people, all shaping the future of sustainable growth and lasting value for all stakeholders. Let’s move to our three-year strategic plan, where we regularly share transparent updates on our progress each quarter. Execution remains strong, with the majority of our three-year strategic objectives already delivered or well within reach. Our only shortfall remains in Turkish time deposit market share, which is a reflection of our funding optimization efforts and the impact of a regulation-driven low level of Turkish rate ALDR. Our dedication for customer growth remains fully in place through both customer acquisition and deepening relationships. Backed by a well-structured balance sheet, this forms a scalable, resilient earnings platform with strong momentum and long-term growth potential. Let me leave you with three takeaways.

The first one is we continue to grow selectively and with discipline. Secondly, we manage risk proactively. Lastly, we remain focused on sustainable core revenues that will drive real return on equity in the upcoming periods. I’m very proud of our teams. Their hard work and dedication truly drive our success. A sincere thank you to all people for their commitment. Dear friends, the partners, thank you for your continued trust and support. I look forward to seeing you all again soon. Bye for now. Türker and Ebru, over to you.

Ebru Güvenir, Financial Executive, Akbank: Thank you so much, Kaan Bey. We will start now with the first slide on the NII and the revenues. Our net income in the nine months was up by 17% year-on-year to TL 38,908 million, resulting in an ROE of 20.4% and ROA of 1.8%. During the same period, we had solid revenue growth, up 48% year-on-year to TL 155,970 million, led by robust fee generation and renewed NII momentum during the third quarter. To put in numbers, our quarterly SOAP-adjusted NII improved notably by 48% quarter-on-quarter, supported by disciplined balance sheet management, while strategic investments, deepening client relationships, and strong cross-sale execution continue to fuel fee growth. Together, these drivers further strengthened our recurring revenue base, and the solid NII recovery this quarter underscores how we’re leveraging our strong solvency position to deliver profitable growth and our balance sheet flexibility.

Strong growth alongside robust solvency highlights our agility and risk-reward discipline. As we move ahead, our sustainable growth mindset, solid balance sheet, and analytical capabilities will drive margins further. Moving on to the balance sheet, we achieved a 28% year-to-date growth in TL loans, well on track to meet our full-year loan growth guidance of over 30% shared at the start of the year. On a quarterly basis, our TL loan growth of 13% led to across-the-board market share gains, while risk discipline remained intact. Please also note that our robust growth achieved is in full alignment with the loan growth regulations. During the third quarter, we captured 90 basis points of market share in business banking loans among private banks, illustrating our targeted focus on segments with growth potential.

Building on our leadership in consumer lending, we expanded our presence further, capturing 30 basis points additional share among private banks. This demonstrates our readiness to capture new opportunities while managing risk. On the FX book side, we grew by 4.1% quarter-on-quarter and 5.1% year-to-date, capturing 30 basis points market share gain among private banks during the quarter. The increase was mainly driven by government-backed infrastructure projects, multinationals, and blue-chip corporates, reflecting a prudent, quality-focused growth strategy fully aligned with regulations. Please also note that we have a solid pipeline indicating upside potential to our mid-single-digit foreign currency loan growth guidance for the full year. Moving on to the securities, our security portfolio composition demonstrates our balanced approach with a focus on yield maximization. 69% of our securities are TL, while we have selectively increased our positioning in the foreign currency side through proactive eurobond investments.

This is underlined by a robust 21% year-to-date growth in our foreign currency securities in dollar terms. We are well positioned with long-duration, comparatively higher-yielding TL fixed-rate securities, which will support book value growth going forward. To put in numbers, 65% of our TL fixed-rate securities are classified under fair value through other comprehensive income. Our TL REF index bond portfolio offers decent spread. While our CPI linkers offer positive real rate, its share in total has actually declined since 2022 by 33 percentage points. Our active, yield-focused management of the securities portfolio has supported timely adjustments to market dynamics and will underpin margin resilience in the periods ahead. Moving on to the funding side, we effectively utilized our flexible balance sheet and strong deposit franchise while optimizing our funding costs.

At the same time, we successfully strengthened our TL deposit base, capturing notable market share gains in both demand deposits and widespread consumer-only segments. Our TL demand deposit market share among private banks increased quarter-on-quarter by 190 basis points, reaching a robust 18.6% as of third quarter. Accordingly, TL demand deposit share in total TL deposits advanced by 300 basis points year-to-date to 16%. Share of total demand deposits in total deposits also excelled by around 500 basis points to 33% during the same period. Meanwhile, our strong customer engagement helped us achieve a 40 basis point market share gain in the sub-1 million TL time deposits, reaching 16.5% in the third quarter.

On top of our strong and widespread deposit base, our low TL LDR, which, as you can see, was partially utilized for growth opportunities during the quarter, is still offering substantial room for funding cost optimization in the coming period. Moving on to P&L. NIM recovery resumed in the third quarter as expected, following a temporary margin pressure in the second quarter due to the pause and the reversal of the rate cut cycle. Our SOAP-adjusted net interest margin expanded by 73 basis points quarter-on-quarter, supported by both improved funding dynamics and a well-positioned loan portfolio. Please note that our CPI normalized quarterly NIM improvement was also strong at 50 basis points after adjusting for the impact of CPI linker valuation change based on the revised October-to-October CPI estimation of 32.5%.

It is worth noting that our weekly NIM trend towards the end of the quarter indicates ongoing progress in margin improvement for the fourth quarter. Our unwavering focus on profitable growth and effective funding strategies will remain key drivers supporting NIM evolution. On the other hand, the disinflationary phase and the magnitude of the upcoming rate cuts will continue to influence the extent of the quarterly NIM improvement. As a reference, the underlying gear and policy rate assumption of our revised guidance in July was at 36%, whereas the current expectations actually point to a tighter environment. Moving on to the fee slide, our net fees advanced by 67% year-on-year, reflecting innovation, strong customer engagement, and diversified offerings. Our diversified fee base remains a key strength with solid contributions from every business line.

To name some of them, first, net payment systems fees advanced by 76% year-on-year, reflecting effective customer engagement and targeted campaigns. Second, net bancassurance fees surged by 77% year-on-year, backed by our advanced digital solutions, actually, which are covering around 80% of our sales. Third, net money market transfer fees rose by 58% year-on-year, reflecting higher transaction volumes and digital channel migration of transactions. Our strong market positioning in key business lines ensures a diversified and resilient fee base throughout the rate cut cycle, offsetting the cyclical impact of interest rate-driven payment system fees. While the banking sector fees benefited from the rate environment, our market share gain among private banks reflects the bank’s inherent strength in fee generation and ongoing focus on sustainable growth. I am very pleased to share that the fee growth once again outpaced OPEX, lifting our fee-to-OPEX ratio to 104% as of nine months.

Accordingly, our fee-to-OPEX ratio showed an 18 percentage point increase year-to-date, underlining our continued execution on customer-driven revenue growth and disciplined cost control. On that note, let’s move on to the OPEX. The year-on-year increase in operating expenses was limited to 35% in nine months, underscoring our strong cost control and operational efficiency. This realization is still evolving below our revised guidance of around 40% for the full year. Moving on to asset quality. Retail-led NPL inflows continue to be a persistent trend across the sector. During this period, our disciplined risk management framework has enabled us to optimize the loan portfolio while preserving sound asset quality. This was supported by excellence in advanced analytical capabilities across the retail segments, automated and AI-based credit decision models, diligent tracking and individual assessment of our corporate and commercial loan portfolio, as well as our prudent provisioning.

Our NPL ratio remains at 3.5%, fully in line with our full-year guidance. Meanwhile, the share of stage two plus stage three loans representing potentially problematic exposures remains low at 9% of our gross loan portfolio. Please also note that the restructured loans represent only 3.2% of the total loan portfolio. In nine months, our total provisions reached almost TL 68 billion, reflecting our continuous provision reserve buildup. Meanwhile, our coverage ratio for stage two and stage three loans stands strong at 34.3%, mirroring disciplined risk management practices. Excluding currency impact, our net cost of credit increased to 230 basis points on a cumulative basis, mainly driven by ongoing retail-led inflows and also further strengthening of our already strong coverage ratios. Our full-year cost of credit may slightly exceed the upper end of our guidance range of 150 to 200 basis points by the year-end.

Our total capital, tier one, and core equity tier one ratios without forbearances remain robust at 17.2%, 13.6%, and 12.4%, proof of resilience alongside solid growth. As for the sensitivity, as we share every single quarter, 10% depreciation in TL results in around 29 bps decrease in our capital ratios, while the impact diminishes for higher amounts of change. A 100 basis points increase in TL interest rate results in a 9 basis point decline in our solvency ratios, again demonstrating a limited sensitivity and the strength of our capital buffers and also declining as the interest rates go higher. Solid capital strength anchors resilience and long-term profitable growth. This slide highlights the snapshot of our nine months’ financial performance. As a final note, across the board, strong loan growth, improving NII performance, along with robust fee income generation, led to strengthened core revenue momentum.

That said, the ongoing disinflation process and the magnitude of the rate cuts will determine the extent of the NIM improvement. Going forward, customer-centric growth will remain our main engine of sustainable profitability, supported by robust fees, disciplined operations, and prudent risk management. Before moving on to the Q&A, I’d like to share a few highlights regarding our non-financial performance. As highlighted in our ESG video, we sustained a strong momentum, advancing our 2025 sustainable action plan with measurable results. We are on track with our long-term sustainability goals and notably have reached 74% of our sustainable finance targets as of third quarter. We are proud to pioneer a tailored banking program via Akbank’s Women platform, offering integrated financial and social benefits to women customers. We strengthened our internal engagement through the Climate Ambassador program in third quarter, empowering Akbankers to foster a green future.

With our consistent performance in climate strategy, governance, and social impact, we maintained our leadership position, sustaining a AA score in MSCI, which was just updated this month. All these efforts reflect our continued commitment to building a low-carbon and inclusive economy in line with our long-term objectives. This concludes our presentation, and we are now moving on to the Q&A session. Please do raise your hand or type your question in the Q&A box. For those of us joining by telephone, please send your questions by email to investor.relations@akbank.com. I see there are a few hands up already, and the first question comes from Mehmet Semin. You are unmuted. Please ask your question.

Hi, good evening. Thanks very much for your time. I just had one question on the trajectory of margins, and maybe starting with the 3Q performance, which looks really strong and with the 73 basis point expansion this quarter. I just wanted to understand if this was completely in line with your expectation going into the third quarter, or were there any aspects that surprised you, such as loan or deposit pricing, behavior of households or corporates, or anything in this quarter? Secondly, just going into the fourth quarter, you already indicated the NIM trajectory from here depends on the policy rate, understandably. With what we know today, where do you see the exit NIM, and how should we think about it into the early quarters of 2025? Thank you. 2026, apologies. Thank you.

Türker Tunalı, Financial Executive, Akbank: Hi, Mehmet. This is Türker. Thank you very much for joining the call. Let me start with the third quarter and then move on to the fourth quarter and also 2026 to share some thoughts on 2026. Actually, as you have rightly mentioned, there was a strong recovery in our quarter NIM in the third quarter, mainly coming from the deposit cost easing. That was actually in line with our expectations. Having said that, when we dive into deep, as you may recall, by the end of June, we had this easing on the upper bands of central bank funding risk. There was an indirect rate cut. On top of it, we had another rate cut in July.

We were successfully able, like we were able to reflect these rate cuts into our deposits pricing, as a result of which our core spread from second quarter into third quarter has improved by roughly three percentage points. After the latest rate cut in September, as you may have followed from market data, like the second half of this September I am referring to, this deposit cost easing has stopped somehow, maybe due to the ratio requirements of the central bank. At the end of the day, that latest rate cut was not reflected into deposit pricing. Now we are at the beginning of the fourth quarter. Let’s wait and see how the coming weeks will evolve. Also, not to forget, apparently a week ago, we had this monthly reporting period, and maybe that was one of the reasons for this pricing behavior in the market.

We will be observing how the upcoming days will evolve also after today’s rate cut. It will definitely impact our net interest margin in the fourth quarter. Having said that, I can say the net interest margin start into the fourth quarter is surely above the third quarter figure. The magnitude of the improvement will be important since after today’s announcement of central bank, probably last rate cut will be also a bit more moderate. Therefore, it puts some pressure on our full-year NIM guidance in the range of 3% to 3.5%. It’s very likely that we may stay behind this. Definitely, this rate cut cycle will further help us to improve our net interest margin also in the upcoming year as well. Maybe in the past, we were talking with some net interest margin peaks in 2026.

Probably, as of today, what we are forecasting, this rate cut cycle will be more gradual in 2026. Therefore, we may see a gradual net interest margin improvement throughout the year, rather than seeing a peak in the first quarter or in the second quarter. That is what we are currently observing. At the same time, to at least offset some of this net interest margin maybe gap, our growth has exceeded our expectation. It is very likely that we will be beating our full-year loan growth guidance by the end of the year. Just to recall, mid-single digits for FX and 30% for TL loan growth, we will be probably ending the year above this level, which is also currently increasing our Turkish LDR. We are in a way operating in a more optimized manner.

Also, we are funding roughly 20-25% of our TL balance sheet via wholesale funding, where we are fully benefiting from the rate cut cycle, albeit it is a bit maybe more moderate. That is how it is at the moment.

Kaan, Senior Executive, Akbank: That’s super. Thanks very much, Türker Tunalı.

Türker Tunalı, Financial Executive, Akbank: You’re welcome.

Ebru Güvenir, Financial Executive, Akbank: Thank you. All right. The next question comes from David Toronto. You’re unmute. Please unmute yourself and ask a question. David?

Good afternoon. Thank you. I have three questions, please. The first one is about this year. The 25% ROE target appears quite ambitious, considering the 20% ROE achieved in the first nine months of this year. Could you please elaborate on how you see the full-year ROE outlook evolving following the third quarter results? A second question is a follow-up on NIM. In the last quarter presentation, you mentioned expectations for NIM to reach 5.5% in the fourth quarter of this year and towards 6% in the first half of next year. Given the changes in the macro outlook, do you still see this trajectory as achievable? To my understanding, you now see the peak NIM at a lower level, but you do not expect an immediate normalization. You see it hovering around those levels for some time. The third one is about the fee.

The fee income continues to show strong momentum. The year-on-year growth accelerated this quarter despite regulatory changes on the debit cards. When do you anticipate this growth to begin decelerating and what factors would likely drive that shift? Perhaps I could squeeze one more. The percentage of stage two loans remain below the sector average, but there has been a large increase in restructured loans in this quarter. Are these driven by unsecured retail loans or business loans? Could you please elaborate a bit on your strategy here? Thank you.

Thank you, David.

Türker Tunalı, Financial Executive, Akbank: Hi, David. Let me start with the ROE. Definitely, this gap on the potential gap on the net interest margin guidance side may put some limitation to achieve this 25% ROE guidance. Probably we are going to end the year in between the existing level and the 25% guidance. Definitely, the NIM improvements going forward will impact the level of ROE improvements in the fourth quarter. With regard to our previous talks and the previous earnings call, this delay in the rate cut cycle, just to recall, when we made this guidance revision, we were anticipating policy rate to come down to 36% by the end of the year. Nowadays, we are more like 38% levels. This 2% deviation will definitely also impact our exit NIM. Surely, exit NIM will be much higher than the third quarter NIM, but maybe not at this 5%, 5.5% levels.

The improvement trends, and as I answered Mehmet’s question, probably the NIM improvements will be more like in a step form, with gradual improvements. Next year’s NIM will be significantly higher than this year’s NIM. That was your second question. Third question, fee income. Yes, our third quarter fee income performance was quite strong. That was also driven by our growth trend in the third quarter. It has also positively impacted our fee income growth. Currently, our year-on-year fee income growth is above our guidance. We are expecting to end the year again at similar levels between the existing level and the full-year guidance. This latest regulatory change on the debit card side will impact the fourth quarter, but its magnitude is more moderate. It’s not that significant.

Probably into next year, and maybe also into the fourth quarter, and into next year, the central bank’s decision with regard to interchange commission caps will be important. As you may know, it hasn’t been touched so far, which was also one of the reasons why this year’s fee income growth was also way above the initial guidance of 40%. Assuming with the upcoming rate cut cycle and with some also central banks starting to reflect these rate cuts into interchange commissions, we may expect some moderation. The aim of Akbank T.A.Ş. will be again to continue with this enhanced fee income generation capacity, also as a result of our customer acquisition efforts. We will be aiming to preserve this superior fee-to-OPEX ratio. We may see some moderation there, but our ambition will be always to stay at this 100% level.

Finally, with regard to stage, not stage two, but yes, stage two was almost the same at the same level. The ratio of restructured loans increased from 2.6% to 3.2%, so only 2.6% increase. Just recall, by the end of the second quarter at Akbank T.A.Ş., we had the lowest restructured loans, not only in nominal terms, but also in a percentage of total loan book. This slight increase was mainly driven by the restructuring scheme of BRSA. As you may recall, that restructuring scheme was also made available for credit card customers without overdue status, but having rolling over some of their debt. We had to respond to them when the customer was coming with some restructuring demand. That’s the main reason. Just to recall, 3.2% probably will be again quite a low figure when we see the sector figures in the coming weeks.

As Ebru Güvenir has mentioned, we continue to further improve our provisioning charge. Therefore, our cost of risk is currently slightly higher than the full-year guidance. We may end the year slightly higher than the guidance, but its bottom line impact is not that material compared to the NIM impact. I think this is a more prudent approach.

Kaan, Senior Executive, Akbank: That’s great. Thank you very much.

Türker Tunalı, Financial Executive, Akbank: I hope I was able to answer your questions.

Kaan, Senior Executive, Akbank: Yeah, all good. Thank you.

Türker Tunalı, Financial Executive, Akbank: You’re welcome.

Ebru Güvenir, Financial Executive, Akbank: Okay. Thank you, David. The next question comes from Konstantin Rozantev. Sorry, Konstantin. Please go ahead and ask your question. I’ll unmute you. Konstantin? We cannot hear you. Okay. I guess I’m just looking into the written questions. They’re mainly regarding NIM and cost of risk, and we’ve answered both of them. I don’t know if there are any further questions. Another Konstantin is now again coming in. I guess this is a different Konstantin. Konstantin, please go ahead and ask the question. Konstantin?

Kaan, Senior Executive, Akbank: Yes, hello. Could you please confirm if you can hear me?

Ebru Güvenir, Financial Executive, Akbank: Yes, we can hear you now.

Kaan, Senior Executive, Akbank: Apologies. Okay.

Ebru Güvenir, Financial Executive, Akbank: Okay, please.

Kaan, Senior Executive, Akbank: Thank you very much. I had two questions which I wanted to ask. The first one is on the retail FX deposits. I see in the sector data that in recent weeks, there has been some increase in the stock of retail FX deposits, even on a parity-adjusted basis. Could you please confirm why it is happening? Is it completely explained by the fact that there are these KKMs, which are maturing and which are being moved into FX deposits? Is there also some element that regular lira deposits are being moved into FX deposits as well? That’s the first question. Second question, could you please comment if you have done any stress tests on the loan quality in different macroeconomic scenarios? If yes, then what do the results of these stress tests suggest?

Do you have some specific examples in mind and some particular scenarios in mind, saying that these scenarios lead to the high pressure, like large pressure on the loan quality? Could you please quantify these scenarios if you did these stress tests? Thank you.

Türker Tunalı, Financial Executive, Akbank: Hi, Konstantin. This is Türker. With regard to your first question, this FX deposit increase, as you have mentioned, is mainly due to the parity change. Currently, gold deposits make up a significant part of FX deposits in the system. Therefore, actually, the gold price change is impacting the level of FX deposits. Other than that, when we really look at our own portfolio, the strong TL deposit base is there, and the shift from TL into FX is not material. Surely, with the phasing out of the KKM scheme, the remaining small part of KKM holders are switching into FX. It was anyway, like in a way, FX indexed deposits. Other than that, there is no behavior change in the customers. With regard to the stress, surely, we are always monitoring our portfolio in different ways. We are applying different stress scenarios into our capital.

In all these stress tests, we preserve our strong capital. Other than that, there isn’t really currently any specific sector or area where we feel concerned. When you look at our loan portfolio breakdown, there isn’t any sector concentration. It is really like in every sector, there are customers with a better asset, with stronger financial performance, and maybe a weaker financial performance. According to that, we are continuously changing our lending criteria in terms of collateralization, in terms of duration. That’s how it is.

Kaan, Senior Executive, Akbank: Thank you very much. Sorry, just a third quick question. Do you have any number in mind for cost of risk for next year, 2026, in the BEAS scenario?

Türker Tunalı, Financial Executive, Akbank: Yeah. Actually, currently, we are in our budgeting process, and we will be sharing our guidance by the end of January, probably by the end of January. Maybe as a reference point, it will evolve at similar levels like in 2025.

Kaan, Senior Executive, Akbank: Okay, understood. Thank you very much.

Türker Tunalı, Financial Executive, Akbank: You’re welcome. You’re welcome.

Ebru Güvenir, Financial Executive, Akbank: Okay. At this moment, I do not see any further hands up for questions. I guess we’re coming towards the end. There are no written questions that are different to the questions that have been actually asked. This concludes our earnings webcast. Thank you all for joining us today. Please do not hesitate to contact our team if you have any further questions. We’re always glad to help. We also look forward to staying in touch for the upcoming conferences. We’ll be in Dubai for the Jefferies Conference, in London for the Goldman Sachs Conference, and in Prague for the Wood Conference. If you’re attending, we look forward to seeing you there. Bye for now.

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