Earnings call transcript: YapiCredit Q2 2025 sees strong growth in net profit

YapiCredit, a $5.8 billion market cap Turkish bank, reported robust financial results for the second quarter of 2025, with a notable increase in net profit and core revenues. According to InvestingPro analysis, the stock is currently trading near its Fair Value, with a Financial Health score of "FAIR." The Turkish bank’s earnings call highlighted a 31% year-on-year rise in net profit for the first half, reaching 23 billion Turkish lira. The bank’s core revenues improved by 83% annually, while the net interest margin saw a 116 basis point improvement year-to-date. The company’s strategic focus on lending growth and market share expansion was evident, despite an increase in operating expenses.

Key Takeaways

• First half net profit surged 31% year-on-year to 23 billion Turkish lira.
• Core revenues grew by 83% annually.
• The bank’s net interest margin improved by 116 basis points year-to-date.
• Operating expenses rose 52% year-on-year.
• Revised net interest margin improvement guidance to 200-225 basis points.

Company Performance

YapiCredit demonstrated strong performance in Q2 2025, driven by significant growth in both net profit and core revenues. The bank’s strategic initiatives to expand its lending portfolio and capture greater market share in retail and credit card segments contributed to these results. Despite a challenging economic environment characterized by high inflation and fluctuating interest rates, YapiCredit maintained its competitive edge through prudent financial management and innovative product offerings.

Financial Highlights

• Revenue: Core revenues improved 83% annually.
• Net Profit: 23 billion Turkish lira, up 31% year-on-year.
• Return on Tangible Equity (ROTE): 22.4%.
• Return on Assets (ROA): 16%.
• Operating expenses increased 52% year-on-year.

Outlook & Guidance

YapiCredit revised its net interest margin improvement guidance to 200-225 basis points and increased its fee growth guidance to over 40%. With a consensus "Buy" rating from analysts tracked by InvestingPro, the bank’s outlook appears promising. The stock currently trades at an attractive P/E ratio of 7.13, and investors can access detailed valuation metrics and 12+ additional ProTips with an InvestingPro subscription. The bank maintained its return on equity guidance at mid-20s, anticipating a policy rate of 36-38% by year-end. Peak net interest margin is expected in Q2 2026, reflecting the bank’s confidence in its strategic direction and market conditions.

Executive Commentary

Kurzat Kiteci, Chief Strategy Officer, emphasized the bank’s customer-centric approach, stating, "We are a bank trying to make all the revenue and profitability through customers." Hilal Varol, Head of Investor Relations, highlighted the bank’s advancements in payment systems, noting, "Our payment systems are more than five times what we had compared to back in 2020."

Risks and Challenges

• Macroeconomic pressures: High inflation and interest rate volatility could impact consumer spending and borrowing.
• Regulatory changes: Potential shifts in banking regulations could affect operational strategies.
• SME asset quality: Mild deterioration in SME asset quality poses a risk to the bank’s loan portfolio.
• Operating expenses: Continued rise in expenses may pressure profit margins if not managed effectively.

Q&A

Analysts inquired about the drivers of lending growth, which were attributed to clarity in the interest rate environment. With the next earnings report scheduled for November 3, 2025, InvestingPro subscribers can access comprehensive financial analysis, including detailed Pro Research Reports that transform complex Wall Street data into actionable intelligence for smarter investing decisions. Concerns were raised about the mild deterioration in SME asset quality and the expected effective tax rate of around 20% for the second half. Executives assured that no major regulatory changes are anticipated, allowing the bank to focus on strategic growth initiatives.

Full transcript - Yapi Ve Kredi Bank.-EXCH (YKBNK) Q2 2025:

Konstantinos, Conference Call Operator: Ladies and gentlemen, thank you for standing by. I’m Konstantinos, your conference call operator. Welcome and thank you for joining the YapiCredit Conference Call and Live Webcast to present and discuss the YapiCredit First Half twenty twenty five Financial Results Conference Call and Live Webcast. At this time, I would like to turn the conference over to Mr. Kurzat Kiteci, CSO and Ms.

Hilal Varol, Head of Investor Relations and Strategic Analysis. Mr. Kiteci, you may now proceed.

Kurzat Kiteci, CSO, YapiCredit: Good afternoon, and thank you all for joining our first half twenty twenty five earnings call. Starting with the operating environment. Bank has adopted a tight policy throughout the second quarter in response to the volatility started in mid March. Accordingly, the funding rate reached the high end of the corridor and stood at 49% up until mid June. Following the gradual stabilization, Central Bank moved back to a weekly funding policy rate of 46 during June.

As you also follow, Central Bank restarted the rate cut cycle last week by decreasing the policy rate to 43%. When we look at the macro developments throughout the quarter, headline inflation improved to 35% in June with ongoing tight monetary policy and slowdown in economic activity, and we expect the improvement in headline inflation trajectory to sustain through the rest of the year and reach below 30%. Equally important, Central Bank rebuilt its reserves by more than $30,000,000,000 during the quarter. Macro developments disrupted the ongoing improvements in net interest margin. That being said, with agile asset liability management and deposit pricing strategies, as we have already, we had a limited shrinkage in net interest margin.

Improvement trend in our net interest margin is back on track also when we look at today’s figures. Now looking at our strong first quarter, but now I would like to move to the second page of our presentation to give details about our second quarter performance. In the second quarter of the year, we posted TRY 11,000,000,000 net profit, same as first quarter and showed resilience against the disruption in the rate cut cycle. Accordingly, our first half net profit reached 23,000,000,000, going up by 31% year on year. Our return on tangible equity and return on assets stood at 22.41.6%, respectively.

Thanks to the strong performance, we confirm our mid-20s ROE guidance for the full year. Main driver of the performance was the ongoing strength in our top line. Core revenue margin was almost stable quarterly and improved by 161 bps year on year. This resulted in a 8% quarterly and strong 83% annual improvement in core revenues. Net interest margin improvement was 116 bps over 2024 last year.

Strong fee performance continued also. Thanks to our enhanced penetration to the strong customer base and support from payment systems, fees went up by 16% quarterly and 45% year on year. Equally important, NPL inflows throughout unsecured consumer loans started to improve in the quarter. Our performance positively deviated from the market trends, and we continue to maintain our prudency in coverage. Some of other improvement important drivers of our performance are: our Turkish lira loan deposit spreads adjusted credit cuts had a limited tightening of 130 bps quarterly.

Despite the significant hike in the market rates, our effective deposit cost management sustained, thanks to our best in class service model and strong customer franchise. Year to date improvement on Turkish lira loan deposit spread was very strong at five forty bps and again, with the active loan and deposit price. In the quarter, we continued to price our Turkish lira deposits 100 bps below the market prices. I also want to emphasize that we do not just have the highest demand deposit share amongst the peer group but also the highest amount in nominal terms. This performance once again proves the quality of our customer oriented strategies and strength of our service model and our branches and all the channels.

Operating expenses increased by 6% quarterly, 52% year on year, mainly due to the inflation pass through impact. Ongoing customer acquisition costs and as well as investment to our human capital. All in all, our fee covered 96% of the cost as of first half twenty twenty five. In terms of asset quality, in the second quarter of the year, we continued to perform better than the market and our peers. Improvement in our net NPL inflows from unsecured consumer loans were the main driver of this performance.

NPL inflows in the quarter increased a limited 14%, whereas collections improved by 39%. Accordingly, our net NPL inflows was by far lower than our peers and also lower than the first quarter. We continue to have a robust total coverage at 3.7%. If we adjust with our recent NPL sales, it’s 4%. Our cost of risk improved to 152 bps in second quarter and year to date, it’s at 1.62.

Now I am leaving the floor to Hilde, and she will provide the details behind our strong numbers. Hilde?

Hilal Varol, Head of Investor Relations and Strategic Analysis, YapiCredit: Thank you very much, Kushat. Thank you all for joining our call today. I will start with Page three, the volumes. In the second quarter of the year, we continued our selective lending, and we have started to gain market share in lucrative products. Our Turkish lira loans went up by 13% in second quarter, while the year to date increased to that 17%.

We also continue to seize the lucrative growth availability on the foreign currency side. Our foreign currency loans increased 8% quarter on quarter. This is in dollar terms, bringing the year to date increase to 17%. We have started to gain market share mainly in retail side, given the improvement in profitability. Our general purpose loans increased 18% quarter on quarter and we gained 72 basis points market share among private banks.

One other product, credit cards. We gained 43 basis points market share through 15% quarterly increase. Business loan growth, Turkish lira part, on the other hand, stood at 5% in the quarter, and this is in line with the loan growth caps. In the quarter, we also maintained above sector and peer pricing on the lending side. As a result, adjusted for the credit cards, our loan yield further went up 84 basis points quarter on quarter versus a drop in our peer average.

This brings the annual improvements year to date to two ninety seven basis points, and this is 100 basis points better than the peer average. We are and we will continue our selective and lucrative lending strategy in a very agile way and which will continue to support our spreads in the rest of the year and for the future also. Now moving to the funding side, we are on Page four. Our strong and widespread active customer franchise, which already surpassed EUR 17,000,000 and a direct pricing strategy supported the funding base as well as the cost of funding in the quarter. Turkish lira deposits increased 9% quarter on quarter and 17% over year end.

Reaching back to the highest nominal level among our peers by far, our Turkish lira demand deposit base increased another impressive 26% quarterly and 36% year to date and reached $295,000,000,000. Turkish lira demand deposit share improved further four sixty four basis points to 32%. This is the highest level, again, among our peer group, meaning our small ticket focused strategy is paying off. Please note that almost 90% of our Turkish ready demand deposits base is through sticky small tickets. Foreign currency deposits, on the other hand, increased 2% quarterly and 14% year to date, when the share of foreign currency demand deposit in total stood at a significant 65%.

All incorporated, our demand deposit share in total is at 47, showing an impressive two forty four basis points improvement on a year to date basis. This strong deposit performance and our Asia prices strategies, limited Turkish lira deposit cost increased at two seventeen basis points, and this is despite a significant jump in market rates and different competition. And please note that given our adjusted balance sheet management, this happened throughout the quarter. Looking at the day leverage MIS data, Turkish lira deposit cost increase was very limited at 110 basis points. On a year to date basis, we had two forty one basis points improvement in Turkish lira deposit costs.

This is showing our agility in balance sheet management once again. And this time following Central Bank’s decision to lower the funding rates, first started from 49 to 46 and then they recently had another cut. We have gradually lowered the share of more cost of big ticket deposits while gradually increasing non deposit funding, mainly repo. So far in July, as Kirshat already mentioned, we are already seeing the positive support from lower deposit costs coupled with lower non deposit funding, and our net interest margin is going up. Now moving to the details of our profit, starting from top line performance, we are now on Page.

As I have detailed in previously, thanks to our cost of funding management. In the quarter, we had a confined contraction in quarterly net interest margin supported by the ongoing strength in fees. Core revenue margin remained almost stable, just a mere four basis points decline quarterly, while the increase was 146 basis points year to date. Supported also by the trading line, core revenues increased 1%, almost stable when the annual increase was very strong at 17%, seven-zero percent. Our effective pricing strategy definitely was the main driver of this performance.

Our net interest margin came down just 37 basis points quarter on quarter and improved 116 basis points year to date. And looking at the peer group, the improvements year to date improvement is the best among our peer group also. Our loan deposit spread contribution to the net interest margins stood at 0539% And this is again, I want to emphasize it above significant level of the peer group and this is showing the room for the improvement going forward in our net interest margin. Our strong net interest margin improvement trend was shattered by the quarterly disruption in the rate cut cycle in second quarter, even we had the hike in the funding rates. So today we are now back to the improving stage for the quarterly increase in each quarter for the rest of the year.

So obviously, this quarterly disruption was not incorporated in our budgets we released at the beginning of the year. Thus, we reduced our net interest margin improvement target to 200 to two twenty five basis points range from around 300 basis points. Also, we foresee the improvement to sustain in the first quarter of next year as well. Moving to the next page, we are looking at, again, very strong fee performance. We have increased our fee base by an additional 16% quarter on quarter and 45% year over year.

We are continuously leveraging on customer franchise as well as sustaining diversification efforts. This is a very strong performance from our branches as well. Our payment system business further supports our fees and better than our guidance. Number and amount of transactions, very strong. They are improving each and every quarter, each and every month.

And looking at numbers, more than five times what we have compared to back in 2020. So support was very strong, 60% year over year increase was through our transactional banking settlement transfers. Bank insurance up 62% annually, investment products 35%. So we of course, payment systems providing a significant support, but it is from all of the parts. Once again, the ongoing customer penetration will continue to support our already high level of fee generation, which is already evolving above budget.

Thus, we revised up our fee increase guidance to above equal to 40% from 25% to 30% growth. This is expected to offset a substantial portion of the NIM revision. Moving to OpEx, we are on Page seven. Operating costs increased 6% quarter on quarter and 52% year over year. Our fees come close to a full coverage of OpEx, providing us room for investing in operational efficiency for the future.

Cost growth is still in line with the guidance. Making up 37% of our total loans, HR related costs increased 48% year over year. As I mentioned, we are investing for the future for the operational efficiency, thus running cost increase was 57% this time. Also, there is some impact from exchange rate, inflation, but the main part is coming from future investments. In the quarter, we have maintained our top notch efficiencies.

In second quarter, our fees fully covered OpEx 100% and in the first half, the coverage is at 96%, cost to average assets at 3.9%. Moving to another very hot topic, asset quality. As we have stated during our first quarter twenty twenty five call and also as Kureshat mentioned, we have started to see some improvement in net NPL inflows mainly through unsecured consumer sites. On the other hand, NPL formation through SMEs are increasing, as you all know, coming from a very low base. All incorporated, our performance diverged from the system in a positive way, and we had lower NPL inflows versus the sector and peer average.

That being said, we continued our uncompromised prudency in provisioning. In the quarter, NPL inflows were at TRY 15,700,000,000.0, then collections improved to TRY 7,500,000,000.0. As a result, net NPL inflows came down slightly to TRY 3,800,000,000.0, TRY 5,800,000,000.0 of which was through consumer loans and credit cards. Net NPL inflows from general purpose loans came down 34% quarter on quarter to TRY 2,200,000,000.0. And this is when we look at the peer average is TRY 3,300,000,000.0.

And please note that more than 65% of our GPLs are through our payroll customers with a significantly lower lifetime PD. This is supporting us. Credit card net NPL inflows down by 14% to TRY 3,500,000,000.0. The peer average was TRY 5.7%. And this is thanks to our strong know how on credit cards and timely actions taken.

Moving to Page nine. Since second quarter twenty four, so showing how we are losing market share on the NPLs, meaning we are performing better than sectors since second quarter last year. Still our coverage level of 3.7% is reflecting our prudency and adjusted for the recent NPL sales even higher at 4%. All in all, our cost of risk stood at 162 basis points as of first half twenty twenty five and 01/1952 basis points in second quarter. This is within the full year guidance range.

Equally important, we have a very well diversified loan mix in terms of sectors. The highest share is lower than 7%. Also SME share in performing loans is limited at 8.5%. Moving to Page 10, solvency. Our CET1 ratio stood at 9.9%.

Our buffer is at 189 basis points and this is mainly due to the market volatility and ongoing business growth. Capital adequacy ratios stood at 13.1% and looking at the impact operational impact was 51 basis points and macro 15. We have already started to see an improvement in the solvency. There are two reasons, thanks to lower interest rates supporting the capital level through AFS reserves. Second, internal capital generation is back.

So it’s back on track. In terms of sensitivities, the impacts are still limited, first depreciation, 32 basis points impact on CET1 and 90 basis points on capital deposit ratio. The breakeven U. S. To Turkish rate is around 80 and all calculations are set peragus.

The impact of the first 100 basis points per last shift in the Turkish lira yield curve is at 15. Breakeven NPL ratio is around 7.5%, even a bit higher definitely today. All incorporated, we are comfortable with our capital levels today. Internal capital generation, as you know, was this dropped for a quarter, but already it started to kick in again, which will help us to build buffers through the year and before growth opportunities kick start further. Now moving to Page 11, a summary of our guidance.

I will try to go through give a summary each and every section. But in a nutshell, loan growth guidance is on track. We realized on our net interest margin guidance to 200 basis two twenty five basis points improvement, given a quarter of disruption in rate cut cycle, thus increase in funding costs, which will be largely offset by our better performance on fees. So we revised up our fee growth guidance above and or equal to 40%. On top, although we haven’t provided the guidance here, our trading performance through treasury operations are performing better than our forecast.

Cost increase is on track. We maintain below 50% increased guidance. And for asset quality, we also keep the guidance at 150 basis to 175 basis points. And all incorporated, we do maintain our ROE guidance at mid-20s. Now I’m leaving the floor to Kusat for closing remarks, and then we will be taking your questions.

Kusat?

Kurzat Kiteci, CSO, YapiCredit: Thank you, Hinder. We would like to take this occasion to extend our thanks to our stakeholders who stand by us with trust and support and to our dedicated employees who contributed to the achievements of the bank. On behalf of the whole team, I would like to thank you all for joining our call. Now we can take your questions.

Konstantinos, Conference Call Operator: The first question comes from the line of Vialba Mariana with William Blair. Please go ahead.

Vialba Mariana, Analyst, William Blair: Hi, can you hear me?

Hilal Varol, Head of Investor Relations and Strategic Analysis, YapiCredit: Yes, we can hear you. Sorry, Please go

Vialba Mariana, Analyst, William Blair: just checking. Thank you for the presentation. You both I have two questions. One is related to solvency. Gilav, you mentioned that the solvency already started to improve from the level you reported in second quarter.

Is there a level of CET1 roughly that the bank has in mind that they would be comfortable ending the year in order to be continue to grow in 2026? And my second question is on Stage two loans. There was quite a big increase. I was just wondering if this is related to the deterioration in retail and to a lesser extent SMEs that you mentioned or if this was a big file and if you can comment on any if there is any particular sectors or segments that have driven that increase in Stage two? Thank

Kurzat Kiteci, CSO, YapiCredit: you, Mariana, for your question. I will reply to the first one, solvency ratio. And our adequate levels is 200 bps buffer against regulatory limit for CET1. As of the second quarter end, we are close to that. It is slightly below that threshold and due to low level of profitability with the rate hike session throughout the quarter.

And with the profitability increase in the third and fourth quarters, Surely, we will go back to the levels that we always would like to be. And secondly, maybe there are some couple of written questions about that, and I hope I think that there will be some other on the other questions. And as you know, we are the only IRB bank in Turkey in terms of capital calculation. And being an IRB bank, there is the model update sessions. For some couple of time, we have been we have not been updating our model.

We were waiting for this economic turmoil to end. And there are some BC buffers that when we make the update, there is going to be some increases in our capital calculations, which we believe we will start also doing those throughout the second half. That’s why it is the most important thing that we rely on, and that’s why we are comfortable as of today also going to 100 bps buffer because we know that there are some quite important buffers will come with our IRB model updates.

Hilal Varol, Head of Investor Relations and Strategic Analysis, YapiCredit: So about your second question, about Stage two loans, our Stage two loans increased 24% quarter on quarter. And mainly one reason is the exchange rate because almost 40% of Stage two loans are in foreign currency. And the increase 70% is due to a CRS meaning significant increase in credit risk. So we are always mentioning this is because of our prudency. And also the rest is through the restructured portfolio.

We have been effectively restructuring our retail portfolio, mainly general purpose loans and credit scores and also the BRSA regulations allowing us to restructure. This is helping us on the asset quote front also and looking at the payments performance of these restructured credit card and general purpose note, it is performing quite well. And it is we are seeing a quite good return from that.

Vialba Mariana, Analyst, William Blair: Thank you.

Hilal Varol, Head of Investor Relations and Strategic Analysis, YapiCredit: Is this clear or do you need any further clarification?

Vialba Mariana, Analyst, William Blair: No, that was clear. Thank you.

Hilal Varol, Head of Investor Relations and Strategic Analysis, YapiCredit: Thank you.

Konstantinos, Conference Call Operator: The next question comes from the line of Tarando David with Bank of America Merrill Lynch. Please go ahead.

Tarando David, Analyst, Bank of America Merrill Lynch: Good afternoon and thanks for the opportunity. I have three questions please. First, we’ve seen fairly muted local currency lending growth in the previous quarters, but there is a clear acceleration in this quarter. Is this start of a more sustained trend or more of a tactical move? What I’m really trying to understand is how your lending appetite stands as of today?

I realize the growth gaps are in place that those are a constraint, would appreciate your broader thoughts here. Second on NIM, based on the chart on page five, the cumulative NIM improvement year to date is around 115 bps and the lower end of your guidance implies this improvement for the full year. So that suggests you expect second half NIM to average around 3.5% essentially double what you reported in the second quarter. I know it’s only July, but how is the third quarter shaping so far? And how should we think about the NIM split between the third and the fourth quarter?

And also, would you be able to comment on the level and timing of the peak NIM? Should we expect that late this year or sometime in 2026? And finally, could you please also walk us through the policy rate assumptions that underpins your guidance? You.

Kurzat Kiteci, CSO, YapiCredit: David, thanks for these questions. For the local currency lending increase, when we see clarity in terms of interest rates and in terms of macro situation, We always would like to make a business banking with our customers. And therefore, we are a bank trying to make all the revenue and profitability through customers. And it always depends on the macro. And it’s the reason that you see an increase.

We start seeing the clarity in terms of interest rate environment for the upcoming periods. And that’s why we are trying to increase on the lucrative products. That’s going to help us to improve our net interest margin. This is the strategy behind. And as a result of it, what you see, we are trying to lend more on the individual part and also some unrisky fee trust on the corporate commercial part.

For your second question, net interest margin trajectory, and your calculation assumptions are quite right, I will say. And we believe for the third quarter, interest margin will be above our first quarter levels. As you remember, it was around two point one percent first quarter NIM. It’s going to be above the first quarter levels and the fourth quarter as an exit NIM, it’s going to be close to 4%. This is our assumptions.

And the peak in terms of net interest margin is going to be on the second quarter close to between the 2026 because we still have our conservative approach in terms of guidance as you also know from the past. We keep that conservative approach and we believe after seeing everything settled and lifting this macro prudential measures and the peak in terms of NIM will come through the second quarter next year. And lastly, for the policy rate, again, being on the conservative part, inflation, we believe it’s going to be lower than 30%. For the policy rate, we’re still trying to figure out the exact landing point, but I can give you a kind of levels between 36% to 38% for the policy rate year end. And depending on how the economic station and inflation will result.

There is going to be the rate cycle for sure, but the magnitude, let’s see some couple of months inflation as well as the budget part by the timing the government budget.

Tarando David, Analyst, Bank of America Merrill Lynch: Thank you very much. Very clear. Thanks. Okay. Thanks.

Konstantinos, Conference Call Operator: The next question comes from the line of Nelis Simon with Citibank. Please go ahead.

Nelis Simon, Analyst, Citibank: Hi. Hello. Thank you for the opportunity. My question will be on the tax rate. I know it’s quite difficult, but can you give us any guidance on the tax rate in the second half of this year?

And what should we pencil into our models next year? And also, I’d be interested if you’re if there are any new regulatory initiatives that we should be wary of? Thank you.

Kurzat Kiteci, CSO, YapiCredit: Simon, for the tax rate, I’ll try to be specific. The effective tax rate for the second half is going to be somewhere around 20% levels without going to details why this is happening. So there are too many details behind it, but you may make your models with 20% effective tax rate for the rest of the year. And for the new regulatory changes, I will say, in our base case scenario, we do not expect lifting of current macro prudential measures. And this doesn’t mean that there is not going to be anything further on it.

It all depends on the evolution of the inflation and

Konstantinos, Conference Call Operator: the

Kurzat Kiteci, CSO, YapiCredit: budget deficit evolution. And there may be again some macro prudential measures specifically in order to keep inflation to lower it below 30%. But what I can say, we don’t expect any release of this macro prudential measures.

Nelis Simon, Analyst, Citibank: Okay. Thank you. Thank you very much. The

Konstantinos, Conference Call Operator: next question comes from the line of Butkov Mikhail with Goldman Sachs. Please go ahead.

Butkov Mikhail, Analyst, Goldman Sachs: Yes, good day. Just wanted to ask on the outlook on asset quality for SMEs. So do you see any changes there following the higher policy rate regime than was originally expected or the asset quality trends are stable? And yes, I think that’s the question.

Kurzat Kiteci, CSO, YapiCredit: Hello, Mikael. For the SME asset quality deterioration, yes, there is a deterioration, but it is not even close to historical averages, the high or the peak in terms of asset quality deterioration on the SMEs. But also, as you well mentioned, depending on the policy rate evolution, if policy rate keeps high or another move of a rate hike, which we don’t The worsening from the SMEs could deepen, but this is not our base case scenario. It’s going to increase on a quarterly basis. You are going to see that NPL inflows in third quarter and fourth quarter also will be higher than previous ones, but it is not even close to the highest levels that we saw in the past.

It is under control, I would say.

Butkov Mikhail, Analyst, Goldman Sachs: Okay. And if you could share any also early views into 2026 cost of risk, how do you expect how would you expect it to develop?

Kurzat Kiteci, CSO, YapiCredit: It is a bit early Mikael. Therefore, I don’t want to share any figures for 2026. We will be making our guidance details at the end of the year.

Butkov Mikhail, Analyst, Goldman Sachs: All right. Right. Thank you. Thank you very much.

Konstantinos, Conference Call Operator: Ladies and gentlemen, there are no further audio questions at this time. I will now pass the floor over to Ms. Hialal Varol to accommodate any webcast questions. Thank you.

Hilal Varol, Head of Investor Relations and Strategic Analysis, YapiCredit: We have a couple of questions from Valentina. What’s your FX liquidity and wholesale funding short term as well? So our FX liquidity is around the property is $9,000,000,000 So one year upcoming payments are $7,600,000,000 And the full year, the overall including everything is $14,000,000,000 And please note that around $2,000,000,000 of all is syndications. We are easily rolling them. And second one, can you please give us update on your issuance plans until the end of the year, both in seniors and sub debt ones?

We will continue to be very opportunistic because it’s like it will be very important for us to see the markets. We are always quite active and we will seize all the opportunities. There are no upcoming maturities for us, but definitely if there is an opportunity, we will be there. And last, can you elaborate about the updates of the IRB model? It’s a very complicated one, but it’s we updated some of our models and it is related with the calculation of the LGD loss given default.

So there are some parameter changes, so there’s a change on the multiplier and there will be some positive impact. I don’t want to share a precise impact with you at the moment. Let’s wait and see, but we are seeing what kind

Kurzat Kiteci, CSO, YapiCredit: of figure

Hilal Varol, Head of Investor Relations and Strategic Analysis, YapiCredit: I can say. I think one other question, how sustainable do you think is the fee generation that covers completely your OpEx going into second half and 2026. These figures are very high. I can say we cannot continue with the full coverage, but it will gradually come down. I believe we will see the normalized level we can say is around 8% to 85% levels.

I do not see any further questions written the phone. Okay, thank you all for joining. If you have any further questions, we’re always here. You can either reach me, Zara, Dil or the Investor Relations team always. Thank you for joining.

Bye bye.

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