Türkiye Sinai Kalkinma Bankasi A.S.

TSKB reported 2025 cumulative net income of TRY 11.4 billion, up 12% year over year, and quarterly net income of TRY 2.1 billion. Annualized ROE was 29.3%, net interest margin was 5.6%, and FX-adjusted loan growth was 11.2%. The NPL ratio was 2.4%, problematic loans (Stage 2 and 3) were 9.6% of the loan book, and the currency-adjusted net cost of risk was 55 bps. Capital adequacy ratio was 20.3% and Tier 1 was 19.2% excluding temporary BRSA measures; with temporary measures, the last-quarter figures were 12.3% CAR and 19.2% Tier 1 as stated on the call. For 2026, management guided to low-teen real loan growth, NIM around 4.5%, ROE around 25%, CAR around 19%, Tier 1 around 18%, NPL ratio at 2.5%, and net cost of risk at 50 bps.

Management emphasized that 2025 results were broadly in line with guidance and reflected the bank’s development-finance model. The CEO highlighted record DFI funding, continued focus on sustainable lending, and strong profitability driven by loan spreads, securities income, collections, and provision reversals. Tone was confident but measured, with repeated references to a “cautiously optimistic” approach and gradual normalization in 2026.

The financial discussion centered on resilient top-line generation and balance-sheet strength. Management said NII including swap costs rose 22% year over year and 7% quarter over quarter, CPI linker income reached TRY 3 billion for the year, and trading gains were boosted by valuation gains from private equity funds including Turkey Green Fund. They also noted TRY 950 million of free provisions were reversed in 2025, with TRY 1.1 billion still remaining, and said cost-to-income stayed at 17.1%, the lowest in the industry. Capital remained strong, with 20.3% CAR and 19.2% Tier 1 excluding temporary measures, and the company said this supports continued growth.

Analysts asked whether 2026 ROE guidance includes free provision reversals, and management confirmed that it does, saying reversals will continue gradually in 2026. A macro question prompted management to outline assumptions of 4% GDP growth, year-end inflation around 24%, average inflation around 27%, continued rate cuts, and real appreciation of the lira. Management also said recent loan-growth-related amendments do not constrain TSKB because its model relies on investment loans, green transformation, and DFI-backed funding, and they said defense lending is not part of the bank’s mission.