Q2 2024 Turkiye Is Bankasi AS Earnings Call Transcript
Key Points
- Turkiye Is Bankasi AS (IST:ISCTR) celebrated its 100th anniversary, marking a century of stability and trust in the Turkish economy.
- The bank reported a strong return on equity of around 28% for the first half of 2024.
- Net fee income showed impressive growth, with a quarterly increase of 11% and an annual growth of 200%, offsetting declines in net interest income.
- The bank maintained a solid capital adequacy ratio of 15.5%, indicating strong capitalization to absorb potential economic adversities.
- Turkiye Is Bankasi AS issued a $500 million sustainable Eurobond and signed a $1 billion sustainability-linked syndicated loan, emphasizing its commitment to ESG initiatives.
- Net interest margin (NIM) faced significant pressure due to high funding costs and quantitative tightening measures.
- The bank's swap costs added additional pressure on net interest income, although a declining trend was observed towards the end of June.
- The Turkish economy's high inflation and tightening monetary policy pose challenges for the banking sector's performance.
- Asset quality concerns remain, particularly in the credit card segment, where some deterioration is expected.
- The bank anticipates a normalization in the cost of risk, revising its year-end guidance to 100 basis points, reflecting cautious expectations for asset quality.
Ladies and gentlemen, welcome to Isbank's first-half 2024 financial results audio webcast. Today, our presenters will be Ms. Izlem Erdem, CFO, and Ms. Nilgun Yosef Osman, Head of IR and Sustainability. (Operator Instructions)
Now, I'm handing over to our presenters. Izlem Erdem, the floor is yours.
Thank you. Welcome to our earnings presentation for the second quarter. This is Izlem speaking. Thank you all for joining. Before going over our financial results, I want to begin by acknowledging a significant and historic milestone for us.
In just two weeks' time at Isbank, we will be celebrating our 100th anniversary. It has been a century of proudly serving our customers, supporting our society, creating value for our shareholders, and contributing to the development of the Turkish economy in line with our founding mission. Innovation, common sense, reliability, sincerity, transparency guided by the principles of intelligence, diligence, integrity, technical and methodical work in
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