İş Bankası's profitability exceeds forecasts

Türkiye İş Bankası A.Ş. has shared its 2025 financial results with the public. The bank achieved a net profit of 23.8 billion TL in the final quarter of the year, surpassing the average analyst estimate of 16.2 billion TL. For the full year, the bank reported a net profit of 67.8 billion TL, successfully increasing the previous year's figure of 45.5 billion TL by approximately 50 percent.

The primary driver of profitability was interest income. The net interest margin, including swap costs, rose to 3.7 percent in the final quarter, up from 3.2 percent in the previous quarter. On an annual basis, the net interest margin, which had been in negative territory due to the swap effect, showed a remarkable recovery, reaching 2.3 percent throughout 2025.

There was also a notable increase in net fee and commission income. Throughout 2025, the bank generated 134 billion TL in revenue in this area, a 47 percent increase. Thanks to strong performance, particularly in payment systems, fourth-quarter commission income reached 38.6 billion TL, a 7 percent increase compared to the previous quarter. The ratio of commission income to operating expenses stood at 90 percent.

The bank's return on equity was 18.6 percent at year-end. However, with the weakening in collections, the non-performing loan ratio rose from 2.7 percent in the third quarter to 3.2 percent in the fourth quarter.

GUIDANCE FOR 2026

The statement from the bank also included projections for 2026. Accordingly, a growth of approximately 30 percent is targeted in Turkish Lira loan growth. Furthermore, with the expected improvement in funding costs, the net interest margin, including swap costs, is estimated to reach 5 percent for the year. The bank anticipates a 40 percent increase in net fee and commission income, while expecting the non-performing loan ratio to rise to 4 percent. Türkiye İş Bankası also aims for its return on equity to show real positive growth relative to inflation in 2026.

EVALUATIONS FROM GENERAL MANAGER HAKAN ARAN

In his statement regarding the results, Bank General Manager Hakan Aran said:

“We value the synergy we will create financially, especially for our goal of being one of the banks that touches the most customers in the widest geography in our second century. We see the players in every geography and every field where we operate as companions, and we act with the awareness that we can make a difference on a global scale and become a global player through the collaborations we have established.”

Emphasizing that projects focused on culture-arts, environment, and education continue alongside efforts in green transformation, artificial intelligence, and entrepreneurship, Aran underlined that they continue to contribute to strategic points of economic and social life.

Aran also touched upon the 'İş Vapur' project, which was developed to ensure the continuity of banking transactions during disasters and was launched last year, referring to the project with the following words:

“İş Vapur holds special importance as it was built from scratch, inspired by the number 66 Bosphorus ferry in the Şirket-i Hayriye fleet, which has a special place in the Bank's history as it was where our Bank celebrated its anniversary in its early years. With İş Vapur, we aimed to ensure that banking services continue as uninterruptedly as possible by providing mobile services from the sea in cases of earthquakes and other disasters where road access may be restricted. We designed İş Vapur, which will function as a branch with a new-generation experience during normal times, to be able to offer food and shelter in extraordinary situations,” he said.