Akbank's net profit in the first quarter was in line with market expectations

Akbank made a net profit of TL 10.71 billion in the first quarter of 2023, in line with the market expectation of TL 10.78 billion. The bank's net profit in the first quarter of last year was TL 8.05 billion, and its net profit in the previous quarter was TL 21.80 billion. Akbank announced that it made a net profit of TL 10.71 billion in the first quarter of this year, in line with the market expectation of TL 10.78 billion. Thus, the bank's net profit increased by 33 percent on an annual basis and decreased by 51 percent on a quarterly basis. The bank made a net profit of TL 60.02 billion in all of 2022. The bank's return on equity was 27.9 percent and return on assets was 3.6 percent, while the bank's capital adequacy ratio in the first quarter of the year was 18.6 percent. The capital adequacy ratio was 20.6 percent in the previous quarter. The bank's quarterly swap-inclusive net interest margin decreased from 760 basis points at the end of the year to 484 basis points as of the end of March. On the other hand, with the continued momentum in customer acquisitions, the bank's number of digitally active customers increased by 750,000 in the first quarter. While the increase in the bank's credit activity continues, there has been a 14.3 percent increase in TL loans since the beginning of the year, and the total TL loan amount exceeded TL 450 billion. There has been a 29.6 percent increase in credit cards, 29.4 percent in consumer loans, and 5.7 percent in TL commercial loans since the beginning of the year. A flat outlook was followed in foreign currency loans during the same period. Akbank's revenues increased on an annual basis in the first 3 months of the year, but decreased on a quarterly basis Akbank increased its revenues by 60 percent on an annual basis in the first quarter of 2023, reaching TL 18.36 billion. The company's net interest income, including swaps and excluding CPI, decreased by 7 percent compared to the same quarter of the previous year to TL 3.535 billion, and CPI-based securities income increased by 146 percent to TL 5.033 billion. The bank's net interest income was TL 13.74 billion in the first quarter. Although this figure showed a 19 percent increase on an annual basis, it indicated a 52 percent decrease compared to the previous quarter. The share of TL deposits in the bank's total deposits increased to 64% While the bank's TL deposit growth continues under the leadership of customer increases, it was announced that the TL deposit/total deposit ratio has been above 60 percent since February. The share of TL deposits in total deposits was 64 percent at the end of the first quarter. The bank, which has experienced a 222 percent increase in TL time deposits since the end of 2021, achieved a 70 basis point market share gain in deposits under TL 1 million in the first quarter. The market share gain in this segment was at the level of 250 basis points in 2022. The ratio of CPI and variable rate securities to total TL securities reached 83 percent and the total amount was TL 127 billion. While CPI-indexed securities were valued with 35 percent October-October inflation, the total of TL Fixed Income Securities increased from TL 40 billion at the end of 2022 to TL 57 billion. Fixed income CCPs, which were obtained within the scope of CBRT regulations and amounted to TL 32 billion at the end of the first quarter, decreased to TL 30 billion as of April 2023. On the other hand, the bank's strong course continued in fee and commission income. Net fee commissions increased by 146 percent compared to the same period of the previous year and reached TL 5.0 billion in the first three months of the year. On a quarterly basis, a 21 percent growth was seen in commission income. Net fee and commission growth is expected to grow by 60 percent in 2023. Akbank's equity return expectation for 2023 is at 30 percent levels While Akbank's 2023 estimates have not changed the expectation that TL loan growth will be around 40 percent for the entire year, TL loan growth has been at 14.3 percent since the beginning of the year. In line with the expectation of low single-digit growth in foreign currency loans, FX loans grew by 0.6 percent in the first quarter. The expectation for net interest margin in 2023 is around 4-5 percent and equity return is around 30 percent. The bank's 2023 year-end inflation expectation, with the gradual decrease, is around 45 percent. It was also shared that when the 2023 year-end inflation expectation is taken as 45 percent, active profitability is calculated as 4.2 percent and equity return as 32.9 percent.