Akbank's net profit in the second quarter exceeds market expectations

Akbank made a net profit of TL 20.3 billion in the second quarter of 2023, above market expectations of TL 17.2 billion. The bank's net profit in the previous quarter was TL 10.7 billion, while its net profit in the same quarter of the previous year was TL 13.1 billion. Akbank announced that it made a net profit of TL 20.3 billion in the second quarter of this year, above market expectations of TL 17.2 billion. Thus, the bank's quarterly net profit increased by 90 percent and its annual net profit increased by 55 percent. The bank made a net profit of TL 60.02 billion in all of 2022. The bank's total net profit in the first half of this year was TL 31.018 billion. The bank's return on equity increased from 27.9 percent in the first quarter of this year to 39.0 percent at the end of the first half, and its return on assets increased from 3.6 percent to 4.7 percent. The bank’s capital adequacy ratio in the first half of the year was also 17.1 percent. The bank’s quarterly swap-inclusive net interest margin decreased from 500 basis points at the end of March 2023 to 379 basis points as of the end of June. On the other hand, with the continued momentum in customer acquisitions, the bank’s number of digitally active customers increased by 1.3 million in the first half. Akbank’s commercial profits increased by over 200 percent on a quarterly basis Akbank increased its revenues by 29 percent annually in the first half of 2023 to TL 37.5 billion. The company’s net interest income, including swaps and excluding CPI, decreased by 57 percent compared to the first half of the previous year to TL 4.0 billion, and CPI-inclusive securities income increased by 43 percent to TL 21.7 billion. In the same period, there was a 154 percent increase in fee and commission income. In this quarter, the bank's net interest income increased by 22 percent quarter-on-quarter to TL 11.9 billion, while net interest income including swap expense decreased by 17 percent. The most striking item in revenues was other revenues. While other revenues increased by 202 percent in this quarter, commercial profit increased by 218 percent to TL 20.56 billion, supporting the increase in profit. The bank's total deposits exceeded TL 1 billion While the bank's TL deposit growth continued under the leadership of customer increases, the share of TL deposits in total deposits was 56 percent by the end of the first half. Total deposits, on the other hand, exceeded TL 1 billion with a 39 percent increase from the end of June 2022. The bank's TL loans have increased by 22.6 percent since the beginning of the year, and the total TL loan amount has become TL 483 billion. Since the beginning of the year, there has been an 81 percent increase in individual credit cards, a 49.5 percent increase in consumer loans, and a 1.7 percent increase in TL commercial loans. The ratio of CPI-indexed securities to total TL securities decreased from 64 percent at the end of 2022 to 56 percent, while the share of fixed-interest securities increased to 27 percent. Fixed-income CCPs, which were obtained within the scope of CBRT regulations and amounted to TL 34 billion at the end of the second quarter, are at the level of 2 percent of the assets. On the other hand, the bank's strong course in fee and commission income continued. While net fee and commission growth is expected to grow by 60 percent in 2023, growth reached 154 percent in the first half. Upward increase potential in Akbank's 2023 profitability expectations There was no change in Akbank's 2023 estimates, but it was seen that the first half realizations exceeded expectations, especially on the profitability side. While the expectation that TL loan growth will be around 40 percent for the whole year was not changed, TL loan growth has been at the level of 22.6 percent since the beginning of the year. While the net interest margin for 2023 was realized close to the expectation of approximately 4-5 percent, the return on equity was 39 percent, exceeding the 30 percent level set for the end of the year.