Akbank T.a.s. (adr) Stock Earnings Reports

Key investor takeaways: 1) Strong top-line and earnings momentum: 9M net income TRY 38.9bn (ROE 20.4%), 9M revenues TRY 156.0bn (+48% yoy) driven by a resurgent NII in 3Q and very strong fees. 2) Loan growth ahead of plan: TL loans up 28% YTD (13% q/q), on track to beat the prior full‑year TL growth target (>30%); FX loans up modestly with a mid-single-digit full-year target and upside from pipelines. 3) Margin recovery but guidance risk: Swap‑adjusted NII rebounded sharply in 3Q (swap‑adjusted NII +48% q/q; NIM expanded ~73bps q/q). Management warns the pace and magnitude of future policy rate cuts will determine NIM trajectory; current macro implies NIM/ROE guidance risk for year‑end. 4) Deposit and funding strength: Market share gains in TL demand deposits (private banks) and lower-cost deposit share improving; TL LDR remains low — providing room to optimize funding costs. 5) Fees and efficiency: Net fees +67% yoy; fee/OpEx >100% (104% YTD) as fee growth outpaced OpEx (+35% YTD). 6) Asset quality and provisioning: NPL ratio stable at 3.5%; restructured loans 3.2% of book (up 0.6pp q/q, largely due to BRSA restructuring scheme), Stage 2+3 ~9% of loans. Total provisions ~TRY 68bn YTD; cumulative net cost of credit ~230bps (may slightly exceed prior 150–200bp guidance). 7) Capital and sensitivity: Total capital 17.2%, Tier‑1 13.6%, CET1 12.4% (no forbearances). Sensitivities limited (10% TL depreciation ≈ -29bps to capital ratios; 100bp TL rate rise ≈ -9bps). 8) ESG: Progress on sustainability targets (74% of sustainable finance target achieved), maintained MSCI AA. Bottom line: the bank is delivering quality growth with strong fee momentum, solid capital and disciplined risk management; near‑term upside to margins depends materially on the speed and size of policy easing, so investors should watch NIM, cost of risk developments and any regulatory moves on interchange/fees.