In This Article:
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Core Revenues: Increased by 17% year on year in the first nine months.
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Net Income: Decreased by 36% year on year to TRY 33.135 billion.
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Return on Equity (ROE): 20.2% for the first nine months.
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Return on Assets (ROA): 2% for the first nine months.
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TL Loans Growth: Up by 30% in the first nine months.
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FX Loans Growth: Grew by 25% year-to-date.
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Fee to Opex Ratio: Improved to 84%, with a quarterly figure of 91%.
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Opex Growth: Up by 83% year on year in the first nine months.
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NPL Ratio: Remained at 2.5%.
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Total Capital Ratio: 17.2%.
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Tier One Capital Ratio: 14.6%.
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Active Customer Base: Exceeded 14 million.
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Digital Customers: Reached 12.3 million.
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Sustainable Finance Provided: TRY 126 billion in the third quarter, cumulative TRY 352 billion since 2021.
Release Date: October 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Akbank TAS (IST:AKBNK) has maintained a strong capital position with a total capital ratio of 17.2% and a Tier 1 ratio of 14.6%, providing a solid foundation for future growth.
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The bank's active customer base has exceeded 14 million, contributing to a significant improvement in the fee to Opex ratio, which increased by 26 percentage points over seven quarters.
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Akbank TAS (IST:AKBNK) has achieved a 136% year-on-year growth in fee and commission income, significantly outpacing Opex growth and aligning with their full-year guidance.
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The bank has strategically positioned its balance sheet to benefit from a disinflationary environment, with a focus on maturity extensions and growth in FX loans.
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Akbank TAS (IST:AKBNK) has made significant market share gains in consumer loans and mortgages, with a 110 basis points increase in consumer loans and over 300 basis points in mortgages year-to-date.
Negative Points
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The bank's net income decreased by 36% year-on-year, resulting in a return on equity (ROE) of 20.2% and a return on assets (ROA) of 2% for the first nine months.
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Akbank TAS (IST:AKBNK) faces challenges in net interest margin (NIM) due to elevated funding costs and restrictions on loan growth, with a cumulative NIM of 2.2% for the first nine months.
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The bank's cost of risk is expected to normalize towards 1.5% to 2% next year, indicating potential asset quality challenges.
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There is pressure on the bank's spread and margin evolution due to tight monetary policies and competitive pressures, impacting revenue generation.
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The implementation of hyperinflation accounting from January 2025 could add operational burdens and complexities to financial reporting.