TSKB Increases Quarterly Income by 28% in 2Q24 In Line with Year-End Expectations

TSKB announced its financial results for the second quarter of 2024. The bank-only financial statements of the Bank indicated that its total assets reached TL 207.2 billion. Murat Bilgiç, TSKB CEO, stated that in the first half of the year, they prioritized inclusive green development investments by supporting the sustainable recovery of earthquake-affected regions and that TSKB's loan portfolio grew in line with the year-end targets, with the Bank maintaining the ratio of SDG-linked loans in the total portfolio at 91%. Having outperformed the sector in the first half of the year, the Bank continues to support qualified investments in critical areas such as climate finance and renewable energy to bolster its contribution to Türkiye's sustainable development journey.

TSKB (Industrial Development Bank of Türkiye) announced its financial results for the second quarter of 2024. Accordingly, TSKB's total asset size reached TL 207.2 billion in the second quarter of 2024, while its total loan portfolio amounted to TL 151.2 billion with a year-to-date, FX-adjusted growth of 6.7%. In the first half of 2024, TSKB's earnings before provisions and taxes amounted to TL 6.5 billion, while posting a net income of TL 4.4 billion which is up by 28% quarter-on-quarter and 39% year-on-year. Furthermore, the Bank’s return on equity stood at 37.1 percent. In the first six months, the Bank continued to contribute to the financing of renewable energy and SDG-linked investments in various sectors, while commission revenues from investment banking and advisory operations supported banking revenues with an increase of 115%.

TSKB CEO Murat Bilgiç: "We have been creating value through an inclusive development approach since day one."

Commenting on TSKB's Q2 financial results, TSKB CEO Murat Bilgiç said that TSKB displayed a robust financial performance in the first half of 2024 and that, during the period, the Bank grew its loan portfolio, which predominantly comprised FX-denominated and investment loans, by approximately 6.7% on a FX-adjusted basis in line with its 2024 year-end targets. Bilgiç went on to make the following remarks: "As a long-established organization getting ready to celebrate its 75th anniversary, we have been creating value through an inclusive development approach since the day one of operations. We completed yet another successful period when we continued to expand our active contribution in investments that are in line with our country's climate targets and transform the future, deepened our collaboration with national and international stakeholders and strengthened our partnerships. We keep reinforcing our capital while maintaining our net interest margin through our long-term business model. Leveraged by our long-term, ESG-focused funding structure and our robust capital adequacy ratio of 24% on a bank-only basis, we allocated a long-term cash loan support of US$1.1 billion to investments in Türkiye since the beginning of the year. We have now achieved a quarterly net income growth of 28%, which distinguishes us from the sector thanks to our strong and sustainable profitability performance. At the rest of the year, we will continue to offer financing, advisory and investment banking services in line with our mission and international commitments on a dedicating manner and to complete 2024 with a performance parallel to our expectations."

TSKB CEO Murat Bilgiç: "We make new agreements to continue to enrich our strong and diversified funding structure. Our successful funding operations back our liquidity and growth plans"

Referring to the new agreements signed by TSKB, Murat Bilgiç made the following remarks; "We make new agreements to continue to enrich our strong and diversified funding structure. Our successful funding operations back our liquidity and growth plans. In the first quarter, we successfully completed our first additional Tier 1 bond issuance of US$300 million, and in June, we launched the ‘Türkiye - Accelerating the Market Transition for Distributed Energy’ Project with the World Bank. To support distributed solar projects, we secured US$345 million in funds, which we plan to use to directly contribute to Türkiye's 2053 Net Zero goal. Moreover, in July, we signed another new funding agreement, the first of its kind in Türkiye, under ‘Joint European Financiers for International Cooperation’ (JEFIC) worth a total of €100 million, including €50 million from the French Development Agency (AFD) and €50 million from the Italian Public Development Bank (CDP) responsible for the management of the Italian Climate Fund on behalf of the Italian Ministry of Environment and Energy Security. This new funding will be used to support green investments by companies in the provinces affected by the February 6 earthquakes. Also in July, we secured a syndicated loan from international financial institutions amounting to US$190 million at a renewal rate of 155%. The syndicated loan comprised two separate tranches of US$49 million and €130 million, both with a maturity of 367 days, with the participation of a total of 14 banks, including 6 new participants, from 11 countries.”

Bilgiç said they were delighted to have hosted the Steering Group Meeting of the International Development Finance Club (IDFC), which they served as a Steering Group member, in Türkiye for the first time in July at their headquarters in Istanbul. “We consider this key meeting as a strategic opportunity to increase our contribution to global sustainability goals together with 12 leading development finance institutions from different parts of the world in line with the UN Sustainable Development Goals (SDGs) and also as an opportunity to directly convey the recent economic developments in our country as well as our priorities in line with our national development plan.”

"We registered June 2 with the Turkish Patent and Trademark Office as TSKB Development Day"

Stating that they launched the TSKB Development Day to contribute to a green and inclusive future, TSKB CEO Murat Bilgiç said, "At TSKB, we launched TSKB Development Day to commonly share the experience we have accumulated and to move our country forward towards a sustainable future in cooperation and synergy with our stakeholders. Prior to this major event, which we held for the first time on June 2, 2024 on the anniversary of our Bank's establishment, we registered June 2 with the Turkish Patent and Trademark Office as ‘TSKB Development Day’. For 74 years, we have addressed development with a holistic approach and from an inclusive perspective, and now we have taken it to another level as a symbolic expression of serving our country when we embraced it as a special day."