Akbank T/A/S S/Adr (AKBTY) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good afternoon, and thank you for joining our first quarter twenty twenty six earnings call. This is Khan speaking. I hope you are all well. Before turning to our performance, let me first briefly touch on the operating environment and how we position the bank through the quarters. As we entered the year, geopolitical tensions, war related uncertainty, energy price volatility and evolving global monetary conditions continue to shape market dynamics. While our bank's direct exposure remains limited, we continue to monitor the potential spillover effects through inflation expectations, funding conditions and broader market sentiment. In contrast to portfolio outflows from Truthier during the first few weeks of the war, there was little or no signs of dollarization observed from the domestic residents. In the meantime, the ceasefire has supported a reversal in portfolio flows, allowing the CBRT to rebuild nearly half of its FX reserves. The authorities' timely and coordinated response across fiscal and monetary, including liquidity and FX measures, was key to preserving financial stability, sustaining confidence and limiting the broader effects of rising energy prices. Looking ahead, higher energy prices may create some inflationary pressure and could delay the expected easing in financial conditions. We expect some pass through from higher energy prices to domestic inflation, although this could be partially offset by a prospective moderation in economic activity. Given the fact that prudent macro policies and stronger buffers built over the last two years, leave both the economy and the banking sector better positioned to navigate this period. In the medium term, both the intensity and duration of the shock will determine the total impact and the associated policy res...