Akbank T/A/S S/Adr (AKBTY) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello, everyone, and thank you for joining our second quarter earnings call. This is Kansu speaking. I hope you are all well. Let me start with what has changed since our last earning call. First of all, the operating environment has proven more challenging than we had anticipated with continued geopolitical tensions, adding uncertainty to the global and domestic outlook. At home, the disinflation process is processing more gradually. The expected easing cycle has been pushed back, and macroprudential measures have been tightened further. At the same time, the continued rebuilding of the central bank's reserves remains an important source of confidence and reinforces the credibility of the broader policy framework. For the banking sector, the implications are clear. Higher funding costs are likely to persist for longer, delaying the pace of margin recovery, while asset quality remains a key area of focus in restrictive operating environment. Take it all together. These developments have also pushed out the timing of sustainable real return on equity generation for the sector. The direction of travel remains intact, but the path is proving longer and more demanding than previously expected. Against this backdrop, we have revised our return on equity guidance for this year to 23 to 25% from high 20s. Of course, Bruh will share all the details. Going forward, disciplined balance sheet management, strong capital, prudent provisioning and resilient customer franchise have become even more important. Our focus is therefore not only on managing the current environment, but also on ensuring that we are well positioned to capture the opportunities that will emerge as conditions eventually normalize. One of Akbank's case strengths has always been our ability to adapt. Our adap...