Esteemed Stakeholders,

After a year of seeking balance in 2025, the global economy now faces new challenges in 2026. During the first quarter of 2026, geopolitical tensions, particularly those stemming from developments in Iran, and pressures on energy supply chains heightened downside risks for the global economy. Subsequently, the IMF revised its global growth forecast for 2026 from 3.3 percent to 3.1 percent, citing disruptions to inflation projections and tighter financial conditions driven by rising energy prices. Currently, central banks are expected to take a more cautious approach to monetary policy.

Against this turbulent backdrop, Türkiye remains balanced and resilient to external shocks thanks to its comprehensive economic policies. Proactive measures help stabilize our markets and limit the inflationary impacts of geopolitical developments. Meanwhile, the strong reserves of the Central Bank have been vital in maintaining financial stability and anchoring price stability expectations. Successful economic policies have sustained the current account deficit below historical averages. Any potential disruptions are expected to remain at manageable levels. Strictly adhering to its economic program, Türkiye has become a safe harbor and remains focused on medium-term opportunities. In addition to new support packages aimed at boosting competitiveness and strengthening the investment environment, recent corporate tax regulations indicate a prioritization of production dynamics.

Meanwhile, our sector maintains its strong performance, supported by a solid capital structure, high liquidity levels, and increasing loan volumes. In the first quarter of 2026, Halkbank continued to provide funding to customers engaged in production, investment, employment, and exports, with a particular focus on tradespeople, artisans, and SMEs. During this period, our commercial loan volume reached 1.9 trillion Turkish lira. SME loans accounted for 56 percent of our commercial loans, corresponding to 14.2 percent in market share. Thanks to our inclusive support for all tradespeople, the number of loan recipients rose to 776,000, with the total value of tradespeople loans reaching 323 billion Turkish lira.

We view empowering women and young entrepreneurs not merely as a responsibility, but as an essential condition for development. In line with this vision, we have extended a total of 129 billion Turkish lira in financing to nearly 271,000 women entrepreneurs since 2021.  Today, Halkbank accounts for one in every three loans utilized by women entrepreneurs across Türkiye.

This year, we organized the fifth edition of the Halkbank Productive Women Competition, which showcases the productive power and entrepreneurial courage of women. In addition to awards in six categories, we also provided the top 100 female entrepreneurs with comprehensive MasterClass Brand Training.

Beyond financial support, we also launch dedicated programs to contribute to the entrepreneurial ecosystem. In April, the third edition of the Jet Luck competition provided entrepreneurs with the opportunity to present their ideas to prominent representatives of the business community. We also launched the third term of the HUBrica Acceleration Program, designed to accelerate the expansion of innovative business models into global markets.

Additionally, the Girls Shaping the Future of Science (BIGE) project, in collaboration with the Habitat Association, aims to encourage high school and university-aged girls to pursue STEM (science, technology, engineering, and mathematics) fields and introduce them to the entrepreneurial ecosystem at an early age.

The Entrepreneurs Loan Package, on the other hand, is designed to empower entrepreneurs to grow into globally competitive enterprises that contribute to production and employment. Since 2021, 213,000 entrepreneurs have benefited from a total of 46.5 billion Turkish lira in loans. We support young entrepreneurs looking to start or grow their businesses through the Gençİz Loan, while continuing to stand by recent graduates with the First Step Loan.

We reach out to all segments of society to support sustainable development. As part of our efforts to increase financial awareness, Halkbank Children’s Theater brought the play “Super Heroes: We Are Protecting Our World!” to our children. The play, targeting children aged 6 to 12, sought to raise awareness of consumption, the environment, and resource management at an early age.

Valued Stakeholders,

We have also reached a major milestone in the criminal case involving our Bank in the U.S., which has been ongoing for nine years. Under the “deferred prosecution agreement,” the criminal proceedings will conclude once the compliance report, currently being prepared by an expert institution, is submitted for the court's approval. Our Bank has not admitted to any criminal wrongdoing, and will not face any judicial or administrative fines.

Driven by our 88-year history, Halkbank remains committed to contributing to Türkiye’s economic development and creating lasting value for our customers and stakeholders.

In the first quarter of 2026, our Bank increased its total assets to 4.4 trillion Turkish lira, up by  3.3 percent compared to the end of 2025. Our cash loans rose by 9.1 percent to 2.2 trillion Turkish lira, while our non-cash loans climbed by 5.4 percent to over 1.2 trillion Turkish lira. Our total loan volume consequently increased by 7.7 percent to over 3.4 trillion Turkish lira, while our shareholders’ equity rose by 3.5 percent to 226 billion Turkish lira. Our deposit volume reached 3.4 trillion Turkish lira, securities portfolio grew to 1.2 trillion Turkish lira, and net profit in the first quarter of 2026 amounted to 9.5 billion Turkish lira.

With 1,242 service units and a workforce of over 28,000, we will remain steadfast in our commitment to advancing Türkiye’s national economy. Through our selective lending approach, we will continue to support the real economy, as well as our tradespeople and our female and young entrepreneurs.

I would like to thank all my colleagues and our distinguished stakeholders for their support in this success, built on our long-established experience and the strength we draw from our people. I extend my sincere respect, with the belief that together we will achieve new successes.

Recep Süleyman Özdil

CEO

Türkiye Halk Bankası A.Ş.