Esteemed Stakeholders,
The year 2025 was a period defined by diverging global monetary policies, yet characterized by increasingly supportive financial conditions. Despite persistent global uncertainties driven by geopolitical risks, the absence of new supply chain interruptions prevented a renewed surge in global inflation.
Türkiye, meanwhile, positively stood out from many other economies thanks to its ongoing disinflation process and balanced growth mix. The impact of coordinated economic policies under the Medium-Term Program (MTP) became markedly more visible throughout the year. The Central Bank of the Republic of Türkiye’s prudent monetary policy, which prioritized price stability and was bolstered by fiscal discipline, significantly accelerated the macroeconomic rebalancing process. Consequently, foreign exchange reserves reached historic highs, and our country’s risk premium (CDS) retreated to its lowest level in eight years. With the current account deficit improving beyond expectations and a reduced need for external financing, the FX-Protected Deposit (KKM) balances were successfully phased out and reached zero. These positive developments, paired with a stabilizing investment climate, enabled our economy to achieve 21 consecutive quarters of uninterrupted growth.
In 2025, the banking sector demonstrated a stable performance, moving in lockstep with broader economic developments. Risk management, asset quality, and balance sheet resilience emerged as top priorities across the sector.
For our Bank, 2025 was a year of disciplined resource allocation. We directed our capital toward selective high-impact sectors, managed loan growth with a balanced approach, and further fortified our liquidity position and capital adequacy. By offering restructuring to firms facing financial headwinds, we not only supported our clients but also played a critical role in preserving overall economic stability. Furthermore, through proactive risk management and rigorous asset quality controls, we maintained our non-performing loan (NPL) ratio at a low and highly manageable level.
Our primary strategic focus throughout 2025 remained centered on tradespeople, SMEs, and women and youth entrepreneurs. We prioritized financial access for SMEs and the real economy through selective lending policies designed to champion production, investment, job creation, and exports.
By year-end 2025, our loan balance for tradespeople grew by 20 percent, rising from 266 billion Turkish lira at the end of 2024 to 320 billion Turkish lira. The share of loans extended to a total of 774,000 tradespeople within total SME loans reached 33 percent. Meanwhile, SME loans accounted for 48 percent of our total cash loan portfolio. With an SME loan volume reaching 961 billion Turkish lira, we continue to lead the market in SME financing.
In line with our vision to empower women entrepreneurs, we have extended a total of 125 billion Turkish lira in financing to nearly 268,000 women entrepreneurs since 2021. Halkbank accounts for one out of every three loans utilized by women entrepreneurs across Türkiye.
To further support the development of the entrepreneurship ecosystem, we provided loans totaling 41 billion Turkish lira to 236,000 entrepreneurs. We expanded our financial support for young entrepreneurs through tailored products such as the Young Business Loan, First Step Loan, and Tech Entrepreneur Loan. In December, we launched the Credit Guarantee Fund (CGF)-backed Gençİz Loan during the Gençİz Summit, which saw a turnout of over 5,000 participants.
We have not only offered financial support for women and young entrepreneurs, but instead a holistic approach that empowers, elevates, and fosters lasting success. Through our Productive Women Meetings, Productive Women Competition, and Master Class Training Programs, we strengthened the knowledge, experience, and solidarity networks of women entrepreneurs.
We maintained support to women’s participation in production and employment, particularly through the “Rising Women” project led by the Ministry of Family and Social Services, while also encouraging women entrepreneurs to become insurance agents within the scope of the “Growing with Women Agents” project in collaboration with Türkiye Sigorta.
Distinguished Stakeholders,
In summary, 2025 was a landmark year in which we amplified our impact on the real economy through initiatives for artisans, SMEs, women, and youth, while simultaneously solidifying our balance sheet.
By year-end 2025, our total assets grew by 43 percent compared to the previous year, reaching 4.3 trillion Turkish lira. Our cash loans rose by 36 percent to 2 trillion Turkish lira, while our non-cash loans increased by 47 percent to 1.2 trillion Turkish lira. Our total loan volume, subsequently, reached 3.2 trillion Turkish lira, marking a 40 percent increase. Compared to year-end 2024, our deposit volume rose by 46 percent within the same period, nearing 3.5 trillion Turkish lira, and our shareholders’ equity increased by 43 percent, reaching 218 billion Turkish lira. Our securities portfolio also grew by 52 percent, reaching 1.2 trillion Turkish lira.
In the upcoming period, our Bank will maintain its support to the real economy, tradespeople, and women and young entrepreneurs with a focus on sustainable growth and a selective loan approach, building a stronger tomorrow for our country. In 2026, we will remain committed to strong economic projects that align with Türkiye’s Medium-Term Economic Program and strengthen the vision of the “Decade of Family and Population.” We extend our sincere thanks to our valued stakeholders for your trust and contribution in our success today.
Sincerely,
Osman Arslan
CEO
Türkiye Halk Bankası A.Ş.