Dear Stakeholders,
I am pleased to share with you the excitement of joining PASHA Bank as Chief Executive Officer and of leading the future vision of this long-established institution. Over the 11 years since we began operating in Türkiye, while successfully maintaining our focus on serving as a financial bridge in the Türkiye-Azerbaijan-Georgia triangle, we have been moving forward with confidence in line with the strategies we have set to achieve healthy and sustainable growth, enhance our product diversity and the quality of service we offer our customers, strengthen our role in the capital markets, and increase our share of foreign trade in the region. In this new role I have assumed at the Bank, our priority will continue to be carrying this strong legacy we have inherited even further.
In the first quarter of the year, a volatile and cautious outlook prevailed in international markets under the influence of political developments between the United States and Iran. Central banks worldwide continued to adopt a prudent approach in their monetary policies in line with inflationary pressures and movements in energy prices. While the U.S. Federal Reserve was seen to maintain its wait-and-see approach in monetary policy, expectations of tight monetary policy remained on the agenda in Europe due to inflation and energy costs. In Türkiye, while the economic administration maintained its focus on fighting inflation and preserving financial stability, the Turkish lira displayed a relatively balanced outlook. Nevertheless, exchange rate movements in global markets and geopolitical developments continued to affect local foreign exchange markets.
Looking at general economic expectations, a gradual rebalancing process in inflation is expected to continue during the remainder of the year. Energy prices and global economic developments are considered likely to remain decisive for the monetary policies of central banks. The Turkish economy, despite regional geopolitical developments, is expected to maintain its growth with the contribution of the economic policies being implemented, increasing international confidence, and support provided to various sectors.
Despite all market conditions, as PASHA Bank, we achieved stable growth in the first quarter of 2026, just as we did in previous years. In the first quarter of the year, we grew by 2.4% and reached an asset size of TRY 15 billion 167 million. We also recorded growth of 20.4% compared to the same period of the previous year, giving the first signals that we will complete 2026 successfully as well. In the first quarter of the year, we not only preserved our strong equity structure but also carried it one step further by increasing our equity. We increased our equity by 1.6%, and by 29.4% compared to the same period of the previous year, reaching TRY 2 billion 428 million. Looking at our total loan figures, we also delivered a stable growth performance by achieving an increase of 2.2% in the first quarter and 21.6% compared to the same period of the previous year. In the remainder of the year, we aim to continue our work with determination in line with our strategic objectives.
As PASHA Bank, although we do not make any sectoral distinction in financing in Türkiye, our priority is to ensure sustainable growth through the right business opportunities and, while doing so, to maintain a balanced sectoral concentration structure. We always stand by the real sector with medium- and long-term financing solutions within the scope of companies’ investment activities. Through innovative initiatives in Türkiye, such as the issuance of Asset-Backed Securities (ABS) via digital channels, we are assuming a pioneering role in the capital markets. Among our distinctive products, in project finance, our focus sectors include energy, particularly renewable energy resources, as well as tourism, mining and construction; and in investment banking, agriculture, automotive and retail are among the sectors we focus on through our acquisition finance and ABS issuance products.
I hope that the coming period will be positive for the Turkish economy and our banking sector. I would like to thank you, our valued stakeholders, for your cooperation.
Sincerely,
Alpaslan Yurdagül
Chief Executive Officer and Board Member