Cenk Gur
CEO, Member of International Advisory Board & Director

Good afternoon, everyone, and thank you for joining our first quarter 2026 earnings call. This is Kaan speaking. I hope you are all well. Before turning to our performance, let me first briefly touch on the operating environment and how we positioned the bank through the quarter. As we enter 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 secular effects through inflation expectations, funding conditions and broader market sentiment.

In contrast to portfolio outflows from Turkiye 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 cease fire 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