Q YATIRIM BANKASI A.Ş.

Regulatory Filings • Aug 23, 2024

Corporate Credit Rating

☒New ☐Update Sector: Banking Publishing Date: 04.04.2024 Team Leader Fırat Tunç +90 212 352 56 73 firat.tunc@jcrer.com.tr Analyst Ece Bedir +90 212 352 56 73

ece.bedir@jcrer.com.tr

R A T I N G S		Long Term	Short Term
	National ICR	BBB+ (tr)	J2 (tr)
ICRs (Issuer Credit Rating Profile)	National ICR Outlooks	Stable	Stable
	International FC ICR	BB	-
	International FC ICR Outlooks	Negative	-
	International LC ICR	BB	-
	International LC ICR Outlooks	Negative	-
ISRs (Issue Specific Rating Profile)	National ISR	-	-
	International FC ISR	-	-
	International LC ISR	-	-
Sovereign *	Foreign Currency	BB (Negative)	-
	Local Currency	BB (Negative)	-
	* Assigned by JCR on August 18, 2022

2.19 0 5 Net Interest Margin (%) 61.59 0 100 Gross Profit Margin (%) 8.84 0 10 ROAA (%) 25.73 0 50 ROAE (%) 34.36 0 50 Equity / Total Assets 41.78 0 50 Total Income / Equity

2023

Q Yatırım Bankası A.Ş.

JCR Eurasia Rating has evaluated "Q Yatırım Bankası A.Ş." in the investment-grade category, assigned the Long-Term National Issuer Credit Rating as 'BBB+ (tr)' and the Short-Term National Issuer Credit Rating as 'J2 (tr)' with 'Stable' outlooks. On the other hand, the Long-Term International Foreign and Local Currency Issuer Credit Ratings and outlooks have been determined as 'BB / Negative' as parallel to sovereign ratings and outlooks of Republic of Türkiye.

"Q Yatırım Bankası A.Ş." (hereinafter referred to as 'Q Yatırım', or 'the Bank' or 'the Company') was established with an initial capital of TRY 500mn and registered in the Istanbul Trade Register on October 24, 2022 with the decision of the Banking Regulation and Supervision Agency (BRSA) dated October 12, 2022 and numbered 10379. The Bank was granted an operating license with the Decision numbered 10620 taken at the Board meeting of the BRSA dated 1 June 2023 and the aforementioned decision became valid after being published in the Official Gazette dated 3 June 2023 and numbered 32210. The Bank started its operations on 26 October 2023. The Bank had no other affiliates or subsidiaries as of the reporting date. The Bank had a workforce of 51 employees as of FYE2023.

Q Yatırım Holding A.Ş., a part of Ercan Group Companies and the biggest shareholder of Q Yatırım besides having the other shareholder companies of Q Yatırım, was established on May, 2021 with the main field of activity of participating in the capital of the companies and ensuring their investment, financing, organization and management. The sole shareholder of the Holding is Ali Ercan. Paid-in-capital of Q Yatırım Holding was increased to TRY 2,125mn as of February, 2024.

Key rating drivers, as strengths and constraints, are provided below.

Strengths	Constraints
• Majority of the balance sheet items being composed of earning assets expected to contribute to revenue generation, • Generating net profit in the year of operations started, • Shareholder structure in various business segments easing network capabilities together with the experienced management team and well-organized management infrastructure, • Country specific advantages encouraging	• Limited analysis and low level of predictability as a newly established bank, • Customer and product diversification lacking granularity despite gradual customer acquisition, • Quantitative tightening actions applied by CBRT including interest rate hikes targeting restrict credit growth and suppressing investment appetite.
investment which contributes to the investment banks' operations.

Considering the aforementioned points, the Bank's Long-Term National Issuer Credit Rating has been assigned as 'BBB+ (tr)'. The Bank's current structure and gradual process of acquiring customer base despite a new bank still lacking granularity, limited ability to be analysed, the earning asset-weighted structure of the balance sheet and bottom-line profit generation ability of the Bank have been evaluated as important indicators for the stability of the ratings and the outlooks for Long and Short-Term National Issuer Credit Ratings are determined as 'Stable'. The Bank's financial structure, the operations and the customer portfolio structure in next years, attainability of the Bank's budgeted projections will be closely monitored by JCR Eurasia Rating in upcoming periods. The macroeconomic indicators in national and international markets, as well as market conditions and legal framework about the sector will be monitored as well.

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