Anadolubank ratings affirmed at B+ as Fitch keeps stable outlook

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Anadolubank B+ rating affirmed

Highlights

Fitch affirms Anadolubank's Long-Term Issuer Default Ratings at B+ with stable outlooks, citing standalone credit profile and sector-above profitability.
Anadolubank's impaired loan ratio increases to 2.2% at end-1H26 from 2% at end-2025, with Fitch projecting 2.5% by end-2026 amid asset quality pressures.
Operating profit to risk-weighted assets drops to 6.5% in 1H26 from 7.5% in 2025 but remains above sector's 3.8%, with Fitch expecting 5.5% by end-2026.

Rating action and core drivers

As reported by Fitch Ratings, Anadolubank A.S.'s Long-Term foreign- and local-currency Issuer Default Ratings remain at B+, its Viability Rating stays at b+, and its National Long-Term Rating is affirmed at A(tur). The outlooks remain stable, with the agency saying the bank's long-term ratings are driven by its standalone credit profile.

Fitch says that profile reflects Anadolubank's limited franchise, adequate capitalisation and funding structure, alongside profitability that remains above the sector average. The bank's short-term ratings stay at B, which Fitch says is the only possible mapping for long-term ratings in the B category.

The agency also points to growing pressure on Turkey's operating environment following the Iran conflict. It says partial recovery in the country's foreign-exchange reserves since April, easing depreciation pressure and a tight policy mix help offset risks from high energy prices, but still-high inflation, policy trade-offs and the risk of capital flight ahead of the next election continue to weigh on the backdrop.

Asset quality, profitability and funding outlook

Anadolubank's domestic market share remains small, at under 1% of sector assets at the end of the first half of 2026 on an unconsolidated basis, with the bank focused mainly on commercial lending. Its Dutch subsidiary, Anadolubank N.V., accounts for 27% of consolidated assets and provides limited diversification, while loan growth of 33.4% in the first half outpaces the sector's 16.2%, helped by expansion in segments exempt from regulatory growth caps and by small-bank exemptions.

Fitch says the impaired loan ratio rises slightly to 2.2% at end-1H26 from 2% at end-2025, although it remains below the sector's 2.8%. Stage 2 loans also increase but stay low at 2%, and reserve coverage of impaired loans declines to 83.8% from 89.8%; Fitch expects the impaired loan ratio to reach about 2.5% by end-2026 as high lira interest rates, inflation and slower economic growth pressure asset quality.

Profitability remains a relative strength, even as operating profit to risk-weighted assets falls to 6.5% in 1H26 from 7.5% in 2025, still well above the sector's 3.8%. Fitch expects that ratio at around 5.5% by end-2026, while noting that capitalisation remains adequate with a 13% common equity Tier 1 ratio and a 16% total capital ratio, and that customer deposits continue to provide the main funding base, accounting for 75% of total non-equity funding.

We previously reported on how persistent geopolitical shocks and elevated fiscal spending are straining sovereign credit resilience as global interest rates remain high. That piece explained why emerging and frontier markets are especially exposed, as higher energy and food prices can keep inflation elevated, tighten financing conditions, and leave less room to absorb refinancing and budget pressures.

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