More Than Just Numbers: 5 Key Takeaways from Ulusal Faktoring’s 2025 Performance

1. Introduction: The Pulse of SME Finance

In a volatile economic landscape, liquidity is the lifeblood of Small and Medium Enterprises (SMEs). For these businesses, the ability to convert receivables into immediate cash flow is often the defining factor between operational paralysis and aggressive growth. In the Turkish financial ecosystem, Ulusal Faktoring has solidified its position as a primary conduit for this capital.

While the headline-grabbing transaction volume of 56.1 billion TL for 2025 suggests a company of immense scale, the year-end report tells a far more nuanced strategic story. As a senior analyst looking beneath the surface of the consolidated reports, it is clear that 2025 was a year of structural transition—marked by a major shareholder exit, a massive capital fortifying exercise, and an ambitious pivot toward financial technology.

2. The “High-Touch” Expansion: A Strategic Advantage with a Rising Cost

While much of the financial services sector is retreating into purely digital shells, Ulusal Faktoring is doubling down on physical proximity. In 2025, the company expanded to 48 branches across 39 provinces. This expansion is central to their “hybrid” model: using local market insight to lend where algorithms might hesitate.

“The Company’s mission in branching is to be close to SMEs.”

However, a sophisticated reading of the balance sheet reveals the “fine print” of this strategy. While proximity drives volume, it also increases exposure. Non-Performing Loans (Takipteki Alacaklar) jumped significantly in 2025, rising from 710.1 million TL to 1.194 billion TL—a 68% increase. While the company serves 11,835 customers, the surge in delinquent receivables suggests that the “high-touch” model is currently navigating a period of heightened credit risk that requires rigorous internal monitoring.

3. Capital Velocity: The 0-90 Day Liquidity Engine

There is a striking gap between Ulusal’s 56.1 billion TL transaction volume and its 14.9 billion TL in factoring receivables. For the lay observer, this looks like a discrepancy; for the analyst, it is a measure of capital velocity.

This nearly 4:1 ratio indicates that the company’s capital is turning over approximately once every quarter. The data in Note 7 confirms this “velocity” argument: the vast majority of receivables—12.5 billion TL—fall within the 0-90 day maturity bucket. This proves that factoring remains a high-speed liquidity tool, where the company rapidly deploys, collects, and redeploys its balance sheet to keep pace with the short-term working capital cycles of Turkish trade.

4. Coding the Future: Why a Factoring Giant is Building a 50M TL Software House

One of the most significant strategic pivots of the year was the capitalization of Ulusal Finans Teknolojileri A.Ş. Originally established with 10 million TL, the company increased this subsidiary’s capital to 50 million TL by mid-2025.

This is more than a name change; it is an infrastructure play. By internalizing software development, Ulusal is attempting to scale its customer base through digital platforms. Interestingly, despite this “Fintech Pivot,” the group’s headcount grew by 15% (from 482 to 558 employees). This suggests that management is not yet ready to replace humans with code, but is rather looking to arm its physical branch network with better proprietary tools to increase efficiency and reach “outside the sector” customers.

5. Post-PineBridge Stabilization: Buybacks and Statutory Fortress-Building

To understand Ulusal’s 2025 equity movements, one must look at the corporate finance backdrop. The exit of PineBridge Eurasia Financial Investments, finalized in February 2025, was the catalyst for the subsequent stabilization efforts.

Following this exit, the company executed two massive moves:

• A Precise Buyback: The board utilized nearly the entire 150 million TL limit to buy back 6.89351% of shares, signaling that management viewed the post-exit market price as undervalued.
• A Four-Fold Capital Increase: The company’s paid-in capital was hiked from 133.5 million TL to 540 million TL, funded largely through internal reserves.

From an internal capital generation perspective, these moves signal a company building a “fortress balance sheet” to reassure the market and provide the “dry powder” necessary for future expansion without relying on external equity markets.

6. The Auditor’s Qualified Opinion: Navigating the TFRS 16 vs. VUK Tax Maze

Sophisticated investors will note the “Limited Qualified Opinion” from Deloitte (DRT Bağımsız Denetim). The qualification centers on a 93.46 million TL profit boost originating from a sale-and-leaseback transaction of fixed assets.

This was a deliberate tax-optimization strategy under VUK 6361 (Tax Procedure Law), intended to benefit from specific exemptions. However, because this accounting treatment prioritizes local tax law over the stricter TFRS 16 (Leases) standards, the auditor was required to flag it.

“If the relevant sales recording had not been made in accordance with the provisions of the TFRS 16 Leases standard, net profit for the period and tangible fixed assets as of December 31, 2025, would have been 93.46 Million TL lower.”

For analysts, this means the reported net profit of 748.5 million TL contains a non-core, non-cash accounting gain. Stripping this away provides a cleaner view of the company’s “operating” profitability from factoring alone.

Conclusion: A Forward-Looking Reflection

As Ulusal Faktoring enters its 25th year, it is operating a sophisticated “hybrid” strategy—expanding its physical footprint to maintain SME relationships while building a 50 million TL fintech engine to scale. The central question for 2026 is whether the company can harness this new technology to curb the rising trend of non-performing loans.

Management’s directive for the coming year is clear and expansionary: “The goal for 2026 is to introduce factoring, which is the financing of trade, to even more customers… and to put new instruments into use so that customers outside the sector can recognize and use it easily.” Whether this tech-enabled outreach will result in higher quality growth or simply more volume remains the key metric to watch.

Briefing Document: Ulusal Faktoring A.Ş. 2025 Consolidated Financial and Operational Analysis

Executive Summary

This briefing document provides a comprehensive synthesis of the financial position and operational performance of Ulusal Faktoring A.Ş. (“the Group”) for the fiscal year ending December 31, 2025.

The Group reported a strong expansion in its core factoring business, with total assets reaching 16.73 billion TL and factoring receivables growing to 14.94 billion TL. Despite a significant increase in transaction volume (reaching 56.12 billion TL), net profit for the period decreased to 748.5 million TL, compared to 898.6 million TL in 2024. This performance was achieved against a backdrop of a major capital increase—from 133.5 million TL to 540 million TL—and the completion of a strategic share buyback program.

A critical highlight of the 2025 report is the Limited Qualified Opinion issued by the independent auditor, Deloitte. This qualification pertains to the accounting treatment of a sale-and-leaseback transaction involving fixed assets. Had this transaction been recorded according to TFRS 16 standards, the reported net profit and tangible assets would have been 93.46 million TL lower than currently stated.

Strategically, the Group continues to focus on the SME (KOBİ) segment, expanding its physical footprint to 48 branches across 39 provinces. The establishment and capitalization of its fintech subsidiary, Ulusal Finans Teknolojileri A.Ş., signals an intensified focus on technological integration and customer acquisition.

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1. Financial Performance and Audit Findings

1.1 Independent Auditor’s Qualified Opinion

The independent audit conducted by DRT Bağımsız Denetim (Deloitte) resulted in a “Limited Qualified Opinion” (Sınırlı Olumlu Görüş). The basis for this qualification is the Group’s accounting for a sale-and-leaseback transaction:

• The Transaction: The Group subject 16.54 million TL of fixed assets to a sale-and-leaseback arrangement to benefit from tax exemptions under Law No. 6361.
• Accounting Treatment: The Group recorded 93.46 million TL as “other operating income” in the income statement.
• Impact: The auditor noted that if TFRS 16 (Leases) had been strictly applied without the sale recording, both the net period profit and the tangible fixed assets would be 93.46 million TL lower as of December 31, 2025.

1.2 Key Financial Indicators (Consolidated)

1.3 Revenue and Expense Analysis

• Main Operating Income: Increased to 8.36 billion TL, primarily driven by interest from factoring receivables (7.22 billion TL) and fees/commissions (1.14 billion TL).
• Financing Expenses: Substantially rose to 5.59 billion TL, with interest paid on factoring transactions (3.36 billion TL) and loans (1.82 billion TL) being the primary drivers.
• Personnel Expenses: Grew significantly from 506.5 million TL in 2024 to 926.8 million TL in 2025, reflecting the increase in staff (558 employees).

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2. Operational Highlights and Strategic Growth

2.1 SME Focus and Branch Expansion

The Group’s mission remains centered on being a “Solution Partner for SMEs.”

• Branch Network: Four new branches were opened in 2025. As of December 2025, the Group operates 48 branches in 39 provinces.
• Customer Base: The number of SME-segment customers reached 11,835 by year-end.
• Mission: Strategically locating branches to be physically close to SME clusters, such as organized industrial zones (e.g., Ostim, İvedik, İkitelli).

2.2 Technological Initiatives

The Group established Ulusal Finans Teknolojileri A.Ş. on May 17, 2024, to develop financial technologies and software.

• Capitalization: The subsidiary’s capital was increased by 40 million TL in June 2025, reaching a total of 50 million TL by year-end.
• Objective: To leverage global technological developments to increase customer numbers and streamline the acquisition process.

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3. Capital Structure and Corporate Actions

3.1 Capital Increase

In May 2025, the Capital Markets Board (SPK) approved the Group’s application for a bonus share (bedelsiz) capital increase. The issued capital was raised from 133.5 million TL to 540 million TL.

3.2 Share Buyback Program

• Duration: Initiated on August 26, 2025, and concluded on September 9, 2025.
• Volume: The Group purchased 37,225,000 nominal shares for a total of approximately 150 million TL.
• Impact: The repurchased shares represent 6.894% of the Group’s total capital and were funded through internal resources.

3.3 Ownership Structure (as of 31 Dec 2025)

• Publicly Traded (BIST): 56.55%
• İzak Koenka: 20.40%
• K. Korkut Jolker: 18.62%
• Erdal Henry Frayman: 4.42%
• Exit of Strategic Partner: PineBridge Eurasia Financial Investments S.a.r.l. completed the transfer of its remaining shares to the current major shareholders (Koenka and Jolker) on February 7, 2025.

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4. Asset Quality and Risk Management

4.1 Factoring Receivables Portfolio

The Group’s receivables are almost entirely domestic (99.5% “Kabili Rücu” or with recourse).

• Total Receivables: 14.94 billion TL.
• Non-Performing Loans (NPL): Receivables under follow-up (Takipteki Alacaklar) totaled 1.19 billion TL.
• Provisions: Special provisions for these doubtful receivables were set at 680.7 million TL.
• Sectoral Concentration: The highest exposures are in Trade (23.17%), Contracting Services (18.33%), and Food (14.15%).

4.2 Provisioning Methodology

The Group follows the regulations set by the Banking Regulation and Supervision Agency (BDDK) for provisioning. Under these rules, specific provisions are required at minimum rates based on the period of delay:

• 90–180 days: 20%
• 180–360 days: 50%
• Over 1 year: 100%
• Note: The Group does not currently apply the TFRS 9 “Expected Credit Loss” model for factoring receivables, as the BDDK allows for an optional application.

4.3 Market Risk Management

• Currency Risk: The Group maintains a very low foreign currency position (1,816 thousand TL net asset position). It primarily operates in Turkish Lira to minimize exposure to exchange rate volatility.
• Interest Rate Risk: The majority of factoring receivables (16.08 billion TL) and loans (12.51 billion TL) are at fixed rates.
• Liquidity Risk: The Group manages liquidity by matching the maturities of financial assets and liabilities, focusing on short-term funding (loans and bonds) to support its factoring portfolio.

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5. Critical Takeaways and Future Outlook

• Growth vs. Profitability: While the Group achieved a 47% increase in asset size and a 50% increase in gross factoring receivables, net profit saw a year-over-year decline. This is partly attributed to a significant rise in financing expenses (up 48.5%) and personnel costs.
• Audit Qualification Impact: The 93.46 million TL accounting discrepancy regarding the sale-and-leaseback transaction is a significant point of transparency, indicating that the reported profit was bolstered by this specific accounting choice.
• Market Position: Following the exit of PineBridge, the Group is now primarily controlled by its founding Turkish partners while maintaining a high public float (56.55%).
• 2026 Strategy: The Group aims to introduce “new instruments” to attract customers outside the traditional factoring sector and continue its digital transformation through its fintech subsidiary.
• Post-Balance Sheet Events: Between January 22 and January 30, 2026, the Group issued three new sets of bonds/bills totaling 400 million TL, indicating continued reliance on capital markets for funding.