Briefing Document: Burgan Finansal Kiralama A.Ş. 2025 Annual Report Analysis

Burgan Finansal Kiralama A.Ş. solidified its strong position in the sector by reaching a net period profit of 1,829,315 thousand TL and total assets of 20,629,670 thousand TL by the end of 2025. Founded in March 1994 and having added operational fleet leasing to its activities as of 2019, the company continues its growth with an expert staff of 100 people. While the company’s equity increased to 4,942,275 thousand TL, the compliance of its financial statements with BRSA (BDDK) accounting and financial reporting legislation was confirmed by the independent audit report. Explore the detailed financial successes and future projections of Burgan Leasing for 2025, which offers a wide range of services from industrial equipment to real estate leasing.

Executive Summary

This briefing document synthesizes the findings and operational data from the 2025 Annual Activity Report of Burgan Finansal Kiralama A.Ş. (“the Company”). The independent audit, conducted by KPMG for the period between January 1, 2025, and December 31, 2025, resulted in a Qualified Opinion (Sınırlı Olumlu Görüş).

The primary driver for the qualified opinion is the Company’s maintenance of a 145 million TL “free provision” (serbest karşılık) intended to buffer against potential economic volatility, a practice that falls outside the standard accounting regulations mandated by the Banking Regulation and Supervision Agency (BRSA/BDDK). Despite this specific departure from regulation, the auditor confirmed that the financial information provided in the Board of Directors’ activity report is consistent with the audited full-set financial statements.

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Independent Audit Analysis and Opinion

The independent audit was conducted in accordance with the Turkish Auditing Standards (BDS), which are part of the Turkish Standards on Auditing issued by the Public Oversight, Accounting, and Auditing Standards Authority (KGK).

1. Qualified Opinion (Sınırlı Olumlu Görüş)

KPMG issued a qualified opinion regarding the Company’s financial state as of December 31, 2025. The audit concluded that, except for the impact of the matter described in the “Basis for Qualified Opinion” section, the financial information in the annual report accurately reflects the Company’s status and is consistent with the audited financial statements.

2. Basis for Qualified Opinion: The “Free Provision” Issue

The qualification centers on a specific accounting treatment regarding risk management:

• Provision Amount: A total of 145,000,000 TL is held as a free provision.
• Composition: This balance includes 612,136,000 TL recognized as an expense in previous periods, offset by a reversal of 467,136,000 TL in the current 2025 period.
• Rationale: Management established this provision to mitigate the potential negative effects of future economic and market developments.
• Regulatory Conflict: This provision is not recognized under the “BRSA Accounting and Financial Reporting Legislation.” Consequently, the Company’s net profit and total equity are considered understated by the amount of this provision.

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Regulatory Compliance and Corporate Responsibility

The report delineates the distinct responsibilities of Company management and the independent auditor under the Turkish Commercial Code (TTK).

Management Responsibilities (Articles 514 and 516 of TTK)

The Company’s management is legally responsible for:

• Report Preparation: Preparing the annual activity report within the first three months following the balance sheet date and presenting it to the General Assembly.
• Fair Representation: Ensuring the report reflects the Company’s activities and financial position accurately, honestly, and without complexity.
• Risk Management: Identifying and pointing out potential risks the Company may face.
• Disclosure of Benefits: Including details on financial benefits paid to board members and senior executives, such as salaries, bonuses, travel, and insurance.
• R&D Activity: Reporting on research and development efforts and significant events occurring after the end of the fiscal year.

Independent Auditor’s Mandate

The auditor’s objective is to provide an opinion on whether the financial information in the activity report is consistent with the audited financial statements and information obtained during the audit. The audit aims to obtain “reasonable assurance” that the report provides a true and fair view of the Company’s financial health.

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Organizational and Operational Profile

Burgan Finansal Kiralama A.Ş. maintains an established corporate presence in Turkey with a history spanning over three decades.

Key Corporate Data

Contact and Location Information

• Headquarters: Levent, Istanbul (İş Kuleleri Kule 3).
• Regional Presence: The Company operates branches beyond Istanbul, including:
  • Ankara: Telephone (312) 385 8292.
  • Adana: Telephone (322) 351 5123.

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Technical Financial Classifications

The documentation further addresses the technical classification of financial assets. A critical area of focus in the 2025 reporting period includes the “Classification of financial assets with conditional features” (Koşullu özelliğe sahip finansal varlıkların sınıflandırılması). This indicates that the Company is navigating complex asset structures that require specific accounting treatments to determine their value and risk profile accurately within the leasing framework.