Erdemir Produces 6.9 Million Tonnes of Steel in Nine Months; First Citizens Reports Third-Quarter Earnings
Key Facts
Erdemir reported its financial and operating results for the period from January 1 to September 30, 2026, on October 22, recording crude steel production of 6.9 million tonnes and capacity utilization of 96%, compared with 81% a year earlier. In a separate disclosure issued on October 23, First Citizens BancShares said net income was $606 million in the third quarter, versus $672 million in the second quarter. The bank’s results also showed increases in loans and deposits, while adjusted earnings available to common shareholders fell to $55.37 per share from $57.09. The figures reflect two different trajectories: a stronger margin at Erdemir over the nine months, versus growth in the bank’s business alongside a decline in quarterly income. First Citizens’ chairman and chief executive said third-quarter performance "exceeded our expectations," attributing it to revenue, loan and deposit growth, resilient credit quality and expense discipline.
At Erdemir, reported revenue for the nine months rose to 195.858799 billion Turkish lira from 147.915207 billion lira in the corresponding period of 2025. EBITDA margin was 11.4%, compared with 8.9% a year earlier. Net profit attributable to the parent company’s shareholders was about 11.143 billion lira, compared with 2.384 billion lira in the first nine months of 2025. This puts the improvement in margin and profitability alongside revenue growth over the same period, while production data showed crude steel capacity utilization rising from its year-earlier level. The company had said for the first half that net profit was $201 million despite intense competition in the global steel sector and difficult market conditions.
Erdemir’s flat product sales totaled 5.643 million tonnes in the first nine months, while long product sales reached 741,000 tonnes. Exports accounted for 14% of total sales, leaving most of the company’s sales activity concentrated in the domestic Turkish market. In its fourth-quarter guidance, management forecast lower profit per tonne due to higher coal prices. It said raw material prices affect costs with a lag of 4 months, while maintaining its annual EBITDA guidance of $75 to $85 per tonne. The company thus linked the expected year-end profitability pressure to the timing of raw material cost pass-through, while keeping its previously announced annual guidance.
At First Citizens, net interest income rose to $1.70 billion in the third quarter, up $43 million from the previous quarter. Interest income on loans increased by $88 million, supported by higher average balances and yields. But net interest margin fell 3 basis points to 3.07%, while the cost of average deposits rose to 2.16% from 2.07%. The provision for credit losses was $55 million, after a credit benefit of $10 million in the second quarter. These indicators show net interest income improving alongside pressure on the margin and a change in the credit loss item between the two periods.
The bank’s loans and leases reached $157.19 billion on September 30, an increase of $6.16 billion, or 4.1%, from June 30. Deposits totaled $185.26 billion, up 6.8% from the end of the previous quarter. On September 4, the bank completed its purchase of 138 branches from BMO and assumed deposits of about $4.9 billion and loans of about $650 million. The acquisition took place during the quarter in which the recorded increases in loans and deposits occurred, while the company said growth covered both items. On credit, an Investing.com report citing Reuters said nonperforming loans fell $80 million to 0.87% of total loans.
First Citizens repurchased $600 million of shares in the third quarter and announced that its board had approved a new plan allowing repurchases of up to $1.2 billion of Class A shares through 2027. According to coverage of the earnings call, the company raised its 2026 net interest income forecast to a range of $6.68 billion to $6.75 billion. It also held its third-quarter earnings call on October 23 at 9 a.m. Eastern time. The new plan follows the repurchases made during the quarter and remains valid through 2027. Erdemir shares closed at $7.29 on October 22, while First Citizens Class B shares closed at 1745.5 the same day.