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Garanti BBVA kicked off the year strong

Garanti BBVA kicked off the year strong

Türkiye Garanti Bankası A.Ş., announced its financial statements dated 31 March 2024. Based on the consolidated financials, the Bank’s net income in the first 3 months of the year recorded as TL 22 billion 479 million 583 thousand. Asset size realized at TL 2 trillion 462 billion 474 million 815 thousand and the Bank’s contribution to the economy through cash and non-cash loans was TL 1 trillion 853 billion 956 million 245 thousand. Actively managing the funding base, customer deposits continued to be the main funding source; 71% of assets are funded via customer deposits. Customer deposit base reached to TL 1 trillion 750 billion 964 million 135 thousand with 9.3% growth in the first 3 months of the year. Preserving the strong capital stance, Bank’s capital adequacy ratio was realized at 15.4%^*. The Bank delivered an ROAE (Return on Average Equity) of 36.0% and an ROAA (Return on Average Assets) of 3.9%.

*Calculated without the forbearance introduced by BRSA

Commenting on the topic, Garanti BBVA CEO Recep Baştuğ said: “The year 2024 is characterized by the continuation of the rebalancing process in the economy that has started last year. In the first three months of the year, banks’ balance sheets have witnessed the natural consequences of monetary tightening policies. While loan growth remained within regulatory limits, pressure on funding costs continued. Remaining part of the year will be a period where the fight against inflation and simplification will come to the forefront. Although high interest rates will continue to curb inflation, we expect to see the results of sound and healthy policies, especially in the second half of the year. We believe that if inflation falls to the levels targeted by the Central Bank, the current tightening measures can be eased in a controlled manner.

Increased predictability, as a result of the right steps taken in the economy,is also positively influencing foreign investors’ interest. We anticipate that the pace of decline in FC-protected deposit base, which currently holds a significant weight in our balance sheets, will accelerate due to high rates offered for TL deposits and the exchange rate being at reasonable levels.”

Baştuğ continued his words as follows: " In February, Garanti BBVA had issued a $500 million Tier that attracted strong international investor interest. The transaction was priced at US Treasury + 409 bps (%8.375), making it the most cost-effective sub-debt issuance by a bank in recent years. We consider the increasing issuances of Turkish banks and the higher foreign demand to these issuances as positive developments for the sector.

As a bank, we focus on sustainability, with two main pillars emerging: combating the climate crisis and fostering inclusive growth. Promoting green transformation and increasing awareness in this field are among our top priorities. Additionally, our cumulative financing for renewable energy investments exceeds $6 billion. Today, 1 out of 4 wind energy plants is financed by Garanti BBVA,  positions us as the market leader. Since 2006, our commitment to supporting women entrepreneurs has been an inspiration for new programs in the banking sector and other industries. Financing support provided within the scope of the programs for women entrepreneurs has surpassed 200 billion TL in the last 5 years. We place great importance on the entrepreneurship field, which is one of our strategic priorities, covering a wide range from women entrepreneurship to technology entrepreneurship.

We aim to spread our sustainability strategy to all segments of society with the support of digitalization. While the number of our active digital customers has reached 15.5 million, the share of non-branch channels in main transactions has increased to 98%. In the future, we anticipate that artificial intelligence will strengthen the sector’s ability to provide customer-centric and personalized services.

With our robust capital structure and sustainable growth strategy, Garanti BBVA will continue to contribute to Turkey's economic and social development. I extend my thanks to all my colleagues who contributed successfully to our first quarter results, as well as to all our stakeholders who have placed their trust and support in us.”

Garanti BBVA’s Selected Consolidated Financial Indicators - 31 March 2024

Turkish presentation regarding BRSA consolidated financial results of Garanti BBVA as at March 31, 2024 can be retrieved from Garanti BBVA Investor Relations website at the address of www.garantibbvainvestorrelations.com. 

Summary Financial Data on Operating Results of Accounting Period:

• Average return on assets is 3.9%.
• Average return on equity is 36.0%.
• Support provided to economy through performing cash and non-cash credits reached TL 1 trillion 853 billion 956 million 245 thousand.
• Market shares of total performing loans, TL loans and FX loans are respectively 10.8%, 11.4% and 9.6%.
• Since the beginning of the year, total customer deposits grew by 9.3% and market share reached 10.8% level.
• Share of customer demand deposits in total customer deposits reached 43%.
• Capital adequacy ratio is recorded as 15.4%*, above the required level of 12.1%.
• Non-performing loans ratio is recorded as 1.9%.

*Calculated without the forbearance introduced by BRSA