2019 has been a year of increased geopolitical risks and relatively muted global economic growth. The trade tension between the US and China, the Brexit process, geopolitical issues in the Middle East and the political uncertainties in Italy have led to decreased risk appetite among the investors. Amid this environment, global central banks maintained their dovish stances in an effort to support economic growth.
With respect to Turkey, 2019 was characterized with improving macro parameters and rebalancing in the economy. While the first half of the year was dominated by a high interest rate environment, by year-end, the interest rates were at half the level seen in the beginning of the year on the back of decreased inflation. We have seen a “V” shaped recovery in our economy particularly in the last quarter of the year. The sequence of contractions in GDP was replaced by a visible growth in the last quarter. Today, 2019 growth will end up to be positive contrary to the market expectations in the beginning of the year, and in 2020, growth is projected to gain significant momentum.
As Garanti BBVA, our capital generative business model, once again, enabled us to outperform the sector in many areas. We continue to be the leading bank in the sector in terms of capital, asset quality and profitability. Regardless of cyclical macro developments, we effectively utilize our capital in line with our sustainable growth strategy, maximize the value we create, and remain adhered to solid asset quality.
In today’s world, financial performance though is not the sole indicator of a company’s value. The environment we operate in evolves constantly; amid this transformation, a company’s capability to measure and improve its impact on Environmental, Social and Governance (ESG) issues reflects on its value. From where we are standing today, social and environmental risks are at a level that cannot be ignored.In this context, as Garanti BBVA, we are contributing to building a more sustainable and inclusive economy to fight against climate change and we are leading the sector in this respect. Since 2015, we have been providing significant financing to renewable energy projects and mainly to wind power plants within the scope of project finance. Considering the growing base of ESG investors, we have been presenting our Integrated Annual Report prepared according to the IIRC standards for the last three years to all our stakeholders, which we believe will better respond to that community’s needs. We are working to integrate our sustainability efforts in every aspect from our corporate culture to our entire infrastructure. As we continue to implement our advanced corporate governance model that consolidates our core values, we are led by the principles of trust, accuracy, accountability and transparency in our interactions with all our stakeholders.
The synergy we created with our main shareholder BBVA continues to grow even stronger. BBVA Group that we belong launched a single global brand in all the countries it operates with its new renewed logo to suit the dynamic and digital world, in line with its digital transformation strategy. Being a part of this transformation project, we reflected the synergy we have created with our main shareholder BBVA for more than nine years to our brand and logo in 2019.
With our solid capitalization, high asset quality and proactive balance sheet management, we are ready to provide uninterrupted support to our economy also in 2020. Sustainable development, our most valuable asset - employee satisfaction, and efficiently meeting our customers’ changing needs will continue to be our priorities. We will continue to undertake new achievements and become a pioneer in the industry, while preserving our committed efforts and strong performance in the years ahead. I would like to take this opportunity to thank once again my colleagues, our valuable customers, shareholders and all other partners.
Türkiye Garanti Bankası A.Ş., announced its financial statements dated September 30, 2019. Based on the consolidated financials, the Bank’s net income in the first nine month of the year recorded as TL 4 billion 998 million 460 thousand. Asset size realized at TL 411 billion 161 million 696 thousand and the Bank’s contribution to the economy through cash and non-cash loans was TL 302 billion 634 million 414 thousand. Actively managing the funding base, deposits continued to be the main funding source; 63% of assets are funded via deposits. Deposit base reached to TL 257 billion 842 million 200 thousand with 5% growth in the first 9 month of the year. Preserving the strong capital stance, Bank’s capital adequacy ratio was realized at 18.07%. The Bank delivered an ROAE (Return on Average Equity) of 13.5% and an ROAA (Return on Average Assets) of 1.6%.
Commenting on the topic, Garanti BBVA Chairman Süleyman Sözen stated that: “The third quarter of 2019 marked the beginning of the improvement in the economic activity. Going forward, I strongly believe that Garanti BBVA will continue and increase its uninterrupted support to the economy.”
Commenting on the important developments, Sözen said that: “We take great care to examine in detail the environmental and social impacts of our financing activities. We implemented the first "Gender Equality Credit" structure in Turkey. With this product, we aim to reward companies that perform well in gender equality and encourage others to improve their performance in this field.” Sözen emphasized the Bank's achievements during the period and stated that: “At Garanti BBVA, we focus on creating common value through strategic social investment programs. As a result of the steps we have taken within this context, our bank was named as the best bank in “Corporate Responsibility” at the “Euromoney Excellence Awards”.”
Chairman Sözen closed his remarks by saying that: “Addressing the changing needs of our customers in the most effective way will continue to be our top priority. Taking this opportunity, I would like to thank my colleagues, our esteemed clients, shareholders, and all other stakeholders.”
Türkiye Garanti Bankası A.Ş., announced its financial statements dated June 30, 2019. Based on the consolidated financials, the Bank’s net income in the first half of the year recorded as TL 3 billion 668 million 768 thousand. Asset size realized at TL 422 billion 284 million 856 thousand and the Bank’s contribution to the economy through cash and non-cash loans was TL 316 billion 120 million 722 thousand. Actively managing the funding base, deposits continued to be the main funding source with 62% share in the total funding base. Deposit base reached to TL 260 billion 60 million 882 thousand with 6% growth in the first half of the year. Preserving the strong capital stance, Bank’s capital adequacy ratio was realized at 16.4%. The Bank delivered an ROAE (Return on Average Equity) of 15.3% and an ROAA (Return on Average Assets) of 1.8%.
Commenting on the successful financial performance announced by Garanti BBVA, Chairman Süleyman Sözen stated that: “In the first half of 2019 Garanti continued its uninterrupted support to the economy on the back of its solid capital structure and sound balance sheet management and preserved its strong presence in the market.”
Commenting on the important developments of the period, Sözen said that: “BBVA Group, that we are a part of, is becoming a global brand in all the countries where the bank has a presence, with its renewed logo to be a better fit for the dynamic and digital world, in line with its digital transformation strategy. As part of this transformation project, we have reflected the synergy created with our largest shareholder BBVA for more than 9 years to our brand and changed our logo.” Elaborating on the strategic priorities of Garanti BBVA, Sözen stated that: “We continue to pioneer the digital transformation in the sector while placing our customers at the center of all our activities, as has always been the case. While focusing on disciplined and sustainable growth, we aim to maximize our value creation and to maintain our strict adherence to solid asset quality by using our capital effectively. While implementing our advanced corporate governance model that promotes our core values, we act with the principles of trust, integrity, accountability and transparency against all stakeholders.”
Chairman Sözen closed his remarks by saying that: “In order to bring the age of opportunity to everyone, addressing the changing needs of our customers in the most effective way will continue to be our top priority. Taking this opportunity, I would like to thank my colleagues, our esteemed clients, shareholders, and all other stakeholders.”
Türkiye Garanti Bankası A.Ş., announced its financial statements dated March 31, 2019. Based on the consolidated financials, Garanti BBVA’s net income in the first three months recorded as TL 1 billion 757 million 409 thousand. Garanti BBVA’s asset size reached TL 423 billion 321 million 867 thousand and Turkish Lira loans were the main driver of the asset growth. Given the support of Credit Guaranteed Fund, performing cash loans grew by 6% in the first three months and the Bank’s contribution to the economy through cash and non-cash loans reached TL 323 billion 221 million 232 thousand. Actively managing the funding base, deposits continued to be the main funding source with 62% share in the total funding base. Garanti BBVA’s deposit base reached to TL 262 billion 790 million 687 thousand with 7% growth in the quarter. Preserving the strong capital stance, Bank’s capital adequacy ratio was realized at 15.5%. The Bank delivered an ROAE (Return on Average Equity) of 15.6% and an ROAA (Return on Average Assets) of 1.8%.
Commenting on the successful financial performance announced by Garanti BBVA, Chairman Süleyman Sözen stated that: “In the first quarter of 2019 Garanti BBVA continued its uninterrupted support to the economy on the back of its strong capital structure and sound balance sheet management.” Sözen said that: “Garanti BBVA that is known as the pioneer in innovation, continues to create value for the society and its stakeholders with the synergy created with its largest shareholder BBVA.”
Referring to the developments in the the first quarter of 2019, Sözen stated that: “Garanti BBVA's achievements in digital Banking stand out in the international arena. Global Finance, a leading organization in finance, named Garanti BBVA as the ‘Best in Mobile Banking’ in the Western Europe and the ‘Best Digital Bank in Turkey’. Once again, Garanti BBVA stood out with its innovative Business model as one of the world’s leading financial organizations.”
Dear Stakeholders,
2018 was marked by increased uncertainties in global politics and decreased risk appetite in financial markets on the back of political and macroeconomic developments. Continued normalization in developed countries’ monetary policies and the expansion of protectionist measures that was led by the US can be mentioned among the factors that reduced the risk appetite. Increased market volatility and perception of uncertainty in the developing countries in an environment of rising vulnerabilities around the globe, resulted in net fund outflows from these countries, causing their currencies to depreciate.
With respect to the Turkish economy and banking sector, 2018 has been a year of high volatility. Following the first half of the year when growth was vibrant, we have observed rebalancing tendencies gain the foreground in economy. Turkish banking sector has been the enabler of the healthiest economic stabilization possible, by maintaining its solid stance despite the vulnerabilities that stemmed from global and regional risks. Turkish banking sector preserved its robust balance sheet structure, comfortable liquidity base and strong capitalization, once again successfully proving that it has a solid foundation. As Garanti BBVA, being aware of the targets and priorities of our country and economy, we have also collaborated efficiently with all our stakeholders and as well as all the actors of the economy, as has always been the case.
Regardless of the temporary macro developments, we keep leading the transformation in the sector with investments in our business model and with our customers that make up the pedestal of our strategy. As we carry on with uninterrupted service delivery, we continue to upgrade our products and service model so as to take care of our customers’ financial health. Everyday, we are working hard to deliver perfect customer experience to our 16 million clients. We are intending to be transparent, clear and responsible towards our customers. Placing our customers at the heart of our activities in a bid to exceed their expectations and enhance their satisfaction, we are designing our processes through their perspective. We are targeting to build long-lasting relationships that rely on trust, and to be differentiated and to be stronger through these relationships.
The environment we operate in is evolving rapidly. To make the most of the age of opportunity, undertaking a transformation process becomes more and more important for the entire banking sector. From our standpoint, the transformation of the sector is shaped by three main factors that interact with each other: continuous development in technology, customer expectations that are redefined everyday by these developments and the needs of the changing world, a competitive environment that requires better understanding of customers than ever before and highly skilled Garanti BBVA employees capable of offering the right service in a timely manner by closely monitoring their changing expectations. In such a dynamic environment, each part of the banking value chain is being redesigned within a structure that is integrated with the new technologies. Garanti BBVA, having correctly envisioning the future of banking, embarked on a transformation journey, which is continuing. The new service model introduced at our branches was a major step in this journey. Our purpose is to “bring the age of opportunity to everyone”.
We are putting great emphasis on integrated management of financial and non-financial risks through effective risk management. Rapid changes in the world are introducing new risk factors to be considered in investment decisions. Investors now need to assess the impact of global warming, changing demographics, privacy concerns and regulatory framework on their investments. This awareness gave rise to an increase in Environmental, Social and Governance-focused (ESG) investing. As Garanti BBVA, we are aware of the increasing demands of the ESG investors. Being a company listed not only in Turkey but also in the UK and the US, it is a set target for Garanti BBVA to operate within globally recognized high standards. In this sense, in a bid to better address the needs of our diversified shareholder base, we have been publishing our Integrated Annual Report prepared in line with IIRC standards for all our stakeholders for two years. To tackle the new risks presented by the new world, we must focus on positive impact and responsible investments. Thanks to our pioneering role in the area of sustainable banking, as Garanti BBVA, we are representing a good role model for other banks, and further increasing our multiplier effect in terms of contributing to sustainable development.
The path to achieving all of our goals passes through investing in the development and satisfaction of our employees. Our efforts for ensuring equal opportunities and professional development contribute to our high employee engagement score and low employee turnover. We believe that digitalization is a great opportunity to allocate our human capital to more creative projects and this will result in further enhanced employee satisfaction and customer experience.
The synergy we have with our majority shareholder BBVA keeps getting stronger. Pioneering projects creating value for the society and the economy are being accomplished with the sound partnership and collaboration of BBVA and Garanti BBVA in the international arena.
While determining our roadmap, we are always striving to correctly interpret and thoroughly analyze the trends that shape the banking business in the world and in Turkey, as well as global and regional macroeconomic events. Apparently, 2019 is set to be a year of continued rebalancing that is ongoing in the global economy. We are fully confident in our country’s potential in regards to the achievement of our goals. We will continue to stand by our customers under any circumstance by means of our proactive balance sheet management and competent human resources, and we will keep contributing to the society and the economy, thereby creating value for all our stakeholders.
Sincerely,
SÜLEYMAN SÖZEN
Chairman
Türkiye Garanti Bankası A.Ş., announced its financial statements dated September 30, 2018. Based on the consolidated financials, Garanti BBVA’s asset size reached TL 456 billion 328 million, its contribution to the economy through cash and non-cash loans increased to TL 354 billion 745 million 437 thousand. The Bank delivered an ROAE (Return on Average Equity) of 17.5% and ROAA (Return on Average Assets) of 2.0%.
Commenting on the topic, Garanti BBVA Chairman Süleyman Sözen stated that: “The third quarter of 2018 marked the beginning of the rebalancing in the economy. Going forward, I strongly believe that Garanti BBVA will continue its uninterrupted support to the economy.”
Giving information about the third quarter developments, Sözen stated that: “Garanti BBVA became the first bank in Turkey to execute Green Loan structure, which has been newly emerged in the World.” Emphasizing the synergy created with BBVA, Sözen explained that: “With all the steps taken in the area of sustainable finance, Garanti BBVA does not only support the development of the Turkish economy, but also directly contributes to its majority shareholder BBVA in achieving its climate change and sustainable development strategy which has been declared in line with Paris Agreement in order to support United Nations’ Sustainable Development Targets.”
Chairman Süleyman Sözen closed his remarks by saying that: “Garanti BBVA will continue to play a leading role in the sector with its strong capital structure, highly qualified human resources and sound balance sheet management. Addressing the changing needs of our customers in the most effective and innovative way will continue to be our top priority. Taking this opportunity, I would like to thank my colleagues, our esteemed clients, shareholders, and all other stakeholders.”
on the consolidated financials, in the first half of 2018, Garanti BBVA’s asset size reached TL 384 billion 878 million, its contribution to the economy through cash and non-cash loans increased to TL 319 billion 244 million 923 thousand. The Bank delivered an ROAE (Return on Average Equity) of 18.1% and ROAA (Return on Average Assets) of 2.1%.
Commenting on the topic, Garanti BBVA Chairman Süleyman Sözen stated that: “Garanti BBVA continued its uninterrupted contribution to the economy while preserving its solid capital base. I believe economy will come to an equilibrium with a moderate slowdown in the second half of 2018 and its sustainable growth will continue.”
Referring to the value creation for the society and the stakeholders via the synergy created with BBVA, largest shareholder of Garanti BBVA, Sözen commented on BBVA Momentum Social Entrepreneurship Support Program and said: “This program was launched to support entrepreneurs who wish to carry their businesses one step further. It has attracted attention for being the first entrepreneurship program supported by a financial institution and for being specifically designed for social entrepreneurship in Turkey.” Sözen also underlined Garanti BBVA’s support to the future’s technologies and said that: “Garanti BBVA became the sponsor of the “1st Blockchain Workshop”, organized by the Central Bank and the Scientific and Technological Research Council of Turkey (TÜBİTAK) in Ankara, in April, with the aim of contributing to Turkey’s strategy on this area.”
Türkiye Garanti Bankası A.Ş., announced its financial statements dated March 31, 2018. Based on the consolidated financials, in the 3 months period of 2018, Garanti BBVA’s asset size reached TL 359 billion 882 million, its contribution to the economy through loans and non-cash lending reached to TL 298 billion 250 million 713 thousand. The Bank delivered an ROAE (Return on Average Equity) of 18.3% and ROAA (Return on Average Assets) of 2.2%.
Commenting on the topic, Garanti BBVA Chairman Süleyman Sözen stated that: “In the global markets, fund flows to emerging economies continued. Turkey ended 2017 with 7.4% GDP growth and preserved its strong growth performance despite a moderate slowdown in the first quarter of 2018. Garanti BBVA also continued its uninterrupted contribution to the economy within this period.”
Emphasizing the Bank’s value creation for the society with its sustainable business model and its commitment to Corporate Governance Principles, Sözen added: “Garanti BBVA’s practices on gender equality which pioneers the society are acknowledged by the international authorities as well. Garanti BBVA once again became the only company from Turkey to be included in Bloomberg Gender Equality Index with its studies to ensure gender equality. Mentioning the successful financial performance announced by Garanti BBVA, Sözen added: “I absolutely believe that Garanti BBVA, known as a pioneer in innovation, will increasingly maintain its value creation for the community and its stakeholders with the synergy created with BBVA.”
Dear Stakeholders
Today, trends are changing rapidly while bringing along new sets of challenges that need to be overcome. It is essential for us to be a fast adapter to succeed and differentiate in such a dynamic environment. We are proud of once again providing an even stronger support to the Turkish economy and the society, by means of this ability
2017 was a year of recovery in global macroeconomic indicators. Positive trends in the world’s growth and inflation outlook supported sentiment towards emerging market economies. Fund flows to emerging countries exceeded USD 200 billion. Turkey stood out with its strong GDP growth and attracted foreign fund flows, which resulted in 34% rise in MSCI Turkey Index.
Domestic agenda continued to be busy in Turkey with several developments on geop olitica l issues, wherea s developments in Europe and the USA caused disputes around those regions. However, 2017 turned out to be much better than we anticipated. Timely and effective stimulus measures taken by the government via supportive fiscal policies facilitated a quick recovery in the economy. The Turkish banking system demonstrated strong fundamentals and played a key role in the rebound of the country’s economy.
Every day we work to offer our 15 million customers an excellent customer experience at Garanti BBVA. We aim to be transparent, clear and responsible towards our customers. To exceed their expectations and enhance their satisfaction, we design our processes from their perspective by placing them at the center of our activities. We aim to establish long-lived relationships built on trust, which eventually differentiate and strengthen us.
Transformation and change move faster than ever. Advances in technology have been disrupting business models. Global mega trends are shaping the future and impacting our business. As the Bank of many best practices, we are well aware of the evolution that the banking is going through. Continuous improvements in technology have empowered Garanti BBVA to better address the needs of customers, yet, new challenges also came along. Garanti BBVA foresees the banking model of the future and swiftly acts upon it. In light of this, 2017 marked another milestone as we initiated an unprecedented transformation project in our branches. With this project, we developed a new service model that captures the benefits of the emerging digital world. Our aim is to enhance customer experience leveraging digital innovation, improve sales and operational ef ficiency, and create seamless, omni-channel experience to improve digital migration and reduce branch dependency and be a part of our customers’ daily life. By doing so, Garanti BBVA opens up a new era in banking.
We give the utmost attention to effective risk management through integrated management of financial and nonfinancial risks. Today, the major risks that the businesses are facing are not the same as yesterday. Future holds in store much more complex and intangible risks such as increasing population, diminishing resources and broadening wealth gap. To tackle these issues, governments and the business world must focus on positive impact and responsible investments. As Garanti BBVA, our leading role in sustainable banking allows us to set a good example for our peers and increase our multiplier effect in contributing to sustainable development.
The path to achieving all our goals goes through investing in our employees. At Garanti BBVA, we focus on our employees’ development, satisfaction and wellbeing. Our efforts in promoting equal opportunities and enabling professional development contribute to our high employee engagement score and low turnover. Going forward, as Industry 4.0, Artificial Intelligence and Big Databased analyses advance, most of the operational jobs will be automated and done through digital channels. We believe that digitalization is a great opportunity for us to allocate the workforce to more creative projects, which we expect to result in increased employee satisfaction and improved customer experience.
We are glad to have an increased synergy with our majority shareholder BBVA. Several successful projects to enhance the value added to the community and economy are being carried out with the strong partnership and cooperation of BBVA and Garanti BBVA. Going forward, we expect financial stability of our well established and solid economy to be permanent. Improving foreign demand on the back of ongoing economic recovery in the world and especially in Europe will be supportive for Turkish economy. As always, Garanti BBVA will continue to support our country’s development, while sustaining its strong performance and leading the sector in every aspect. Acting with the principles of trust, integrity, accountability and transparency towards all our stakeholders assures our sustainable performance.
SÜLEYMAN SÖZEN Chairman
Türkiye Garanti Bankası A.Ş., announced its financial statements dated September 30, 2017. Based on the unconsolidated financials, in the 9 months period of 2017, the Bank posted an unconsolidated net income of TL 4 billion 644 million 851 thousand. While Garanti BBVA’s asset size reached TL 311 billion 42 million 321 thousand, its contribution to the economy through cash and non-cash lending increased to TL 254 billion 616 million 658 thousand. The Bank delivered an ROAE (Return on Average Equity) of 17.4% and ROAA (Return on Average Assets) of 2.2%.
Commenting on the financial results, Garanti BBVA Chairman Süleyman Sözen stated that: “During the period we are in, capital inflows to emerging markets were maintained, while global economic growth continued to recover. Turkey became one of the fastest-growing economies in the world by recording 5.1% growth in the first half of the year. As always, Garanti BBVA continued its uninterrupted contribution to the economy within this period.”
Referring to the synergy created with BBVA, largest shareholder of Garanti BBVA, Sözen said: “Several successful projects which will enhance the value added to the community and economy are being carried out with the strong partnership and cooperation of BBVA and Garanti BBVA. Supporting entrepreneurship and contributing to the social entrepreneurs in our country in order for them to have sustainable business models, Garanti BBVA introduced the BBVA Momentum Programme in Turkey for the first time. For the significance of interacting with Fintech entrepreneurs stimulating the transformation in the banking sector and to feed from those entrepreneurs, Garanti BBVA also brought the BBVA Open Talent, the world’s biggest Fintech challenge for startups, to Turkey.” Mentioning the successful financial performance announced by Garanti BBVA, Sözen added: “I absolutely believe that Garanti BBVA, known as a pioneer in innovation, will increasingly maintain its value creation for the community and its stakeholders.”
Türkiye Garanti Bankası A.Ş., announced its financial statements dated June 30, 2017. With an asset size of TL 335 billion 942 million 185 thousand, Garanti BBVA’s contribution to the economy through cash and non-cash lending reached TL 272 billion 980 million 362 thousand, based on the consolidated financials. The Bank posted a net income of TL 3 billion 100 million 273 thousand in the first six months of 2017. The Bank delivered an ROAE (Return on Average Equity) of 18.1% and an ROAA (Return on Average Assets) of 2.1%.
Commenting on the financial results, Garanti BBVA Chairman F. Ferit Şahenk stated that: “The recovery process of the global economy has been ongoing. While the pick-up in economic activity seems to be relatively stronger in advanced countries, emerging markets are also expected to grow faster in 2017 relative to last year. Going forward, steps of the advanced economies in their monetary normalization process will be of great importance for the external financing conditions of other economies.
Turkish economy managed to grow by a strong 5,0 percent in the first quarter after the 2,9 percent growth rate in 2016. Supportive economic policies including the Credit Guarantee Fund Scheme that had been implemented in a timely manner, were effective in both the first and second quarters. The soundness of the Turkish banking sector also played a very instrumental role in this process. I believe that the growth performance of our economy will be markedly stronger in 2017 compared to 2016.
Garanti BBVA played an important role in supporting the economy in the first half of the year. As of end of the second quarter, size of the loans by Garanti BBVA through the CGF Scheme reached 15 billion TL. Moreover, we issued the lowest coupon rate Basel III compliant subordinated debt from Turkey to date, amounting to 750 million USD. This transaction is another solid sign of the credibility established by Garanti BBVA within the international capital markets. Garanti BBVA will continue to be among the leading institutions of the Turkish financial sector with its sustainable growth strategy, innovative services, and ongoing investments in human capital. Taking this opportunity, I would like to thank my colleagues, our esteemed clients, shareholders, and all other stakeholders.”
Türkiye Garanti Bankası A.Ş., announced its financial statements dated 31 March 2017. Based on the consolidated financials, in the first three months of 2017, the Bank posted a consolidated net income of TL 1 billion 536 million 636 thousand. While Garanti BBVA’s asset size reached TL 328 billion 691 million 782 thousand, its contribution to the economy through cash and non-cash lending exceeded TL 269 billion 255 million 793 thousand. The Bank’s ROAE (Return on Average Equity) improved to 18.9% and an ROAA (Return on Average Assets) to 2.1%.
Commenting on the financial results, Garanti BBVA Chairman F. Ferit Şahenk stated that: “Global economic activity has been picking up recently. World economic growth is projected to increase from 3.1% in 2016 to 3.5% this year. The momentum is especially visible in advanced economies. After six consecutive years of growth slowdown, developing economies are also expected to perform better than the previous year, in 2017.
Despite geopolitical risks and uncertainties, Turkish economy managed to grow by 2.9% in 2016. Thanks to the favorable public debt dynamics, supportive economic policies that have been introduced in a very timely and effective manner have started to pay off. The soundness of the banking sector also plays an instrumental role in this process. I believe that the performance of the Turkish economy will be stronger in 2017.
In this context, Garanti BBVA has been supporting the economy by maintaining its above sector TL loan growth. I would like to congratulate my colleagues for successful first quarter financials. Garanti BBVA will continue to play a leading role in the sector with its strong capital structure, highly qualified human resources and sound balance sheet management. Addressing the changing needs of our customers in the most effective and innovative way will continue to be our top priority mission. Taking this opportunity, I would like to thank my colleagues, our esteemed clients, shareholders, and all other stakeholders.”
Uncertainties and risks increased due to unforeseen developments in main advanced countries in 2016, while global economic activity had already been ongoing at a slow pace.
In addition to the impact of global financial developments on emerging markets, 2016 was not a stable year for Turkey due also to geopolitical risks and uncertainties. I believe that 2017 will be much better for the Turkish economy thanks to the banking sector with strong fundamentals, sound public financial indicators and vibrant private sector.
As one of the leading and most innovative players of the Turkish financial sector, Garanti BBVA had a successful performance in such a challenging year. We over-performed many of our targets in 2016 with our strong equity capital, asset quality, diversified distribution channels and digital banking infrastructure. Despite the challenging developments in international markets, we successfully supported our resources with external financing operations. In a context in which supporting the economy became crucial, we continued to expand our credit portfolio without losing momentum and provide financing to the real sector as much as possible.
Garanti BBVA seeks to further reinforce its leader position in the Turkish banking sector with qualified human resources, unparalleled technological infrastructure, customer-oriented service provision approach and innovative products and services.
Last year, our focus was not only on supporting the economy. We also continued our activities based on the principle of “giving back to society”. We will move forward in line with our sensitivity to contribute to education, sports, arts-culture and environment.
Garanti BBVA will sustain its hard work and strong performance with the invaluable experience of the BBVA. Taking this opportunity, I would like to thank first and foremost my devoted colleagues as well as our esteemed clients, shareholders, and all other partners for their continuous support and confidence.
Ferit F. ŞahenkChairman
Based on the consolidated financials, in the 9 months period of 2016, the Bank posted a consolidated net income of TL 3 billion 940 million 66 thousand. With the asset size of TL 295 billion 130 million 196 thousand, Garanti BBVA’s contribution to the economy through cash and non-cash lending reached TL 239 billion 259 million 462 thousand. The Bank delivered an ROAE (Return on Average Equity) of 16.1% and an ROAA (Return on Average Assets) of 1.8%.
Commenting on the financial results, Garanti BBVA Chairman F. Ferit Şahenk stated that: “The ongoing slow growth process of the global economy has been accompanied by a number of downside risks. In the group of advanced economies, political uncertainties and protectionist policy implementation risks have become more visible recently in addition to economic stagnation. In emerging markets, on the other hand, capital outflow risks still continue
Approximately 4% growth performance in the first half of the year is an indication of the relative vibrancy and dynamism of the Turkish economy despite such a global economic environment. I believe that our economy will gain further strength as geopolitical risks and uncertainty factors are reduced.
As one of the leading institutions of the Turkish financial sector, Garanti BBVA provides banking services in line with the best standards and sustains the healthy growth process with its sound balance sheet. We also continue to invest in technology and our human resources. As Garanti BBVA, we will continue to work hard to maximize our contribution to the Turkish economy. Taking this opportunity, I would like to extend my thanks once again to my dedicated colleagues, our esteemed clients, shareholders and all other stakeholders.”
Based on the consolidated financials, in the first half of 2016, the Bank posted a consolidated net income of TL 2 billion 605 million 286 thousand. With the asset size of TL 287 billion 247 million 695 thousand, Garanti BBVA’s contribution to the economy through cash and non-cash lending reached TL 235 billion 119 million 598 thousand. The Bank delivered an ROAE (Return on Average Equity) of 16.0% and an ROAA (Return on Average Assets) of 1.8%.
Commenting on the financial results, Garanti BBVA Chairman F. Ferit Şahenk stated that: “We have recently seen that new uncertainties and risks could be easily added to the existing ones in the current environment of ongoing low global economic activity in terms of global production, trade and demand. The surprising results of Brexit referendum have once again shown the potential impact of such uncertainties on the global economy.
First quarter growth figures confirmed that the relatively strong growth performance of the Turkish economy has been ongoing. It is also pleasing that the current account deficit continues to decline in terms of both level and as a share of GDP. I believe that our economic growth performance will be at least as strong as that of last year.
Garanti BBVA has shown a successful performance in the first half of the year with the aim of contributing as much as possible to the Turkish economy and creating maximum value. With our sustainable growth strategy and our dynamic and innovative approach, we will continue to be among the leading institutions of the Turkish financial sector in the upcoming period as well. Operating with a technology, efficiency and customer focus will always be at the core of the service provision philosophy of Garanti BBVA. Taking this opportunity, I would like to sincerely thank once again my colleagues, our esteemed clients, shareholders, and all other stakeholders.”
Based on the consolidated financials, in the first quarter of 2016, the Bank posted a consolidated net income of TL 1 billion 57 million 133 thousand. Garanti BBVA’s asset size reached TL 290 billion 53 million 633 thousand, while its contribution to the economy through cash and non-cash lending totaled TL 228 billion 500 million 283 thousand. The Bank delivered an ROAE (Return on Average Equity) of 14.8% and an ROAA (Return on Average Assets) of 1.6%.
Garanti BBVA Chairman F. Ferit Şahenk: Global economic growth projections have been revised down once again and risks continue to remain on the agenda. Potential financial risks, the course of energy prices, the scope of the slowdown of the Chinese economy and geopolitical risks are being monitored closely in the current low global growth environment. Economic growth of both advanced and developing economies are expected to follow a moderate pace also in 2016.
It is pleasing to see that the Turkish economy showed a strong 4 percent growth performance in 2015 despite all global economic developments and risks. With the help also of the energy price developments, I expect that the improvement in the external balance will continue in the upcoming period. Current expectations and assessments for the whole year indicate that, the strong economic growth performance of the Turkish economy will continue in 2016.
Garanti BBVA, who has always been striving to maximize the value it creates for the Turkish economy, sustained its sound growth performance in the first quarter of 2016. Going forward, our bank will continue to play a leading role in the banking and financial sector with its highly qualified human resources and innovative approaches. Fulfilling the changing needs and increasing expectations of our customers in the best and most effective way will continue to be our top priority mission. Taking this opportunity, I would like to thank my colleagues, our esteemed clients, shareholders, and all other stakeholders for their contribution to our success.
Albeit the optimism in the beginning of the year, 2015 has been a challenging year of continued uncertainties. Global markets had to deal with a burdensome agenda that covered the Fed’s rate hike decision, growing turmoil in Syria, growth pressure on developed economies, decelerated growth in China and the downtrend in oil prices. Turkey, on the other hand, lived a year of two elections and exchange rates peaked due to global turbulence.
Turkish banking sector was not at all immune to this heavy agenda. While the sector is growing at lower rates compared to the past, it is struggling to preserve its profitability levels amid newly imposed regulations. Suppressed consumer loan & credit card revenues due to the regulatory changes as well as the increased costs for the sector stemming from fee rebates caused the Turkish banking sector to post the lowest profitability levels of the last decade.
In spite of the challenging circumstances of 2015, as Garanti BBVA, we continued to deliver the highest profitability rates among private banks in the sector, capitalizing on our dynamic business model, technology and scale advantage. While maintaining our commercial-loan driven growth, we strengthened our leadership position in consumer loans in the sector. We have built our growth strategy on prioritizing riskreturn balance and we have been successful. Today, we are the sector’s strongest private bank in terms of common equity Tier-1 ratio and this strength puts us in a position to support consistent growth.
On the funding side, while maintaining our focus on customer deposits, we continued to successfully tap international funding sources. In a year of fierce competition in TL deposits that reflected on prices, our demand deposit base expanded 20%. Demand deposits currently correspond to nearly one fourth of our TL deposits. We are proud to be the preferred bank of customers.
Sound cost control and expense management became increasingly critical due to suppressed profitability in the recent years. The world is changing and technology is advancing. In turn, we need to adapt our business models according to the new developments and we need to work more efficiently. To this end, we keep investing in people and in efficient delivery channels. With nearly 20 thousand employees, we are offering uninterrupted banking experience through our omni-channels to almost 14 million Garanti BBVA customers. Our digital customers currently constitute 48% of our customer portfolio. Our Internet banking has 51% and mobile banking has 29% share in noncash financial transactions. In the period ahead, we will witness digitalization gaining speed and digital channels taking a more prominent role in increasing operational efficiency. At Garanti BBVA, our purpose goes beyond creating economic value; we aim to contribute to the environment and the society by partaking in voluntary social initiatives that increase value. The year 2015 is marked by intensified global efforts in the areas of sustainable development and climate change. In our Climate Change Action Plan released October 2015, we are concentrating our support and efforts under the four main headings; carbon pricing and prioritizing renewable energy investments, reducing deforestation, managing water risks through climate change adaptation, and establishing green office standards. In addition, we became the first Turkish bank to sign the Caring for Climate (C4C) initiative encouraging private sector action against climate change, and the Business Leadership Criteria on Carbon Pricing. Both are led by UN Global Compact. The total amount of financing we have provided for renewable energy investments topped USD 4 billion by the end of 2015. We preserved our 35% market share in Turkey’s installed wind power capacity. Meanwhile our new loan product designed to encourage efficient irrigation systems in the agricultural industry is taking our support to climate change mitigation to a whole new level. Our approach to the adaptation of climate instability impacts on water cycle, was presented in the UN components’ report entitled “The Business Case for Responsible Corporate Adaptation: Strengthening Private Sector and Community Resilience”. We are the only Turkish company and one of the 2 banks in the world presented in the report.
Based on the consolidated financial statements, in 2015, Garanti BBVA’s asset size reached TL 279 billion 647 million 178 thousand while its contribution to the economy through cash and non-cash lending totaled TL 220 billion 687 million 905 thousand. In 2015, the Bank posted a consolidated net income of TL 3 billion 615 million 114 thousand. The Bank delivered an ROAE (Return on Average Equity) of 12.8% and an ROAA (Return on Average Assets) of 1.4%.
Chairman of the Board Mr. Ferit F. Şahenk: The decline in the prices of commodities led by oil, strengthening US dollar, the slowdown of the Chinese economy and geopolitical risks were the main items of the global economic agenda in the last quarter of 2015 as well. Downside risks to the global economic growth forecasts have increased once again with the economic slowdown of the developing countries.
Despite all developments, the fact that the Turkish economy grew by 3,4 percent in the first nine months of 2015 is pleasing. I believe that our economic performance will gain further strength with the ongoing improvement in our external balance.
Garanti BBVA sustained its healthy growth process in the last quarter and has left behind a successful year in 2015. We further increased our contribution to the Turkish economy in 2015 with an approximately 20 percent loan growth. Garanti BBVA will continue to play a leading role in the Turkish financial sector with its innovative approach and applications. Taking this opportunity, I would like to thank once again first and foremost my colleagues as well as our esteemed clients, shareholders, and all other stakeholders for their continuous support and confidence.
Based on the consolidated financial statements, in the first nine months of 2015, Garanti BBVA’ s asset size reached TL 293 billion 253 million 206 thousand while its contribution to the economy through cash and non-cash lending totaled TL 223 billion 250 million 816 thousand. In the first nine months of 2015, the Bank posted a consolidated net income of TL 2 billion 716 million 338 thousand. The Bank delivered an ROAE (Return on Average Equity) of 13.7% and an ROAA (Return on Average Assets) of 1.4%.
Chairman of the Board Mr. Ferit F. Şahenk:Global economic growth forecasts for 2015 have been revised down once again with the ongoing loss of momentum in major emerging markets. Reduced capital flows to developing economies, financial market volatility, slowdown of the Chinese economy and declining commodity prices are among the main factors behind the economic outlook.
The growth performance of above 3% in the first half of the year indicates that the Turkish economy has shown a relatively good performance despite such a global economic environment. I believe that our economy will gain further strength as the uncertainty factors are reduced.
As one of the leading institutions of the Turkish financial sector, Garanti BBVA sustained its successful performance in the third quarter with its sound balance sheet, high asset quality, qualified human resources and strong capital base. We will continue to strive for making a difference in the sector with our innovative services & products and maximizing our support to the Turkish economy. Taking this opportunity, I would like to extend my thanks once again to my dedicated colleagues, our esteemed clients, shareholders and all other stakeholders.
Based on the consolidated financial statements, in the first half of 2015, Garanti BBVA’sasset size reached TL 265 billion 198 million 140 thousand while its contribution to the economy through cash and non-cash lending totaled TL 203 billion 299 million 285 thousand. In the first half of 2015, the Bank posted a consolidated net income of TL 2 billion 64 million 902 thousand. The Bank delivered an ROAE (Return on Average Equity) of 16.1% and an ROAA (Return on Average Assets) of 1.7%.
Chairman of the Board Mr. Ferit F. Şahenk:Due to global uncertainties and risks, the second quarter of 2015 turned out to be a period in which the external financing conditions were continued to be monitored closely especially by the emerging market economies. Geopolitical risks also remained on the top of the global economic agenda.
The first quarter growth data, which were above the expectations, has shown the resilience of the Turkish economy in terms of its economic growth performance. In addition, it is pleasing to see that the rebalancing process has been ongoing. I believe that our economic growth performance in 2015 will be at least as strong as last year despite the internal and external conditions.
Within this context, Garanti BBVA, one of the leading representatives of the Turkish financial sector, sustained its strong performance in the second quarter. I would like to underline that we, as the Garanti BBVA, will continue to strive for providing the maximum support to the Turkish economy with our strong capital structure, asset quality and diversified funding base. Taking this opportunity, once again, I would like to thank first and foremost my colleagues as well as our esteemed clients, shareholders and all other stakeholders for their continuous support and confidence.
Based on the consolidated financial statements, in the first quarter of 2015, Garanti BBVA’s asset size reached TL 259 billion 774 million 539 thousand. Garanti BBVA’s total deposits increased to TL 141 billion 89 million 569 thousand, while its contribution to the economy through cash and non-cash lending totaled TL 196 billion 174 million 724 thousand. In the first quarter of 2015, the Bank posted a consolidated net income of TL 953 million 419 thousand. The Bank delivered an ROAE (Return on Average Equity) of 15.3% and an ROAA (Return on Average Assets) of 1.6%.
Chairman of the Board Mr. Ferit F. Şahenk: The global economy has been going through a period in which the growth differential between developing and advanced economies continues to narrow and the potential growth rates are declining in general. The developments in the oil prices have been accompanied by the appreciation pr ocess of US dollar against the major currencies. The advanced economies led by the USA are expected to perform stronger, while the developing economies are expected to lose some momentum in 2015 compared to last year. In such a global economic outlook, I expect that the “rebalancing process” of the Turkish economy will continue in 2015 especially with the help of the oil price developments. The expectations and assessments on the Turkish economy indicate that, in general, 2015 will be a somewhat better year in terms of economic growth compared to 2014. Within this context, Garanti BBVA, one of the leading representatives of the Turkish financial sector, sustained its healthy growth performance with its loan portfolio exceeding TL 185 billion in the first quarter of the year. I would like to underline that we, as the Garanti BBVA, always strive to maximize our support to the SMEs, the main driving force of investments, production and job creation, while maintaining our customer oriented and innovation focused product and service provision approach. Taking this opportunity, I would like to thank first and foremost my colleagues as well as our esteemed clients, shareholders, and all other stakeholders for their continuous support and confidence.
2014 was a quite active year for the global economy. Despite the economic performance of the US, which is getting stronger, the challenges facing the European economy still continue. The growth dynamics have been losing momentum in emerging market economies which were the driving forces of the global growth in the post-global financial crisis period. Geopolitical risks have become among the most important items in the global economic agenda. The rapid decline in the oil prices has been affecting the economies to varying degrees. However, this is a positive development for the global economy in a period when a stronger overall recovery is needed.
The external financing conditions, especially related with the economic recovery process in the US,affected all economies in 2014, which was also a rebalancing year for our economy. Turkish economy is estimated to have left behind 2014 with a growth rate of around 3% despite the developments in the external financing conditions and geopolitical risks. I believe that, as an oil importing economy, the improvement in our main macroeconomic indicators will continue going forward thanks to the decline in oil prices.
We left behind a year in which the impact of the market conditions was felt on growth and profitability of our banking sector. Loan growth lost momentum and declined to a more sustainable 18% level compared to 32% in the previous year. Even though the factors such as the financing conditions and the slowdown in loan growth put some pressure on the sector’s profitability, our banking sector maintained its strong asset quality thanks to its adaptation capacity and experience in challenging periods.
Garanti BBVA sustained its strong performance in 2014 with successful balance sheet management, sound and high quality asset structure, comfortable liquidity level and strong capital base. While preserving its strong deposit base, Garanti BBVA enhanced its credibility before the international markets with its successful external funding transactions. Garanti BBVA continued to support the Turkish economy via channelling funds from both domestic and external sources; its credit volume exceeded TL 170 billion.
Garanti BBVA has always strived to contribute to the economy at the maximum level, while preserving its strong standing within the sector. Garanti BBVA, which operates with a sustainable growth perspective, continued its customer oriented and innovation focused product and service provision approach by closely following the technological developments.
In addition to its operational and financial performance, Garanti BBVA also continued and scaled up its activities based on its principle of “giving back to society” in 2014. We will continue to do our best in line with our sensitivity, motivation and responsibility to contribute to education, environment, culture, arts and sports to help move our society - in which we live and to which we owe much - a further step forward.
Garanti BBVA will continue its successful operations going forward with its new ownership structure shaped recently with the BBVA, one of the important players of the international banking system. Taking this opportunity, I would like to thank first and foremost my colleagues as well as our esteemed clients, shareholders, and all other stakeholders for their continuous support and confidence.