For Garanti BBVA, financial performance is at the core of value creation process and it is the cause and the effect in delivering sustainable growth. As it makes its products available to customers, invests in its facilities and constantly improves its business model and processes with an operational and environmental efficiency point of view, Garanti BBVA has a direct and indirect impact on the economy.

Aiming to use capital effectively to maximize the value created, Garanti BBVA focuses on disciplined and sustainable growth on the basis of a true banking principle with strict adherence to solid asset quality. Combining its approach to unconditional customer satisfaction with its robust capitalization and a focus on efficiency, Garanti BBVA sustains its contribution to the economy through effective balance sheet management.

During 2019, Garanti BBVA increased its consolidated total assets by 7% on an annual basis, bringing it to TL 429 billion, and succeeded in maintaining the percentage of interest-earning assets to total assets at a high 82%. Standing by its customers at all times, Garanti BBVA continued to keep the share of loans within total assets at 60%. Today, Garanti BBVA pioneers the sector across various segments from retail banking to payment systems, mortgages to auto loans, SMEs to project finance, transaction banking to digital banking.

Garanti BBVA preserved its liquid balance sheet composition with the help of its prosperous dual currency balance sheet management in the reporting period. Dynamically managed funding base of the Bank continued to be largely composed of deposits. 14% growth rate in customer deposits base was above the expansion in lending, which helped Garanti BBVA improve its loan to deposit ratio (LDR) by 6 points on a consolidated basis. Garanti BBVA’s strength in consumer deposits is the outcome of its innovative business model, which places customers’ needs and satisfaction at the core of its business.

Garanti BBVA successfully expanded its spads owing to disciplined loan pricings and the high share of demand deposits in total deposits. Despite the declined income on CPI-linkers in connection with the falling inflation, Garanti BBVA was able to improve its Core Net Interest Margin (NIM) by 78 bps with the help of its successful management of spads. Hence, the Bank was able to maintain its NIM including swap costs almost flat on a year-over-year basis. Garanti BBVA, with 5.2%, continued to have the highest NIM level among its peers.

Garanti BBVA follows a prudent and riskreturn focused lending strategy. The Bank displays a proactive and consistent approach to risk assessment, which ensures pservation of its solid asset quality.

The economic volatility in the first half of 2019 and the contracted GDP resulted in increased Non-Performing Loan (NPL) ratio. The NPL ratio rose from 5.2% in 2018 to 6.8% in 2019. Net new NPLs mostly consisted of high-amount corporate and commercial loans, which accounted for 2/3 of all new NPL inflows. On the other hand, consumer and SME loans sourced a smaller portion of net new NPLs, accounting for 1/3 of total new NPL inflows.

Garanti BBVA’s diversified and actively managed funding base, its capital adequacy ratio of 17.8%, its growing deposits with approximately 18 million customers’ trust, and continuous access to foreign funding sources bolster the Bank’s business model and long-term sustainable growth.

Its business model, along with its welldiversified fee sources and its further digitalized processes, support the Bank’s ability to generate sustainable income. All of them combined secure the highest net interest margin, and the highest net fees and commissions base among its peers. Furthermore, Garanti BBVA maintains its focus on efficiency and effectively manages its operating costs to foster sustainable value creation.

By focusing on financial performance, Garanti BBVA is actively contributing to Sustainable Development Goal 8: Decent Work and Economic Growth.


* Initial average CPI expectation was 19%
1 Income defined as NII + Net F&C +Trading gains/losses excluding FX provision hedges + Other income excluding provision reversals + Income from subsidiaries