Operational Excellence - I


Financial performance, which is at the core of value creation at Garanti BBVA, is both the cause and the result of sustainable growth. The bank has an indirect and direct impact on the economy by offering its products to customers, investing in facilities and continuously improving its business model and processes from an operational and environmental efficiency perspective.

Aiming to allocate capital efficiently in order to maximize the value produced, Garanti BBVA focuses on disciplined and sustainable growth with its real banking principle that does not compromise its solid asset quality and prudent stance. It continues to support the economy with its effective balance sheet management, combining its unconditional customer satisfaction approach with a strong capital structure and efficiency focus.


Due to the emergence of COVID-19 pandemic, loose monetary policies of global central banks and fiscal incentives applied have been the highlight in 2020. 2021, was a year in which we have experienced the impact and consequences of these developments, and the recovery process that started with the vaccination becoming widespread. Extensive impact of the lockdowns on the economy have been prevented as the vaccination process has gained speed, even though the case numbers continued to increase due to second and third waves of the pandemic. Recovery process on the global trade side has also picked up in a parallel manner. Global trade, which contracted by more than 15% annually in 2020, is estimated to grow by 10.8% in 2021, according to forecasts of WFO. The acceleration in the vaccination process enabled the restrictions to be loosened to a large extent as the tourism season opened. In light of these developments, the global economy is expected to record a strong growth in 2021 after the contraction last year. According to the IMF's latest forecast, the global economy is expected to grow by close to 6% in 2021.

Growth in the Turkish economy has gained pace with the contribution of both domestic demand and increasing foreign demand. The fact that growth was mainly driven by domestic demand and the fluctuation in the exchange rate, especially in the last periods of the year, has put some put pressure on inflation. The policy rate started the year at 17%, increased to 19% with a 200 bps rate hike decision in March, and then ended the year at 14% following gradual rate cuts starting from September. The decline in funding costs in the last quarter of the year and the strong loan growth with the contribution of domestic demand supported the banking sector margins. The CPI-linker securities portfolios of the banks have also helped protect the balance sheets of banks against the rise in inflation.

Garanti BBVA continued to grow without compromising profitability, strengthen its capital and asset quality thanks to its dynamic balance sheet management in this environment. While its total consolidated assets total consolidated assets reached TL 849 billion with an annual increase of 57%, total performing loans grew by 42%, whereas the security portfolio grew by 34%. Strategic purchases were made in the securities portfolio during the period, to support margin management. Interest earning assets’ share in total assets is the highest among peers with 82%.


Operational Excellence - II

Within the frame of its Operational Excellence strategic priority, Garanti BBVA targets to constantly improve its business model through process automation, transaction convenience, enriched process automation, transaction convenience, enriched remote services remote services and similar factors, increase end-to-end digital end-to-end digital solutions, solutions, continue to enhance experience enhance experience with investments in digital platforms, continuously improve business model and processes based on operational excellence operational excellence point of view, and effectively manage financial and non-financial risks.

Putting digitalization at the heart of its business model, Garanti BBVA targets to lead the transformation lead the transformation of the sector, to command state-of- the-art IT infrastructure, state-of- the-art IT infrastructure, and to be efficient efficient and productive and productive in all its service channels. In this context, the Bank achieves operational excellence operational excellence and productivity productivity as it continues to revamp, simplify and automatize evamp, simplify and automatize its business processes, formulate organizational changes formulate organizational changes with centralization perspective, and enhance customer experience.

Integrating the opportunities presented by advancing technology and data sources in its business model, Garanti BBVA interprets interprets big data clusters big data clusters and adopts a more analytical approach more analytical approach to customer management. The Bank also uses these outputs in its organizational model in elements such as resource planning resource planning besides design, change and transformation, design, change and transformation, thus carrying its business results to the analytical ground.

Adopting agile method agile method approaches to execute its projects in order to quickly cater quickly cater to evolving customer expectations and to accommodate advancing technology in its business model, combining the means technological infrastructure has to offer with its vast experience, and aiming to address everybody, Garanti BBVA now defines productivity as the main pillar productivity as the main pillar of its business model. For this purpose, the Bank integrates all the possibilities handed by technological advancements and by the digital world into the ecosystem it has created, and addresses innovative solutions using agile methods, and pioneers the innovative solutions using agile methods, and pioneers the industry in transformation projects.

The Bank supports fulfillment of customer demands in the fastest manner possible through consolidated teams that can consolidated teams that can take action, take action, drawing on its business model driven by an inspiring inspiring and innovative mindset committed to exceed expectations.