Announcement regarding forward looking statements on the expectations for the year 2018
Announcement regarding forward looking statements on the expectations for the year 2018
As per the Article 10 of the "Communiqué on Material Events Disclosure" (II-15.1) of Capital Markets Board, T. Garanti Bankası A.Ş has announced its forward looking statements regarding the expectations for the year 2018. You may access the related presentation that was published on the Public Disclosure Platform, the Bank’s website and Garanti Bank Investor Relations’ website at www.garantiinvestorrelations.com in Operating Plan Guidance Presentations section.
As of June 30, 2018, the following revisions were made in 2018 Operating Plan Guidance with changing macroeconomic expectations. Accordingly, the return on equity and return on asset have been revised upwards.
Despite the expected normalization in non-performing loans and the deterioration of the macroeconomic expectations of the IFRS9 model, fees and commissions revenues, net interest margin and operational expense are better than anticipated, resulting in an upward revisions in profitability ratios.
| |
2018 GUIDANCE |
REVISED 2018YE EXPECTATIONS |
| TL LOANS (YOY) |
~14-15% |
< 14% |
| FC LOANS (IN US$, YOY) |
Flat |
Shrinkage |
| NPL RATIO |
~3.0% (> TL 1bn NPL sale assumed) |
4.0-4.5% (No NPL sale assumed) |
| NET COST OF RISK |
~100bps (Under macro assumptions used in initial model) |
~150bps (excl. currency impact) 1 |
| NIM INCLUDING SWAP COST |
Flat (excl. CPI impact) 2 |
Flat (including CPI impact) |
| FEE GROWTH (YOY) |
Low-teens |
> 20% |
| OPEX GROWTH (YOY) |
< = CPI |
~ 10% |
| ROAE |
> 16.5% |
> 17% |
| ROAA |
> 2.2% |
> 2.2% |
1 Neutral impact at bottom line, as provisions due to currency depreciation are 100% hedged (FX gain included in Net trading income line).
2 Initial Oct-Oct CPI reading expectation for 2018 was lower vs. 2017 CPI reading of 11.9%