Garanti BBVA led the sector in TL loan growth in the first quarter of 2022
Garanti BBVA led the sector in TL loan growth in the first quarter of 2022
Türkiye Garanti Bankası A.Ş., announced its financial statements dated 31 March 2022. Based on the consolidated financials, in first quarter of 2022, the Bank’s net income was recorded as TL 8 billion 262 million 614 thousand. Asset size realized at TL 953 billion 347 million 155 thousand and the Bank’s contribution to the economy through cash and non-cash loans was TL 712 billion 12 million 529 thousand. Deposits continued to be the main funding source; 69% of assets are funded via deposits. Deposit base reached to TL 651 billion 582 million 488 thousand with 12% growth since the beginning of the year. Preserving the strong capital stance, Bank’s capital adequacy ratio was realized at 14.8%*. The Bank delivered an ROAE (Return on Average Equity) of 37.5%** and an ROAA (Return on Average Assets) of 3.7%**.
* Except for temporary measures taken by BRSA
** In calculations of average return on assets and average return on capital, one-off items are not included in annualization of net profit.
Garanti BBVA CEO Recep Baştuğ says; “We are going through a challenging period with increasing uncertainties and risks in the global and local economy. In this environment, both the Turkish banking sector and Garanti BBVA continued to prove their resilience. The financial sector plays a critical role for the economy to grow on a healthy basis.”
“By supporting the Turkish economy above the sector, we increased our TL loans in the quarter to 309 billion TL with 17% growth. It was a quarter in which we gained market share from the sector in both TL and foreign currency loans. We are the leader in consumer loans among private banks*. We also have the highest market share in acquiring and issuing in the payments sector. We derive the power of our sustainable growth from our effective asset-liability management and solid capital structure. We have completed the first quarter of 2022 with a very strong financial performance and net customer growth exceeding half a million.” he said.
Recep Baştuğ continues as follows: “With our continuous and uninterrupted investments in technology, we strive to offer a full-range, integrated banking platform that includes easy, accessible and personalized banking transactions and services across all channels. In this context, we aim to listen to the needs of our customers and respond to them as soon as possible. Artificial intelligence and machine learning, which can be integrated into all kinds of business processes, enable us to offer smarter, differentiated and personalized experiences for our customers.
The benefits we can provide to individuals and society as the financial sector are not limited to the financial needs and situations of our customers. I think that sustainability practices are one of the most important value creation mechanisms in the industry. With our motto "We take good care of the world, we take good care of the future" and our innovative financing models, we take a leading role in the green transformation of our country. We have clear goals and commitments in this regard. Since 2014, we have been financing only renewable projects in the energy sector within the scope of project finance. Last year we decided not to finance coal and by 2040 we will zero the coal risk in our portfolio. We became the only company from Turkey to be included in the Emerging Markets category (DJSI - Dow Jones Sustainability Index Emerging Markets) in the Dow Jones Sustainability Index (DJSI) for the 7th consecutive year. We integrate environmental, social and governance criteria into our business models and contribute significantly to sustainable development goals.
As Garanti BBVA, we value, not only the impact we have created in the economy but also the value we add to the environment, social life and technology, and we act with this awareness. I would like to thank all of our stakeholders, especially our customers who participated in this journey, supported and trusted us, along with my colleagues who made a great effort and contribution in this process.”
*According to BRSA financials as of December 2021.
Garanti BBVA’s Selected Consolidated Financial Indicators (31 March 2022)
| Total Assets |
953,347,155 |
850,475,600 |
12.1% |
| Loans* |
566,148,088 |
492,589,718 |
14.9% |
| -Performing Loans |
548,041,373 |
475,285,220 |
15.3% |
| -Non-performing Loans |
18,106,715 |
17,304,498 |
4.6% |
| Customer Deposits |
651,582,488 |
580,376,196 |
12.3% |
|
Shareholders’ Equity
|
96,965,406 |
80,300,855 |
20.8% |
| * Excludes Leasing and Factoring receivables |
|
|
|
| Net Interest Income |
14,243,833 |
6,844,703 |
108.1% |
|
Operational Expenses
|
5,285,523 |
3,279,336 |
61.2% |
|
-HR Cost
|
2,023,051 |
1,220,870 |
65.7% |
|
-Other Operational Expenses
|
3,262,472 |
2,058,466 |
58.5% |
|
Net Fees&Commissions
|
3,206,043 |
2,067,219 |
55.1% |
|
Net Income
|
8,262,614 |
2,697,476 |
206.3% |
| |
|
|
|
Turkish presentation regarding BRSA consolidated financial results of Garanti BBVA as at March 31, 2022 can be retrieved from Garanti BBVA Investor Relations website at the address of www.garantibbvayatirimciiliskileri.com.
Summary Financial Data on Operating Results of Accounting Period:
▪ Average return on assets is 4%.
▪ Average return on equity is 38%.
▪ Support provided to economy through cash and non-cash credits reached 712 billion 12 million 529 thousand TL.
▪ Market shares of total performing loans, TL credits and FX credits are respectively 10.1%, 10.5% and 9.3%.
▪ Since the beginning of the year, total customer deposits grew by 12% and market share reached 10.8% level.
▪ Share of demand deposits in total deposits reached 50%.
▪ Capital adequacy ratio is recorded as 14.8%*, i.e. above the legal limit of 12.2%.
▪ Rate of non-performing loans is recorded as 3.3%.
* Except for temporary measures taken by BRSA