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Garanti BBVA's cash and non-cash loan volume reached 1.6 trillion TL

Garanti BBVA's cash and non-cash loan volume reached 1.6 trillion TL

Türkiye Garanti Bankası A.Ş., announced its financial statements dated 31 December 2023. Based on the consolidated financials, the Bank’s net income in the 2023 recorded as TL 86 billion 907 million 216 thousand. Asset size realized at TL 2 trillion 201 billion 713 million 095 thousand and the Bank’s contribution to the economy through cash and non-cash loans was TL 1 trillion 613 billion 753 million 675 thousand. Actively managing the funding base, customer deposits continued to be the main funding source; 73% of assets are funded via customer deposits. Customer deposit base reached to TL 1 trillion 602 billion 608 million 112 thousand with 77% growth in the 2023. Preserving the strong capital stance, Bank’s capital adequacy ratio was realized at 16.5%^*. The Bank delivered an ROAE (Return on Average Equity) of 44.5% and an ROAA (Return on Average Assets) of 4.9%.

*Calculated without the forbearance introduced by BRSA

Commenting on the topic, Garanti BBVA CEO Recep Baştuğ said: “ 2023, a year diverged as before and after the May elections, was marked by implementation of two different economic policies. In both periods, macro-prudential measures and regulations determined course of the banking sector , with the currency-protected deposit scheme at the banks’ main focus. The transition to currency-protected deposits was a key agenda item leading up to the elections, while post-election, the shift from currency-protected deposits back to Turkish Lira deposits took center stage in the sector. However, banks managed to adapt rapidly to these two different worlds, while profitability and margin management continued to be the fundamental challenges in the sector. Similar to the previous couple of years, banking sector’s return on equity remained significantly below inflation and other sectors’ returns. In 2023, the increase in non-performing loans was the lowest in recent times. However, the second half of the year there was a distinct rebalancing, and in 2024, cost of risk is expected to normalize.”

Baştuğ continued his words as follows: "In the post-election period, the simplification through policy changes, the decrease in the KKM balance, the predictability of exchange rates and interest rates, the positive steps from credit rating agencies coupled with the normalization in the country risk premium and the increased foreign interest emerged as positive factors in the late stages of 2023. The absence of elections in the country for the four years following the local elections in March supports our expectation that policies to combat inflation will continue to be implemented.”

Baştuğ emphasizing that balance sheet growth will also be shaped by digitalization from now on said; "Digitalization has played a significant role in achieving our volume and the quantitative growth. While our competent colleagues at the branches continue to provide services that are more qualified and advisory oriented, mass management and operational processes are carried out on the axis of artificial intelligence technologies. As Garanti BBVA, today we have hundreds of models established with various algorithms ranging from machine learning to deep learning in areas such as marketing and sales, pricing, fraud, credit assessment, and customer satisfaction. In the upcoming period, productive artificial intelligence technology will be part of our lives. Beyond analyzing existing data, with productive artificial intelligence capable of generating new data and presenting new content, we aim to provide higher-quality services to a broader customer base. Our goal is to transform our smart assistant within our mobile application into a personal assistant that understands our customers' needs and guides them with proactive suggestions. Simultaneously, we aim to enhance customer satisfaction to new levels by maintaining an environment where our colleagues and new talents proudly consider themselves as the members of our institution."

Baştuğ continued his remarks by reminding that we are a fortunate generation witnessing the 100th anniversary of the Republic of Türkiye, saying, " Türkiye has become part of the group of nations with a gross domestic product surpassing 1 trillion dollars. As one of the largest private banks inspired by the values of the Republic, we are aware of the responsibility that falls upon us for economic and social development. I express my gratitude to all our stakeholders, especially our customers, who support us and trust us on this journey."

Garanti BBVA’s Selected Consolidated Financial Indicators (31 December 2023)

Turkish presentation regarding BRSA consolidated financial results of Garanti BBVA as at December 31, 2023 can be retrieved from Garanti BBVA Investor Relations website at the address of www.garantibbvainvestorrelations.com. 

Summary Financial Data on Operating Results of Accounting Period:

• Average return on assets is 4.9%.
• Average return on equity is 44.5%.
• Support provided to economy through performing cash and non-cash credits reached TL 1 trillion 613 billion 753 million 675 thousand.
• Market shares of total performing loans, TL loans and FX loans are respectively 10.4%, 10.7% and 9.8%.
• Since the beginning of the year, total customer deposits grew by 77.0% and market share reached 10.4% level.
• Share of customer demand deposits in total customer deposits reached 41%.
• Capital adequacy ratio is recorded as 16.5%*, above the required level of 12.2%.
• Non-performing loans ratio is recorded as 2.0%.

*Calculated without the forbearance introduced by BRSA