Stock Info & Listing
Garanti BBVA carried out its IPO in 1990 on Borsa İstanbul and became the first Turkish company to offer its shares on international markets in 1993. Garanti BBVA’s depositary receipts are listed on the OTC (Over-The-Counter) Markets in the USA. In 2012, Garanti BBVA participated in the prestigious tier of the U.S. OTC market, OTCQX International Premier, where companies traded must meet high financial standards and an effective disclosure process. With its yield and daily trading volume growth in 2022, the Bank qualified to be included in 2023 OTCQX Best 50.
Garanti BBVA has a market capitalization of TL 126 billion (USD 6.8 billion) as of year-end 2022, and a free float ratio of 14% corresponding to TL 17.7 billion floating market capitalization. The majority shareholder of the Bank, Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) disclosed on 15 November 2021 that the Board of Directors of BBVA decided to launch a voluntary takeover bid for the entire share capital of the Bank not already owned by BBVA (50.15%). Following this disclosure, on 18 November 2021, BBVA informed that it has submitted to the Capital Markets Board of Türkiye (CMB) the application for authorization of the voluntary tender offer for the entirety of the said shares in Türkiye Garanti Bankası A.Ş.
On 31 March 2022, the CMB authorized BBVA’s voluntary takeover bid. On 25 April 2022, BBVA Board of Directors announced their decision to increase the price, initially announced as 12.20 TL for each share, to 15.00 TL. The voluntary takeover bidwas finalized on 18 May 2022 and BBVA acquired Garanti BBVA shares with a total nominal value of TL 1.517.195.890,189 corresponding to 36.12% of Garanti BBVA’s total share capital. Hence, BBVA’s shareholding ratio in Garanti BBVA reached 85.97%.
This decision by BBVA, one of the world's most important and one of Europe's most established banking groups, demonstrates their confidence in Türkiye's strong economic fundamentals and long-term potential.
42% of Garanti BBVA’s shares in the free float are owned by foreign investors. 70% of the publicly traded shares are held by institutional investors, whereas the remaining 30% are held by individual investors*.
SHARE PERFORMANCE (2022)
Borsa İstanbul reached historic records in 2022.
Despite the gush out of foreign investors, the substantial growth in domestic individual investors has been the driving force behind the robust performance of Borsa İstanbul.
According to Borsa İstanbul data, in 2022 foreign investor outflow from BIST-100 shares amounted to USD 4.5 billion, the second highest outflow since 2018 (2021: USD 1.6 billion). In parallel, foreign ownership of Borsa İstanbul dropped from 60% in 2018 to below 30% in 2022. This outflow had a negative impact also on Garanti BBVA stock that has a high ratio of foreign investors. Foreign ownership declined to 42% from 53% at the beginning of the year.
In 2022, Garanti BBVA share price increased by 172% in TL terms, while the increase in USD was 95%. Garanti BBVA underperformed the banking index by 14%. During the reporting period, the Bank’s financial performance outperformed both the peer banks and the expectations. The underperformance of the stock compared to the index despite the financial value the Bank created can be attributed to the following reasons:
1. As GARAN had the highest depth amongst banking peers before the BBVA tender offer when the free float of the stock decreased to 14.03%,
2. With the decrease, the stock was delisted from the MSCI index and thus, triggering an exit from the passive funds as it is their main benchmark index.
INVESTOR RELATIONS ACTIVITIES
Communicating the value created in a proactive, transparent and consistent way, Garanti BBVA Investor Relations’ activities in 2022 can be summarized as follows:
- In 2022, the team participated in 18 investment conferences and roadshows, either in-person or online. The team met with 215 international investment funds from Asia, USA, Canada, the Middle East, Europe and Turkey.
- Each quarterly Financial Results disclosure teleconference and annual Operating Plan Guidance disclosure presentations attracted an average of 100 analysts and investors.
- Expectation management was ensured by holding one-on-one and regular conferences every quarter with 20 equity analysts who follow Garanti BBVA shares,
- Operating Plan Guidance and results presentations were published on Garanti BBVA Investor Relations website and mobile app. The audio recordings of these presentations are also available on the website and mobile application. Contents prepared both in Turkish and English for the convenience of the investment community enable investors from all around the world to have easy access to all the information they need.
- Periodic bulletins started to be sent to investors and stakeholders enabling monitoring of current developments in ESG issues,
- Prior to financial disclosures, questionnaires were prepared designed to seek opinions, and mold the presentations according to investor and stakeholder desires. Three questionnaires were administered in total in 2022; the answers received reflected the admiration for the investor relations activities. Economic outlook was stated to be the main determinant in investment decisions. Investors commented that they wish to be informed also on inflation accounting. Commitment to its irreplaceable values of the principles of trust, integrity, accountability and transparency serves as the guarantee of the Bank’s strong reputation and is Garanti BBVA’s main responsibility to all its stakeholders. The steps Garanti BBVA takes to create value for the economy, the society and all its stakeholders are recognized by national and international authorities.
* According to MKK (CSD of Türkiye) data on 31 December 2022.