ISTANBUL — Garanti BBVA reported a net profit of TL30.4 billion ($) for the second quarter of 2026, slightly exceeding market expectations of TL28.2 billion, supported by resilient core banking income despite continued pressure from elevated funding costs.
The lender’s quarterly net profit increased 8% year-on-year but declined 9% from the previous quarter. For the first half of 2026, net profit reached TL63.4 billion, marking a 20% increase compared with the same period last year.
Net interest income, including swap costs, totaled TL60.6 billion during the second quarter. While this represented a 5% quarterly decline due to persistently high funding costs, first-half net interest income surged 59% year-on-year to TL117 billion.
The bank’s net interest margin, including swap costs, narrowed to 5.5% in the second quarter from 6.1% in the previous quarter, reflecting a 65-basis-point contraction as funding expenses remained elevated.
Despite the margin pressure, Garanti BBVA outperformed analysts’ forecasts, highlighting the resilience of its earnings in Türkiye’s high interest-rate environment. Investors continue to monitor banks’ funding costs and lending margins as monetary policy remains tight.
Source: Patronlar Dünyası/ Prepared by: İlayda Gök