According to consolidated financial statements, Türkiye Garanti Bankası achieved a net profit of 22.479 billion 583 million Turkish Liras in the first three months of the year.
Türkiye Garanti Bankası AŞ shared its financial statements dated March 31, 2024.
According to the consolidated financial statements, the bank’s total assets reached 2 trillion 462 billion 474 million 815 thousand Turkish Liras in the first three months of the year, while the support provided to the economy through cash and non-cash loans amounted to 1 trillion 853 billion 956 million 245 thousand Turkish Liras.
With a net profit of 22 billion 479 million 583 thousand Turkish Liras, the bank continued to have customer deposits as the largest component of its funding sources, accounting for 71%. The customer deposit base reached 1 trillion 750 billion 964 million 135 thousand Turkish Liras in the first three months of the year, growing by 9.3%. Maintaining a strong capital focus, the bank’s capital adequacy ratio, excluding temporary measures by the Banking Regulation and Supervision Agency (BRSA), was 15.4%, its equity return on equity was 36%, and its asset return was 3.9%.
In a statement, Garanti BBVA General Manager Recep Baştuğ noted that 2024 continued the balancing trend in the economy that began in the previous year, highlighting the impact of monetary tightening policies in the first three months of the year on the balance sheet.
Baştug stated that credit growth remained within the limits set by regulations and that pressure on funding costs continued. He commented, “The rest of the year will be a period where the fight against inflation and simplification come to the forefront. Although high interest rates continue in the fight against inflation, we expect to see the results of correct and healthy policies, especially in the second half of the year.”
“Growing predictability positively affects foreign investor interest” Baştug expressed the belief that if inflation falls to the levels targeted by the Central Bank, current tightening measures can be relaxed in a controlled manner. He stated, “Growing predictability in the economy as a result of the correct steps taken positively affects foreign investor interest. We believe that the resolution of Currency Hedged Deposits (CHD), which holds significant weight in our balance sheets, will continue to increase due to the high returns on TL deposits and reasonable exchange rates.”
Baştug recalled the $500 million capital-like bond issuance in February, which received great interest from international investors, stating, “This transaction, priced at +409 basis points (8.375%), was the most cost-effective ‘capital-like borrowing’ conducted by a bank in recent years. We consider the increasing foreign borrowing of other banks in Turkey and the demand from foreigners as a positive development for the sector. As a bank, we focus on sustainability, and two main themes stand out in this regard: combating the climate crisis and inclusive growth.”
Baştug emphasized their commitment to supporting entrepreneurship, including programs for women entrepreneurs, and highlighted their focus on digitalization to spread sustainability strategies across all segments of society. He stated, “We aim to expand our sustainability strategies with the support of digitization to all segments of society. While the number of our active digital customers reached 15.5 million, the share of non-branch channels in main transactions increased to 98%. In the future, we anticipate that artificial intelligence will strengthen the industry’s position in providing customer-focused and personalized services.”
Baştug concluded, “With our strong capital structure and sustainable growth strategy, we will continue to contribute to Turkey’s economic and social development as Garanti BBVA. I would like to thank all my colleagues who contributed to the results achieved by our bank in the first quarter, and all our stakeholders who trust and support us
source: aa.com.tr/ prepared by Melisa Beğiç