Close panel

Close panel

Close panel

Close panel

Results Updated: 28 Oct 2020

Garanti BBVA contributes over 400 billion Turkish lira to the economy, including loans

Türkiye Garanti Bankası A.Ş., recently reported its financial results as of September 30, 2020. Based on the consolidated financials, the bank’s net income in the first nine months of the year was 5.24 billion Turkish lira. Assets totaled 525.91 billion Turkish lira, and the bank’s contribution to the economy through cash and non-cash loans was 400.38 billion Turkish lira. Deposits continued to be the main source of funding, as 66 percent of assets were funded via deposits.


The deposit base reached a total of 345.66 billion Turkish lira, with 25 percent growth in the first nine months of the year. Preserving the strong capital stance, the bank’s capital adequacy ratio stood at 16.9 percent (calculated without the forbearance introduced by BRSA).  The bank’s return on average equity (ROAE) was 13.3 percent (in the calculation of return on average equity (ROAE) and return on average assets (ROAA), non-recurring items are excluded when annualizing net income for the remaining quarters) and its return on average assets (ROAA) was 1.6 percent.

The banking sector provided significant support to the economy especially on the business side

Garanti BBVA CEO Recep Baştuğ broke down the bank’s results: “The third quarter of this year was a period in which the impacts of the pandemic became positive and we entered the path of normalization. During these extraordinary times, we have preserved our strong and healthy stance as a bank, while providing the contribution that the economy needed. In the first half of the year, we had a front loaded demand as a result of the low interest environment and need for liquidity due to the pandemic. The banking sector provided significant support to the economy especially on the business side. With the normalization process that started in June, the pent-up demand on the consumer side started to emerge. Thus, unlike the previous period, this quarter’s growth was on the consumer loans side with seven percent growth. As a result, our TL loan growth reached the 25 percent level since the beginning of the year. We expect the normalization in loan growth to be more visible in the upcoming period together with the headwinds from financial tightening.

Our investments in technology and digitalization paved the way for employee and customer satisfaction

"In the third quarter, we maintained our cautious stance and continued to be one of the banks that set aside the highest provisions for loans. Our robust balance sheet structure and capital adequacy ratio of 16.9 percent, which is well above the required levels, protect our bank from the recent volatility in market conditions. On the other hand, our investments in technology and digitalization at the beginning of the pandemic paved the way for employee and customer satisfaction. Post-pandemic, our monthly transaction volume reached its historically highest level. Digital transactions rose from 51 percent of all transactions during the pre-pandemic period to 58 percent.”

Garanti BBVA’s CEO pointed to sustainability as one of the key aspects of the bank’s strategies, noting that: “As Garanti BBVA, we have been working to make a difference and voice the significance of this matter for more than 15 years. We support both international and domestic organizations that focus on sustainability and participate in all kinds of initiatives that come to life. In this context, we signed the new CEO commitment declaration prepared by the United Nations Global Compact (UNGC), of which we are also a member. In the upcoming years, our efforts in raising awareness on the importance of the matter are going to continue in an increasing manner and our contribution to a sustainable future will grow.”