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Corporate information Updated: 03 Feb 2024

Garanti BBVA posts highest loan growth in TL in 1Q22

Garanti BBVA reported its financial results for the first quarter of 2022, posting a net income of TL 8.26 billion, and TL 953.35 billion in assets. Garanti BBVA CEO Recep Baştuğ called attention to the bank’s performance in lending, with the loan portfolio soaring 17 percent to TL 309 billion. “It was a quarter in which we gained market share from the sector in both TL and foreign currency loans, and we are the leader in consumer loans among private banks,” he said. The bank provided a total of TL 712.12 billion in cash and non-cash loans.

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Despite the increasing uncertainties and risks in the global and local economy, both the Turkish banking sector and Garanti BBVA continued to prove their resilience. “The financial sector plays a critical role in allowing the economy to grow on a healthy basis,” Garanti BBVA CEO said.

The bank’s capital adequacy ratio stood at 14.8 percent (excluding temporary measures taken by BRSA), return on average equity (ROAE) was 37.5 percent, and return on average assets (ROAA) was 3.7 percent - not including one-off items. In addition, deposits remained the primary source of funding, with 69 percent of assets funded through deposits. The deposit base grew 12 percent in 2021, climbing to TL 651.58 billion.

Garanti BBVA also had the highest market share in terms of customer acquisition and card issuing in the payments sector. “Our sustainable growth is possible thanks to our effective asset-liability management and solid capital structure. We ended the first quarter of 2022 with very strong financial performance and more than half a million new customers,” he added.

Recep Baştuğ also stressed the bank’s continuous efforts in technology-related investments. “We strive to offer a comprehensive, integrated banking platform that includes easy-to-use, accessible and personalized banking transactions and services across all channels. In this context, we aim to listen to the needs of our customers and respond to them as soon as possible,” he said. Garanti BBVA CEO also noted that both artificial intelligence and machine learning can be integrated into all kinds of business processes, and allow the bank to offer its customers smarter, personalized experiences.

The financial sector plays a critical role in allowing the economy to grow on a healthy basis

Sustainability

Turning to sustainability, Recep Baştuğ emphasized that the financial sector can provide benefits to individuals and society that go beyond customers’ financial needs. “I think that sustainability practices are one of the most important value creation mechanisms in the industry. With our motto ‘We take good care of the world, we take good care of the future’ and our innovative financing models, we are taking a leading role in the green transformation of our country,” he said.

The bank has clear goals and commitments in this regard. Since 2014, project finance has focused solely on  renewable projects in the energy sector. In 2021, Garanti BBVA also announced that it would no longer finance coal-related activities, and plans to completely eliminate coal risk from its portfolio by 2040. It was the only company from Turkey to be included in the Emerging Markets category (DJSI - Dow Jones Sustainability Index Emerging Markets) of the Dow Jones Sustainability Index (DJSI) for the 7th consecutive year. Furthermore, the bank has integrated environmental, social and governance criteria into its business models and strives to make significant contributions to the Sustainable Development Goals.

“As Garanti BBVA, we value not only the impact we have had on the economy, but also the value we add to the environment, social life and technology, and we act with this awareness in mind. I would like to thank all of our stakeholders, especially our customers, who participated in this journey, supported and trusted us, along with my colleagues who made a great effort and contribution to this process,” he said.