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Economic results 27 Jul 2018

Garanti’s contribution to the Turkish economy amounts to TL 319 billion in the first half of 2018

Türkiye Garanti Bankası A.Ş. announced its financial statements for the first half to June 30, 2018. On a consolidated financial basis, in the first six months of 2018, Garanti had assets of TL384.878 billion, while its contribution to the economy through cash and non-cash loans increased to TL319.244 billion. The Bank’s ROAE (Return on Average Equity) was 18.1 percent and ROAA (Return on Average Assets) 2.1 percent.

Commenting on the results, Garanti Bank ­CEO Fuat Erbil said: “In the first half of the year, we further strengthened our already solid balance sheet and our stakeholders’ trust in us. Leveraging our high capital adequacy ratio, our contribution to the economy increased to TL319 billion. We successfully rolled over our syndicated loan in the second quarter and reaffirmed our ability to create sustainable funding. We added a further innovative product in foreign funding in June in the form of Turkey’s first social bond for women entrepreneurs in conjunction with the IFC. In July, we extended Turkey’s first green loan and once again continued to lead the sector in the area of sustainable finance.”

As the only bank from Turkey among 26 leading banks around the world to establish global banking principles for sustainable development, Erbil said: “Supporting responsible and sustainable development is one of the strategic priorities of Garanti. We shape our products and services within this context and also manage our customers’ environmental and social risks. We support women’s participation in the workforce and we work to create an inclusive economy in which all individuals benefit equally from opportunities. With our focus on customer experience and digitization, we started a new era in banking and transformed more than 600 branches where our customers receive a whole range of services from a single point of contact in the fastest and easiest way”.

Erbil welcomed international recognition of Garanti’s success: “We ranked among the best of Central and Eastern Europe. We were named Best Bank for Sustainable Finance’ by Euromoney and ‘Best Project Finance House’ and ‘Best Structured Finance House’ by EMEA Finance. In Institutional Investor’s Emerging EMEA survey covering 473 companies, we were named among the ‘Most Honored’ institutions while the bank’s executive team was the only one from Turkey that was recognized. I would like to thank all my colleagues and our stakeholders for their trust and support.”

Highlights from Garanti Bank’s Consolidated Financials

  • Net income was TL3.396 billion.
  • In compliance with the legal requirements and international regulations, a total amount of TL4.741 billion was set aside for tax, expected credit losses and other provisions*.
  • Total assets were TL384.878 billion.
  • Return on Average Assets (ROAA) was 2.1 percent.**
  • Shareholder equity was TL44.405 billion.
  • Return on Average Equity (ROAE) was 18.1 percent.**
  • Contribution to the real economy through loans and non-cash lending reached TL319.244 billion as of June 30, 2018.
  • Total loans, FC loans and TL loans market shares were 11.0, 10.7 and 11.1 percent respectively.
  • Market share of “consumer mortgage loans” was 12.7 percent and the market share of “consumer loans excluding credit cards” was 12.6 percent.
  • Total customer deposits reached TL222.932 billion, while market share of total customer deposits stood at 11.2 percent.
  • Capital adequacy ratio (CAR) was 16.2 percent.
  • Non-performing loan (NPL) ratio stood at 3.37 percent.

* Reserve for Employee Termination Benefits and Impairment Losses on Assets to be Disposed of are included in provisions.

**Excludes non-recurring items (gains on asset sales) when annualizing Net Income for the rest of the year. In the calculation of  average assets and equity, the restated balance sheet as of 01.01.2018 has been used

Note: Bank-only figures are used in market share calculations for fair comparison.

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