Garanti BBVA's Q3 profit reached 84.1 billion TL, surpassing expectations.

Garanti BBVA Shows Outstanding Results

SEVCAN ERSÖZLÜ/BLOOMBERG HT RESEARCH

Garanti BBVA announced its financial results for the first 9 months of 2023. The bank's profit reached 84.1 billion TL, and the return on equity reached 30.8%. In the same period of 2024, return on equity was recorded at 32.6%.

Increase in Financial Indicators

The net interest margin increased by 0.7 points to reach %5.2, despite a horizontal trend in the TL loan spread and rising swap costs. The bank's TL funding costs rose by %189 on a quarterly basis to 8.5 billion TL. The return figures for CPI-indexed securities also increased by %8, reaching 79.8 billion TL.

Strong Growth in Income Items

Net fee and commission income showed a strong performance with a yearly increase of %69 and a quarterly increase of %10. Garanti BBVA maintains its %30 return on equity expectation but revised its net interest margin forecast to a range of %1.5-2.

Additionally, the bank's yearly growth expectation for TL loans remained above the average CPI. The growth forecast for foreign currency loans was increased to a range of %16-19, attributed to fluctuations in the EUR/USD parity.

Revision of Net Credit Risk Cost

The initially projected net credit risk cost of %2-2.5 was revised to below 2%. This decline was achieved through high-value provision cancellations and reductions in conservative provisions allocated in previous periods.

Growth Targets and CEO Statements

Garanti BBVA CEO Mahmut Akten stated that the normalization process in line with the disinflation target has begun in the third quarter. Akten noted that with the 700 million dollar new Basel III compliant bond issuance carried out in October, they are the bank with the highest amount in the sector.

Akten said, "We are moving forward with determination in challenging market conditions and creating value. In the upcoming period, we will continue our balanced growth focused on the Turkish lira, contributing to the development of our country."