Turkiye Garanti Bankasi (GARAN) investor relations material

Executive summary

• Net income for H1 2026 reached TL 64.4 billion, up 20.1% year-on-year, with a 28.1% ROAE and 2.7% ROAA, despite a slight quarterly decline due to lower trading income and increased provisions.

• Total assets reached TL 5.2 trillion, up 14.7% from year-end 2025, with loans comprising 55% of assets and disciplined growth in both TL and foreign currency loans.

• Customer deposits totaled TL 3.5 trillion, funding 66% of assets and providing margin resilience.

• Core banking revenues grew 43% year-on-year, driven by robust fee generation and strong contributions from financial subsidiaries.

• Celebrated 80th anniversary and announced partnership as master global partner for COP 31.

Financial highlights

• Net interest income rose 74.2% year-on-year to TL 139.2 billion, while net fees and commissions increased 39% to TL 90.7 billion.

• Operating expenses rose 45% year-on-year, with cost/income ratio at 46% and HR costs up 48.3%.

• Net cost of risk (excluding currency impact) increased to 231bps from 148bps a year ago.

• NPL ratio rose to 3.5% from 2.6% in June 2025.

• Capital adequacy ratio stood at 15.9%, down from 17.5% at year-end 2025.

Outlook and guidance

• 2026 GDP growth forecast at 3%, with year-end inflation expected at 30% and funding costs to converge to policy rate by September.

• Loan growth guidance for both TL and foreign currency loans maintained; cost of risk expected at upper end of 2%-2.5% range.

• Margin expansion expected to be modest, with improvement in NIM anticipated in Q4.

• Fee and opex growth expected to align with 1H26 trends.

• Profitability to be sustained through diversified income streams and prudent risk management.