Turkiye Garanti Bankasi (GARAN) investor relations material

Executive summary

• Net income for the first nine months of 2025 reached TL 84.5 billion, with ROE/ROAE at 30.9%–31% and ROAA at 3.1%, supported by record core banking revenues and sustained leadership in TL loans, consumer loans, and credit cards.

• Core banking revenues grew for the seventh consecutive quarter, up 65% year-over-year, with strong NII and fee generation offsetting higher provisions.

• Asset growth was driven by customer activity, with performing loans up 39% year-to-date and TL loans comprising 62% of TL assets.

• Customer deposits grew 38.7% to TL 2.91 trillion, funding 69.1% of assets.

• Strategic focus included digitalization, customer-centric solutions, and sustainability, highlighted by becoming the first Turkish bank to sign the Equator Principles.

Financial highlights

• Net interest income rose 53.9%–96% year-over-year to TL 137.85 billion, with net fees and commissions up 53.6%–54% to TL 104.41 billion.

• Net income grew 26.2% year-over-year to TL 84.47 billion.

• Operating expenses increased 70%–70.3%, mainly due to investments in customer acquisition, digitalization, and inflation-driven HR cost adjustments.

• Fee income covered 84% of OpEx, maintaining the lowest cost-income ratio among peers.

• NPL ratio rose to 2.8%, with retail and credit card portfolios accounting for most net NPL flows.

Outlook and guidance

• Year-end net cost of risk guidance lowered to below 2% due to high provision reversals.

• NIM expansion guidance revised down to 1.5–2% due to higher policy rate expectations and TL deposit regulations.

• Fee growth guidance raised, expecting fee coverage of OpEx to reach 90–95%.

• ROE/ROAE guidance maintained in the low-30% range, supported by strong commission income and lower-than-expected net cost of risk.

• Management expects continued balanced, TL-focused growth and ongoing contributions to economic and social development.