Turkiye Garanti Bankasi (GARAN) Corporate Presentation summary

Turkish economy overview

• 2024 GDP growth revised to 3.5% for 2025, driven by private consumption and delayed fiscal consolidation.

• Annual inflation decreased to 38.1% in March 2025; year-end 2025 inflation forecast raised to 32% due to currency depreciation.

• Central Bank began easing cycle, policy rate expected to reach 35% by year-end 2025.

• Current account deficit fell to 0.8% of GDP in 2024, but projected to rise to 1.8% in 2025.

• Budget deficit to GDP ratio expected to decline to 3.5% in 2025, reflecting fiscal consolidation.

Turkish banking sector overview

• Sector dominated by top 4 private and 3 state banks, with top 10 banks holding 88.5% of assets.

• Strong profitability: ROAE 24%, ROAA 2.1%, NPL ratio 1.9%, and CET1 ratio 15%.

• Customer deposits comprise 64% of assets; low external funding reliance.

• TL loan growth robust at 30% YoY in 2024; FC loans rebounded 31% after years of deleveraging.

• Dedollarization continues as FC-protected deposits unwind and convert to TL.

Garanti BBVA corporate profile & financial highlights

• 795 branches, 22,664 employees, 27.7 million customers, and 3.0 trillion TL in assets as of 2024.

• Net profit reached 92.2 bn TL in 2024, with ROAE at 33% and CET1 at 14.7%.

• BBVA owns 85.97% of shares; market capitalization at 575bn TL ($15.7bn) as of March 2025.

• Leading TL lending market share (21.8%), high demand deposit base (39%), and strong liquidity buffers.

• Cost/income ratio at 44%, fees/opex at 91%, and OPEX/avg. assets at 4.1%.