Turkiye Garanti Bankasi (GARAN) Corporate Presentation summary

Turkish economy overview

• GDP growth forecast for 2025 is 3.5%, with risks tilted to the downside due to monetary tightening and fiscal discipline concerns.

• Annual consumer inflation decreased to 35.4% in May 2025, with a year-end forecast of 31%.

• Current account deficit improved to 0.8% of GDP in 2024, expected to slightly worsen to 1.3% in 2025.

• Fiscal consolidation targeted for 2025, with cash deficit to GDP assumed at 4%.

Turkish banking sector overview

• Sector assets total $958bn, dominated by top 4 private and 3 state banks.

• NPL ratio at 2.1%, customer deposits comprise 62% of assets, and CET-1 ratio is 13.2%.

• TL loan growth remains strong, FC loans rebounding, and dedollarization continues.

• Foreign currency protected deposits declined sharply, with conversion to TL deposits accelerating.

Corporate profile & financial highlights

• Market capitalization of $12bn, highest ROAE (30.7%) among Tier-1 private banks.

• Leading market shares in TL loans (21.7%), consumer loans (22.7%), and customer deposits (21.7%) among private banks.

• Customer-driven asset growth, with 55% of assets in loans, and strong retail and corporate deposit base.

• Solid asset quality: NPL ratio at 2.4%, total coverage at 3.3%, and 88% of SICR portfolio non-delinquent.

• Core banking revenue and net income driven by high-yielding TL loans and diversified fee base, with cost/income at 46%.

• Capital adequacy remains robust, with consolidated CAR at 16.2% and CET-1 at 13.0%.