Turkiye Garanti Bankasi (GARAN) Q3 2025 earnings summary

Executive summary

• Net income for the first nine months of 2025 reached TL 84.5 billion, up 26% year-over-year, with ROAE at 30.9% and ROAA at 3.1%.

• Achieved record Q3 net income of 30.9 billion TL, with sustained seven consecutive quarters of core banking revenue growth driven by strong NII and fee generation.

• Maintained leadership in TL loans, consumer loans, credit cards, and SME lending, with market share in TL loans at 22% among private banks.

• Asset growth was driven by customer activity, with performing loans up 39% year-to-date and customer deposits growing 38.7% to TL 2.91 trillion.

• 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% year-over-year to TL 137.85 billion, with net fees and commissions up 54% to TL 104.41 billion.

• Net interest margin reached 5.3% in Q3, with NII at 46.5 billion TL, the highest among Tier 1 private peers.

• Operating expenses increased 70% year-over-year, mainly due to digitalization, customer acquisition, and inflation-driven HR cost adjustments.

• Fee base grew 54% year-over-year, covering 84% of operating expenses.

• Capital adequacy ratio (CAR) was 16.3% (without regulatory forbearance), down from 18.2% at year-end 2024.

Outlook and guidance

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

• NIM expansion guidance revised to 1.5%-2% amid higher policy rate expectations and TL deposit regulations.

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

• Fee growth guidance raised, with fee coverage of OPEX expected at 90%-95%.

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