Turkiye Garanti Bankasi AS (FRA:GBKB)

Q2 2025 Turkiye Garanti Bankasi AS Earnings Call Transcript

Aug 6, 2025 / 10:59 AM GMT

Release Date Price: €2.9 (-3.97%)

Transcript

Key Points

Positve

Turkiye Garanti Bankasi AS (IST:GARAN) reported a strong net income of 28.2 billion TL for the second quarter, marking an 11% quarterly EPS growth.
The bank's core banking revenues increased both quarterly and annually, supported by resilient net interest income (NAI) and robust fee income.
The bank's asset mix, driven by lending, remains a key differentiator with performing loans share increasing to 57%, above the sector average.
Turkiye Garanti Bankasi AS maintained strong capital ratios, with a common equity tier 1 ratio of 12.6% and a total capital adequacy ratio of 15.6%.
The bank's digital engagement is deepening, with over 17 million digitally active customers and 99% of transactions conducted through digital channels.

Negative

The bank's net interest margin (NIM) faced compression due to market volatility and tighter monetary conditions, with a delay in expected improvement.
There is a potential downside risk to the bank's NIM guidance, with expectations of only slight improvement in the third quarter.
The bank's cost of risk is expected to increase towards 2% by year-end, up from the current level, due to normalization in net cost of risk.
Deposit growth was muted in the second quarter, with some market share loss and higher swap costs impacting the bank's funding strategy.
Operating expenses increased by 69% year over year in the first half, driven by planned investments, which could pressure profitability if not managed effectively.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

GARAN.IS - Turkiye Garanti Bankasi AS
Q2 2025 Turkiye Garanti Bankasi AS Earnings Call
Aug 06, 2025 / NTS GMT

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Presentation
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Unidentified_1 [1]
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Hello and thank you for joining us, guarantee BBVA's 2nd quarter 2025 financial results webcast. Our CEO, Mr. Mamakan, our CFO, Mr. Aidanguilar, and our head of investor relations, Ms. Jadaun will be present. Today as always, there will be a Q&A session following the presentation, and you will be able to ask your question either via raise hand button or by typing them into the que area. I now hand over our management for the presentation.

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Unidentified_2 [2]
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Hello everyone and thank you for joining us. Today we are excited to walk you

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