Q4 2025 Turkiye Garanti Bankasi AS Earnings Call Transcript
Key Points
- Turkiye Garanti Bankasi AS (TKGBY) achieved a cumulative net income of TRY111 billion in 2025, marking a 21% year-over-year growth.
- The bank maintained a strong return on equity (ROE) of 29%, which would have been around 30% excluding tax regulation impacts.
- Core banking revenues grew for eight consecutive quarters, with a 11% quarter-on-quarter increase in the fourth quarter, driven by higher net interest income.
- The bank's asset growth was fueled by higher-yielding customer-driven sources, with performing loans increasing to 58% of assets.
- Turkiye Garanti Bankasi AS (TKGBY) maintained a solid capital adequacy ratio of 17.5% and a Common Equity Tier 1 (CET1) ratio of 13.1%.
- The bank's net provisions increased in the fourth quarter, reflecting the absence of exceptional provision reversals from previous quarters.
- The NPL (Non-Performing Loan) ratio increased modestly to 3.1%, driven by robust consumer and credit card growth.
- Stage 2 loan coverage ratio declined due to improved repayment performance, with foreign currency stage 2 loans coverage at 16%.
- Operating expenses grew by 67%, driven by investments in customer acquisition and enhancements in customer experience.
- The bank's net interest margin was negatively impacted by CPI linker's net contribution, which was minus 0.4% on an annual basis.
Good afternoon and welcome to Garanti BBVA's 2025 financial results and 2026 operating plan guidance webcast. Thank you for joining us today.
Presenting on behalf of Garanti BBVA, we have our CEO Mr. Mahmut Akten; our CFO Mr. Atıl Ãzus; and our Head of Investor Relations, Ms. [Ceyda Akınç].
(Operator Instructions)
With that, I now would like to hand over to management for their presentation.
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Hello, everyone, and thank you for joining us. We are excited to be with you on another earnings call.
Before getting into our financial performance details, let's, as usual, go over the broader macroeconomic environment.
The Turkish economy grew by 1% QonQ in the third quarter and for the fourth quarter, we now cast a slightly positive quarterly growth. Therefore, parallel to our previous expectations, we maintain our GDP forecast at 3.7% in '25 and 4% in '26, consistent with
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