Garanti Group Romania, one of the most dynamic financial groups on the local market, composed of Garanti Bank, Garanti Leasing and Garanti Consumer Finance, has recorded a consolidated net profit of RON 143.4 million in 2017, representing the best performing year in Romania.
Furthermore, last year, Garanti Group registered consolidated net revenues of RON 620.7 million, as well as an increase of almost 13% in its total asset volume, reaching RON 11.44 billion.
Garanti Bank, only on a solo basis, registered a RON 109.7 million net profit at the end of December, reaching a Return on Equity (ROE) of above 10%, incurring profitability of all its business lines. The bank’s efficient business strategy of growing a healthy portfolio led to a 8.1% year-on-year increase in its loan volume (from RON 6.71 billion in 2016, to RON 7.25 billion in 2017), and a 22.8% year-on-year increase in its deposit volume (from RON 6.24 billion in 2016, to RON 7.67 billion in 2017).
Garanti Bank’s risk indicators enjoy a comfortable level. The NPL ratio has continuously decreased, being considerably below the market average, while the NPL coverage rate by provisions is above 50%. Both capital and liquidity ratios further improved, showing a strong capitalization and a sound liquidity position, while having a low cost of risk reflecting the long term sustainability of the bank’s business model.
“2017 was our best year in Romania and we have a long term strategy of being a trustworthy financial partner to our clients, across all business lines, and to maintain our profitability in a sustainable manner. We are a bank of systemic importance and we aim to continue to consolidate our position. We will keep our focus on our employees’ and customers’ satisfaction and always increase the quality of our services, by investing in our digital channels”, stated Ufuk Tandoğan, CEO Garanti Group Romania.
Garanti Bank is one of the top five credit card issuers on the market, with Bonus Card being one of the most popular payment instruments, while its national POS network exceeds 12,000 units.
Garanti Bank, with its internet banking and mobile banking products, which serve more than 110,000 customers, was awarded in July last year, by world-renowned magazine Global Finance, as “Best Consumer Digital Bank in Romania”. The distinction was granted within the “2017 World’s Best Consumer Digital Banks in Central and Eastern Europe Competition”.
As an integrated financial services group, Garanti Group’s non-banking institutions also showed solid results in 2017: Garanti Consumer Finance reached a RON 19.6 million net profit and Garanti Leasing registered a net profit of RON 14.2 million.
Garanti Group Romania is held by Turkiye Garanti Bankasi AS (TGB), the second largest private bank in Turkey. In 2017, TGB posted a consolidated net income of TL 6.39 billion (EUR 1.41 billion) and an asset size of TL 356.33 billion (EUR 78.68 billion), while its contribution to the economy through cash and non-cash lending totaled TL 285.55 billion (EUR 63.05 billion). TGB serves to its 15 million customers in corporate, commercial, SME, and consumer segments offering fully integrated financial services.
Spanish financial group Banco Bilbao Vizcaya Argentaria (BBVA) is the majority shareholder of TGB. Last year, BBVA registered a consolidated asset size of EUR 690.06 billion and a net attributable profit of EUR 3.52 billion.