The following is a summary of the Turkiye Garanti Bankasi A.S. (TKGBF) Q2 2024 Earnings Call Transcript:
Financial Performance:
Garanti Bank reported a net income of TRY 44.6 billion in the first half of 2024, marking a 32% year-on-year growth.
The bank achieved a return on average assets of 3.7% and a return on average equity of 34.2%.
Core net interest income increased to TRY 10.6 billion, showing significant strength compared to competitors.
Business Progress:
The bank has a customer-focused approach which is evident from continued growth in core banking revenues by 63% year-on-year.
They managed a 9% Turkish lira lending growth amidst regulatory caps, focusing on investment, export, credit cards, and earthquake-affected area loans.
Garanti has maintained leadership in Turkish lira lending, reinforced by strong digital engagement with nearly 16 million digital active customers.
Opportunities:
Continued focus on increasing core banking revenue and managing customer-driven assets efficiently.
The bank's plans include further digital expansion and tapping into robust fee-generating lines, especially in payment systems.
Risks:
There's an expected normalization in NPLs for 2025 due to deteriorations in the wholesale portfolio, indicating a potential rise in cost of risk above 200 basis points.
More details: TURKIYE GARANTI BANKASI AS IR
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
