Garanti BBVA achieved a rapid increase in net turnover profit in 2022, which exceeded expectations, albeit finitely.
According to the financial results sent from the bank to the Public Disclosure Platform (KAP), the bank achieved a net transfer profit of 58.51 billion TL in 2022. In 2021, the bank’s profit was recorded as 13.60 billion TL. The market’s expectation for 2022 was that Garanti BBVA would make a profit of TL 58.28 billion.
In the last quarter of 2022, Garanti BBVA announced a net transfer profit of 19.8 billion TL. In the third quarter, the net turnover profit of the bank was 17.5 billion TL.
A rapid increase was recorded in the net interest income of the bank throughout 2022. Net interest income in 2022 was TL 83.32 billion. In 2021, 33.64 billion TL of revenue was written in this item. Net price and board income increased by 96 percent compared to the previous year and reached TL 16.63 billion.
According to the 2022 results, the bank’s TL loans increased by 79 percent compared to 2021 and reached 471.7 billion TL. TL deposits, on the other hand, increased by 138 percent to TL 424.1 billion.
Despite a strong increase in profits, the bank achieved an average return on equity at the rate of inflation, as seen throughout the branch. According to the results, the bank’s return on equity in 2022 was 51 percent. In 2021, this rate was 23.2 percent.
While the core capital adequacy ratio was 14.5 percent in 2022, the capital adequacy ratio was recorded as 16.8 percent. The capital adequacy ratio became 17.5 percent when the free provisions of 8 billion TL in the balance sheet were excluded.
Expects average return on equity above 28 percent in 2023
Along with its 2022 financial results, Garanti BBVA also announced its expectations for 2023.
Accordingly, annual TL loan growth in 2023 is expected to equal the average CPI. Annual FX loan growth in dollar terms is expected to be flat in 2023. Anticipating a 185 basis point contraction in the core net interest margin in 2023, Garanti BBVA announced its 2023 expectation for net credit risk cost as 100 basis points.
While the Bank expects a growth in net prices and committees as much as the average CPI in 2023, it has predicted that the growth in operational consumption will be 100 percent.
Following these expectations, the bank claimed an average return on equity of over 28 percent in 2023.