Turkiye Garanti Bankasi (GARAN) investor relations material

Executive summary

• Net income for Q1 2026 reached TL 34 billion, up 32% year-over-year, with ROE/ROAE at 30–30.3% and strong core banking revenues.

• Total assets rose to TL 4.8 trillion, with loans comprising 56% of assets and customer deposits exceeding TL 3 trillion, making up 66% of assets.

• Sale of the Romanian subsidiary is ongoing, with related items reclassified as discontinued operations and closing expected in Q4 2026.

• ROAA stood at 2.9% for the quarter.

Financial highlights

• Net interest income rose 87% year-over-year to TL 71.4 billion, with NIM at 6.1% in Q1, highest among peers.

• Fee income grew 42% year-over-year, led by payment system and money transfer activities.

• Operating expenses rose 57% year-over-year, mainly due to HR cost adjustments.

• Cost/income ratio remained stable at 46.3%, lowest among peers.

• NPL ratio increased to 3.2% from 2.4% YoY.

Outlook and guidance

• 2026 TL loan growth guidance raised to 40% YoY, above the initial 30–35% range; FC loan growth expected mid-single digit.

• Funding costs expected to rise further in Q2 2026, with temporary NIM compression and margin recovery anticipated in H2.

• Downside risk to ROE from higher inflation and margin pressure, but nominal targets may still be met.

• GDP growth forecast for 2026 revised down to 4% with downside risks; inflation expected above 30% until September.

• Sale of Romanian subsidiary expected to provide additional support to year-end results.