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Turkish Banking Sector in Brief
Turkish banking sector is the second largest CEE
banking system with an asset size of USD 728 billion.
In Turkey, there are 49 banks; 32 are deposit taking
(including 3 state-owned), 13 are investment and
development and 4 are participation banks. Turkish
banking sector is well-regulated, monitored and
governed by two primary regulatory authorities; the
Banking Regulation and Supervision Agency (BRSA) and
the Central Bank of Republic of Turkey (CBRT).
• Underpenetrated market with strong growth potential...
– Total Assets/GDP2: 90% compared to 345% in EU
area
– Total Loans/GDP2: 51% compared to 116% in EU
area
– Total Customer Deposits/GDP2: 52% compared to
116% in EU area
Total Assets
(USD billion)
CAGR: 17%
709
728
• Highly liquid...
– Deposits fund 56% of assets
– Loans/Deposits ratio: 106%
613 600
468 450
170
217
288
519
Top 10
Private
Banks:
337
• Solid asset quality...
– NPL ratio1: 2.8% compared to 2.8% in LATAM, 10.2%
in CEEMEA and 9.2% in EU area
• No open position
65%
State
Banks:
The world’s
favorite
Turkish bank
Turkey is the 17th largest economy in the world as of 2012 and carries the potential of becoming a leading economy
with its young band dynamic population (average age: 30.1 as of 2012). After being one of the fastest growing
countries in the world in 2010 and 2011; Turkish economy slowed down, experiencing a growth of only 2.2%. While
growth remains as the focus in 2013, Turkey manages bsustainable fiscal discipline which resulted in a central budget
primary surplus of 1.4% of GDP and a much lower general government gross debt to GDP ratio of 36.4% in 2012
compared to large European as well as Central Eastern Europe countries.
1H2013
Source: Figures are based on BRSA unconsolidated financials
Macro-Economic Indicators
2007
2008
2009
2010
2011
2012
1H2013
Real GDP Growth
4.7%
0.7%
-4.8%
9.2%
8.8%
2.2%
3.0%*
Current Account Balance / GDP
-5.8%
-5.4%
-2.0%
-6.2%
-9.7%
-6.1%
-5.9%*
Current Account Deficit (USD bn)
37.8
40.4
12.2
45.4
75.1
47.7
47.7*
Net FDI (USD bn)
19.9
17.2
7.1
7.6
13.7
8.5
8.1*
EU Defined Net Debt Stock / GDP
39.9%
40.0%
46.1%
42.3%
39.1%
36.2%
35.7%*
Policy Rate (O/N)
15.75% 15.0%
6.5%
6.5%**
5.75%
5.5%
4.5%
5.0%
12.5%
5.0%
9.0%
3.5%
6.5%
10.4%
6.2%
8.3%
Interest Rate Corridor***
Inflation (CPI)
Source: BRSA monthly data for commercial banks as of June 2013. US$/TL:1.91.
Figures are based on BRSA unconsolidated data.
1
Source: Latest data from the IMF-FSI database. Represent country averages,
most of which are based on 4Q12 figures.
2
ECB, TUIK and BRSA for commercial banks only, as of 1Q13
28%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
www.garantibank.com
Main strengths include;
• well-capitalized and underleveraged...
– Sound solvency with Basel II CAR of 15.6%
– Tier-1 Ratio1:15.1% compared to 13.5% in LATAM,
14.3% in CEEMEA and 13.3% in EU area
– Low leverage1: 7.3x compared to 7.9x in LATAM, 9.2x
in CEEMEA and 14.1x in EU area
Turkey in Brief
8.4%
10.1%
6.5%
6.4%
* as of March 2013
** Since May 2010, one-week repo rate replaced the O/N rate as the policy rate.
*** In 2011 CBRT started utilizing interest rate corridor as a policy tool.
Source: CBRT, Turkstat and Turkish Treasury
Top Private Banks by Asset Size
(USD billion)
0
20
40
60
80
100
120
10 Year Cumulative Shareholder Return in Borsa Istanbul (BIST) *
Foreign
Ownership %
3,000
İşbank
-
Garanti
25.0%
(USD)
Garanti
BIST Banks Index
BIST 100 Index
2,500
2,000
9.9%
YKB
40.9%
DenizBank
99.9%
Finansbank*
94.8%
TEB
67.9%
ING
100.0%
HSBC*
100.0%
Şekerbank*
33.7%**
Source: Figures are based on BRSA consolidated data as of June 30, 2013.
Note: Exchange rate used for currency conversion is based on Garanti’s June 30, 2013 dated financials.
* As of March 31,2013; since the banks' 1H13 earnings announcement has not yet been released.
** Samruk-Kazyna and BTA Securities hold 21.96% and 11.76%, respectively.
1,500
1,000
For further information please contact Garanti Investor Relations.
Address: Levent, Nispetiye Mah. Aytar Cad. No: 2, 34340, Beşiktaş, Istanbul-Turkey
Tel: +90 (212) 318 23 50
Fax: +90 (212) 216 59 02
Web: www.garantibank.com
e-mail: [email protected]
www.tayburnkurumsal.com
Akbank
500
100
06/2003
Garanti_IR
Disclaimer: This report has been prepared by Garanti Bank Investor Relations Department and is provided for information purpose only. Although the
information on which the report is based has been obtained from sources which we believe to be reliable, no representation or warranty is made by
Garanti Bank for the accuracy or completeness of the information contained herein. Information contained herein is subject to change without notice.
Garanti Bank and/or any person connected with it accepts no liability whatsoever for any direct or consequential loss of any kind arising out of the use of
this document or any part of its contents.
2004
2005
2006
2007
2008
2009
2010
2011
2012
06/2013
* Figures are based on daily USD/TL CBRT ask rate.
Garanti shares continuously outperformed the market since 2003.
Profile 1H2013
10-year return of USD 100 in...
BIST 100 Index; 5x
BIST Banks Index; 7x
vs.
Garanti; 16x
Turkish Banking Sector in Brief
Turkish banking sector is the second largest CEE
banking system with an asset size of USD 728 billion.
In Turkey, there are 49 banks; 32 are deposit taking
(including 3 state-owned), 13 are investment and
development and 4 are participation banks. Turkish
banking sector is well-regulated, monitored and
governed by two primary regulatory authorities; the
Banking Regulation and Supervision Agency (BRSA) and
the Central Bank of Republic of Turkey (CBRT).
• Underpenetrated market with strong growth potential...
– Total Assets/GDP2: 90% compared to 345% in EU
area
– Total Loans/GDP2: 51% compared to 116% in EU
area
– Total Customer Deposits/GDP2: 52% compared to
116% in EU area
Total Assets
(USD billion)
CAGR: 17%
709
728
• Highly liquid...
– Deposits fund 56% of assets
– Loans/Deposits ratio: 106%
613 600
468 450
170
217
288
519
Top 10
Private
Banks:
337
• Solid asset quality...
– NPL ratio1: 2.8% compared to 2.8% in LATAM, 10.2%
in CEEMEA and 9.2% in EU area
• No open position
65%
State
Banks:
The world’s
favorite
Turkish bank
Turkey is the 17th largest economy in the world as of 2012 and carries the potential of becoming a leading economy
with its young band dynamic population (average age: 30.1 as of 2012). After being one of the fastest growing
countries in the world in 2010 and 2011; Turkish economy slowed down, experiencing a growth of only 2.2%. While
growth remains as the focus in 2013, Turkey manages bsustainable fiscal discipline which resulted in a central budget
primary surplus of 1.4% of GDP and a much lower general government gross debt to GDP ratio of 36.4% in 2012
compared to large European as well as Central Eastern Europe countries.
1H2013
Source: Figures are based on BRSA unconsolidated financials
Macro-Economic Indicators
2007
2008
2009
2010
2011
2012
1H2013
Real GDP Growth
4.7%
0.7%
-4.8%
9.2%
8.8%
2.2%
3.0%*
Current Account Balance / GDP
-5.8%
-5.4%
-2.0%
-6.2%
-9.7%
-6.1%
-5.9%*
Current Account Deficit (USD bn)
37.8
40.4
12.2
45.4
75.1
47.7
47.7*
Net FDI (USD bn)
19.9
17.2
7.1
7.6
13.7
8.5
8.1*
EU Defined Net Debt Stock / GDP
39.9%
40.0%
46.1%
42.3%
39.1%
36.2%
35.7%*
Policy Rate (O/N)
15.75% 15.0%
6.5%
6.5%**
5.75%
5.5%
4.5%
5.0%
12.5%
5.0%
9.0%
3.5%
6.5%
10.4%
6.2%
8.3%
Interest Rate Corridor***
Inflation (CPI)
Source: BRSA monthly data for commercial banks as of June 2013. US$/TL:1.91.
Figures are based on BRSA unconsolidated data.
1
Source: Latest data from the IMF-FSI database. Represent country averages,
most of which are based on 4Q12 figures.
2
ECB, TUIK and BRSA for commercial banks only, as of 1Q13
28%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
www.garantibank.com
Main strengths include;
• well-capitalized and underleveraged...
– Sound solvency with Basel II CAR of 15.6%
– Tier-1 Ratio1:15.1% compared to 13.5% in LATAM,
14.3% in CEEMEA and 13.3% in EU area
– Low leverage1: 7.3x compared to 7.9x in LATAM, 9.2x
in CEEMEA and 14.1x in EU area
Turkey in Brief
8.4%
10.1%
6.5%
6.4%
* as of March 2013
** Since May 2010, one-week repo rate replaced the O/N rate as the policy rate.
*** In 2011 CBRT started utilizing interest rate corridor as a policy tool.
Source: CBRT, Turkstat and Turkish Treasury
Top Private Banks by Asset Size
(USD billion)
0
20
40
60
80
100
120
10 Year Cumulative Shareholder Return in Borsa Istanbul (BIST) *
Foreign
Ownership %
3,000
İşbank
-
Garanti
25.0%
(USD)
Garanti
BIST Banks Index
BIST 100 Index
2,500
2,000
9.9%
YKB
40.9%
DenizBank
99.9%
Finansbank*
94.8%
TEB
67.9%
ING
100.0%
HSBC*
100.0%
Şekerbank*
33.7%**
Source: Figures are based on BRSA consolidated data as of June 30, 2013.
Note: Exchange rate used for currency conversion is based on Garanti’s June 30, 2013 dated financials.
* As of March 31,2013; since the banks' 1H13 earnings announcement has not yet been released.
** Samruk-Kazyna and BTA Securities hold 21.96% and 11.76%, respectively.
1,500
1,000
For further information please contact Garanti Investor Relations.
Address: Levent, Nispetiye Mah. Aytar Cad. No: 2, 34340, Beşiktaş, Istanbul-Turkey
Tel: +90 (212) 318 23 50
Fax: +90 (212) 216 59 02
Web: www.garantibank.com
e-mail: [email protected]
www.tayburnkurumsal.com
Akbank
500
100
06/2003
Garanti_IR
Disclaimer: This report has been prepared by Garanti Bank Investor Relations Department and is provided for information purpose only. Although the
information on which the report is based has been obtained from sources which we believe to be reliable, no representation or warranty is made by
Garanti Bank for the accuracy or completeness of the information contained herein. Information contained herein is subject to change without notice.
Garanti Bank and/or any person connected with it accepts no liability whatsoever for any direct or consequential loss of any kind arising out of the use of
this document or any part of its contents.
2004
2005
2006
2007
2008
2009
2010
2011
2012
06/2013
* Figures are based on daily USD/TL CBRT ask rate.
Garanti shares continuously outperformed the market since 2003.
Profile 1H2013
10-year return of USD 100 in...
BIST 100 Index; 5x
BIST Banks Index; 7x
vs.
Garanti; 16x
Turkish Banking Sector in Brief
Turkish banking sector is the second largest CEE
banking system with an asset size of USD 728 billion.
In Turkey, there are 49 banks; 32 are deposit taking
(including 3 state-owned), 13 are investment and
development and 4 are participation banks. Turkish
banking sector is well-regulated, monitored and
governed by two primary regulatory authorities; the
Banking Regulation and Supervision Agency (BRSA) and
the Central Bank of Republic of Turkey (CBRT).
• Underpenetrated market with strong growth potential...
– Total Assets/GDP2: 90% compared to 345% in EU
area
– Total Loans/GDP2: 51% compared to 116% in EU
area
– Total Customer Deposits/GDP2: 52% compared to
116% in EU area
Total Assets
(USD billion)
CAGR: 17%
709
728
• Highly liquid...
– Deposits fund 56% of assets
– Loans/Deposits ratio: 106%
613 600
468 450
170
217
288
519
Top 10
Private
Banks:
337
• Solid asset quality...
– NPL ratio1: 2.8% compared to 2.8% in LATAM, 10.2%
in CEEMEA and 9.2% in EU area
• No open position
65%
State
Banks:
The world’s
favorite
Turkish bank
Turkey is the 17th largest economy in the world as of 2012 and carries the potential of becoming a leading economy
with its young band dynamic population (average age: 30.1 as of 2012). After being one of the fastest growing
countries in the world in 2010 and 2011; Turkish economy slowed down, experiencing a growth of only 2.2%. While
growth remains as the focus in 2013, Turkey manages bsustainable fiscal discipline which resulted in a central budget
primary surplus of 1.4% of GDP and a much lower general government gross debt to GDP ratio of 36.4% in 2012
compared to large European as well as Central Eastern Europe countries.
1H2013
Source: Figures are based on BRSA unconsolidated financials
Macro-Economic Indicators
2007
2008
2009
2010
2011
2012
1H2013
Real GDP Growth
4.7%
0.7%
-4.8%
9.2%
8.8%
2.2%
3.0%*
Current Account Balance / GDP
-5.8%
-5.4%
-2.0%
-6.2%
-9.7%
-6.1%
-5.9%*
Current Account Deficit (USD bn)
37.8
40.4
12.2
45.4
75.1
47.7
47.7*
Net FDI (USD bn)
19.9
17.2
7.1
7.6
13.7
8.5
8.1*
EU Defined Net Debt Stock / GDP
39.9%
40.0%
46.1%
42.3%
39.1%
36.2%
35.7%*
Policy Rate (O/N)
15.75% 15.0%
6.5%
6.5%**
5.75%
5.5%
4.5%
5.0%
12.5%
5.0%
9.0%
3.5%
6.5%
10.4%
6.2%
8.3%
Interest Rate Corridor***
Inflation (CPI)
Source: BRSA monthly data for commercial banks as of June 2013. US$/TL:1.91.
Figures are based on BRSA unconsolidated data.
1
Source: Latest data from the IMF-FSI database. Represent country averages,
most of which are based on 4Q12 figures.
2
ECB, TUIK and BRSA for commercial banks only, as of 1Q13
28%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
www.garantibank.com
Main strengths include;
• well-capitalized and underleveraged...
– Sound solvency with Basel II CAR of 15.6%
– Tier-1 Ratio1:15.1% compared to 13.5% in LATAM,
14.3% in CEEMEA and 13.3% in EU area
– Low leverage1: 7.3x compared to 7.9x in LATAM, 9.2x
in CEEMEA and 14.1x in EU area
Turkey in Brief
8.4%
10.1%
6.5%
6.4%
* as of March 2013
** Since May 2010, one-week repo rate replaced the O/N rate as the policy rate.
*** In 2011 CBRT started utilizing interest rate corridor as a policy tool.
Source: CBRT, Turkstat and Turkish Treasury
Top Private Banks by Asset Size
(USD billion)
0
20
40
60
80
100
120
10 Year Cumulative Shareholder Return in Borsa Istanbul (BIST) *
Foreign
Ownership %
3,000
İşbank
-
Garanti
25.0%
(USD)
Garanti
BIST Banks Index
BIST 100 Index
2,500
2,000
9.9%
YKB
40.9%
DenizBank
99.9%
Finansbank*
94.8%
TEB
67.9%
ING
100.0%
HSBC*
100.0%
Şekerbank*
33.7%**
Source: Figures are based on BRSA consolidated data as of June 30, 2013.
Note: Exchange rate used for currency conversion is based on Garanti’s June 30, 2013 dated financials.
* As of March 31,2013; since the banks' 1H13 earnings announcement has not yet been released.
** Samruk-Kazyna and BTA Securities hold 21.96% and 11.76%, respectively.
1,500
1,000
For further information please contact Garanti Investor Relations.
Address: Levent, Nispetiye Mah. Aytar Cad. No: 2, 34340, Beşiktaş, Istanbul-Turkey
Tel: +90 (212) 318 23 50
Fax: +90 (212) 216 59 02
Web: www.garantibank.com
e-mail: [email protected]
www.tayburnkurumsal.com
Akbank
500
100
06/2003
Garanti_IR
Disclaimer: This report has been prepared by Garanti Bank Investor Relations Department and is provided for information purpose only. Although the
information on which the report is based has been obtained from sources which we believe to be reliable, no representation or warranty is made by
Garanti Bank for the accuracy or completeness of the information contained herein. Information contained herein is subject to change without notice.
Garanti Bank and/or any person connected with it accepts no liability whatsoever for any direct or consequential loss of any kind arising out of the use of
this document or any part of its contents.
2004
2005
2006
2007
2008
2009
2010
2011
2012
06/2013
* Figures are based on daily USD/TL CBRT ask rate.
Garanti shares continuously outperformed the market since 2003.
Profile 1H2013
10-year return of USD 100 in...
BIST 100 Index; 5x
BIST Banks Index; 7x
vs.
Garanti; 16x
About Garanti
In Brief
Established in 1946, Garanti is Turkey’s second largest
private bank by total assets of USD 103.6 billion.
Garanti’s core banking activities include retail, corporate,
commercial, SME and payment systems. Garanti
operates as an integrated financial services company
with a total of eight financial subsidiaries offering services
in pension, leasing, factoring, securities and asset
management along with its international subsidiaries in
the Netherlands, Russia and Romania.
Garanti provides a wide range of financial services to its
12 million customers through an omni-channel
distribution network of 950 domestic branches; 6 foreign
branches in Cyprus, one in Luxembourg and one in
Malta; 3 international representative offices in London,
Düsseldorf and Shanghai; more than 3,600 ATMs; an
award-winning Call Center; state-of-the-art internet and
mobile banking platforms built on cutting-edge
technological infrastructure as well as its new banking
application, “iGaranti” serving socially active and
connected customers.
Consistent delivery of strong results underpinned by the
highest ordinary banking income generation capacity.
Garanti represents the highest ratings assessed to a
Turkish Bank.
Note: Exchange rate used for currency conversion is based on Garanti’s
June 30, 2013 dated financials.
Key Performance Indicators
Financial Subsidiaries
Shareholder Structure
Garanti’s majority owners are Doğuş Holding Co. and
Banco Bilbao Vizcaya Argentaria SA (BBVA) operating
under the principle of equal partnership.
Total Assets
Total Performing Loans
Total Deposits
1st Half Net Income
USD 103.6 Billion
USD 60.3 Billion
USD 58.8 Billion
USD 1.1 Billion
Doğuş Group 24.23%
Others 50.76%
BBVA 25.01%
• Garanti is the most valuable company in the BIST with
USD 18.3 billion market capitalization as of June 30, 2013.
Garanti also represents the highest floating market
capitalization in the BIST.
• Garanti’s actual free float ratio is 49.93%*. Foreign
ownership in the actual free float is 96%.
• Garanti is listed on Borsa Istanbul (BIST) since 1990 under
the ticker symbol “GARAN” and the London Stock
Exchange Main Market (LSE).
• In 1993, the Bank became the first Turkish bank to offer its
shares to international markets in the form of
American/Global Depositary Receipts (ADR/GDR). These
international DRs are currently traded on the International
Order Book (IOB) which is the international market of
London Stock Exchange (LSE).
• In 2012, Garanti is entitled to join the prestigious tier of the
U.S. Over-the-Counter (OTC) market, OTCQX International
Premier, where select OTC companies with the highest
financial standards and superior information availability
are traded.
* Source: Central Registry Agency, as of June 30, 2013.
Return on Average Equity (ROAE)
Return on Average Assets (ROAA)
Cost/Income (C/I)
Non Performing Loans (NPL) Ratio
Capital Adequacy Ratio (CAR)
20.8%
2.4%
41.2%
2.3%
15.2%
Ratings (Moody's/S&P/Fitch)
Total Branches
Personnel
ATM
POS*
Total Customers
Internet Banking Customers**
Mobile Banking Customers**
Credit Cards
Debit Cards
Market Position
Category
• Competent and dynamic employee base led by a
management team with proven track record,
• Strong liquidity ratios and proven access to funding,
particularly deposits,
• Proprietary and business aligned IT platform with high
operational efficiency and well-integration with the
subsidiaries,
• Human-centric approach in all possible dimensions,
• Strong brand reputation as a product and service
innovator,
• Service through its wide branch & ATM network and
digital channels within its Omni-Channel Distribution
Strategy,
• Leader in Digital Banking through advanced
technology and interactive platforms with wide range of
customized services,
• Commitment to corporate governance, ethics and
corporate values.
•17 years of presence in Russia
• Focus on corporate and commercial banking services
• Established relationships with large-scale highly
credible Russian companies
• Sustainable profitability with sound asset quality
Assets: USD 455 million
Total Assets
12.8%
#2
Total Performing Loans
12.8%
#2
FC Loans
#2
17.6%
C.C. Issuing (Cumulative)
Total Customer Deposits
Customer Demand Deposits
Electronic Fund Transfers (EFT)
Bancassurance - Non-Life Insurance
Bancassurance - Life Insurance
#2
19.2%
#1
13.7%
#2
12.3%
#2
13.6%
Mobile Banking3
Assets
#4 in 2000
#2 in 1H 2013
#2
17.0%
44.5%
17.6%
15.4%
10.8%
Loans
#5 in 2000
Customer
Deposits
#5 in 2000
#2 in 1H 2013
• #2 in BIST trading volume with 7.2% market share
• Leading brokerage house, a major player in M&A,
public offerings, privatizations as well as settlement
and custody services
• Equity model portfolio outperforming BIST-100 by 18%
on average since 2009
• #1 Bookrunner in Turkey with a total IPO and SPO
size of USD 2.7 billion in the last 5 years
• #1 in number of pension participants with 19% market
share
• #4 in pension fund size with 16% market share
• #3 in life insurance premium production
• #3 in number of insured
• Effective use of bancassurance via Garanti’s extensive
distribution network
Total Funds: USD 1.9 billion
Executed M&A Transactions: USD 7.1 billion
Corporate Responsibility
Within the systematic and long-term work carried out by
Garanti within the scope of social responsibility, Garanti
is committed to creating value for the society, individuals
and its stakeholders. A large part of the value created
for society by these projects is realized in various fields
as; education, culture, art, informing the business
community, sports and nature.
#1
#1
• #1 in number of contracts with 16% market share
• Presence in operational leasing sector with Garanti
Fleet since 2007
#1
Corporate Governance
Garanti is committed to corporate governance as a
principal component of its strategy to maintain long-term
sustainable growth by continuously creating value for all
its stakeholders. For Garanti, the essentials of a good
corporate governance practice are transparency,
accountability, straightforwardness, fairness, integrity
and ethical values. These essentials allow the Bank to
implement an effective risk management system and
play a key role for the Bank to demonstrate full
compliance with the law and regulations, and to
establish open and transparent communication with its
stakeholders. The Remuneration Committee, the Audit
Committee and the Corporate Governance Committee
are the corner stones of the Bank’s corporate
governance structure.
2013 Highlights
Garanti,
• Became the first Bank in Turkey to have a Sustainability
Report rated at level “A”, in conformance with its
strategy to increase its transparency in the area of
sustainability.
• Continued to expand its network of Sustainability
Representatives that has been established to maximize
Garanti Bank employees’ positive contributions to the
Bank’s sustainability performance. Reaching 332
representatives in May, 2013, Garanti Bank has
become the first Bank to have such a large and robust
sustainability organization within Turkey.
• Submitted its 4th report to Carbon Disclosure Project;
the international, not-for-profit organization providing
the only global system for companies and cities to
measure, disclose, manage and share vital
environmental information.
• Set a new short-term target to reduce total emissions
by 1.5% per total assets under management by 2013
against 2012 baseline.
• Supported “UNEP FI Introductory Training Workshop
on Environmental and Social Risk Analysis”, which was
organized by United Nations Environment Programme
– Finance Initiative.
• Supported the 1st “Sustainable Finance Forum” of
Turkey, jointly organized by United Nations Global
Compact, UNEP-FI and the Turkish Business Council
for Sustainable Development.
• Signed the “Manifesto for Energy Efficiency in
Buildings” published by the Turkish Business Council
for Sustainable Development (TBCSD), committing
itself to taking measures to ensure energy efficiency in
its office buildings, setting targets to reduce
greenhouse gas emissions, and reporting to the public
the progress made toward these targets.
Select Awards
#1
Finance Lease Receivables: USD 1.5 billion
Note: Based on BRSA unconsolidated financials as of June 30, 2013 for fair comparison with the sector
1
Rankings are among private banks, as of June 30, 2013.
2
Including consumer, commercial installment, overdraft accounts, credit cards and other
3
As of March, 2013
Assets Under Management: USD 4.8 billion
#2 in 1H 2013
#2
12.6%
• Turkey’s first asset management company
• Strong position in the sector with 14.4% market share
• Management of mutual funds and pension funds of
Garanti, discretionary portfolio management and
alternative investment management services
Assets: USD 2.3 billion
Ranking1
Market Shares
Mortgage Loans
• Robust balance sheet and high capital adequacy
ratios,
Assets: USD 5.7 billion
• 15 years of presence in the country
• Launched retail banking in Romania in 2006 - first
Consumer Banking project outside of Turkey
• 78 branches, >275k customers, >220k plastic cards
• Specialized in retail, SME and corporate banking
• Bonus Card, Romania’s first international chip-based
credit card with a reward program
C.C. Acquiring (Cumulative)
Key Strengths
• Netherlands based boutique bank serving customers
globally
• 20+ years of presence in the country
• Specialized in trade finance, structured finance and
private banking
• Branch in Germany; representative offices in
Switzerland, Turkey and Ukraine
Garanti's priorities to improve its sustainability performance are determined with careful reference to the feedback
obtained from a broad spectrum of stakeholders, the core of which consists of customers, employees, shareholders
and investors.
Figures are based on BRSA consolidated financials as of June 30, 2013.
Total Retail Loans2
To maintain long-term sustainable growth via continuous value creation.
Baa3/BB+/BBB
961
18,431
3,605
542,634
11,903,224
2,513,117
613,050
9,213,781
7,224,247
For Garanti, “sustainable development” means increasing the environmental, social and economic welfare of today’s
growing world population, without threatening the ecological balance and the needs of future generations.
* Includes shared POS.
** Active customers only - min. 1 login per quarter
Our Strategy
• Sustainable growth in lending while keeping sound
asset quality attributable to advanced risk
management systems and disciplined credit approval
process,
Sustainability
• #2 in factoring volume with 10.8% market share as
of March, 2013
• 20+ years of presence in the sector
• 34.82% of its shares are publicly traded in the BIST
• Highest rated factoring company in the BIST
Corporate Governance Index
Factoring Volume: USD 2.6 billion
Garanti was featured in Global Finance’s “Bright Stars:
World’s Best Banks 2013” annual survey as the Best
Bank in Turkey.
In the “Most Powerful Banks in the World” list of
Bloomberg Markets, Garanti ranked the 18th.
Garanti was honored with “Best Project Finance House”
in Turkey 2013 Awards by Global Banking & Finance.
Garanti was selected as the “Best Internet Bank in
Turkey” for the 10th time and also recognized as the “Best
in Social Media” in the World’s Best Internet Banks
Awards by Global Finance, one of the world’s premier
financial magazines.
Garanti also won the “Best Bill Payment & Presentment”
in the Consumer Internet Banks category and the “Best in
Online Treasury Services” in Corporate Internet Banks
category, both across Europe.
For the full list of awards and recognitions, please refer to www.garantibank.com
About Garanti
In Brief
Established in 1946, Garanti is Turkey’s second largest
private bank by total assets of USD 103.6 billion.
Garanti’s core banking activities include retail, corporate,
commercial, SME and payment systems. Garanti
operates as an integrated financial services company
with a total of eight financial subsidiaries offering services
in pension, leasing, factoring, securities and asset
management along with its international subsidiaries in
the Netherlands, Russia and Romania.
Garanti provides a wide range of financial services to its
12 million customers through an omni-channel
distribution network of 950 domestic branches; 6 foreign
branches in Cyprus, one in Luxembourg and one in
Malta; 3 international representative offices in London,
Düsseldorf and Shanghai; more than 3,600 ATMs; an
award-winning Call Center; state-of-the-art internet and
mobile banking platforms built on cutting-edge
technological infrastructure as well as its new banking
application, “iGaranti” serving socially active and
connected customers.
Consistent delivery of strong results underpinned by the
highest ordinary banking income generation capacity.
Garanti represents the highest ratings assessed to a
Turkish Bank.
Note: Exchange rate used for currency conversion is based on Garanti’s
June 30, 2013 dated financials.
Key Performance Indicators
Financial Subsidiaries
Shareholder Structure
Garanti’s majority owners are Doğuş Holding Co. and
Banco Bilbao Vizcaya Argentaria SA (BBVA) operating
under the principle of equal partnership.
Total Assets
Total Performing Loans
Total Deposits
1st Half Net Income
USD 103.6 Billion
USD 60.3 Billion
USD 58.8 Billion
USD 1.1 Billion
Doğuş Group 24.23%
Others 50.76%
BBVA 25.01%
• Garanti is the most valuable company in the BIST with
USD 18.3 billion market capitalization as of June 30, 2013.
Garanti also represents the highest floating market
capitalization in the BIST.
• Garanti’s actual free float ratio is 49.93%*. Foreign
ownership in the actual free float is 96%.
• Garanti is listed on Borsa Istanbul (BIST) since 1990 under
the ticker symbol “GARAN” and the London Stock
Exchange Main Market (LSE).
• In 1993, the Bank became the first Turkish bank to offer its
shares to international markets in the form of
American/Global Depositary Receipts (ADR/GDR). These
international DRs are currently traded on the International
Order Book (IOB) which is the international market of
London Stock Exchange (LSE).
• In 2012, Garanti is entitled to join the prestigious tier of the
U.S. Over-the-Counter (OTC) market, OTCQX International
Premier, where select OTC companies with the highest
financial standards and superior information availability
are traded.
* Source: Central Registry Agency, as of June 30, 2013.
Return on Average Equity (ROAE)
Return on Average Assets (ROAA)
Cost/Income (C/I)
Non Performing Loans (NPL) Ratio
Capital Adequacy Ratio (CAR)
20.8%
2.4%
41.2%
2.3%
15.2%
Ratings (Moody's/S&P/Fitch)
Total Branches
Personnel
ATM
POS*
Total Customers
Internet Banking Customers**
Mobile Banking Customers**
Credit Cards
Debit Cards
Market Position
Category
• Competent and dynamic employee base led by a
management team with proven track record,
• Strong liquidity ratios and proven access to funding,
particularly deposits,
• Proprietary and business aligned IT platform with high
operational efficiency and well-integration with the
subsidiaries,
• Human-centric approach in all possible dimensions,
• Strong brand reputation as a product and service
innovator,
• Service through its wide branch & ATM network and
digital channels within its Omni-Channel Distribution
Strategy,
• Leader in Digital Banking through advanced
technology and interactive platforms with wide range of
customized services,
• Commitment to corporate governance, ethics and
corporate values.
•17 years of presence in Russia
• Focus on corporate and commercial banking services
• Established relationships with large-scale highly
credible Russian companies
• Sustainable profitability with sound asset quality
Assets: USD 455 million
Total Assets
12.8%
#2
Total Performing Loans
12.8%
#2
FC Loans
#2
17.6%
C.C. Issuing (Cumulative)
Total Customer Deposits
Customer Demand Deposits
Electronic Fund Transfers (EFT)
Bancassurance - Non-Life Insurance
Bancassurance - Life Insurance
#2
19.2%
#1
13.7%
#2
12.3%
#2
13.6%
Mobile Banking3
Assets
#4 in 2000
#2 in 1H 2013
#2
17.0%
44.5%
17.6%
15.0%
10.8%
Loans
#5 in 2000
Customer
Deposits
#5 in 2000
#2 in 1H 2013
• #2 in BIST trading volume with 7.2% market share
• Leading brokerage house, a major player in M&A,
public offerings, privatizations as well as settlement
and custody services
• Equity model portfolio outperforming BIST-100 by 18%
on average since 2009
• #1 Bookrunner in Turkey with a total IPO and SPO
size of USD 2.7 billion in the last 5 years
• #1 in number of pension participants with 19% market
share
• #4 in pension fund size with 16% market share
• #3 in life insurance premium production
• #3 in number of insured
• Effective use of bancassurance via Garanti’s extensive
distribution network
Total Funds: USD 1.9 billion
Executed M&A Transactions: USD 7.1 billion
Corporate Responsibility
Within the systematic and long-term work carried out by
Garanti within the scope of social responsibility, Garanti
is committed to creating value for the society, individuals
and its stakeholders. A large part of the value created
for society by these projects is realized in various fields
as; education, culture, art, informing the business
community, sports and nature.
#1
#1
• #1 in number of contracts with 16% market share
• Presence in operational leasing sector with Garanti
Fleet since 2007
#1
Corporate Governance
Garanti is committed to corporate governance as a
principal component of its strategy to maintain long-term
sustainable growth by continuously creating value for all
its stakeholders. For Garanti, the essentials of a good
corporate governance practice are transparency,
accountability, straightforwardness, fairness, integrity
and ethical values. These essentials allow the Bank to
implement an effective risk management system and
play a key role for the Bank to demonstrate full
compliance with the law and regulations, and to
establish open and transparent communication with its
stakeholders. The Remuneration Committee, the Audit
Committee and the Corporate Governance Committee
are the corner stones of the Bank’s corporate
governance structure.
2013 Highlights
Garanti,
• Became the first Bank in Turkey to have a Sustainability
Report rated at level “A”, in conformance with its
strategy to increase its transparency in the area of
sustainability.
• Continued to expand its network of Sustainability
Representatives that has been established to maximize
Garanti Bank employees’ positive contributions to the
Bank’s sustainability performance. Reaching 332
representatives in May, 2013, Garanti Bank has
become the first Bank to have such a large and robust
sustainability organization within Turkey.
• Submitted its 4th report to Carbon Disclosure Project;
the international, not-for-profit organization providing
the only global system for companies and cities to
measure, disclose, manage and share vital
environmental information.
• Set a new short-term target to reduce total emissions
by 1.5% per total assets under management by 2013
against 2012 baseline.
• Supported “UNEP FI Introductory Training Workshop
on Environmental and Social Risk Analysis”, which was
organized by United Nations Environment Programme
– Finance Initiative.
• Supported the 1st “Sustainable Finance Forum” of
Turkey, jointly organized by United Nations Global
Compact, UNEP-FI and the Turkish Business Council
for Sustainable Development.
• Signed the “Manifesto for Energy Efficiency in
Buildings” published by the Turkish Business Council
for Sustainable Development (TBCSD), committing
itself to taking measures to ensure energy efficiency in
its office buildings, setting targets to reduce
greenhouse gas emissions, and reporting to the public
the progress made toward these targets.
Select Awards
#1
Finance Lease Receivables: USD 1.5 billion
Note: Based on BRSA unconsolidated financials as of June 30, 2013 for fair comparison with the sector
1
Rankings are among private banks, as of June 30, 2013.
2
Including consumer, commercial installment, overdraft accounts, credit cards and other
3
As of March, 2013
Assets Under Management: USD 4.8 billion
#2 in 1H 2013
#2
12.6%
• Turkey’s first asset management company
• Strong position in the sector with 14.4% market share
• Management of mutual funds and pension funds of
Garanti, discretionary portfolio management and
alternative investment management services
Assets: USD 2.3 billion
Ranking1
Market Shares
Mortgage Loans
• Robust balance sheet and high capital adequacy
ratios,
Assets: USD 5.7 billion
• 15 years of presence in the country
• Launched retail banking in Romania in 2006 - first
Consumer Banking project outside of Turkey
• 78 branches, >275k customers, >220k plastic cards
• Specialized in retail, SME and corporate banking
• Bonus Card, Romania’s first international chip-based
credit card with a reward program
C.C. Acquiring (Cumulative)
Key Strengths
• Netherlands based boutique bank serving customers
globally
• 20+ years of presence in the country
• Specialized in trade finance, structured finance and
private banking
• Branch in Germany; representative offices in
Switzerland, Turkey and Ukraine
Garanti's priorities to improve its sustainability performance are determined with careful reference to the feedback
obtained from a broad spectrum of stakeholders, the core of which consists of customers, employees, shareholders
and investors.
Figures are based on BRSA consolidated financials as of June 30, 2013.
Total Retail Loans2
To maintain long-term sustainable growth via continuous value creation.
Baa3/BB+/BBB
961
18,431
3,605
542,634
11,903,224
2,513,117
613,050
9,213,781
7,224,247
For Garanti, “sustainable development” means increasing the environmental, social and economic welfare of today’s
growing world population, without threatening the ecological balance and the needs of future generations.
* Includes shared POS.
** Active customers only - min. 1 login per quarter
Our Strategy
• Sustainable growth in lending while keeping sound
asset quality attributable to advanced risk
management systems and disciplined credit approval
process,
Sustainability
• #2 in factoring volume with 10.8% market share as
of March, 2013
• 20+ years of presence in the sector
• 34.82% of its shares are publicly traded in the BIST
• Highest rated factoring company in the BIST
Corporate Governance Index
Factoring Volume: USD 2.6 billion
Garanti was featured in Global Finance’s “Bright Stars:
World’s Best Banks 2013” annual survey as the Best
Bank in Turkey.
In the “Most Powerful Banks in the World” list of
Bloomberg Markets, Garanti ranked the 18th.
Garanti was honored with “Best Project Finance House”
in Turkey 2013 Awards by Global Banking & Finance.
Garanti was selected as the “Best Internet Bank in
Turkey” for the 10th time and also recognized as the “Best
in Social Media” in the World’s Best Internet Banks
Awards by Global Finance, one of the world’s premier
financial magazines.
Garanti also won the “Best Bill Payment & Presentment”
in the Consumer Internet Banks category and the “Best in
Online Treasury Services” in Corporate Internet Banks
category, both across Europe.
For the full list of awards and recognitions, please refer to www.garantibank.com
About Garanti
In Brief
Established in 1946, Garanti is Turkey’s second largest
private bank by total assets of USD 103.6 billion.
Garanti’s core banking activities include retail, corporate,
commercial, SME and payment systems. Garanti
operates as an integrated financial services company
with a total of eight financial subsidiaries offering services
in pension, leasing, factoring, securities and asset
management along with its international subsidiaries in
the Netherlands, Russia and Romania.
Garanti provides a wide range of financial services to its
12 million customers through an omni-channel
distribution network of 950 domestic branches; 6 foreign
branches in Cyprus, one in Luxembourg and one in
Malta; 3 international representative offices in London,
Düsseldorf and Shanghai; more than 3,600 ATMs; an
award-winning Call Center; state-of-the-art internet and
mobile banking platforms built on cutting-edge
technological infrastructure as well as its new banking
application, “iGaranti” serving socially active and
connected customers.
Consistent delivery of strong results underpinned by the
highest ordinary banking income generation capacity.
Garanti represents the highest ratings assessed to a
Turkish Bank.
Note: Exchange rate used for currency conversion is based on Garanti’s
June 30, 2013 dated financials.
Key Performance Indicators
Financial Subsidiaries
Shareholder Structure
Garanti’s majority owners are Doğuş Holding Co. and
Banco Bilbao Vizcaya Argentaria SA (BBVA) operating
under the principle of equal partnership.
Total Assets
Total Performing Loans
Total Deposits
1st Half Net Income
USD 103.6 Billion
USD 60.3 Billion
USD 58.8 Billion
USD 1.1 Billion
Doğuş Group 24.23%
Others 50.76%
BBVA 25.01%
• Garanti is the most valuable company in the BIST with
USD 18.3 billion market capitalization as of June 30, 2013.
Garanti also represents the highest floating market
capitalization in the BIST.
• Garanti’s actual free float ratio is 49.93%*. Foreign
ownership in the actual free float is 96%.
• Garanti is listed on Borsa Istanbul (BIST) since 1990 under
the ticker symbol “GARAN” and the London Stock
Exchange Main Market (LSE).
• In 1993, the Bank became the first Turkish bank to offer its
shares to international markets in the form of
American/Global Depositary Receipts (ADR/GDR). These
international DRs are currently traded on the International
Order Book (IOB) which is the international market of
London Stock Exchange (LSE).
• In 2012, Garanti is entitled to join the prestigious tier of the
U.S. Over-the-Counter (OTC) market, OTCQX International
Premier, where select OTC companies with the highest
financial standards and superior information availability
are traded.
* Source: Central Registry Agency, as of June 30, 2013.
Return on Average Equity (ROAE)
Return on Average Assets (ROAA)
Cost/Income (C/I)
Non Performing Loans (NPL) Ratio
Capital Adequacy Ratio (CAR)
20.8%
2.4%
41.2%
2.3%
15.2%
Ratings (Moody's/S&P/Fitch)
Total Branches
Personnel
ATM
POS*
Total Customers
Internet Banking Customers**
Mobile Banking Customers**
Credit Cards
Debit Cards
Market Position
Category
• Competent and dynamic employee base led by a
management team with proven track record,
• Strong liquidity ratios and proven access to funding,
particularly deposits,
• Proprietary and business aligned IT platform with high
operational efficiency and well-integration with the
subsidiaries,
• Human-centric approach in all possible dimensions,
• Strong brand reputation as a product and service
innovator,
• Service through its wide branch & ATM network and
digital channels within its Omni-Channel Distribution
Strategy,
• Leader in Digital Banking through advanced
technology and interactive platforms with wide range of
customized services,
• Commitment to corporate governance, ethics and
corporate values.
•17 years of presence in Russia
• Focus on corporate and commercial banking services
• Established relationships with large-scale highly
credible Russian companies
• Sustainable profitability with sound asset quality
Assets: USD 455 million
Total Assets
12.8%
#2
Total Performing Loans
12.8%
#2
FC Loans
#2
17.6%
C.C. Issuing (Cumulative)
Total Customer Deposits
Customer Demand Deposits
Electronic Fund Transfers (EFT)
Bancassurance - Non-Life Insurance
Bancassurance - Life Insurance
#2
19.2%
#1
13.7%
#2
12.3%
#2
13.6%
Mobile Banking3
Assets
#4 in 2000
#2 in 1H 2013
#2
17.0%
44.5%
17.6%
15.4%
10.8%
Loans
#5 in 2000
Customer
Deposits
#5 in 2000
#2 in 1H 2013
• #2 in BIST trading volume with 7.2% market share
• Leading brokerage house, a major player in M&A,
public offerings, privatizations as well as settlement
and custody services
• Equity model portfolio outperforming BIST-100 by 18%
on average since 2009
• #1 Bookrunner in Turkey with a total IPO and SPO
size of USD 2.7 billion in the last 5 years
• #1 in number of pension participants with 19% market
share
• #4 in pension fund size with 16% market share
• #3 in life insurance premium production
• #3 in number of insured
• Effective use of bancassurance via Garanti’s extensive
distribution network
Total Funds: USD 1.9 billion
Executed M&A Transactions: USD 7.1 billion
Corporate Responsibility
Within the systematic and long-term work carried out by
Garanti within the scope of social responsibility, Garanti
is committed to creating value for the society, individuals
and its stakeholders. A large part of the value created
for society by these projects is realized in various fields
as; education, culture, art, informing the business
community, sports and nature.
#1
#1
• #1 in number of contracts with 16% market share
• Presence in operational leasing sector with Garanti
Fleet since 2007
#1
Corporate Governance
Garanti is committed to corporate governance as a
principal component of its strategy to maintain long-term
sustainable growth by continuously creating value for all
its stakeholders. For Garanti, the essentials of a good
corporate governance practice are transparency,
accountability, straightforwardness, fairness, integrity
and ethical values. These essentials allow the Bank to
implement an effective risk management system and
play a key role for the Bank to demonstrate full
compliance with the law and regulations, and to
establish open and transparent communication with its
stakeholders. The Remuneration Committee, the Audit
Committee and the Corporate Governance Committee
are the corner stones of the Bank’s corporate
governance structure.
2013 Highlights
Garanti,
• Became the first Bank in Turkey to have a Sustainability
Report rated at level “A”, in conformance with its
strategy to increase its transparency in the area of
sustainability.
• Continued to expand its network of Sustainability
Representatives that has been established to maximize
Garanti Bank employees’ positive contributions to the
Bank’s sustainability performance. Reaching 332
representatives in May, 2013, Garanti Bank has
become the first Bank to have such a large and robust
sustainability organization within Turkey.
• Submitted its 4th report to Carbon Disclosure Project;
the international, not-for-profit organization providing
the only global system for companies and cities to
measure, disclose, manage and share vital
environmental information.
• Set a new short-term target to reduce total emissions
by 1.5% per total assets under management by 2013
against 2012 baseline.
• Supported “UNEP FI Introductory Training Workshop
on Environmental and Social Risk Analysis”, which was
organized by United Nations Environment Programme
– Finance Initiative.
• Supported the 1st “Sustainable Finance Forum” of
Turkey, jointly organized by United Nations Global
Compact, UNEP-FI and the Turkish Business Council
for Sustainable Development.
• Signed the “Manifesto for Energy Efficiency in
Buildings” published by the Turkish Business Council
for Sustainable Development (TBCSD), committing
itself to taking measures to ensure energy efficiency in
its office buildings, setting targets to reduce
greenhouse gas emissions, and reporting to the public
the progress made toward these targets.
Select Awards
#1
Finance Lease Receivables: USD 1.5 billion
Note: Based on BRSA unconsolidated financials as of June 30, 2013 for fair comparison with the sector
1
Rankings are among private banks, as of June 30, 2013.
2
Including consumer, commercial installment, overdraft accounts, credit cards and other
3
As of March, 2013
Assets Under Management: USD 4.8 billion
#2 in 1H 2013
#2
12.6%
• Turkey’s first asset management company
• Strong position in the sector with 14.4% market share
• Management of mutual funds and pension funds of
Garanti, discretionary portfolio management and
alternative investment management services
Assets: USD 2.3 billion
Ranking1
Market Shares
Mortgage Loans
• Robust balance sheet and high capital adequacy
ratios,
Assets: USD 5.7 billion
• 15 years of presence in the country
• Launched retail banking in Romania in 2006 - first
Consumer Banking project outside of Turkey
• 78 branches, >275k customers, >220k plastic cards
• Specialized in retail, SME and corporate banking
• Bonus Card, Romania’s first international chip-based
credit card with a reward program
C.C. Acquiring (Cumulative)
Key Strengths
• Netherlands based boutique bank serving customers
globally
• 20+ years of presence in the country
• Specialized in trade finance, structured finance and
private banking
• Branch in Germany; representative offices in
Switzerland, Turkey and Ukraine
Garanti's priorities to improve its sustainability performance are determined with careful reference to the feedback
obtained from a broad spectrum of stakeholders, the core of which consists of customers, employees, shareholders
and investors.
Figures are based on BRSA consolidated financials as of June 30, 2013.
Total Retail Loans2
To maintain long-term sustainable growth via continuous value creation.
Baa3/BB+/BBB
961
18,431
3,605
542,634
11,903,224
2,513,117
613,050
9,213,781
7,224,247
For Garanti, “sustainable development” means increasing the environmental, social and economic welfare of today’s
growing world population, without threatening the ecological balance and the needs of future generations.
* Includes shared POS.
** Active customers only - min. 1 login per quarter
Our Strategy
• Sustainable growth in lending while keeping sound
asset quality attributable to advanced risk
management systems and disciplined credit approval
process,
Sustainability
• #2 in factoring volume with 10.8% market share as
of March, 2013
• 20+ years of presence in the sector
• 34.82% of its shares are publicly traded in the BIST
• Highest rated factoring company in the BIST
Corporate Governance Index
Factoring Volume: USD 2.6 billion
Garanti was featured in Global Finance’s “Bright Stars:
World’s Best Banks 2013” annual survey as the Best
Bank in Turkey.
In the “Most Powerful Banks in the World” list of
Bloomberg Markets, Garanti ranked the 18th.
Garanti was honored with “Best Project Finance House”
in Turkey 2013 Awards by Global Banking & Finance.
Garanti was selected as the “Best Internet Bank in
Turkey” for the 10th time and also recognized as the “Best
in Social Media” in the World’s Best Internet Banks
Awards by Global Finance, one of the world’s premier
financial magazines.
Garanti also won the “Best Bill Payment & Presentment”
in the Consumer Internet Banks category and the “Best in
Online Treasury Services” in Corporate Internet Banks
category, both across Europe.
For the full list of awards and recognitions, please refer to www.garantibank.com
About Garanti
In Brief
Established in 1946, Garanti is Turkey’s second largest
private bank by total assets of USD 103.6 billion.
Garanti’s core banking activities include retail, corporate,
commercial, SME and payment systems. Garanti
operates as an integrated financial services company
with a total of eight financial subsidiaries offering services
in pension, leasing, factoring, securities and asset
management along with its international subsidiaries in
the Netherlands, Russia and Romania.
Garanti provides a wide range of financial services to its
12 million customers through an omni-channel
distribution network of 950 domestic branches; 6 foreign
branches in Cyprus, one in Luxembourg and one in
Malta; 3 international representative offices in London,
Düsseldorf and Shanghai; more than 3,600 ATMs; an
award-winning Call Center; state-of-the-art internet and
mobile banking platforms built on cutting-edge
technological infrastructure as well as its new banking
application, “iGaranti” serving socially active and
connected customers.
Consistent delivery of strong results underpinned by the
highest ordinary banking income generation capacity.
Garanti represents the highest ratings assessed to a
Turkish Bank.
Note: Exchange rate used for currency conversion is based on Garanti’s
June 30, 2013 dated financials.
Key Performance Indicators
Financial Subsidiaries
Shareholder Structure
Garanti’s majority owners are Doğuş Holding Co. and
Banco Bilbao Vizcaya Argentaria SA (BBVA) operating
under the principle of equal partnership.
Total Assets
Total Performing Loans
Total Deposits
1st Half Net Income
USD 103.6 Billion
USD 60.3 Billion
USD 58.8 Billion
USD 1.1 Billion
Doğuş Group 24.23%
Others 50.76%
BBVA 25.01%
• Garanti is the most valuable company in the BIST with
USD 18.3 billion market capitalization as of June 30, 2013.
Garanti also represents the highest floating market
capitalization in the BIST.
• Garanti’s actual free float ratio is 49.93%*. Foreign
ownership in the actual free float is 96%.
• Garanti is listed on Borsa Istanbul (BIST) since 1990 under
the ticker symbol “GARAN” and the London Stock
Exchange Main Market (LSE).
• In 1993, the Bank became the first Turkish bank to offer its
shares to international markets in the form of
American/Global Depositary Receipts (ADR/GDR). These
international DRs are currently traded on the International
Order Book (IOB) which is the international market of
London Stock Exchange (LSE).
• In 2012, Garanti is entitled to join the prestigious tier of the
U.S. Over-the-Counter (OTC) market, OTCQX International
Premier, where select OTC companies with the highest
financial standards and superior information availability
are traded.
* Source: Central Registry Agency, as of June 30, 2013.
Return on Average Equity (ROAE)
Return on Average Assets (ROAA)
Cost/Income (C/I)
Non Performing Loans (NPL) Ratio
Capital Adequacy Ratio (CAR)
20.8%
2.4%
41.2%
2.3%
15.2%
Ratings (Moody's/S&P/Fitch)
Total Branches
Personnel
ATM
POS*
Total Customers
Internet Banking Customers**
Mobile Banking Customers**
Credit Cards
Debit Cards
Market Position
Category
• Competent and dynamic employee base led by a
management team with proven track record,
• Strong liquidity ratios and proven access to funding,
particularly deposits,
• Proprietary and business aligned IT platform with high
operational efficiency and well-integration with the
subsidiaries,
• Human-centric approach in all possible dimensions,
• Strong brand reputation as a product and service
innovator,
• Service through its wide branch & ATM network and
digital channels within its Omni-Channel Distribution
Strategy,
• Leader in Digital Banking through advanced
technology and interactive platforms with wide range of
customized services,
• Commitment to corporate governance, ethics and
corporate values.
•17 years of presence in Russia
• Focus on corporate and commercial banking services
• Established relationships with large-scale highly
credible Russian companies
• Sustainable profitability with sound asset quality
Assets: USD 455 million
Total Assets
12.8%
#2
Total Performing Loans
12.8%
#2
FC Loans
#2
17.6%
C.C. Issuing (Cumulative)
Total Customer Deposits
Customer Demand Deposits
Electronic Fund Transfers (EFT)
Bancassurance - Non-Life Insurance
Bancassurance - Life Insurance
#2
19.2%
#1
13.7%
#2
12.3%
#2
13.6%
Mobile Banking3
Assets
#4 in 2000
#2 in 1H 2013
#2
17.0%
44.5%
17.6%
15.4%
10.8%
Loans
#5 in 2000
Customer
Deposits
#5 in 2000
#2 in 1H 2013
• #2 in BIST trading volume with 7.2% market share
• Leading brokerage house, a major player in M&A,
public offerings, privatizations as well as settlement
and custody services
• Equity model portfolio outperforming BIST-100 by 18%
on average since 2009
• #1 Bookrunner in Turkey with a total IPO and SPO
size of USD 2.7 billion in the last 5 years
• #1 in number of pension participants with 19% market
share
• #4 in pension fund size with 16% market share
• #3 in life insurance premium production
• #3 in number of insured
• Effective use of bancassurance via Garanti’s extensive
distribution network
Total Funds: USD 1.9 billion
Executed M&A Transactions: USD 7.1 billion
Corporate Responsibility
Within the systematic and long-term work carried out by
Garanti within the scope of social responsibility, Garanti
is committed to creating value for the society, individuals
and its stakeholders. A large part of the value created
for society by these projects is realized in various fields
as; education, culture, art, informing the business
community, sports and nature.
#1
#1
• #1 in number of contracts with 16% market share
• Presence in operational leasing sector with Garanti
Fleet since 2007
#1
Corporate Governance
Garanti is committed to corporate governance as a
principal component of its strategy to maintain long-term
sustainable growth by continuously creating value for all
its stakeholders. For Garanti, the essentials of a good
corporate governance practice are transparency,
accountability, straightforwardness, fairness, integrity
and ethical values. These essentials allow the Bank to
implement an effective risk management system and
play a key role for the Bank to demonstrate full
compliance with the law and regulations, and to
establish open and transparent communication with its
stakeholders. The Remuneration Committee, the Audit
Committee and the Corporate Governance Committee
are the corner stones of the Bank’s corporate
governance structure.
2013 Highlights
Garanti,
• Became the first Bank in Turkey to have a Sustainability
Report rated at level “A”, in conformance with its
strategy to increase its transparency in the area of
sustainability.
• Continued to expand its network of Sustainability
Representatives that has been established to maximize
Garanti Bank employees’ positive contributions to the
Bank’s sustainability performance. Reaching 332
representatives in May, 2013, Garanti Bank has
become the first Bank to have such a large and robust
sustainability organization within Turkey.
• Submitted its 4th report to Carbon Disclosure Project;
the international, not-for-profit organization providing
the only global system for companies and cities to
measure, disclose, manage and share vital
environmental information.
• Set a new short-term target to reduce total emissions
by 1.5% per total assets under management by 2013
against 2012 baseline.
• Supported “UNEP FI Introductory Training Workshop
on Environmental and Social Risk Analysis”, which was
organized by United Nations Environment Programme
– Finance Initiative.
• Supported the 1st “Sustainable Finance Forum” of
Turkey, jointly organized by United Nations Global
Compact, UNEP-FI and the Turkish Business Council
for Sustainable Development.
• Signed the “Manifesto for Energy Efficiency in
Buildings” published by the Turkish Business Council
for Sustainable Development (TBCSD), committing
itself to taking measures to ensure energy efficiency in
its office buildings, setting targets to reduce
greenhouse gas emissions, and reporting to the public
the progress made toward these targets.
Select Awards
#1
Finance Lease Receivables: USD 1.5 billion
Note: Based on BRSA unconsolidated financials as of June 30, 2013 for fair comparison with the sector
1
Rankings are among private banks, as of June 30, 2013.
2
Including consumer, commercial installment, overdraft accounts, credit cards and other
3
As of March, 2013
Assets Under Management: USD 4.8 billion
#2 in 1H 2013
#2
12.6%
• Turkey’s first asset management company
• Strong position in the sector with 14.4% market share
• Management of mutual funds and pension funds of
Garanti, discretionary portfolio management and
alternative investment management services
Assets: USD 2.3 billion
Ranking1
Market Shares
Mortgage Loans
• Robust balance sheet and high capital adequacy
ratios,
Assets: USD 5.7 billion
• 15 years of presence in the country
• Launched retail banking in Romania in 2006 - first
Consumer Banking project outside of Turkey
• 78 branches, >275k customers, >220k plastic cards
• Specialized in retail, SME and corporate banking
• Bonus Card, Romania’s first international chip-based
credit card with a reward program
C.C. Acquiring (Cumulative)
Key Strengths
• Netherlands based boutique bank serving customers
globally
• 20+ years of presence in the country
• Specialized in trade finance, structured finance and
private banking
• Branch in Germany; representative offices in
Switzerland, Turkey and Ukraine
Garanti's priorities to improve its sustainability performance are determined with careful reference to the feedback
obtained from a broad spectrum of stakeholders, the core of which consists of customers, employees, shareholders
and investors.
Figures are based on BRSA consolidated financials as of June 30, 2013.
Total Retail Loans2
To maintain long-term sustainable growth via continuous value creation.
Baa3/BB+/BBB
961
18,431
3,605
542,634
11,903,224
2,513,117
613,050
9,213,781
7,224,247
For Garanti, “sustainable development” means increasing the environmental, social and economic welfare of today’s
growing world population, without threatening the ecological balance and the needs of future generations.
* Includes shared POS.
** Active customers only - min. 1 login per quarter
Our Strategy
• Sustainable growth in lending while keeping sound
asset quality attributable to advanced risk
management systems and disciplined credit approval
process,
Sustainability
• #2 in factoring volume with 10.8% market share as
of March, 2013
• 20+ years of presence in the sector
• 34.82% of its shares are publicly traded in the BIST
• Highest rated factoring company in the BIST
Corporate Governance Index
Factoring Volume: USD 2.6 billion
Garanti was featured in Global Finance’s “Bright Stars:
World’s Best Banks 2013” annual survey as the Best
Bank in Turkey.
In the “Most Powerful Banks in the World” list of
Bloomberg Markets, Garanti ranked the 18th.
Garanti was honored with “Best Project Finance House”
in Turkey 2013 Awards by Global Banking & Finance.
Garanti was selected as the “Best Internet Bank in
Turkey” for the 10th time and also recognized as the “Best
in Social Media” in the World’s Best Internet Banks
Awards by Global Finance, one of the world’s premier
financial magazines.
Garanti also won the “Best Bill Payment & Presentment”
in the Consumer Internet Banks category and the “Best in
Online Treasury Services” in Corporate Internet Banks
category, both across Europe.
For the full list of awards and recognitions, please refer to www.garantibank.com
Turkish Banking Sector in Brief
Turkish banking sector is the second largest CEE
banking system with an asset size of USD 728 billion.
In Turkey, there are 49 banks; 32 are deposit taking
(including 3 state-owned), 13 are investment and
development and 4 are participation banks. Turkish
banking sector is well-regulated, monitored and
governed by two primary regulatory authorities; the
Banking Regulation and Supervision Agency (BRSA) and
the Central Bank of Republic of Turkey (CBRT).
• Underpenetrated market with strong growth potential...
– Total Assets/GDP2: 90% compared to 345% in EU
area
– Total Loans/GDP2: 51% compared to 116% in EU
area
– Total Customer Deposits/GDP2: 52% compared to
116% in EU area
Total Assets
(USD billion)
CAGR: 17%
709
728
• Highly liquid...
– Deposits fund 56% of assets
– Loans/Deposits ratio: 106%
613 600
468 450
170
217
288
519
Top 10
Private
Banks:
337
• Solid asset quality...
– NPL ratio1: 2.8% compared to 2.8% in LATAM, 10.2%
in CEEMEA and 9.2% in EU area
• No open position
65%
State
Banks:
The world’s
favorite
Turkish bank
Turkey is the 17th largest economy in the world as of 2012 and carries the potential of becoming a leading economy
with its young band dynamic population (average age: 30.1 as of 2012). After being one of the fastest growing
countries in the world in 2010 and 2011; Turkish economy slowed down, experiencing a growth of only 2.2%. While
growth remains as the focus in 2013, Turkey manages bsustainable fiscal discipline which resulted in a central budget
primary surplus of 1.4% of GDP and a much lower general government gross debt to GDP ratio of 36.4% in 2012
compared to large European as well as Central Eastern Europe countries.
1H2013
Source: Figures are based on BRSA unconsolidated financials
Macro-Economic Indicators
2007
2008
2009
2010
2011
2012
1H2013
Real GDP Growth
4.7%
0.7%
-4.8%
9.2%
8.8%
2.2%
3.0%*
Current Account Balance / GDP
-5.8%
-5.4%
-2.0%
-6.2%
-9.7%
-6.1%
-5.9%*
Current Account Deficit (USD bn)
37.8
40.4
12.2
45.4
75.1
47.7
47.7*
Net FDI (USD bn)
19.9
17.2
7.1
7.6
13.7
8.5
8.1*
EU Defined Net Debt Stock / GDP
39.9%
40.0%
46.1%
42.3%
39.1%
36.2%
35.7%*
Policy Rate (O/N)
15.75% 15.0%
6.5%
6.5%**
5.75%
5.5%
4.5%
5.0%
12.5%
5.0%
9.0%
3.5%
6.5%
10.4%
6.2%
8.3%
Interest Rate Corridor***
Inflation (CPI)
Source: BRSA monthly data for commercial banks as of June 2013. US$/TL:1.91.
Figures are based on BRSA unconsolidated data.
1
Source: Latest data from the IMF-FSI database. Represent country averages,
most of which are based on 4Q12 figures.
2
ECB, TUIK and BRSA for commercial banks only, as of 1Q13
28%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
www.garantibank.com
Main strengths include;
• well-capitalized and underleveraged...
– Sound solvency with Basel II CAR of 15.6%
– Tier-1 Ratio1:15.1% compared to 13.5% in LATAM,
14.3% in CEEMEA and 13.3% in EU area
– Low leverage1: 7.3x compared to 7.9x in LATAM, 9.2x
in CEEMEA and 14.1x in EU area
Turkey in Brief
8.4%
10.1%
6.5%
6.4%
* as of March 2013
** Since May 2010, one-week repo rate replaced the O/N rate as the policy rate.
*** In 2011 CBRT started utilizing interest rate corridor as a policy tool.
Source: CBRT, Turkstat and Turkish Treasury
Top Private Banks by Asset Size
(USD billion)
0
20
40
60
80
100
120
10 Year Cumulative Shareholder Return in Borsa Istanbul (BIST) *
Foreign
Ownership %
3,000
İşbank
-
Garanti
25.0%
(USD)
Garanti
BIST Banks Index
BIST 100 Index
2,500
2,000
9.9%
YKB
40.9%
DenizBank
99.9%
Finansbank*
94.8%
TEB
67.9%
ING
100.0%
HSBC*
100.0%
Şekerbank*
33.7%**
Source: Figures are based on BRSA consolidated data as of June 30, 2013.
Note: Exchange rate used for currency conversion is based on Garanti’s June 30, 2013 dated financials.
* As of March 31,2013; since the banks' 1H13 earnings announcement has not yet been released.
** Samruk-Kazyna and BTA Securities hold 21.96% and 11.76%, respectively.
1,500
1,000
For further information please contact Garanti Investor Relations.
Address: Levent, Nispetiye Mah. Aytar Cad. No: 2, 34340, Beşiktaş, Istanbul-Turkey
Tel: +90 (212) 318 23 50
Fax: +90 (212) 216 59 02
Web: www.garantibank.com
e-mail: [email protected]
www.tayburnkurumsal.com
Akbank
500
100
06/2003
Garanti_IR
Disclaimer: This report has been prepared by Garanti Bank Investor Relations Department and is provided for information purpose only. Although the
information on which the report is based has been obtained from sources which we believe to be reliable, no representation or warranty is made by
Garanti Bank for the accuracy or completeness of the information contained herein. Information contained herein is subject to change without notice.
Garanti Bank and/or any person connected with it accepts no liability whatsoever for any direct or consequential loss of any kind arising out of the use of
this document or any part of its contents.
2004
2005
2006
2007
2008
2009
2010
2011
2012
06/2013
* Figures are based on daily USD/TL CBRT ask rate.
Garanti shares continuously outperformed the market since 2003.
Profile 1H2013
10-year return of USD 100 in...
BIST 100 Index; 5x
BIST Banks Index; 7x
vs.
Garanti; 16x