Education
About Us
Working with TipRanks
Follow Us
Turkiye Garanti Bankasi AS (TKGBY)
OTHER OTC:TKGBY
RESEARCH TOOLSreports
Top Page
Turkiye Garanti Bankasi AS
(OTC:TKGBY)
Rating:74Outperform
Price Target:―
Turkiye Garanti Bankasi AS (TKGBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.57B
Dividend Yield1.14%
Average Volume (3M)50.00
Price to Earnings (P/E)5.3
Beta (1Y)0.40
Revenue Growth47.81%
EPS Growth-21.24%
CountryUS
Employees22,538
SectorFinancial
Sector Strength74
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.16
Shares Outstanding4,200,000,000
10 Day Avg. Volume0
30 Day Avg. Volume50
Financial Highlights & Ratios
PEG Ratio0.17
Price to Book (P/B)1.70
Price to Sales (P/S)0.00
P/FCF Ratio3.54
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Turkiye Garanti Bankasi AS Business Overview & Revenue Model
Company DescriptionTurkiye Garanti Bankasi AS (TKGBY), also known as Garanti BBVA, is a prominent financial institution based in Turkey. It operates in the banking sector, offering a comprehensive range of financial products and services to personal, commercial, and corporate clients. The bank provides services such as retail banking, investment banking, asset management, leasing, factoring, insurance, and credit card services. With a significant presence in Turkey, Garanti BBVA is known for its customer-centric approach and innovative digital banking solutions.
How the Company Makes MoneyTurkiye Garanti Bankasi AS generates revenue through a diverse array of financial services and products. Its primary revenue streams include interest income from loans and advances to customers, fees and commissions from banking services such as credit cards and asset management, and income from trading activities in financial markets. The bank also earns through its insurance operations and wealth management services. Significant partnerships with international financial institutions and a strong digital banking presence contribute to its earnings by expanding its customer base and operational efficiency.
Turkiye Garanti Bankasi AS Earnings Call Summary
Earnings Call Date:Apr 28, 2025
(Q1-2025)
| % Change Since: 29.21%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
Garanti BBVA delivered strong financial results in the first quarter of 2025 with significant growth in net income and core banking income. The bank also achieved notable market share gains in deposits. However, challenges include a revised upward inflation estimate, a worsening current account deficit, and a slight increase in NPL ratio. The potential postponement in margin recovery poses a risk to future performance.Q1-2025 Updates
Positive Updates
Strong First Quarter Performance
Garanti BBVA reported a net income of TRY 25.4 billion, marking a 13% year-over-year growth with a robust ROE of 30.5%.
Core Banking Income Surge
Core NII surged by 68% quarter-on-quarter due to declining funding costs and resilient loan yields, highlighting the sustainable nature of the bank's profitability.
Loan Portfolio Growth
TL loans grew by 7%, reaching TRY 1.2 trillion, with strong growth momentum in consumer and SME loans.
Market Share Gains in Deposits
Garanti BBVA gained 1.1% market share in TL deposits among private banks, with a market share reaching 22%.
Robust Fee Base
The bank's fee base increased by 55% year-over-year, supported by strong cash and non-cash loan growth.
Negative Updates
Revised Inflation Estimate
The year-end inflation estimate was revised up from 29% to 31%, acknowledging upside risks from uncertainty in food prices.
Worsening Current Account Deficit
The current account deficit to GDP is expected to slightly worsen to 1.5% in 2025 due to a deterioration in the core trade deficit and increasing net gold imports.
Increase in NPL Ratio
The NPL ratio rose slightly to 2.6%, with an increase in Stage 2 loans making up 10.5% of gross loans.
Potential Postponement in Margin Recovery
The current volatility may lead to a postponement in margin recovery, affecting the net interest margin.
Company Guidance
In the first quarter of 2025, Garanti BBVA provided guidance on various financial metrics amid a robust economic backdrop and market volatility. The bank anticipates a GDP growth rate of 3.5% for the year, with year-end inflation revised to 31%, up from the previous 29% estimate. Despite these challenges, Garanti BBVA maintained a strong performance with a net income of TRY 25.4 billion, a 13% year-over-year growth, and a robust return on equity (ROE) of 30.5%. The core net interest income (NII) surged by 68% quarter-on-quarter, supported by declining funding costs and resilient loan yields. The bank's asset quality remained strong, with a non-performing loan (NPL) ratio slightly rising to 2.6% and a healthy total coverage level of 3.6%. The net cost of risk was reported at 1.4%, better than the year-end guidance of 2% to 2.5%. Garanti BBVA expects its net interest margin (NIM) to expand towards the end of the year despite potential postponements due to current macroeconomic conditions. The bank's customer-centric approach resulted in a 74% deposit share in assets and significant market share gains in TL deposits, credit cards, and digital platforms. Despite macroeconomic challenges, Garanti BBVA remains confident in achieving its guidance, including a low-30s return on average equity (ROAE) by year-end.Turkiye Garanti Bankasi AS Financial Statement Overview
Summary
Turkiye Garanti Bankasi AS demonstrates strong financial performance with consistent revenue and profit growth, a stable balance sheet with low leverage, and effective capital management. However, recent challenges in cash flow management highlight areas for improvement to ensure sustained liquidity and financial flexibility.Income Statement
Turkiye Garanti Bankasi AS has shown strong revenue growth over the years, with a significant increase in total revenue from 2019 to 2024. The net profit margin has remained robust, indicating effective cost management. However, the lack of reported EBIT and EBITDA in the latest period limits the analysis of operating efficiency.85
Very Positive
Balance Sheet
The bank maintains a healthy equity base with stockholders' equity increasing over time, reflecting strong capital adequacy. The debt-to-equity ratio is low due to negligible debt levels, enhancing financial stability. The equity ratio shows a solid proportion of assets funded by equity, suggesting good financial health.80
Positive
Cash Flow
While the bank has experienced fluctuations in operating cash flow, the overall long-term trend is positive. However, the negative free cash flow in the latest year indicates potential short-term liquidity challenges. The operating cash flow to net income ratio suggests a need for improved cash generation relative to earnings.70
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 287.17B | 199.32B | 133.01B | 61.57B | 39.19B |
| Gross Profit | 287.17B | 334.00B | 133.01B | 61.57B | 39.19B |
| EBITDA | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Net Income | 91.24B | 86.37B | 58.29B | 13.47B | 6.31B |
Balance Sheet | |||||
| Total Assets | 3.00T | 2.20T | 1.30T | 849.40B | 540.91B |
| Cash, Cash Equivalents and Short-Term Investments | 591.84B | 387.28B | 198.97B | 216.80B | 61.36B |
| Total Debt | 0.00 | 204.86B | 104.47B | 97.20B | 58.26B |
| Total Liabilities | 2.67T | 1.96T | 1.15T | 770.17B | 478.50B |
| Stockholders Equity | 329.79B | 244.70B | 152.64B | 78.90B | 62.16B |
Cash Flow | |||||
| Free Cash Flow | -155.25B | 186.17B | 43.63B | 31.02B | 8.36B |
| Operating Cash Flow | -145.82B | 191.28B | 45.76B | 32.31B | 9.63B |
| Investing Cash Flow | -46.85B | -81.76B | -55.25B | -12.41B | -11.72B |
| Financing Cash Flow | 95.27B | 10.45B | 25.67B | 29.34B | 4.39B |
Turkiye Garanti Bankasi AS Technical Analysis
Positive
3.45
Price Trends
3.10
Positive
3.08
Positive
3.23
Positive
Market Momentum
0.12
Positive
59.01
Neutral
74.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TKGBY, the sentiment is Positive. The current price of 3.45 is above the 20-day moving average (MA) of 3.39, above the 50-day MA of 3.10, and above the 200-day MA of 3.23, indicating a bullish trend. The MACD of 0.12 indicates Positive momentum. The RSI at 59.01 is Neutral, neither overbought nor oversold. The STOCH value of 74.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TKGBY.
Turkiye Garanti Bankasi AS Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $11.14B | 10.45 | 24.02% | 5.63% | 18.54% | 65.80% | |
75 Outperform | $11.78B | 13.22 | 15.99% | 0.59% | -5.45% | 3.43% | |
74 Outperform | $14.57B | 5.30 | 32.68% | 1.14% | 47.81% | -21.24% | |
74 Outperform | $4.37B | 992.70 | 0.11% | 5.77% | -46.30% | -79.35% | |
70 Outperform | $18.03B | 15.06 | 10.89% | 6.64% | -3.94% | 31.52% | |
69 Neutral | $14.37B | 11.01 | 23.88% | 0.28% | -17.02% | -10.73% | |
58 Neutral | HK$92.20B | 5.63 | -3.20% | 4.66% | 5.50% | -56.25% |
* Financial Sector Average
Performance Comparison
TKGBY
Turkiye Garanti Bankasi AS
3.45
-0.23
-6.25%
BCH
Banco De Chile
28.10
5.62
25.00%
BMA
Banco Macro SA
68.00
18.99
38.75%
BSBR
Banco Santander Brasil
4.78
0.08
1.70%
BSAC
Banco Santander Chile
23.69
4.48
23.32%
CIB
Bancolombia
44.97
16.83
59.81%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.