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Turkiye Garanti Bankasi AS (TKGBY)
OTHER OTC:TKGBY
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Turkiye Garanti Bankasi AS
(OTC:TKGBY)
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Rating:74Outperform
Price Target:―
Turkiye Garanti Bankasi AS shows a solid overall performance driven by strong financial results and strategic market gains. The bank's stable financial foundation and confident earnings outlook are positive factors, though cash flow challenges and technical analysis indicators suggest near-term caution. The stock's low valuation provides potential for upside if macroeconomic conditions stabilize.
Positive Factors
Revenue Growth
Consistent revenue growth indicates the bank's ability to expand its market presence and enhance its service offerings, supporting long-term business sustainability.
Market Share Gains
Increasing market share in deposits reflects the bank's competitive strength and customer trust, which are crucial for maintaining a leading position in the industry.
Strong Balance Sheet
A strong balance sheet with low leverage enhances financial stability and provides the bank with the flexibility to navigate economic uncertainties.
Negative Factors
Cash Flow Challenges
Cash flow challenges can limit the bank's ability to invest in growth opportunities and meet short-term obligations, potentially impacting financial flexibility.
Rising Inflation Risks
Higher inflation can erode purchasing power and increase costs, posing a risk to profitability and economic stability, which may affect the bank's operations.
Increase in NPL Ratio
An increase in non-performing loans can indicate deteriorating asset quality, which may require higher provisions and impact the bank's profitability.
Turkiye Garanti Bankasi AS (TKGBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.76B
Dividend Yield3.54%
Average Volume (3M)2.46K
Price to Earnings (P/E)4.8
Beta (1Y)0.54
Revenue Growth29.35%
EPS Growth-6.44%
CountryUS
Employees22,538
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.17
Shares Outstanding4,200,000,000
10 Day Avg. Volume1,509
30 Day Avg. Volume2,455
Financial Highlights & Ratios
PEG Ratio1.03
Price to Book (P/B)1.60
Price to Sales (P/S)1.84
P/FCF Ratio-3.39
Enterprise Value/Market Cap2.04
Enterprise Value/Revenue0.07
Enterprise Value/Gross Profit0.10
Enterprise Value/Ebitda0.73
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Turkiye Garanti Bankasi AS Business Overview & Revenue Model
Company DescriptionTurkiye Garanti Bankasi A.S. provides various banking products and services. It offers current, savings, time and term deposit, ELMA, structured deposit, and gold accounts; and general purpose, auto, revolving, house, discount, SME project, installment, working capital, foreign currency, mortgage, and other loans, as well as spot TL and foreign currency, letters of guarantee and reference, and overdraft accounts. The company also provides various cards; and auto, liability, health, unemployment, life, house, individual accident, automobile, business premises, fire, freight, engineering, accident, loan, and agriculture insurance products, as well as pension products. In addition, it offers mutual funds, T-bills/government bonds, Eurobonds, repos, equities, dual currency deposit transactions, Turkish derivatives exchange, e-trader, forward transactions, and taxation services; cash management services; and SME specific products, such as support packages, foreign trade financing and legislation, and related services. Further, the company provides leasing, fleet management, factoring, investment and private banking, payment, safety box, and Internet and mobile/SMS banking services. As of December 31, 2021, the company operated 872 branches and 5,401 ATMs. Turkiye Garanti Bankasi A.S. was founded in 1946 and is headquartered in Istanbul, Turkey. As of May 18, 2022, Turkiye Garanti Bankasi A.S. operates as a subsidiary of Banco Bilbao Vizcaya Argentaria, S.A.
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:Oct 30, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jan 29, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong financial performance with record net income and sustained revenue growth. However, challenges such as increased inflation expectations and Stage 2 loans present potential risks. Overall, the positive aspects significantly outweigh the negative trends, indicating a robust outlook.Q3-2025 Updates
Positive Updates
Record Net Income and Continued Growth
Third quarter net income reached a new record level of TRY 30.9 billion, a 9% quarterly growth, leading to 31% ROE with relatively low leverage.
Sustained Core Banking Revenue Growth
Core banking revenues continued to grow for 7 consecutive quarters, reaching 7.8% of assets, the highest level among peers.
Strong Loan and Deposit Growth
Growth in TL loans was 10% in the third quarter, with credit cards and consumer loans at 15% and 12% respectively. Deposit base grew with a 14% increase in foreign currency deposits.
Effective Margin Management
Core margin improved by 44 basis points through opportunistic liquidity management and proactive funding strategies.
Improved Capital Adequacy
Issued $700 million Tier 2 in October, improving capital adequacy ratio by 92 basis points and reducing currency sensitivity.
Negative Updates
Inflation and Policy Rate Expectations
Year-end inflation expectation revised up to nearly 33% and policy rate assumption to 38.5%, indicating economic challenges.
Increase in Stage 2 Loans
Retail restructuring led to an increase in Stage 2 loans, although restructuring regulation terminated in October.
Modest NPL Ratio Increase
NPL ratio increased modestly to 2.8%, primarily due to robust consumer and credit card growth in recent years.
Company Guidance
During the third quarter of 2025, Garanti BBVA provided updated guidance, emphasizing a balanced outlook for Turkey's economic growth, with GDP expected to grow by 3.7% in 2025 and 4% in 2026. The bank revised its year-end inflation expectation to 33% and adjusted the policy rate assumption to 38.5%. Despite a slight slowdown in GDP growth, the bank maintained a strong financial performance, achieving a quarterly net income of TRY 30.9 billion, a 9% increase, and a 31% return on equity (ROE) over nine months. The current account deficit is forecasted to be 1.2% of GDP in 2025, while net interest income (NII) grew by 20% due to strategic liquidity management. The bank's net cost of risk expectation was lowered to below 2%, while net interest margin (NIM) expansion guidance was revised to 1.5% to 2%, reflecting an upward revision of the policy rate. Fee growth guidance was also revised, with expectations for fee coverage of operating expenses to be 90% to 95%. The bank's strong capital position was supported by a $700 million Tier 2 issuance, enhancing its capital adequacy ratio.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 425.90B | 287.17B | 346.52B | 177.72B | 85.59B | 53.19B |
| Gross Profit | 277.02B | 287.17B | 199.32B | 133.01B | 61.46B | 39.19B |
| EBITDA | 38.25B | 0.00 | 109.31B | 78.23B | 19.35B | 10.11B |
| Net Income | 78.66B | 91.24B | 86.37B | 58.29B | 13.47B | 6.31B |
Balance Sheet | ||||||
| Total Assets | 101.18B | 3.00T | 2.20T | 1.30T | 850.48B | 540.91B |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 591.84B | 474.34B | 200.82B | 182.89B | 84.55B |
| Total Debt | 13.37B | 223.97B | 150.11B | 104.47B | 97.20B | 58.26B |
| Total Liabilities | 91.26B | 2.67T | 1.96T | 1.15T | 770.17B | 478.50B |
| Stockholders Equity | 9.87B | 329.79B | 244.70B | 152.64B | 79.98B | 62.16B |
Cash Flow | ||||||
| Free Cash Flow | -21.38B | -155.25B | 186.17B | 43.63B | 31.02B | -972.03M |
| Operating Cash Flow | -9.15B | -145.82B | 191.28B | 45.76B | 32.31B | 293.01M |
| Investing Cash Flow | -35.97B | -46.85B | -81.76B | -55.25B | -12.41B | -11.72B |
| Financing Cash Flow | 232.48B | 95.27B | 10.45B | 25.67B | 29.34B | 13.72B |
Turkiye Garanti Bankasi AS Technical Analysis
Positive
3.36
Price Trends
3.15
Positive
3.32
Positive
3.19
Positive
Market Momentum
0.04
Positive
60.65
Neutral
52.04
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 3.36 is above the 20-day moving average (MA) of 3.28, above the 50-day MA of 3.15, and above the 200-day MA of 3.19, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 60.65 is Neutral, neither overbought nor oversold. The STOCH value of 52.04 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $13.76B | 4.79 | 31.02% | 3.54% | 29.35% | -6.44% | |
73 Outperform | $21.92B | 12.36 | 18.12% | 4.96% | 8.72% | 27.70% | |
71 Outperform | $18.88B | 14.57 | 21.29% | 5.61% | -11.64% | -8.75% | |
70 Outperform | $13.66B | 6.29 | 9.61% | 3.82% | -2.90% | 16.10% | |
69 Neutral | $14.10B | 12.49 | 24.13% | 4.46% | 12.43% | 56.30% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $21.44B | 20.42 | 9.34% | 5.31% | 1.13% | -11.93% |
* Financial Sector Average
TKGBY
Turkiye Garanti Bankasi AS
3.36
-0.10
-2.89%
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BSBR
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BSAC
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30.22
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BAP
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281.00
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WF
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56.58
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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.