Education
About Us
Working with TipRanks
Follow Us
Turkiye Garanti Bankasi AS (TKGBY)
OTHER OTC:TKGBY
Top Page
Turkiye Garanti Bankasi AS
(OTC:TKGBY)
Select Model
Select Model
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.
Turkiye Garanti Bankasi AS (TKGBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.15B
Dividend Yield3.82%
Average Volume (3M)1.95K
Price to Earnings (P/E)4.7
Beta (1Y)0.44
Revenue Growth43.01%
EPS Growth-15.38%
CountryUS
Employees22,538
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.16
Shares Outstanding4,200,000,000
10 Day Avg. Volume2,255
30 Day Avg. Volume1,951
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue0.03
Enterprise Value/Gross Profit0.04
Enterprise Value/Ebitda0.20
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:Jul 30, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
Garanti BBVA's first quarter results indicate strong financial performance with significant gains in net income, core banking income, and market share. However, challenges such as revised higher inflation estimates, a worsening current account deficit, and potential risks in cost of risk and NIM expansion present areas of concern.Q1-2025 Updates
Positive Updates
Strong Net Income and ROE
Garanti BBVA reported a net income of TRY 25.4 billion for the first quarter, representing a 13% year-over-year growth with a robust return on equity of 30.5%.
Surge in Core Banking Income
Core net interest income surged by 68% quarter-on-quarter due to declining funding costs and resilient loan yields, highlighting the sustainable nature of the bank's profitability.
Market Share Gains in Deposits
The bank gained 1.1% market share in TL deposits among private banks, reaching a 22% market share, driven largely by retail deposits.
Resilient Asset Quality
The NPL ratio rose slightly to 2.6%, with total coverage levels remaining healthy at 3.6% compared to the NPL ratio.
Robust Digital Penetration
The number of digital customers reached 17 billion, reinforcing the fee base and driving growth in customer acquisition and penetration.
Negative Updates
Revised Inflation Estimate
The year-end inflation estimate was revised upwards from 29% to 31%, acknowledging upside risks from uncertainty in food prices.
Current Account Deficit Concerns
The current account deficit to GDP is expected to worsen slightly to 1.5% in 2025 due to deterioration in the core trade deficit and increasing net gold imports.
Potential Risk in Cost of Risk Guidance
Guidance for a higher cost of risk due to increasing NPL inflows from unsecured loans and normalizing large ticket collections, with a first-quarter net cost of risk at 1.4%.
Challenges in Margin Expansion
Potential downside risk in NIM expansion with adjustments in lending yields due to increased funding costs and volatility in interest rates.
Company Guidance
In the call, Garanti BBVA provided guidance on several key financial metrics for 2025. The bank anticipates a GDP growth of 3.5% for Turkey, with year-end inflation expected to be 31%, revised up from an earlier estimate of 29%. The current account deficit to GDP is projected to worsen slightly to 1.5%. The bank's net income reached TRY 25.4 billion in the first quarter, marking a 13% year-over-year increase, with a robust return on equity (ROE) of 30.5%. Despite a challenging environment, the bank's core net interest income (NII) surged by 68% quarter-on-quarter, and net fees grew by 4% in the same period. The non-performing loan (NPL) ratio rose slightly to 2.6%, with total coverage levels at 3.6%. The bank maintained its year-end guidance for the net cost of risk at 2% to 2.5%, despite a favorable first quarter performance of 1.4%. Garanti BBVA's capital adequacy ratio remains strong, supported by a substantial TRY 105 billion excess capital. The bank also reaffirmed its low-30s ROAE guidance for the year.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 | 488.24B | 287.17B | 199.32B | 133.01B | 61.57B | 39.19B |
| Gross Profit | 345.95B | 287.17B | 334.00B | 133.01B | 61.57B | 39.19B |
| EBITDA | 67.92B | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Net Income | 100.03B | 91.24B | 86.37B | 58.29B | 13.47B | 6.31B |
Balance Sheet | ||||||
| Total Assets | 3.82T | 3.00T | 2.20T | 1.30T | 849.40B | 540.91B |
| Cash, Cash Equivalents and Short-Term Investments | 804.78B | 591.84B | 387.28B | 198.97B | 216.80B | 61.36B |
| Total Debt | 343.48B | 191.84B | 204.86B | 104.47B | 97.20B | 58.26B |
| Total Liabilities | 3.44T | 2.67T | 1.96T | 1.15T | 770.17B | 478.50B |
| Stockholders Equity | 377.35B | 329.79B | 244.70B | 152.64B | 78.90B | 62.16B |
Cash Flow | ||||||
| Free Cash Flow | -65.65B | -155.25B | 186.17B | 43.63B | 31.02B | 8.36B |
| Operating Cash Flow | -51.64B | -145.82B | 191.28B | 45.76B | 32.31B | 9.63B |
| Investing Cash Flow | -21.13B | -46.85B | -81.76B | -55.25B | -12.41B | -11.72B |
| Financing Cash Flow | 245.67B | 95.27B | 10.45B | 25.67B | 29.34B | 4.39B |
Turkiye Garanti Bankasi AS Technical Analysis
Negative
3.12
Price Trends
3.47
Negative
3.32
Negative
3.28
Negative
Market Momentum
-0.09
Positive
36.00
Neutral
0.43
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TKGBY, the sentiment is Negative. The current price of 3.12 is below the 20-day moving average (MA) of 3.40, below the 50-day MA of 3.47, and below the 200-day MA of 3.28, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 36.00 is Neutral, neither overbought nor oversold. The STOCH value of 0.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $13.15B | 4.72 | 31.02% | 3.82% | 43.01% | -15.38% | |
73 Outperform | $15.64B | 12.22 | 22.07% | 6.72% | -13.16% | -8.10% | |
73 Outperform | $21.04B | 12.48 | 18.54% | 5.46% | 5.16% | 27.77% | |
70 Outperform | $19.48B | 19.13 | 9.43% | 5.79% | -3.77% | -10.59% | |
68 Neutral | $12.63B | 11.27 | 24.13% | 4.97% | 12.43% | 56.30% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $13.53B | 7.09 | 8.90% | 3.25% | -3.55% | 1.59% |
* Financial Sector Average
TKGBY
Turkiye Garanti Bankasi AS
3.11
-0.28
-8.26%
BCH
Banco De Chile
30.52
7.23
31.04%
BSBR
Banco Santander Brasil
5.31
0.44
9.03%
BSAC
Banco Santander Chile
26.33
7.08
36.78%
BAP
Credicorp
254.99
78.06
44.12%
WF
Woori Finance Holdings Co
52.98
17.21
48.11%
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.