Garanti BBVA's nine-month net income rises 16 per cent to TL 98.2bn
Fees and interest income lifted third-quarter profit to TL 33.8bn, while net expected loss provisions nearly tripled over nine months.
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Garanti BBVA said its consolidated net income rose 16 per cent to TL 98.2 billion in the first nine months of 2026, with TL 33.8 billion in the third quarter, in an earnings presentation it filed with Türkiye's Public Disclosure Platform on 28 October.
The quarterly figure, TL 33,777 million under the banking regulator's consolidated accounts, was 10 per cent above the TL 30,799 million of the second quarter and close to the TL 33,615 million of the third quarter of 2025. The nine-month total of TL 98,191 million compares with TL 84,474 million a year earlier. The bank's disclosure attached the presentation in Turkish and English and pointed investors to its investor relations website for the unconsolidated figures.
Fees and interest carried the quarter
Net interest income including swap costs was TL 71,538 million in the third quarter, 26 per cent more than in the second, and TL 188,596 million over nine months, up 59 per cent. Net fees and commissions reached TL 50,424 million in the quarter and TL 141,161 million over nine months, 36 per cent more than a year earlier. The presentation says strong net interest income and fee generation more than offset higher provisioning costs. Income on CPI-linked securities was TL 9,266 million in the quarter against TL 8,057 million in the second, while swap funding cost rose to TL 15,342 million from TL 10,742 million. The quarterly net interest margin including swaps was 6.3 per cent, up from 5.5 per cent in the second quarter.
Those costs rose fast. Net expected loss, excluding the currency impact, was TL 58,853 million over nine months against TL 20,355 million a year earlier, an increase of 189 per cent, and TL 25,319 million in the third quarter alone. Operating expenses rose 38 per cent to TL 166,992 million. Of that, staff costs were TL 60,549 million, up 46 per cent, and other operating costs TL 106,443 million, up 34 per cent. The non-performing loan ratio was 3.9 per cent at the end of September, against 2.8 per cent a year earlier and 3.5 per cent at the end of June.
Returns, balance sheet and the Romanian sale
Cumulative return on average equity was 27.5 per cent for the nine months, down from 30.9 per cent at the same point of 2025, and return on average assets 2.6 per cent. The cost to income ratio was 45.8 per cent. Total assets reached TL 5,580.8 billion at 30 September, gross loans TL 3,391.0 billion and total deposits TL 3,653.7 billion. The bank reports a loans to deposits ratio of 85.4 per cent, measured on performing loans of TL 3,118.6 billion. Shareholders' equity was TL 522.7 billion. Lira loans grew to TL 2,206.8 billion from TL 1,730.9 billion at the end of 2025, a rise of 27.5 per cent by Boards and Capital's arithmetic, while foreign-currency loans fell to $21.2 billion from $23.0 billion. Taxation took TL 40,234 million over nine months.
The bank is selling its Romanian subsidiary. The presentation notes that, because of the ongoing sale process, the related balance sheet items were reclassified as assets held for sale and discontinued operations in the first three quarters of 2026; those assets stood at TL 238.0 billion at the end of September. The sale's terms are not in the presentation.
New EBRD funding
The results follow fresh long-term funding. The European Bank for Reconstruction and Development said on 26 October that it is investing €100 million in senior rated notes issued under Garanti BBVA's existing diversified payment rights programme, which is backed by current and future foreign-currency payment orders generated through the bank's payment business. Half, €50 million, is for on-lending to women-owned or women-led small and medium-sized enterprises under the Türkiye Women in Business II programme, and the other €50 million is for businesses run or majority-owned by people under 35 under the Türkiye Youth in Business programme. The Türkiye Credit Guarantee Fund provides first-loss risk cover, underwritten by the Turkish Treasury.
The results came after the central bank's October cut, covered in Boards and Capital's report on the cut to 36 per cent. For another Turkish lender's recent leadership change, see İşbank's new chief executive.