Page 39 - TURKRptFeb20

8.1.6 Banks specific issues
● Garanti Bank
Garanti BBVA sees its 2020 NPL ratio totalling around 6.5%. The lender is also targeting lira loans growth of 10-13%, it said on January 7 in a stock exchange filing.
Another Garanti BBVA target is a return on average equity (ROAE) of 15-18% for 2020 on net fees and commissions growth in the high 10%s.
“Garanti Bank announced its 2020 budget with the attendance of its upper management as always. Contrary to previous years’ more conservative approach, Garanti laid out a slightly more constructive scenario compared to our estimates, especially driven by a more aggressive further rate cut assumption of 300bps, leading to stronger NIM expansion target,” BGC said in a note entitled “GARANTI 2020 BUDGET: Guiding more aggressively on NIM expansion leading to high-teens ROE, indicating upside risk to consensus”.
Garanti’s NPL ratio rose to 6.7% as of end-September from 5.2% at end-2018 while lira loans grew 2% y/y.
● Akbank
Akbank expects its non-performing loan (NPL) ratio to come in at below 6% in 2020, while the bank is simultaneously targeting the high 10%s in annual lira-denominated loan growth, according to a January 8 stock exchange filing.
39 TURKEY Country Report OUTLOOK 2020 www.intellinews.com