Eurasia generated an accumulated net attributable profit to March 2014 of €105m, a year-on-year increase of 3.1%. Of this figure, 66% comes from Turkey, 23% from the rest of Europe and 10% from Asia.
Breakdown of main business indicators by geography
(Percentage)
Net interest income is down 2.1% year-on-year, due mainly to the aforementioned increase in the cost of lira deposits in Garanti. This impact has been partly offset by the positive influence of the repricing of loans and the increase of the portfolio of foreign currency bonds completed by Garanti over the last few quarters at attractive rates. All this was especially unfavorable on the year-on-year comparison, as spreads in Garanti were highest in the first quarter of 2013. However, in quarter-on-quarter terms, the variation is more favorable as a result of the decisions taken by the Turkish bank in recent months in terms of loan repricing and lower-cost funding.
Year-on-year decline in fees and commissions (down 5.4%), since fewer operations were closed with wholesale customers over the quarter, which the good performance of fees and commissions in Garanti in the same period has been unable to offset.
Year-on-year reduction of 26.7% in NTI, compared with a very favorable first quarter in 2013 as a result of the positive performance of market activity in the area. However, the performance in the last few months is much improved due to the upturn in the inflation rate in Turkey which in turn has increased the remuneration from the portfolio of inflation-indexed bonds in Garanti. In fact, a comparison of the area’s NTI in the first quarter of 2014 with the figure for the fourth quarter of 2013 shows an increase of 186.3%.
Operating expenses are up 14.6% year-on-year, due to a great extent to the expansion of Garanti’s commercial network in 2013 (48 branches have been added over the last twelve months) and to increased inflation in Turkey. It should be noted that Garanti’s commercial network continues to be at the end of 2013 the most efficient in the sector, with the best ratios in terms of loans, deposits and recurring revenue per branch.
The volume of impairment losses on financial assets has declined year-on-year as a result of a lower volume of generic provisions, due basically to the decline in Garanti’s loan book, in particular the consumer finance portfolio.
Garanti. Significant data 31-03-14 (1)
Download Excel
|
|
31-03-14 |
|---|---|
| Financial statements (million euros) |
|
| Attributable profit | 250 |
| Total assets | 67,925 |
| Loans and advances to customers | 40,808 |
| Deposits from customers | 35,161 |
| Relevant ratios (%) |
|
| Efficiency ratio (2) | 48.6 |
| NPA ratio | 2.2 |
| Other information |
|
| Number of employees | 18,930 |
| Number of branches | 995 |
| Number of ATMs | 3,982 |
Garanti. Composition of assets and lendingportfolio (1)(Percentage as of 31-03-2014) |
Garanti. Composition of liabilities (1)
(Percentage as of 31-03-2014) |
|---|---|
(1) Garanti Bank only. |
(1) Garanti Bank only. |
