Türkiye Garanti Bankası A.Ş. has announced its financial results for the third quarter of 2026. The bank's net profit for this period was 33.8 billion TL. The reported profit remained above the market expectation of 32.1 billion TL.
Garanti Bankası's net profit increased by 9.5 percent on an annual basis and by 10 percent compared to the previous quarter. While the rise in net interest income and fee and commission income contributed to the profit growth, increasing provision expenses were among the items that limited this outlook.
The bank's total income increased by 12 percent on a quarterly basis in the third quarter, reaching 124.7 billion TL. Net interest income, including swap costs, rose by 23 percent to 74.7 billion TL, while net fee and commission income increased by 5 percent to 50.4 billion TL.
A weakening was observed in trading income, excluding currency hedging and swap costs. The bank, which recorded a profit of 2.4 billion TL in this item in the previous quarter, announced a loss of 493 million TL in the third quarter. In the first nine months, total income reached 348.9 billion TL, an increase of 45 percent compared to the same period last year.
MARGIN AND COMMISSION INCOME STAND OUT
Garanti Bankası's net interest margin continued to expand in the third quarter. The net interest margin, including swap costs, increased by 85 basis points on a quarterly basis to 6.3 percent. The cumulative net interest margin for the first nine months rose by 97 basis points compared to the same period last year, reaching 6 percent.
The annual increase in net fee and commission income was recorded at 36 percent. Payment systems accounted for the largest share of commission income at 67.5 percent. Strong growth was also seen in money transfer, insurance, and portfolio management fees.
The bank's operational expenses rose to 167 billion TL in the first nine months of the year; the cost/income ratio stood at 46 percent. Personnel expenses increased by 46 percent, and other expenses rose by 34 percent to 106.4 billion TL.
While return on equity declined from 28.1 percent in the previous quarter to 27.5 percent, total assets reached 5.6 trillion TL. The non-performing loan ratio rose from 3.5 percent in the second quarter to 3.9 percent in the third quarter.
The bank maintained its growth expectation for TL loans in the 30-35 percent range for 2026. Forecasting mid-single-digit growth in foreign currency loans, Garanti Bankası expects an increase in commission income in the 30-35 percent band.
News Source: 12punto
