Garanti BBVA FY'20 net income up 2% YOY

Garanti BBVA, formerly known as Türkiye Garanti Bankası AŞ, reported full-year 2020 net income of 6.39 billion Turkish lira, up from 6.24 billion lira a year earlier.

Net interest income including swap costs amounted to 21.73 billion lira in 2020, an increase from the year-ago 17.78 billion lira. Net fees and commissions also rose on a yearly basis, to 6.59 billion lira from 6.27 billion lira.

Net trading and foreign exchange gains, excluding swap costs and currency hedge, jumped to 2.03 billion lira from 457 million lira in 2019. Other income, excluding provision reversals and one-offs, came in at 2.19 billion lira, up from 1.52 billion lira in the previous year.

Net expected loss excluding currency impact widened year over year to 7.61 billion lira from 6.84 billion lira. Other provisions excluding free provision reached 1.68 billion lira, up from the year-ago 606 million lira.

For the fourth quarter of 2020, Garanti BBVA's net income fell 40% quarter over quarter to 1.15 billion lira from 1.91 billion lira.

Net expected loss excluding currency impact for the quarter reached 2.74 billion lira, widening from the 1.11 billion lira in the previous quarter.

As of Dec. 31, 2020, the bank's common equity Tier 1 ratio stood at 14.3%, compared with 14.2% at the end of September 2020 and 15.4% at the end of 2019.

The lender's nonperforming loans ratio and coverage ratio stood at 4.5% and 5.8%, respectively, at the end of 2020, compared with 5.9% and 6.5% as of Sept. 30, 2020, and 6.8% and 6.1% at 2019-end.

The figures were prepared in accordance with accounting rules set by the Banking Regulation and Supervision Authority, the bank said.

As of Jan. 28, US$1 was equivalent to 7.35 Turkish lira.