Türkiye Garanti Bankasi AS reported second-quarter net profit attributable to equity holders of the bank of 1.91 billion Turkish lira, compared to 1.55 billion lira in the year-ago period.

Net interest income amounted to 4.49 billion lira, up from 3.77 billion lira in the second quarter of 2017. Net fees and commission income increased to 1.19 billion lira from 912.6 million lira over the same period.

The bank's net trading loss for the quarter was 49.7 million lira, compared to 622.5 million lira a year ago.

The Turkish lender's unit's first-half attributable profit increased to 3.90 billion lira from 3.07 billion lira a year ago. The first-half return on average equity, excluding nonrecurring items, was 18.1%.

As of June 30, the bank's capital adequacy ratio stood at 16.2%.

Garanti also made revisions to its 2018 operating plan guidance to reflect changing macroeconomic expectations. The lender expects its ROAE to be above 17%, compared to above 16.5% in its previous guidance. Garanti now also expects net interest margin to be flat year over year even when taking into account the effect of inflation, whereas it had said it expected flat NIM when excluding the impact of inflation.

It also adjusted its expected nonperforming loan ratio at year-end to between 4.0% and 4.5% from roughly 3.0%, as it no longer expects to carry out a sale of more than 1 billion lira of bad loans.

Banco Bilbao Vizcaya Argentaria SA owns a 49.85% stake in Garanti.

As of July 26, US$1 was equivalent to 4.85 Turkish lira.