Turkey’s Garanti Bank says Q3 net profit down nearly 50 pct
ISTANBULTurkish lender Garanti Bank posted a near 50 percent drop in third-quarter net profits on Oct. 27, falling short of market expectations and Reuters estimates, due to a rise in commercial losses and shrinkage in net fee commission revenue.
The bank, which is in part owned by Spain’s BBVA, said net profit totaled 512.7 million Turkish Liras for the quarter, down from 993.8 million in the same period a year earlier.
That was also below the 587 million liras predicted in a poll of seven analysts by Reuters.
The bank’s net fee commission revenues declined by 3.5 percent to 749.6 million liras in the third quarter of the year compared to the same period of 2014, according to the solo financial results released in the Public Disclosure Platform (KAP), compiled by Reuters. While the lender announced a slight commercial profit in the third quarter of 2014, it posted around 372 million liras of loss in this segment.
The bank’s loans and receivables increased by 19 percent to 159.6 billion liras in the third quarter over this year.
Based on consolidated financial statements, in the first nine months of 2015, Garanti’s asset size reached 293 billion liras while its contribution to the economy through cash and non-cash lending totaled 223 billion liras, said the company.
In the first nine months of 2015, the Bank posted a consolidated net income of 2.7 billion liras.