“While we continue to support the economy, we will also maintain a prudent stance on asset quality. In 2020, we proactively started to take precautions for negative developments, which we knew would take place in 2021,” said Recep Baştuğ. A summary of Garanti BBVA´s cautious stance in 2020 include provisions, restructurings, TL loan growth instead of foreign currency, along with accurate and timely loan classifications. In this quarter, the bank has taken all kinds of economic measures to protect both customers and balance sheets and it will continue to do so. “We are one of the banks with the highest coverage ratio in the Turkish banking sector. In the upcoming period, financial health will be one of our key strategies for both our customers and our bank,” he added.
Due to the bank´s and real sector´s risk preferences, while foreign currency loans decreased steadily, consistent TL loan growth took its place. This transformation was also Garanti BBVA´s priority. Going forward, the continuation of this trend, both in the sector and at Garanti BBVA, will be evident.
Historically, Garanti BBVA is now Turkey’s largest investor in technology and digitalization and has completed all its preparations for the new era. During the pandemic period, digital customer transactions increased by 70% and the number of digital customers reached 9.9 million, so that it´s priority now is customer acquisition from digital channels.
The opportunity to become a customer through digital channels, will carry the sector to another dimension; open banking and open market operations will follow, respectively. The end-to-end digital process of becoming a customer will create a fast, time-and-place-independent experience for customers compared to traditional methods. Today, customers can instantly benefit from a wide array of banking products and services.
The payment system´s business transformation has also gathered pace during the pandemic. Customers can now receive their credit cards without going to branches and make remote and contactless payments as well, which are of high importance. As the leading bank in payment systems and the first bank in Turkey to offer virtual POS and contactless payments for years now, Garanti BBVA continues to meet the increasing demands of our customers with innovative offerings.