Dear Stakeholders,
2018 was marked by increased uncertainties in global politics
and decreased risk appetite in financial markets on the back
of political and macroeconomic developments. Continued
normalization in developed countries’ monetary policies and
the expansion of protectionist measures that was led by the
US can be mentioned among the factors that reduced the
risk appetite. Increased market volatility and perception of
uncertainty in the developing countries in an environment of
rising vulnerabilities around the globe, resulted in net fund
outflows from these countries, causing their currencies to
depreciate.
With respect to the Turkish economy and banking sector, 2018
has been a year of high volatility. Following the first half of the
year when growth was vibrant, we have observed rebalancing
tendencies gain the foreground in economy. Turkish banking
sector has been the enabler of the healthiest economic
stabilization possible, by maintaining its solid stance despite
the vulnerabilities that stemmed from global and regional
risks. Turkish banking sector preserved its robust balance sheet
structure, comfortable liquidity base and strong capitalization,
once again successfully proving that it has a solid foundation.
As Garanti BBVA, being aware of the targets and priorities of our
country and economy, we have also collaborated efficiently
with all our stakeholders and as well as all the actors of the
economy, as has always been the case.
Regardless of the temporary macro developments, we keep
leading the transformation in the sector with investments in
our business model and with our customers that make up the
pedestal of our strategy. As we carry on with uninterrupted
service delivery, we continue to upgrade our products and
service model so as to take care of our customers’ financial
health. Everyday, we are working hard to deliver perfect
customer experience to our 16 million clients. We are intending to be transparent, clear and responsible towards our customers.
Placing our customers at the heart of our activities in a bid to
exceed their expectations and enhance their satisfaction, we
are designing our processes through their perspective. We are
targeting to build long-lasting relationships that rely on trust,
and to be differentiated and to be stronger through these
relationships.
The environment we operate in is evolving rapidly. To make the
most of the age of opportunity, undertaking a transformation
process becomes more and more important for the entire banking
sector. From our standpoint, the transformation of the sector
is shaped by three main factors that interact with each other:
continuous development in technology, customer expectations
that are redefined everyday by these developments and the
needs of the changing world, a competitive environment that
requires better understanding of customers than ever before
and highly skilled Garanti BBVA employees capable of offering the
right service in a timely manner by closely monitoring their
changing expectations. In such a dynamic environment, each
part of the banking value chain is being redesigned within a
structure that is integrated with the new technologies. Garanti BBVA,
having correctly envisioning the future of banking, embarked
on a transformation journey, which is continuing. The new
service model introduced at our branches was a major step in
this journey. Our purpose is to “bring the age of opportunity
to everyone”.
We are putting great emphasis on integrated management
of financial and non-financial risks through effective risk
management. Rapid changes in the world are introducing new
risk factors to be considered in investment decisions. Investors
now need to assess the impact of global warming, changing
demographics, privacy concerns and regulatory framework on
their investments. This awareness gave rise to an increase in
Environmental, Social and Governance-focused (ESG) investing.
As Garanti BBVA, we are aware of the increasing demands of the ESG
investors. Being a company listed not only in Turkey but also
in the UK and the US, it is a set target for Garanti BBVA to operate
within globally recognized high standards. In this sense, in a
bid to better address the needs of our diversified shareholder
base, we have been publishing our Integrated Annual Report
prepared in line with IIRC standards for all our stakeholders for
two years. To tackle the new risks presented by the new world,
we must focus on positive impact and responsible investments.
Thanks to our pioneering role in the area of sustainable
banking, as Garanti BBVA, we are representing a good role model
for other banks, and further increasing our multiplier effect in
terms of contributing to sustainable development.
The path to achieving all of our goals passes through investing
in the development and satisfaction of our employees. Our
efforts for ensuring equal opportunities and professional
development contribute to our high employee engagement
score and low employee turnover. We believe that digitalization
is a great opportunity to allocate our human capital to more
creative projects and this will result in further enhanced
employee satisfaction and customer experience.
The synergy we have with our majority shareholder BBVA
keeps getting stronger. Pioneering projects creating value for
the society and the economy are being accomplished with the
sound partnership and collaboration of BBVA and Garanti BBVA in
the international arena.
While determining our roadmap, we are always striving to
correctly interpret and thoroughly analyze the trends that shape
the banking business in the world and in Turkey, as well as
global and regional macroeconomic events. Apparently, 2019
is set to be a year of continued rebalancing that is ongoing
in the global economy. We are fully confident in our country’s
potential in regards to the achievement of our goals. We will
continue to stand by our customers under any circumstance
by means of our proactive balance sheet management and
competent human resources, and we will keep contributing to
the society and the economy, thereby creating value for all our
stakeholders.
Sincerely,
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