Stock Info & Listing
Garanti BBVA carried out its IPO in 1990 on Borsa İstanbul and became the first Turkish company to offer its shares on international markets in 1993. Garanti BBVA’s depositary receipts are listed on the OTC (Over-The-Counter) Markets in the USA. In 2012, Garanti BBVA qualified to get in the prestigious tier of the U.S. OTC market, OTCQX International Premier, where companies traded must meet high financial standards and an effective disclosure process.
Garanti BBVA has a market capitalization of TL 522 billion (USD 14.8 billion) as of year-end 2024. GARAN is the most valuable company in Türkiye. Its floating MCAP is the 12th highest with 2.7% weight in BIST100.
The Bank’s free float market capitalization corresponded to TL 73 billion (USD 2.1 billion). 38% of Garanti BBVA’s shares in the free float are owned by foreign institutional investors. Including the share of the domestic institutions, 82% of the publicly traded shares are held by institutional investors, whereas the remaining 18% are held by individual investors*.
SHARE PERFORMANCE
Turkish equities started the year on a strong note, maintaining a bullish trajectory until mid-July. During this period, investor sentiment was bolstered by the CBRT’s commitment to ongoing orthodox monetary policy. This contributed to credit rating upgrades by Moody’s and Fitch, which further fueled positive momentum in the equity market. Positive developments such as Turkiye’s removal from FATF Grey list also drove the trend. However, foreign investors mainly chose to stay on the sidelines in terms of their equity investments as tight monetary policy environment coupled with a marginally depreciating currency made short-term maturity government bonds more attractive.
From mid-July to the end of October, Turkish equities experienced a shift into bear market territory, driven primarily by high interest rates. Higher-than-anticipated inflation data each month eroded expectations of near-term monetary easing, prompting the CBRT to tighten policy through macroprudential measures, such as raising banks’ reserve requirements. This restrictive stance reduced the attractiveness of equities for domestic investors as well, leading them to favor money-market funds and deposit accounts. Meanwhile, geopolitical tensions, particularly the war in the Middle East, exacerbated the selling pressure, further weighing on the equity market.
Beginning of November marked a change in the bearish sentiment as the expectation of rate cutting cycle started to be priced in. The positive momentum was mainly driven by domestic investors once again. On the other hand, foreigners although being cautious, started to seek reentry points to Turkish equity market. Their reports mainly suggested that among EEMEA region, Turkiye offers fast EPS growth and attractive valuations for 2025 and they see potential in the prudent rate normalization narrative. However, the timing and magnitude of the rate cuts will be the determinant of their investment appetite thereby, inflation trend will continue to be the main variable for 2025’s investment equation.
More in depth look into GARAN, there was a net foreign inflow of USD 54 million during the year (vs. net 712mn$ outflow in BIST-100). Nevertheless, foreigners’ share in the stock decreased to 38% as of 2024 year-end from 47% at the end of 2023, due to increasing flow from domestic investors. Hence, share of domestic institutional investor base reached its all-time high level.
GARAN emerged as the best performer amongst the banking stocks. The stock yielded 123% in TL terms and 89% in USD terms, outperforming XBANK by 34%. Garanti BBVA concluded 2024 as the most valuable company in Turkiye. This remarkable performance is mainly a reflection of Garanti BBVA’s net income generation capability which is 2.4 times higher than the peers’ average net income. Moreover, Garanti BBVA’s customer centric banking approach once again proved the sustainability of its business model even in a challenging year like 2024 which is reflected in almost 3 times higher core banking revenue generation vs. its peers.
INVESTOR RELATIONS ACTIVITIES
Communicating the value created in a proactive, transparent and consistent way, Garanti BBVA Investor Relations’ activities in 2024 can be summarized as follows;
- The team participated in 15 investment conferences and roadshows, either in-person or online. The team met with 240 international investment funds from Asia, USA, Canada, the Middle East, Europe and Turkey.
- Each quarterly teleconference on Financial Results and the annual Operating Plan Guidance disclosure attracted live on average 150 analysts and investors
- Consensus earnings expectations were managed by having one-on-one or group meetings on a regular basis with 22 equity analysts who cover Garanti BBVA ,
- Garanti BBVA Rank #1 with highest score in Corporate Governance rating in Türkiye.
- 2023 Integrated Annual Report received Platinum Award at 2023 LACP Vision Awards.
- Operating Plan Guidance and results presentations were published on Garanti BBVA Investor Relations website and mobile app. The audio recordings of these presentations are also available on the website and mobile application. Contents prepared both in Turkish and English for the convenience of the investment community enable investors from all around the world to have easy access to all the information they need.
- Periodic newsletters were sent to investors and other stakeholders informing them on the current material developments including macro-economic and ESG issues,
- Following the financial results in each quarter, 2-minute summary videos were made available for the convenience of the stakeholders. These videos were public on both the website and our bank's social media accounts.
- Through the monthly released 'Macro Talks' videos, informative updates on macroeconomic developments are provided for all investors and stakeholders.
- Surveys were conducted to gather investor feedback and align communication strategies with their expectations. The responses reflected strong appreciation for the investor relations efforts, with participants emphasizing the importance of the economic outlook as a key factor in their investment decisions. Additionally, the surveys highlighted that investors prioritized ESG considerations such as achieving net-zero carbon targets and fostering Financial Health and Inclusive Growth in their decision-making process.
Commitment to its irreplaceable values of the principles of trust, integrity, accountability and transparency serves as the guarantee of the Bank’s strong reputation and is Garanti BBVA’s main responsibility to all its stakeholders. The steps Garanti BBVA takes to create value for the economy, the society and all its stakeholders are recognized by national and international authorities.
*According to MKK (CSD of Türkiye) data on 31 December 2024