2011 annual report 2011 annual report - Garanti Bankası

Garanti in 2011Garanti’s commitment to sustainability was provenwith its track record of delivering an average of 25%return on equity in the last 5 years. Garanti furtherreinforced its solid stance with the remarkableperformance achieved in 2011.Garanti Bank has leading position in many of thesegments it operates in. With its customer orientedapproach; Garanti provides services to approximately11 million customers through an extensivedistribution network that includes 918 branches,over 3,250 ATMs, Turkey’s largest financial CallCenter, and the state-of-the-art internet and mobilebanking platforms. With its massive payment systemsinfrastructure consisting of more than 15 million debitand credit cards and 460 thousand POS terminals,Garanti today manages Turkey’s largest merchantnetwork via its innovative products and services.Garanti, with its 68 new branch openings in 2011 aimingto provide greater access to and convenience for itscustomers, continued to be the driver of the economyby its uninterrupted support. Garanti’s assets reachedTL 163 billion 475 million 323 thousand; while thesupport provided to the economy through cash andnon-cash lending reached TL 112 billion 971 million518 thousand.*Garanti stands out with its well-diversified andsolid funding structure. In 2011, customer depositsincreased by 18% as compared to 2010 and rapidexpansion of the customer base continued. As a naturalconsequence of Garanti’s successful business model,which has been solidified through the Bank’s effectivestrategy to capture wider customer base, high demanddeposit levels were maintained. In 2011, the share ofdemand deposits in total deposits increased to22%.In 2011, Garanti further strengthened its strongcapitalization and continued to operate with lowleverage. As of year-end 2011, the Bank’s consolidatedcapital adequacy ratio stood at 15.8%. Free fundsgrew by 18.5% on an annual basis, and the Bank fundedaround 1/5 of its assets through free funds.Garanti, prioritizing its customer-oriented bankingstrategy, managed to further improve its operationaleffectiveness in 2011 and continued to be the mostprofitable bank in Turkey.Total Assets Performing Loans Total DepositsTL 163.5 Billion TL 90.3 Billion TL 93.2 Billion20% Asset GrowthIncreased contribution of customerdriven assets30% Loan GrowthUninterrupted support to theeconomy18% Deposits GrowthExtensive branch network and effectiverelationship bankingShareholder’s Equity Net Fee & Commissions Income Ordinary Banking IncomeTL 17.9 Billion TL 2.1 Billion TL 7.0 BillionStrong capitalization continuouslyreinforced by internal capitalgenerationOperating ExpenseTL 3.7 BillionBelow inflation growth in OPEXwith its focus on disciplined costmanagement and productivityReturn on Average Assets2.2%Capital Adequacy Ratio15.8%Well-diversified fee sources led to11% growthNet IncomeTL 3.3 BillionDelivered the highest profit amongTurkish banks with the support of itsstakeholdersReturn on Average Equity20%Non-performing Loans Ratio2.1%Leader with its customer-orientedbanking strategyCustomer-oriented,profitable, andsustainablegrowth strategyresulted in anothersuccessful year.22 GARANTI BANK 2011 ANNUAL REPORT*Based on BRSA Consolidated Financials