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Turkiye Garanti Bankasi AS (TKGBY)
OTHER OTC:TKGBY
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Turkiye Garanti Bankasi AS (TKGBY) AI Stock Analysis

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TKGBY

Turkiye Garanti Bankasi AS

(OTC:TKGBY)

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Neutral 69 (OpenAI - 5.2)
Rating:69Neutral
Price Target:
$3.00
â–²(9.89% Upside)
Action:Reiterated
Date:08/04/26
The score is primarily supported by strong financial performance (high ROE and continued revenue growth) and very attractive valuation (low P/E and solid dividend yield). These positives are partially offset by weak technicals (below key moving averages with negative MACD) and guidance-related headwinds from funding-cost pressure and higher cost-of-risk expectations.
Positive Factors
High profitability and ROE
Sustained high nominal profitability (mid-to-high double-digit ROE) and substantial 1H net income demonstrate durable earning power and franchise scale. This supports internal capital generation, dividend capacity and resilience to cyclical shocks, underpinning long-term shareholder returns and growth funding.
Negative Factors
Rising leverage reduces flexibility
A notable uptick in debt-to-equity weakens structural balance-sheet flexibility and raises sensitivity to higher funding costs or adverse market moves. Higher leverage can stress capital ratios under stress, limit room for loan growth or buybacks, and amplify earnings volatility if asset quality or margins deteriorate.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability and ROE
Sustained high nominal profitability (mid-to-high double-digit ROE) and substantial 1H net income demonstrate durable earning power and franchise scale. This supports internal capital generation, dividend capacity and resilience to cyclical shocks, underpinning long-term shareholder returns and growth funding.
Read all positive factors

Turkiye Garanti Bankasi AS (TKGBY) vs. SPDR S&P 500 ETF (SPY)

Turkiye Garanti Bankasi AS Business Overview & Revenue Model

Company Description
Turkiye Garanti Bankasi A.S. (TGB), headquartered in Istanbul, Turkey, is a comprehensive financial institution that has been providing a wide array of banking and financial services since its founding in 1946. The bank offers a diverse range of d...
How the Company Makes Money
Türkiye Garanti Bankası A.Ş. primarily earns money from banking spread and fee-based activities. (1) Net interest income: The bank collects interest and profit-share income from loans and other interest-earning assets (e.g., consumer loans, SME/co...

Turkiye Garanti Bankasi AS Earnings Call Summary

Earnings Call Date:Jul 30, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call presented a broadly constructive picture: strong core revenue growth (core banking revenues +43% YoY), robust fee performance (+c.39% YoY), solid 1H profitability (TRY 64bn net income, 28% ROE) and ample capital/liquidity buffers. Offsetting this were meaningful near-term challenges — funding cost pressure that compressed margins, higher provisioning and cost of risk driven by consumer NPL inflows and regulatory restructuring, and macro uncertainty with intact inflation upside risk. Management reiterated guidance ranges (cost of risk 2.0%-2.5%) but signaled outcomes are likely toward the upper end and that margin improvement will be more modest than initially expected. Overall the strengths in diversified revenue, fee momentum, capital generation and liquidity provide resilience that outweighs the near-term margin and asset-quality headwinds.
Positive Updates
Net Income and Profitability
Generated TRY 64 billion in net income in 1H26, up 20% year-on-year, with a 28% return on equity (ROE). Nominal ROE guidance considered achievable depending on rate evolution.
Negative Updates
Quarterly Net Income Pressure
Net income had a single-digit decline quarter-on-quarter, primarily due to lower trading income and increased provisioning.
Read all updates
Q2-2026 Updates
Negative
Net Income and Profitability
Generated TRY 64 billion in net income in 1H26, up 20% year-on-year, with a 28% return on equity (ROE). Nominal ROE guidance considered achievable depending on rate evolution.
Read all positive updates
Company Guidance
Management kept its 2026 guidance broadly intact: baseline macro assumes full‑year GDP ~3% and year‑end CPI ~30% (they used 27% in H1 linker valuations and said 30% would have increased H1 net income by ~TRY2bn, NII by ~TRY3bn and NIM by ~20bps), funding costs are expected to converge toward policy rates by September with limited easing possible in Q4, and loan growth guidance for both TL and FX books is maintained. They expect consolidated cost‑of‑risk to finish within the guided 2.0–2.5% range but toward the upper end, and still forecast margin expansion this year albeit more modest than initially expected (75bps NIM improvement remains achievable but with downside risk; Q3 NIM likely flat vs Q2 with improvement in Q4; Q2 NII fell ~5% QoQ). Key figures supporting the guidance: H1 net income TRY64bn (+20% YoY) and ROE 28%, core banking revenues +43% YoY, total assets TRY5.2tn (loans 55% of assets), customer deposits TRY3.5tn (66% of assets), external debt $9.8bn ($4.5bn short‑term) with $6.1bn FX liquidity buffer, CET1 ≈12% and TRY149bn excess capital, fees +39% YoY (12% QoQ), OpEx +45% (lowest cost/income among peers), and a planned Romania disposal (expected mid‑Q4) that could add >€100m net income, ~80bps to capital and ~1.3–1.5pp to ROE and is factored into their planning.

Turkiye Garanti Bankasi AS Financial Statement Overview

Summary
Strong current profitability and scale (TTM net margin ~10.1% and ROE ~26.9%) with continued revenue growth (~5.2%). Offsetting this are margin compression versus 2025, a meaningful rise in leverage (debt-to-equity ~1.36 vs ~0.97), and volatile cash-flow history (including a weak 2024 and sharply negative TTM FCF growth), which reduces stability.
Income Statement
78
Positive
Balance Sheet
71
Positive
Cash Flow
64
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.14T988.39B287.17B346.52B177.72B85.59B
Gross Profit379.68B410.34B287.17B199.32B133.01B61.46B
EBITDA166.73B160.63B127.64B109.31B78.23B19.35B
Net Income120.97B109.82B91.24B86.37B58.29B13.47B
Balance Sheet
Total Assets5.22T4.55T3.00T2.20T1.30T850.48B
Cash, Cash Equivalents and Short-Term Investments941.10B31.82B591.84B474.34B200.82B182.89B
Total Debt548.64B431.79B223.97B150.11B104.47B97.20B
Total Liabilities4.73T4.10T2.67T1.96T1.15T770.17B
Stockholders Equity486.66B444.07B329.79B244.70B152.64B79.98B
Cash Flow
Free Cash Flow174.17B184.76B-155.25B186.17B43.63B31.02B
Operating Cash Flow181.05B196.04B-145.82B191.28B45.76B32.31B
Investing Cash Flow-391.24B-63.06B-46.85B-81.76B-55.25B-12.41B
Financing Cash Flow419.51B222.25B95.27B10.45B25.67B29.34B

Turkiye Garanti Bankasi AS Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2.73
Price Trends
50DMA
2.72
Positive
100DMA
2.81
Negative
200DMA
3.02
Negative
Market Momentum
MACD
<0.01
Negative
RSI
51.33
Neutral
STOCH
42.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TKGBY, the sentiment is Neutral. The current price of 2.73 is below the 20-day moving average (MA) of 2.74, above the 50-day MA of 2.72, and below the 200-day MA of 3.02, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.33 is Neutral, neither overbought nor oversold. The STOCH value of 42.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TKGBY.

Turkiye Garanti Bankasi AS Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$16.29B14.2522.63%4.26%7.69%9.88%
69
Neutral
$11.59B4.6726.86%4.70%6.83%0.14%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
66
Neutral
$3.22B16.428.15%3.04%5.91%-32.85%
64
Neutral
$5.24B18.517.73%6.33%4.03%-24.70%
62
Neutral
$22.34B30.9911.81%1.44%20.73%27.11%
48
Neutral
$7.45B63.192.13%3.93%3.21%-89.45%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TKGBY
Turkiye Garanti Bankasi AS
2.75
-0.69
-20.10%
BMA
Banco Macro SA
77.02
37.02
92.54%
BSBR
Banco Santander Brasil
5.95
0.78
15.15%
BSAC
Banco Santander Chile
34.75
9.64
38.41%
BBAR
Banco BBVA Argentina
14.80
6.28
73.79%
GGAL
Grupo Financiero Galicia SA
42.96
14.87
52.92%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 04, 2026