Turkiye Garanti Bankasi A.S.

What does it do?

Garanti BBVA is one of Turkey's largest banks, serving millions of everyday people and businesses across the country. Think of it like a Turkish version of Chase or Bank of America — it handles everything from checking accounts and home loans to car financing and business credit. A Spanish banking giant called BBVA owns a majority stake in it, giving it a strong international backer. If you've ever used a bank app to pay bills or take out a loan, that's essentially the core of what Garanti does, just for Turkish customers.

How does it make money?

Garanti makes money the way most banks do: it borrows money cheaply (through customer deposits) and lends it out at higher interest rates — the difference is called net interest income, and it's the engine of the business. Turkey's high interest rate environment, with rates that have exceeded 40%, has dramatically inflated this spread, helping boost revenue from $287.2B to $343.7B in the latest year. The bank also earns fees from credit cards, foreign exchange transactions, and investment products sold through its platform. Net income came in at $109.8B, suggesting a very healthy profit margin on paper — though these numbers are in Turkish lira, which loses value over time due to inflation.

Why do investors care?

The big bet here is that Turkey is finally turning a corner economically. After years of unconventional policies that wrecked the lira, the government brought in orthodox economists who raised interest rates sharply — and high rates are actually good for bank profits in the short term. Garanti's revenue grew nearly 20% year-over-year, showing the business is expanding fast. For this story to work, inflation needs to cool, the lira needs to stabilize, and Turkish consumers and businesses need to keep borrowing and spending.