Turkiye Garanti Bankasi A.S. (TKGBF) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good afternoon and thank you for joining Garanti BBVA's first half 2026 financial results webcast. Today, representing Garanti BBVA, we are joined by our CEO, Mr. Mahmut Akten, our CFO, Mr. Atil Özus, and our Head of Investor Relations, Ms. Ceyda Akinç. Following management's presentation, we will open the floor for questions. You can either use the raise hand function or submit your questions through the Q&A box. Without further ado, I will now hand over to management. Hello everyone. We are pleased to be with you again following another solid set of results. First, let me begin with macroeconomic environments we are in. GDP growth was 2.5% in the first quarter and we now cast a similar level as of June. Activity is expected to recover modestly in the second half of the year, thus we maintain our 3% growth forecast for the full year. On the right-hand side, you can find our inflation and interest rate forecasts. Higher food and energy prices slowed down the improvement in headline inflation. Nevertheless, preserved tight financial conditions and fiscal discipline have supported our 30% year-end CPI forecast. Authorities continue to pursue a carefully balanced policy mix combining gradual monetary normalization with tight macroprudential measures. Therefore, we expect the funding rate to gradually converge toward the policy rate by September. The timing of the first easing step remains data dependent and may be affected by oil price volatility. If conditions allow, limited rate cuts might resume in the fourth quarter. Moving into current account deficit, weak foreign demand and high commodity prices lead to a worsening in external balance, yet resilient tourism revenues and moderation in economic activity could prevent further deterioration. We now expect current acc...