Garanti Leasing signs a loan agreement for EUR 15 million with European Fund for Southeast Europe

Bucharest, December 4, 2017 – Garanti Leasing, part of Garanti Romania, one of the most dynamic financial groups on the local market, has signed a loan agreement of EUR 15 million with the European Fund for Southeast Europe (EFSE). The facility is meant to increase access to financing for local micro and small enterprises and individual entrepreneurs.

This is the second time Garanti Leasing partners with EFSE. Previously, the two institutions have signed an agreement in 2014, for a EUR 7 million loan, aimed at encouraging the development of local micro and small enterprises (MSEs).

“Entrepreneurship is an important factor that has boosted the development of the economy in Romania. Garanti Leasing, like all Garanti Group institutions, is a strong supporter of entrepreneurs, and we have a long term commitment to stand by them with tailored business development solutions. EFSE has been a partner for Garanti Leasing in the past years and we are thus glad to sign this new agreement and reinforce our mutual objectives”, stated Okan Yurtsever, General Manager, Garanti Leasing.

“We are very pleased to expand our cooperation with Garanti Leasing Romania. The company has the expertise, capacities and infrastructure to reach out to businesses across the country in a responsible manner, furthering the development goals of EFSE”, said Christoph Tiskens, Chairman of the Board, EFSE.

In the first nine months of 2017, Garanti Leasing has granted new financing worth over EUR 63 million, over 1,000 new contracts having been signed between January and September. The distribution of new funded assets, in the first nine months of the year, was: vehicles(50%), equipment (22%) and real estate (28%).

About Garanti Leasing

With a tradition of almost 20 years on the Romanian leasing market, Garanti Leasing (the brand under which the company Motoractive IFN SA operates) completes Garanti Group’s range of products and services with offers for vehicles, equipment and real estate leasing, sale & lease-back. The company has disbursed over EUR 900 million for assets under finance leases and entered into over 53,000 lease contracts since its inauguration, currently operating from 6 offices and creating synergies with Garanti Bank’s branches.

Garanti Leasing is part of the financial-group Garanti Romania since 2010. The Group also brings together Garanti Bank and Garanti Consumer Finance (the brand under which Ralfi IFN operates).

Garanti Group is held by Turkiye Garanti Bankasi AS (TGB), Turkey’s second largest private bank. TGB is a universal bank with leading presence in all business lines. The bank serves more than 14 million customers in corporate, commercial, SME, and consumer segments offering fully integrated financial services. The Spanish financial group Banco Bilbao Vizcaya Argentaria (BBVA) is the majority shareholder of TGB.

For more information, please visit http://www.garantileasing.ro/

About the European Fund for Southeast Europe

The European Fund for Southeast Europe (EFSE) was initiated by KfW Development Bank (KfW) with the financial support of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission. It aims to foster economic development and prosperity in Albania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, former Yugoslav Republic of Macedonia, Kosovo, Georgia, Moldova, Montenegro, Romania, Serbia, Ukraine and Turkey.

EFSE focuses on assisting local financial sectors in strengthening their ability to ensure adequate and sustainable financing. The funding the EFSE provides as long-term finance primarily for micro and small enterprises (MSEs) – but also for private households in the form of home improvement loans – is channelled to these loan customers through local partner lending institutions. Supporting the EFSE’s investment activities is the EFSE Development Facility, which provides partner lending institutions with technical assistance, consulting and training services to build operational capacities and professional management.

For more information about the European Fund for Southeast Europe, please visit: http://www.efse.lu/

Bonus Card holders have doubled their shopping appetite this year on Black Friday, compared to 2016
  • For the first time, more purchases were made online rather than offline
  • 70% of Garanti Bank customers primarly used their Bonus Card on Black Friday for shopping for electronics

Bucharest, December 05, 2017 – Bonus Card holders spent 10% more, between 17-19 November, than they did on Black Friday last year (18-20 November), the total volume of transactions increasing to RON 15 million. Furthermore, this year, Garanti Bank customers had a higher apetite for shopping on Black Friday, the average transaction value, summing up to RON 519, doubling from last year.

Between 17-19 November, Bonus Card holders used their credit cards mostly for shopping for electronics (70%), but also for house supplies and domestic use (10%), clothing and footwear (5%) and photography appliances (5%).

As the online environment grows rapidly and Bonus Card partner stores diversify their offers, Garanti Bank customers' shopping behavior has adjusted accordingly. Online transactions have registered a year on year exponential growth rate. If last year, for Black Friday, 35% of transaction amounts were performed on the Internet, this year, they exceeded 60%, online shopping having a majority over offline purchases for the first time.

Moreover, following the expansion of the Bonus Card network of partners,88% of purchases on Black Friday, between 17-19 November, were made in partner stores, as compared to approximately 55% last year.

“Our aim is to improve and simplify our customers' lives and we are happy to see that Bonus Card continues to be one of the favorite shopping cards. Every year more and more customers use Bonus card, while our network of partner stores has expanded altogether. The apetite for online payments is obvious, and this is why we launched besides the online installments partnerships , a campaign dedicated for online shoppers: 3 installments for any online payment made in RON, of course, for more then 3 installments you can count on the Bonus Card partners. Over the years, Bonus Card benefits have multiplied, in direct correspondence with clients' amplified appetite for safe shopping, both online and offline. We will continue our strategy of developing Bonus Card and present our customers with more advantages when using it”, stated Emre Unal, Cards Director Garanti Bank.

Bonus Card is a unique product in Romania and one of the most rewarding payment tool in the market for both cardholders and merchants. The cardholders accumulate bonus every time they perform a transaction with it, both inside and outside the country and the bonus represents money that afterwards can be redeemed for free shopping in the Bonus Card partner shops network. Moreover, the customers can choose to pay in installments free of interest, benefiting from flexibility in choosing the number of rates, based on their personal needs.

About Garanti Bank Romania

Garanti Bank is part of the financial-banking group Garanti Romania, which brings together Garanti Leasing (the brand under which the company Motoractive IFN SA operates) and Garanti Consumer Finance (the brand under which Ralfi IFN operates).

Garanti Bank is held by Turkiye Garanti Bankasi AS (TGB), Turkey’s second largest private bank. TGB is a universal bank with leading presence in all business lines. The bank serves more than 14.5 million customers in corporate, commercial, SME, and consumer segments offering fully integrated financial services. The Spanish financial group Banco Bilbao Vizcaya Argentaria (BBVA) is the majority shareholder of TGB.

Garanti Bank Romania offers a series of quality products and services for all business segments: retail, SME and corporate.

Present in Romania since 1998, the bank has developed a solid portfolio of clients and expanded its national presence through branches and alternative channels, reaching an extended network of branches and intelligent ATMs that can be used by anyone, not just bank customers, for transactions with or without cards.

In July this year, Garanti Bank was awarded by world-renowned magazine Global Finance, as “Best Consumer Digital Bank in Romania”. The distinction was granted within the “2017 World's Best Consumer Digital Banks in Central and Eastern Europe Competition” and it is the 10th award that Garanti Bank receives from Global Finance in the past nine years.

For more information, please visit www.garantibank.ro

Garanti Leasing and EBRD join forces for MSME financing

€10 million loan to boost small businesses’ access to finance

Bucharest, October 02, 2017 - The EBRD is providing a loan of up to €10 million to Garanti Leasing Romania to broaden access to finance for local micro, small- and medium-sized enterprises (MSMEs).

The funds will strengthen the competitiveness of private businesses by increasing the availability of financing. At the same time Garanti Leasing will be able to grow its leasing activities and expand its MSME portfolio.

Even though leasing represents an attractive alternative for local MSMEs to support their investment needs, it remains a less-developed funding channel in Romania.

Garanti Leasing is part of Garanti Group Romania, one of the most dynamic financial groups in the Romanian market, dedicated to best serving its clients, through fast and innovative financing solutions. Garanti Leasing continues to grow its business volume and portfolio by concentrating on MSMEs in economic sectors such as transportation, the health sector and the automobile supplier industry.

This is the second time the EBRD is joining forces with Garanti Leasing to support small businesses in Romania. The company successfully utilised a €10 million loan provided by the EBRD in August 2016 to support clients in trade, construction and other services.

Matteo Patrone, EBRD Director, Regional Head for Romania and Bulgaria, said: “We are pleased to intensify our partnership with Garanti Leasing after the successful operation in 2016. This new facility continues our cooperation in providing funding to small businesses in Romania. MSMEs are the backbone of the Romanian economy and supporting them will contribute to economic growth.”

Okan Yurtsever, General Manager, Garanti Leasing, said: “We believe in the local business environment and in its development potential, and all our steps thus far have been in support of their activity, having targeted and backed their sustainable growth. Through our new partnership with the EBRD, we are once more reiterating our long term commitment to the Romanian economy and to small businesses in particular.”

The EBRD is a leading institutional investor in Romania. It focuses on promoting stability and expanding products in the financial sector, on strengthening infrastructure through improved efficiency and greater private sector involvement, as well as on restructuring the power sector and increasing energy efficiency and sustainability.

The Bank has invested close to €7.5 billion in the country to date in almost 400 projects.

Garanti Leasing Romania receives EBRD loan of €10 million New financing to support development of leasing market in the country

Bucharest, October 02, 2017 - EBRD loan to Garanti Leasing will finance new leases for Romanian SMEs, in particular for equipment, trucks and trailers and other vehicles.

The European Bank for Reconstruction and Development (EBRD) is extending a €10 million loan to Garanti Leasing Romania to broaden access to finance for the country’s small and medium-sized enterprises (SMEs). Garanti Leasing will use the loan to finance new leases for local SMEs, in particular for equipment, trucks and trailers and other vehicles.

“Leasing represents an attractive alternative way for local SMEs to fulfil their investment needs. We are committed to supporting the development of the leasing market here in Romania and are pleased to partner for the first time with Garanti Leasing to advance this goal,” said Matteo Patrone, EBRD Regional Director for Romania and Bulgaria.

Part of the financial-banking group Garanti Romania, which is held by Turkiye Garanti Bankasi AS (TGB), Turkey’s second-largest private bank, Garanti Leasing has a strong focus on SMEs and a 4.6 per cent share of the Romanian leasing market. “SMEs represent one of the most important engines of the Romanian economy, and the companies from this important segment need to be encouraged, in order to reach their full potential and be successful. Garanti Leasing has been a long-term supporter of SMEs. Through our partnership with the EBRD we are reiterating our commitment to the Romanian business environment, thus also contributing to local economic growth,” commented Okan Yurtsever, General Manager, Garanti Leasing.

With over 18 years of experience in the Romanian leasing market, Garanti Leasing completes the Garanti Group’s range of products and services with offers for vehicles, equipment and real estate leasing, sales and leaseback. Since its establishment, the company has disbursed over €800 million for assets under finance leases and has signed more than 43,000 lease contracts. The firm currently operates from eight offices in association with Garanti Bank’s 84 branches.Broadening access to finance for Romanian companies via alternative credit channels is among the EBRD’s priorities for the country.

The EBRD is a leading institutional investor in Romania. It focuses on promoting stability and expanding products in the financial sector, strengthening infrastructure through improved efficiency and greater private sector involvement, as well as on restructuring the power sector and increasing energy efficiency and sustainability. The Bank has invested over €7 billion in the country to date and has also mobilised more than €14 billion from other sources of financing

Garanti Bank registered increasing Bonus Card transactions volumes, in the past 10 years
  • Bonus Card celebrates 10 years since its launch in Romania
  • Garanti Bank currently has over 160,000 Bonus Card customers and 6,000 partner stores
  • Bonus Card transactions volume exceeded RON 440 million in 2016
  • 22% of all Bonus Card purchases in 2016 were made online

Bucharest, August 23rd, 2017 - Garanti Bank, one of the most dynamic banks in the local market, has registered increasing volumes of Bonus Card transactions, year on year, since the launch of Bonus Card in Romania 10 years ago. As such, the transactions volume with Bonus Card exceeded RON 440 million in 2016, 22,000 times higher than in 2007. Garanti Bank currently has over 160,000 Bonus Card customers and 6,000 partner stores.

Since 2007, clients’ behavior has changed, as they became more aware of the benefits of using a credit card. Consequently, the share of installment purchase volumes at Bonus Card partner shops represented 37% in 2016.

“We place emphasis on building long-term relationships and we wish to thank our clients and partners for the past 10 years in which the trust we placed in each other have grown strongly and sustainably. Ten years have passed since we launched Bonus Card in Romania and our further goals are to continue developing our product, as we align our strategy to our customers' buying requirements. Moreover, we will carry on expanding our Bonus Card store partners network, in order to cover as many business areas as possible”, stated Emre Unal, Cards Director, Garanti Bank Romania.

Bonus Card is mainly used by Garanti Bank clients to buy home appliances (16% of the transactions), clothes (9% of the transactions), home supply and garden products (8% of the transactions), and pharmaceutical products (5% of the transactions). Regarding the preference for online transactions, 22% of all purchases with Bonus Card were made online in 2016.

Bonus Card is one of the most rewarding payment tools in the market for both cardholders and merchants, the second category benefiting from exposure and Garanti Bank’s over 160,000 clients portfolio. Customers can accumulate up to 10% bonus every time they perform a transaction with their card, inside or outside the country. The bonus represents money that afterwards can be redeemed in partner stores, in a network of over 6,000 merchants. In addition, clients can choose to pay in interest-free installments, benefiting from flexibility in regards to preferred number of instalments, depending on their personal needs. Last year, Garanti Bank granted a total of approximately RON 1 million in bonus points.

During campaigns, customers can choose to pay in up to 24 free of interest instalments for purchases made in Garanti Bank’ partner stores or they can benefit of installments at certain categories, such as utilities and taxes or transactions made outside the country.

To mark the 10th anniversary, Garanti Bank has launched the “Bonus Card Shopping Academy” campaign through which the bank runs new promotions monthly.

About Garanti Bank Romania

Garanti Bank is part of the financial-banking group Garanti Romania, which brings together Garanti Leasing (the brand under which the company Motoractive IFN SA operates) and Garanti Consumer Finance (the brand under which Ralfi IFN operates).

Garanti Bank is held by Turkiye Garanti Bankasi AS (TGB), Turkey’s second largest private bank. TGB is a universal bank with leading presence in all business lines. The bank serves more than 14.5 million customers in corporate, commercial, SME, and consumer segments offering fully integrated financial services. The Spanish financial group Banco Bilbao Vizcaya Argentaria (BBVA) is the majority shareholder of TGB.

Garanti Bank Romania offers a series of quality products and services for all business segments: retail, SME and corporate.

Present in Romania since 1998, the bank has developed a solid portfolio of clients and expanded its national presence through branches and alternative channels, reaching an extended network of branches and intelligent ATMs that can be used by anyone, not just bank customers, for transactions with or without cards.

In July this year, Garanti Bank was awarded by world-renowned magazine Global Finance, as “Best Consumer Digital Bank in Romania”. The distinction was granted within the “2017 World's Best Consumer Digital Banks in Central and Eastern Europe Competition” and it is the 10th award that Garanti Bank receives from Global Finance in the past nine years.

For more information, please visit www.garantibank.ro

Press Contact

Ami Radu / Account Coordinator Oxygen /anamaria@oxygenpr.ro/ +4 0721.379.605

Garanti Group Romania registered a RON 96 million profit in the first semester of 2017

Bucharest, August 1st, 2017 - Garanti Group Romania, one of the most dynamic financial groups on the local market, composed of Garanti Bank, Garanti Leasing and Garanti Consumer Finance, has recorded a RON 96 million consolidated net profit, in the first semester of the year. The Group’s total asset volume reached RON 10.51 billion.

On solo basis, Garanti Bank registered a RON 78.1 million net profit at the end of June, its commercial results having played a highly significant role in this regard. The bank's loan volume reached RON 6.96 billion, in the first semester, representing a 7.1% increase year-on-year. Furthermore, the volume of customer deposits registered an 18.5% year-on-year growth, reaching RON 6.84 billion, with all business lines contributing to such increase.

In the first half of the year, Garanti Bank’s card portfolio increased by 10%, reaching almost 300,000 issued cards. Moreover, Garanti’s POS national network has intensified in the first six months, the number of Garanti POSs having risen by 15%, exceeding 12,000 units.

The risk indicators of Garanti Bank enjoy a comfortable level. The NPL ratio is 1 pp below the market average, while the the NPL coverage rate by provisions is higher than the market average, according to the most recent available data at the level of the banking system.

“We will maintain our momentum for sustainable growth and healthy development on the Romanian market, as part of our long term strategy of growing in an efficient way and being a trustworthy financial partner to our clients, across all business lines”, stated Ufuk Tandoğan, CEO Garanti Group Romania.

The Group’s non-banking institutions also showed solid results in the first semester: Garanti Consumer Finance reached a RON 10.5 million net profit, and Garanti Leasing - RON 7.3 million net profit.

Garanti Group Romania is held by Turkiye Garanti Bankasi AS (TGB), the second largest private bank in Turkey. The Spanish financial group Banco Bilbao Vizcaya Argentaria (BBVA) is the majority shareholder of TGB. In the first six months of 2017, TGB posted a consolidated net income of TL 3.12 billion (EUR 773.83 million), while asset size reached TL 335.94 billion (EUR 83.85 billion), while its contribution to the economy through cash and non-cash lending totaled TL 272.98 billion (EUR 68.13 billion). TGB serves to its 14.5 million customers in corporate, commercial, SME, and consumer segments offering fully integrated financial services.

BBVA has a consolidated asset size of EUR 702.43 billion and a net attributable profit of EUR 2.3 billion, by the first half of 2017.

About Garanti Group Romania

Garanti Group consists of Garanti Bank, Garanti Leasing (the brand under which Motoractive IFN SA operates) and Garanti Consumer Finance (the brand under which Ralfi IFN SA operates). The two Non-Banking Financial Institutions complete Garanti Bank’s offer with specific leasing products (financial leasing – vehicles, equipment, real estate – sale & lease-back) and fleet administration services, consumer credits, as well mortgage loans deadicated to real estate purchses or refinancing other loans. Garanti Group offers financial services on the local market to more than 500.000 clients.

In July this year, Garanti Bank was awarded by world-renowned magazine Global Finance, as “Best Consumer Digital Bank in Romania”. The distinction was granted within the “2017 World's Best Consumer Digital Banks in Central and Eastern Europe Competition” and it is the 10th award that Garanti Bank receives from Global Finance in the past nine years.

Garanti Group is held by Turkiye Garanti Bankasi AS (TGB), Turkey’s second largest private bank. TGB is a universal bank with leading presence in all business lines. The bank serves more than 14.5 million customers in corporate, commercial, SME, and consumer segments offering fully integrated financial services.

Garanti Bank Romania offers a series of quality products and services for all business segments: retail, SME and corporate. Present in Romania since 1998, the bank has developed a solid portfolio of clients and expanded its national presence through branches and alternative channels, reaching an extended network of branches and intelligent ATMs that can be used by anyone, not just bank customers, for transactions with or without cards.

For more information, please visit www.garantibank.ro

Garanti Bank was awarded by Global Finance as “Best Consumer Digital Bank”

Bucharest, July 26th, 2017 - Garanti Bank, one of the most dynamic banks on the local market, was awarded by the world-renowned magazine Global Finance as “Best Consumer Digital Bank” in Romania. The distinction was granted within the “2017 World's Best Consumer Digital Banks in Central and Eastern Europe Competition”. Garanti Bank is the only bank in Romania to receive such an award.

The evaluation was carried out by a world-class panel of judges at Infosys, a global leader in consulting, technology and outsourcing, and Global Finance editorial team, based on the following criteria: strength of strategy for attracting and servicing digital customers, success in getting clients to use digital offerings, growth of digital customers, breadth of product offerings, evidence of tangible benefits gained from digital initiatives, and web/mobile site design and functionality.

“The relationship between clients and financial institutions has entered a new phase. Customers are looking for personalized experiences and most importantly to have immediate access to relevant information about different products and services with just a swipe from their mobile devices. Our efforts target responding to these precise technological needs. The award from Global Finance reiterates our long-term commitment to our clients and to the Romanian market”, stated Ufuk Tandogan, CEO Garanti Bank Romania.

Garanti Bank is constantly investing in innovation and in developing its digital channels. In 2016, the bank launched its mobile banking application, Mobile ME, available both on Android and on iOS. The number of clients using Mobile ME reached 17,5% out of all the bank’s users of Internet Banking in the first five months of this year. Mobile ME is an intuitive and close at hand Mobile Banking application, with the help o which clients can perform all basic banking operations. This year, Garanti Bank is working on bringing new services and facilities to Mobile ME and Garanti Online.

This is the 10th award Garanti Bank receives from Global Finance in the past nine years.

About Garanti Group Romania

Garanti Bank is part of the financial-banking group Garanti Romania, which brings together Garanti Leasing (the brand under which the company Motoractive IFN SA operates) and Garanti Consumer Finance (the brand under which Ralfi IFN operates).

Garanti Bank is held by Turkiye Garanti Bankasi AS (TGB), Turkey’s second largest private bank. TGB is a universal bank with leading presence in all business lines. The bank serves more than 14 million customers in corporate, commercial, SME, and consumer segments offering fully integrated financial services. The Spanish financial group Banco Bilbao Vizcaya Argentaria (BBVA) is the majority shareholder of TGB.

Garanti Bank Romania offers a series of quality products and services for all business segments: retail, SME and corporate. Present in Romania since 1998, the bank has developed a solid portfolio of clients and expanded its national presence through branches and alternative channels, reaching an extended branch and intelligent ATMs network that can be used by anyone, not just bank customers, for transactions with or without cards.

For more information, please visit www.garantibank.ro

About Garanti Group Romania

Global Finance, founded in 1987, has a circulation of 50,000 and readers in 193 countries. Global Finance’s audience includes senior corporate and financial officers responsible for making investment and strategic decisions at multinational companies and financial institutions. Its website — GFmag.com — offers analysis and articles that are the heritage of 30 years of experience in international financial markets.

Global Finance is headquartered in New York, with offices around the world. Global Finance regularly selects the top performers among banks and other providers of financial services. These awards have become a trusted standard of excellence for the global financial community.

Garanti Leasing is the first leasing company in Romania to support women entrepreneurs, by signing a gender finance agreement with IFC

Bucharest, May 24th, 2017 - Garanti Leasing, part of Garanti Romania, one of the most dynamic financial groups on the local market, has signed a loan agreement of EUR 5.5 million with International Finance Corporation (IFC), a member of World Bank Group, with the purpose of financing small and medium sized enterprises owned or managed by women.

Garanti Leasing becomes the first leasing company in Romania that finances women owned or managed SMEs, through an agreement with IFC. The company continues Garanti Bank’s strategy of supporting women entrepreneurs.

This is the third agreement signed by IFC with Garanti Group Romania, targeting to back women entrepreneurship and leadership, and facilitate their access to finance. Previously, Garanti Bank has partenered with IFC, in 2012 (EUR 22.5 million) and 2014 (EUR 35 million), in order to offer loans for the development of businesses owned or managed by women.

“Garanti Leasing, as part of Garanti Group, has an ongoing strategy of supporting companies that have women shareholders or in their top management structures. With this new loan we enforce our long-term commitment of encouraging this segment. In the months to come we will focus on our healthy sustainable growth on the local market and on further diversifying our portfolio of financed assets”, stated Okan Yurtsever, General Manager, Garanti Leasing.

Garanti Leasing is a strong supporter of local SMEs and has previously received EUR 7 million from IFC in this respect.

“IFC is actively supporting women entrepreneurs in Romania through its work with Garanti Group,” said Manuel Reyes-Retana, IFC Regional Head for Financial Institutions Group in Europe, Middle East and North Africa. “Following our loans to Garanti Bank, we are now also engaging with Garanti Leasing to reach even more women entrepreneurs and increase their access to finance, so they can grow their businesses and generate new employment.”

IFC is one of the major international investors in the Romanian economy and an important supporter of the private sector development.

In the first quarter of 2017, Garanti Leasing has granted new financing worth EUR 21.87 million, continuing the same increasing trend as last year.

The distribution of new funded assets, in the first three months of the year, was: vehicles (48%), equipment (18%) and real estate (34%).

About Garanti Leasing

With a tradition of almost 20 years on the Romanian leasing market, Garanti Leasing (the brand under which the company Motoractive IFN SA operates) completes Garanti Group’s range of products and services with offers for vehicles, equipment and real estate leasing, sale & lease-back. The company has disbursed over EUR 800 million for assets under finance leases and entered into over 51.000 lease contracts since its inauguration, currently operating from 8 offices and creating synergies with Garanti Bank’s branches.

Garanti Leasing is part of the financial-group Garanti Romania since 2010. The Group also brings together Garanti Bank and Garanti Consumer Finance (the brand under which Ralfi IFN operates).

Garanti Group is held by Turkiye Garanti Bankasi AS (TGB), Turkey’s second largest private bank. TGB is a universal bank with leading presence in all business lines. The bank serves more than 14 million customers in corporate, commercial, SME, and consumer segments offering fully integrated financial services. The Spanish financial group Banco Bilbao Vizcaya Argentaria (BBVA) is the majority shareholder of TGB, with a 49.85% share.

For further details, please visit www.garantibank.ro

About IFC

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with 2,000 businesses worldwide, we use our six decades of experience to create opportunity where it’s needed most. In FY16, our long-term investments in developing countries rose to nearly $19 billion, leveraging our capital, expertise and influence to help the private sector end extreme poverty and boost shared prosperity.

For more information, visit www.ifc.org

Garanti Bank increases its estimations regarding GDP growth rate to 4% in 2017

Bucharest, April 26th, 2017- Garanti Bank, one of the most dynamic banks on the local market, increases its estimations regarding GDP growth rate in 2017 to 4%, from previous 3.7%, mostly due to continued support from trade and better expectations in industry, according to the bank’s Quarterly Macroeconomic Report, corresponding to the first quarter of the year.

In 2016, Romania posted one of the highest GDP growth rate in the European Union, fuelled by the fiscal relaxation measures that boosted households’ real incomes and inflated trade and transport by 11%, compared to the previous year. GDP growth was also driven by the services sector that increased by 6% in 2016, especially by the IT sector that jumped 14% last year, as compared to 2015. However, investments dropped by 3% in 2016, compared to an average increase of 6% in 2014-2015 and a mild revigoration is being expected in 2017.

Regarding other sectors, the residential constructions had a significant boost. The number of apartment deliveries was the largest since before 2009 (52,000 in 2016, versus 63,000 in 2009). The commercial and office buildings segment had a positive evolution as well, helped by the consumption increase and optimistic economic outlook.

Riskwise, according to Garanti Bank’s specialists, 2017 will be a balanced year. On one hand, the uncertainty related to banking legislation has decreased after The Constitutional Court decided that the law of debt discharge was partially non-constitutional and the Swiss francs conversion law was unconstitutional. On the other hand, the budget deficit could exceed the 3% target this year, due to fiscal relaxation measures, including public wages’ hikes.

“2017 is about maintaining macroeconomic stability and most importantly, about encouraging investments, in order to improve the sustainability of the economic advance and drive productivity growth. Romania has solid macroeconomic fundaments and stable investment grade ratings, and we expect this year to be another success growth story”, stated Ufuk Tandoğan, CEO of Garanti Bank Romania.

Last year, banks had a favorable context in terms of lending, after cleaning significantly their balance sheets and reducing the NPL ratio by half. As such, 2017 started with new loans growing by 14% annually during the first two months, compared to a 4% increase in 2016, mostly in RON (79% of the total), especially driven by the corporate segment.

The annual inflation entered a positive territory in 2017, driven by food prices. Garanti Bank expects the inflation rate to reach 2% this year as administrative prices should increase by year end. As a result, the National Bank of Romania will most likely not increase the key interest rate in 2017, according to the forementioned report. At the same time, the FX mandatory reserves ratio could be lowered.

Report Macroeconomic GarantiBank

About Garanti Bank Romania

Garanti Bank is part of the financial-banking group Garanti Romania, which brings together Garanti Leasing (the brand under which the company Motoractive IFN SA operates) and Garanti Consumer Finance (the brand under which Ralfi IFN operates).

Garanti Bank is held by Turkiye Garanti Bankasi AS (TGB), Turkey’s second largest private bank. TGB is a universal bank with leading presence in all business lines. The bank serves more than 14 million customers in corporate, commercial, SME, and consumer segments offering fully integrated financial services. In July last year, Spanish financial group Banco Bilbao Vizcaya Argentaria (BBVA) gained control of Garanti Bank in Turkey.

Garanti Bank Romania offers a series of quality products and services for all business segments: retail, SME and corporate,. Present in Romania since 1998, the bank has developed a solid portfolio of clients and expanded its national presence through branches and alternative channels, reaching an extended branch network and having over 300 intelligent ATMs that can be used by anyone, not just bank customers, for transactions with or without cards.

Garanti Bank was awarded in 2016 by world-renowned magazine Global Finance, as “Best Consumer Digital Bank in Romania”. The distinctions were granted within the “2016 World's Best Consumer Digital Banks in Central and Eastern Europe Competition”.

For more information, please visit www.garantibank.ro

Garanti Bank granted RON 1 million bonuses in 2016 to Bonus Card holders

Bucharest, March 29, 2017– Garanti Bank, one of the most dynamic banks on the local market, has granted its clients a total of approximately RON 1 million in bonuses in 2016, for performing transactions with their Bonus Cards. Out of the total purchases made last year, 29% were made online.

Interest free instalment purchases via Bonus Card represented 37% of the total credit card transactions, the percentage having grown up to 46% during the Easter, Christmas and summer holidays.

In 2016, Bonus Card holders have used their credit cards mainly for shopping in supermarkets, gas stations, clothing and shoes shops, as well as in electronics stores.

“Through Bonus Card we aim to improve and simplify our customers' lives. Every year more and more customers are using the benefits offered by our credit card. We will continue our strategy of constantly offering our clients new advantages for using Bonus Cards, in order to meet as much of needs as possible as well as to build their loyalty”, stated Emre Unal, Cards Director Garanti Bank.

Bonus Card is one of the most rewarding payment tools in the market for both cardholders and merchants. Customers accumulate up to 10% bonuses every time they perform a transaction with their card, both inside and outside the country. The bonus represents money that afterwards can be redeemed for free shopping, in any of the bank’s over 6,000 partner stores. Moreover, during campaigns, customers can choose to pay in up to 24 free of interest instalments for purchases made in Garanti Bank’ partner stores and benefit from a 50 days grace period.

About Garanti Bank Romania

Garanti Bank is part of the financial-banking group Garanti Romania, which brings together Garanti Leasing (the brand under which the company Motoractive IFN SA operates) and Garanti Consumer Finance (the brand under which Ralfi IFN operates).

Garanti Bank is held by Turkiye Garanti Bankasi AS (TGB), Turkey’s second largest private bank. TGB is a universal bank with leading presence in all business lines. The bank serves more than 14 million customers in corporate, commercial, SME, and consumer segments offering fully integrated financial services. In July 2015, Spanish financial group Banco Bilbao Vizcaya Argentaria (BBVA) gained the control of Garanti Bank in Turkey. Garanti Bank Romania offers a series of quality products and services for all business segments: retail, SME and corporate. Present in Romania since 1998, the bank has developed a solid portfolio of clients and expanded its national presence through branches and alternative channels, reaching an extended network of 84 branches and over 300 intelligent ATMs that can be used by anyone, not just bank customers, for transactions with or without cards.

Garanti Bank was awarded in 2016 by world-renowned magazine Global Finance, as “Best Consumer Digital Bank in Romania”. The distinctions were granted within the “2016 World's Best Consumer Digital Banks in Central and Eastern Europe Competition”.

For more information, please visit www.garantibank.ro

Garanti Bank implements POS terminals in 21 Arabesque shops in Romania

Bucharest, March 15, 2017– Garanti Bank, one of the most dynamic banks on the local market, has signed a partnership with Romanian building materials company, Arabesque, through which the bank implements POS terminals in 21 shops around the country.

Due to this partnership, Garanti Bank clients, who hold a Bonus Card, will be able to make payments, for all purchases made in Arabesque shops, in 12 installments, with zero interest rates, and a 0.3% bonus.

“We have expanded our partners’ network to include now one of the largest local distributor of building materials, Arabesque. Our aim with this partnership is to offer our clients a wide set of benefits that can bring utility and value in their lives”, stated Emre Unal – Cards Director, Garanti Bank.

POS terminals are available in Arabesque shops from Bucharest, Ploiesti, Pitesti, Craiova, Galati, Buzau, Bacau, Vrancea, Iasi, Neamt, Baia Mare, Targu Mures, Deva, Oradea, Cluj, Constanta.

Bonus Card is a unique product in Romania and one of the most rewarding payment tools in the market for both cardholders and merchants. Customers accumulate bonuses every time they perform a transaction with their card, both inside and outside the country. The bonus represents money that afterward can be redeemed for free shopping in Bonus Card partner stores. Moreover, customers can choose to pay in installments free of interest, benefiting from flexibility in choosing the number of installments, based on their personal needs.

Total volume of tax payment transactions with Bonus Card increased by 16% in 2016

Clients can pay taxes and contributions in installments with no interest

Bucharest, February 15, 2017 – Garanti Bank, one of the most dynamic banks on the local market, registered a total volume increase of 16% for taxes and contributions payment transactions made with Bonus Card, to RON 2.52 million, in 2016, as compared to RON 2.15 million.

According to the bank’s data, clients prefer to pay their taxes and contributions in the first part of the year, rather than in the last part. In 2016, the number of clients that chose to pay their taxes by the end of March was 4.5 higher than the number of clients that made the payments by the end of October last year.

This year, Garanti Bank’s Bonus Card holders can pay their taxes by March 31st through 3 installments with no interest if they make the transactions directly at the counter or online on ghiseul.ro. For Bonus Card Gold and Platinum holders, the option to pay the taxes in installments can be enabled upon request.

“Digital payments are growing significantly from year to year. As a response to this trend we offer our clients the easiest and rewarding payment instruments, simplifying as much as possible the process of paying their annual taxes and contributions“, stated Emre Unal, Cards Director, Garanti Bank Romania.

Bonus Card is a unique product in Romania and one of the most rewarding payment tools in the market, for both cardholders and merchants. Customers accumulate bonuses every time they perform a transaction with their card, both inside and outside the country. The bonus represents money that afterwards can be redeemed for free shopping in Bonus Card partner stores. Moreover, customers can choose to pay in installments free of interest, benefiting from flexibility in choosing the number of rates, based on their personal needs.

About Garanti Bank Romania

Garanti Bank is part of the financial-banking group Garanti Romania, which brings together Garanti Leasing (the brand under which the company Motoractive IFN SA operates) and Garanti Consumer Finance (the brand under which Ralfi IFN operates).

Garanti Bank is held by Turkiye Garanti Bankasi AS (TGB), Turkey's second largest private bank. TGB is a universal bank with leading presence in all business lines. The bank serves more than 14 million customers in corporate, commercial, SME, and consumer segments offering fully integrated financial services. In July last year, Spanish financial group Banco Bilbao Vizcaya Argentaria (BBVA) gained majority management control of TGB.

Garanti Bank Romania offers a series of quality products and services for all business segments: retail, SME and corporate.

Present in Romania since 1998, the bank has developed a solid portfolio of clients and expanded its national presence through branches and alternative channels, reaching an extended network of 84 branches and over 300 intelligent ATMs that can be used by anyone, not just bank customers, for transactions with or without cards.

Garanti Bank was awarded in 2015 by world-renowned magazine Global Finance, as "Best Consumer Digital Bank in Romania" and "Best Integrated Consumer Bank Site in Central and Eastern Europe Region". The distinctions were granted within the "2015 World's Best Consumer Digital Banks in Central and Eastern Europe Competition".

In May this year, International Rating agency Fitch Ratings affirmed the long-term IDRs of Garanti Bank Romania (GBR). The bank's long term IDR was affirmed at 'BBB-' (outlook stable), its short term IDR at 'F3', its Support Rating at '2', while its Viability Rating was also affirmed at 'b+'. Fitch emphasized that GBR remains a strategically important subsidiary of its parent bank.

Garanti Bank’s Outlook, upgraded to Stable by Fitch

Bucharest, 13 February 2017– International Rating Agency Fitch Ratings upgraded Garanti Bank Romania’s (GBR) Outlook to Stable, and confirmed its ratings. As such, the bank’s Long Term IDR was confirmed to ‘BBB- (Investment grade)‘, its Short Term IDR, to ‘F3’, its Support Rating to ‘2’, and its Viability Rating to ‘b+’.

Fitch emphasized the strategic importance of Banco Bilbao Vizcaya Argentaria’s presence within Turkiye Garanti Bankasi’s shareholding, GBR’s parent bank.

"We have a strong commitment on the local market and our strategy is to further develop and grow. Fitch’s recent Outlook revision and afirmation of our IDRs, Support and Viability Ratings confirm our long term plans", stated Ufuk Tandoğan, CEO of Garanti Bank Romania.

About Garanti Bank Romania

Garanti Bank is part of the financial-banking group Garanti Romania, which brings together Garanti Leasing (the brand under which the company Motoractive IFN SA operates) and Garanti Consumer Finance (the brand under which Ralfi IFN operates).

Garanti Bank is held by Turkiye Garanti Bankasi AS (TGB), Turkey's second largest private bank. TGB is a universal bank with leading presence in all business lines. The bank serves more than 14 million customers in corporate, commercial, SME, and consumer segments offering fully integrated financial services. In July last year, Spanish financial group Banco Bilbao Vizcaya Argentaria (BBVA) gained majority management control of TGB.

Garanti Bank Romania offers a series of quality products and services for all business segments: retail, SME and corporate.

Present in Romania since 1998, the bank has developed a solid portfolio of clients and expanded its national presence through branches and alternative channels, reaching an extended network of 84 branches and over 300 intelligent ATMs that can be used by anyone, not just bank customers, for transactions with or without cards.

Garanti Bank was awarded in 2015 by world-renowned magazine Global Finance, as "Best Consumer Digital Bank in Romania" and "Best Integrated Consumer Bank Site in Central and Eastern Europe Region". The distinctions were granted within the "2015 World's Best Consumer Digital Banks in Central and Eastern Europe Competition".

In May this year, International Rating agency Fitch Ratings affirmed the long-term IDRs of Garanti Bank Romania (GBR). The bank's long term IDR was affirmed at 'BBB-' (outlook stable), its short term IDR at 'F3', its Support Rating at '2', while its Viability Rating was also affirmed at 'b+'. Fitch emphasized that GBR remains a strategically important subsidiary of its parent bank.

Garanti Bank expects GDP growth rate to decelerate next year

Bucharest, December 6, 2016 - Garanti Bank, one of the most dynamic banks on the local market, estimates that GDP growth rate could decelerate towards 3.7% next year, as consumption dynamic is expected to revert to pre-stimulus (food VAT cut, as of June 2015, general VAT cut as of January 2016 and public salary hike) levels.

Still, according to the Quarterly Macroeconomic Report, GDP advanced by 4.9% in the first nine months, strongly driven by consumption.

In terms of production, services, especially the IT and business support activities, are expected to remain the engine of economic growth since they kept the good dynamic of previous quarters.

Headline annual inflation is expected to increase from current -0.4% ( October) towards 2% until the end of next year, while the core inflation is expected to remain at around 1.2% in 2017, according to the forementioned report.

Based on this outlook, Garanti Bank estimates that the National Bank of Romania will implement a first rate hike in 2018, when inflation is expected to move above target. In the mean time, Garanti Bank expects NBR to maintain its key interest rate at 1.75% through the entire 2017.

According to Garanti Bank’s specialists, Romania’s macro fundamentals remain strong. However, there are two short term domestic risks under the radar: the risk of a higher budget deficit for next year driven by factors such as the increase in public wages but also other measures planned for 2017 and the domestic uncertainties regarding legislative changes that might impact the financial system.

For the banking system, the risk highlight falls on the giving in payment law and the Swiss Franc conversion law, which are currently subject to revision. The overall impact of these laws, however, would be lower than similar actions in other countries, according to Garanti Bank’s macroeconomic report.

Nevertheless, Romania is viewed as being stable by rating agencies, according to the bank.

“Each year comes with new challenges for both the global and the local economies. 2016 is no exception. The most important fact, however, is that Romania keeps its balance, continues its development and to attract investments. We foresee and optimistic outcome in the upcoming future”, stated Ufuk Tandogan, CEO Garanti Bank Romania.

The third quarter witnessed a stagnation in lending activity, as loans grew by 0.8% compared to same period last year and adjusted for the foreign currency effect, according to Garanti Bank’s report.

Investment in the economy started to rise this year and the bank expects the same trend in the future. The appetite for lending to the real estate corporate segment is still low, but prices in this sector have just started to pick up, suggesting that demand is growing, according to the bank’s report.

Garanti Bank specialists believe that prospects for household lending in 2017 are good, especially if the proposal to extend the First Home program by 5 years passes through Parliament.

About Garanti Bank Romania

Garanti Bank is part of the financial-banking group Garanti Romania, which brings together Garanti Leasing (the brand under which the company Motoractive IFN SA operates) and Garanti Consumer Finance (the brand under which Ralfi IFN operates).

Garanti Bank is held by Turkiye Garanti Bankasi AS (TGB), Turkey’s second largest private bank, with consolidated assets of EUR 90.44 billion, as of March 31. TGB is a universal bank with leading presence in all business lines. The bank serves more than 14 million customers in corporate, commercial, SME, and consumer segments offering fully integrated financial services. In July last year, Spanish financial group Banco Bilbao Vizcaya Argentaria (BBVA) gained majority management control of TGB.

Garanti Bank Romania offers a series of quality products and services for all business segments: retail, SME and corporate,. Present in Romania since 1998, the bank has developed a solid portfolio of clients and expanded its national presence through branches and alternative channels, reaching an extended network of 84 branches and over 300 intelligent ATMs that can be used by anyone, not just bank customers, for transactions with or without cards.

Garanti Bank was awarded in 2015 by world-renowned magazine Global Finance, as “Best Consumer Digital Bank in Romania” and “Best Integrated Consumer Bank Site in Central and Eastern Europe Region”. The distinctions were granted within the “2015 World's Best Consumer Digital Banks in Central and Eastern Europe Competition”.

In May this year, International Rating agency Fitch Ratings affirmed the long-term IDRs of Garanti Bank Romania (GBR). The bank’s long term IDR was affirmed at ‘BBB-’ (outlook stable), its short term IDR at ‘F3’, its Support Rating at ‘2’, while its Viability Rating was also affirmed at ‘b+’. Fitch emphasized that GBR remains a strategically important subsidiary of its parent bank.

For more information, please visit www.garantibank.ro

Garanti Bank estimates that NBR will not increase the key rate by the end of the year

Bucharest, August 4th, 2016- Garanti Bank, one of the most dynamic banks on the local market, estimates that, the National Bank of Romania will not increase the monetary policy rate by mid-2017, according to the bank's Quarterly Macroeconomic Report, corresponding to this year's second quarter.

Given the international context, Garanti Bank expects that the low-interest rate environment will remain unchanged in the following months.

Internal consumption helped boost Romania's GDP in the first quarter, the local economy having advanced by 4.3%. According to the forementioned report, the sectors that contributed mainly to this growth are domestic trade and transportation. Private services continued to performe well in the first quarter of 2016, with an overall contribution of 0.9 percentage points from the total growth.

Garanti Bank maintains its forecast regarding this year's GDP growth, at 3.7%, and estimates a similar economic development in 2017. External demand is already decelerating and the outlook is sober given the current international vulnerabilities, according to the bank's specialists.

The budget deficit was 0.1% in GDP during the first five months as opposed to a surplus of 0.9% last year in the same period. The negative fiscal balance was driven by the implementation of the new fiscal code (reduction in VAT) and public wage hikes.

According to the macroeconomic report, there are risks for the budget deficit to exceed the 3% level in 2017 as more measures are to be adopted in 2016, such as a 5% increase in public wages, as of 1st of August.

"The EU's economic landscape is getting trough some important changes. Nevertheless, Romania has managed to keep a positive evolution, with an inflation below the line, a budget deficit smaller than expected and important economic drivers like the IT sector, trade and transportation on an upward trend", stated Ufuk Tandogan, CEO Garanti Bank Romania.

Romania's macro stability parameters are in good shape and, as such, the country's investing grade rating was not affected by the international turbulences, in general, and Brexit in particular. Romania's direct ties with UK are not very strong as the external trade shares are 4.4% in total exports and 2.5% in total imports, with the UK placed on 10th place in top FDI investors, while there is no investment in the banking system. Nevertheless, the indirect ties are stronger as the UK is the second largest economy in Europe and structural shifts will impact EU investors' confidence and investment decisions, with immediate effects on the EU's GDP and consequently on Romania's GDP as well. Brexit event will likely trigger a shift in the global monetary conditions through a delay in Fed's interest rate hikes while in the Eurozone and in the UK a further relaxation and lower interest rates are to be expected, according to the Quarterly Macroeconomic Report.

About Garanti Bank Romania

Garanti Bank is part of the financial-banking group Garanti Romania, which brings together Garanti Leasing (the brand under which the company Motoractive IFN SA operates) and Garanti Consumer Finance (the brand under which Ralfi IFN operates).

Garanti Bank is held by Turkiye Garanti Bankasi AS (TGB), Turkey's second largest private bank. TGB is a universal bank with leading presence in all business lines. The bank serves more than 14 million customers in corporate, commercial, SME, and consumer segments offering fully integrated financial services. In July last year, Spanish financial group Banco Bilbao Vizcaya Argentaria (BBVA) gained majority management control of TGB.

Garanti Bank Romania offers a series of quality products and services for all business segments: retail, SME and corporate.

Present in Romania since 1998, the bank has developed a solid portfolio of clients and expanded its national presence through branches and alternative channels, reaching an extended network of 84 branches and over 300 intelligent ATMs that can be used by anyone, not just bank customers, for transactions with or without cards.

Garanti Bank was awarded in 2015 by world-renowned magazine Global Finance, as "Best Consumer Digital Bank in Romania" and "Best Integrated Consumer Bank Site in Central and Eastern Europe Region". The distinctions were granted within the "2015 World's Best Consumer Digital Banks in Central and Eastern Europe Competition".

In May this year, International Rating agency Fitch Ratings affirmed the long-term IDRs of Garanti Bank Romania (GBR). The bank's long term IDR was affirmed at 'BBB-' (outlook stable), its short term IDR at 'F3', its Support Rating at '2', while its Viability Rating was also affirmed at 'b+'. Fitch emphasized that GBR remains a strategically important subsidiary of its parent bank.

Quarterly Macroeconomic Report

Garanti Bank increased its share capital by EUR 22.3 million

Bucharest, July 4th, 2016 - Garanti Bank, one of the most innovative and dynamic banks on the local market, received approval from the National Bank of Romania and the other accredited authorities to increase its share capital by EUR 22.3 million. The capital injection targets to support and finance the bank's organic growth on the local market.

Garanti Bank is currently the 10th institution in the local banking system, with a total asset volume exceeding RON 8.5 billion.

"Garanti Bank has a long term commitment on the local market and we aim to further grow, in order to best service our existing and potential customers, and bring our contribution to the development of the local economy. Increasing our share capital proves and reiterates this commitment", stated Ufuk Tandogan, CEO Garanti Bank.

About Garanti Bank Romania

Garanti Bank is part of the financial-banking group Garanti Romania, which brings together Garanti Leasing (the brand under which the company Motoractive IFN SA operates) and Garanti Consumer Finance (the brand under which Ralfi IFN operates).

Garanti Bank is held by Turkiye Garanti Bankasi AS (TGB), Turkey's second largest private bank with consolidated assets of US$ 103.1 billion as of March 31, 2016. TGB is a universal bank with leading presence in all business lines. The bank serves more than 14 million customers in corporate, commercial, SME, and consumer segments offering fully integrated financial services. In July last year, Spanish financial group Banco Bilbao Vizcaya Argentaria (BBVA) gained majority management control of TGB.

Garanti Bank Romania offers a series of quality products and services for all business segments: retail, SME and corporat,. Present in Romania since 1998, the bank has developed a solid portfolio of clients and expanded its national presence through branches and alternative channels, reaching an extended network of 84 branches and over 300 intelligent ATMs that can be used by anyone, not just bank customers, for transactions with or without cards.

Garanti Bank was awarded in 2015 by world-renowned magazine Global Finance, as "Best Consumer Digital Bank in Romania" and "Best Integrated Consumer Bank Site in Central and Eastern Europe Region". The distinctions were granted within the "2015 World's Best Consumer Digital Banks in Central and Eastern Europe Competition".

In May this year, International Rating agency Fitch Ratings affirmed the long-term IDRs of Garanti Bank Romania (GBR). The bank's long term IDR was affirmed at 'BBB-' (outlook stable), its short term IDR at 'F3', its Support Rating at '2', while its Viability Rating was also affirmed at 'b+'. Fitch emphasized that GBR remains a strategically important subsidiary of its parent bank.