Turkiye Garanti Bankasi revenue surged on 10.3% in 2015
02 Feb 2016 • About Turkiye Garanti Bankasi (
$39IS) • By InTwits
Turkiye Garanti Bankasi reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Turkiye Garanti Bankasi has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.3%. At the same time it's in pair with industry average of 2.7%.
- CAPEX is quite volatile: 1,386 in FY2015, 1,625 in FY2014, 3,030 in FY2013, 2,491 in FY2012, 1,231 in FY2011
- The company has potentially unprofitable business model: ROIC is at 4.3%
- It operates with high leverage: Net Debt/EBITDA is 3.1x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Turkiye Garanti Bankasi ($39IS) key annual financial indicators
| mln. TRY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 15,451 | 17,675 | 18,426 | 21,330 | 23,527 | 10.3% |
| Net Income | 3,326 | 3,334 | 3,314 | 3,647 | 3,581 | -1.8% |
Balance Sheet
|
|---|
| Cash | 8,312 | 16,173 | 22,643 | 25,193 | 25,287 | 0.4% |
| Short Term Debt | 14,965 | 15,241 | 18,757 | 20,707 | 13,015 | -37.1% |
| Long Term Debt | 17,171 | 22,313 | 32,900 | 38,776 | 49,404 | 27.4% |
Cash flow
|
|---|
| Capex | 429 | 264 | 503 | 401 | 561 | 39.9% |
Ratios
|
|---|
| Revenue growth | 12.8% | 14.4% | 4.2% | 15.8% | 10.3% | |
| Net Income Margin | 21.5% | 18.9% | 18.0% | 17.1% | 15.2% | -1.9% |
| CAPEX, % of revenue | 2.8% | 1.5% | 2.7% | 1.9% | 2.4% | 0.5% |
| ROIC | 7.3% | 6.2% | 5.2% | 4.9% | 4.3% | -0.6% |
| ROE | 19.3% | 17.0% | 14.9% | 14.8% | 12.5% | -2.3% |
Revenue and profitability
Turkiye Garanti Bankasi's Revenue jumped on 10.3% in 2015.
Net Income marign decreased slightly on 1.9 pp from 17.1% to 15.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
Turkiye Garanti Bankasi's CAPEX/Revenue was 2.4% in 2015. The company showed small growth in CAPEX/Revenue of 0.89 pp from 1.5% in 2012 to 2.4% in 2015. It's average level of CAPEX/Revenue for the last three years was 2.3%.
Return on investment
The company operates at good ROE (12.47%) while ROIC is low (4.34%). ROIC decreased slightly on 0.57 pp from 4.9% to 4.3% in 2015. ROE decreased on 2.3 pp from 14.8% to 12.5% in 2015.
Leverage (Debt)
Debt increased on 4.9% in 2015 while cash showed almost no change in 2015.
Appendix 1: Peers in Banks
Below you can find Turkiye Garanti Bankasi benchmarking vs. other companies in Banks industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Banque Intl Arabe De Tunisie ($BIND) | 9.5% | -20.2% | 17.3% | 50.2% | |
| European Islamic Investment Bank ($EIIB) | -41.8% | 121.2% | 12.6% | 42.3% | |
| Tsb Banking Grp ($TSB) | | -3.2% | -33.8% | 39.2% | -1.4% |
| VTB Bank JSC ($VTBR) | 23.8% | 48.1% | 16.5% | 29.8% | |
| Bank Audi S.A.L. ($BQAD) | | 9.1% | 11.7% | 23.9% | 7.1% |
| |
|---|
| Median (43 companies) | 9.2% | 9.3% | 4.8% | 11.5% | 3.3% |
|---|
| Turkiye Garanti Bankasi ($39IS) | | 14.4% | 4.2% | 15.8% | 10.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lloyds Banking Group ($LLPC) | | 8.0% | 8.9% | 13.1% | 13.6% |
| Banco Santander Sa ($BNC) | 2.2% | 2.7% | 2.6% | 8.9% | 10.2% |
| Finansbank ($FBKD) | 2.0% | 1.9% | 2.8% | 8.5% | |
| Tsb Banking Grp ($TSB) | 1.3% | 1.8% | 4.4% | 7.2% | 3.4% |
| Guaranty Trust Bank ($GRTB) | 10.0% | 6.7% | 6.1% | 6.8% | |
| |
|---|
| Median (40 companies) | 2.3% | 2.4% | 2.8% | 2.2% | 2.5% |
|---|
| Turkiye Garanti Bankasi ($39IS) | 2.8% | 1.5% | 2.7% | 1.9% | 2.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 16.3% | 21.7% | 26.9% | 30.1% | |
| Guaranty Trust Bank ($GRTB) | 14.2% | 19.8% | 18.9% | 17.8% | |
| Mcb Bank Ltd ($MCBS) | 18.7% | 15.0% | 14.4% | 15.8% | |
| Zenith Bank ($ZENB) | 13.8% | 19.0% | 17.6% | 15.0% | |
| United Bank Ltd ($UBLS) | 12.6% | 11.7% | 11.8% | 13.8% | |
| |
|---|
| Median (43 companies) | 6.9% | 6.1% | 5.7% | 4.4% | 3.1% |
|---|
| Turkiye Garanti Bankasi ($39IS) | 7.3% | 6.2% | 5.2% | 4.9% | 4.3% |
