Turkiye Garanti Bankasi reports 42.6% Net Income growth and 20.4% Revenue growth
31 Jan 2017 • About Turkiye Garanti Bankasi (
$39IS) • By InTwits
Turkiye Garanti Bankasi reported 2016 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 2.4%. At the same time it's in pair with industry average of 2.7%.
- CAPEX is quite volatile: 1,021 in 2016, 561 in 2015, 401 in 2014, 503 in 2013, 264 in 2012
- The company has potentially unprofitable business model: ROIC is at 5.5%
- It operates with high leverage: Net Debt/EBITDA is 1.7x 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 ($39IS) key annual financial indicators
| mln. TRY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 17,675 | 18,426 | 21,330 | 23,527 | 28,321 | 20.4% |
| Net Income | 3,334 | 3,314 | 3,647 | 3,581 | 5,105 | 42.6% |
Balance Sheet
|
|---|
| Cash | 16,173 | 22,643 | 25,193 | 25,287 | 23,951 | -5.3% |
| Short Term Debt | 15,241 | 18,757 | 20,707 | 13,015 | 15,666 | 20.4% |
| Long Term Debt | 22,313 | 32,900 | 38,776 | 49,404 | 56,566 | 14.5% |
Cash flow
|
|---|
| Capex | 264 | 503 | 401 | 561 | 1,021 | 81.9% |
Ratios
|
|---|
| Revenue growth | 14.4% | 4.2% | 15.8% | 10.3% | 20.4% | |
| Net Income Margin | 18.9% | 18.0% | 17.1% | 15.2% | 18.0% | 2.8% |
| CAPEX, % of revenue | 1.5% | 2.7% | 1.9% | 2.4% | 3.6% | 1.2% |
| ROIC | 6.2% | 5.2% | 4.9% | 4.3% | 5.5% | 1.2% |
| ROE | 17.0% | 14.9% | 14.8% | 12.5% | 15.4% | 2.9% |
Revenue and profitability
The company's Revenue surged on 20.4% in 2016.
Net Income marign increased on 2.8 pp from 15.2% to 18.0% in 2016.
Capital expenditures (CAPEX) and working capital investments
Turkiye Garanti Bankasi's CAPEX/Revenue was 3.6% in 2016. Turkiye Garanti Bankasi's CAPEX/Revenue increased slightly on 0.88 pp from 2.7% in 2013 to 3.6% in 2016. For the last three years the average CAPEX/Revenue was 2.6%.
Return on investment
The company operates at good ROE (15.35%) while ROIC is low (5.55%). ROIC increased slightly on 1.2 pp from 4.3% to 5.5% in 2016. ROE increased on 2.9 pp from 12.5% to 15.4% in 2016.
Leverage (Debt)
Debt jumped on 15.7% in 2016 while cash decreased on 5.3% in 2016.
Appendix 1: Peers in Banks
Below we provide Turkiye Garanti Bankasi benchmarking against other companies in Banks industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kazkommertsbank JSC ($KKB) | | 6.0% | 16.3% | 41.4% | |
| Sberbank Of Russia ($SBER) | 37.2% | 25.1% | 23.4% | 27.4% | |
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 37.6% | 23.7% | 18.9% | 26.8% | |
| Yapi Ve Kredi Bankasi As ($YKBD) | 14.9% | 4.8% | 19.7% | 25.3% | |
| Mcb Bank Ltd ($MCBS) | 3.0% | -1.7% | 19.4% | 22.4% | |
| |
|---|
| Median (43 companies) | 11.7% | 4.8% | 11.5% | 4.2% | 3.6% |
|---|
| Turkiye Garanti Bankasi ($39IS) | | 4.2% | 15.8% | 10.3% | 20.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Banque Marocaine Du Comm Exterieur ($69IR) | 3.7% | 9.7% | 4.3% | 26.8% | |
| Lloyds Banking Group ($LLPC) | 8.0% | 8.9% | 13.1% | 13.6% | 14.5% |
| Banco Santander Sa ($BNC) | 2.7% | 2.6% | 8.9% | 10.2% | 9.1% |
| Guaranty Trust Bank ($GRTB) | 6.7% | 6.1% | 6.8% | 7.7% | |
| Diamond Bank ($DBPA) | 8.2% | 7.9% | 6.0% | 6.7% | |
| |
|---|
| Median (41 companies) | 2.4% | 2.8% | 2.2% | 2.5% | 1.9% |
|---|
| Turkiye Garanti Bankasi ($39IS) | 1.5% | 2.7% | 1.9% | 2.4% | 3.6% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 21.7% | 26.9% | 30.1% | 30.3% | |
| Guaranty Trust Bank ($GRTB) | 19.8% | 18.9% | 17.8% | 16.0% | |
| Mcb Bank Ltd ($MCBS) | 15.0% | 14.4% | 15.8% | 14.9% | |
| United Bank Ltd ($UBLS) | 11.7% | 11.8% | 13.8% | 12.6% | |
| Zenith Bank ($ZENB) | 19.0% | 17.6% | 15.0% | 11.2% | |
| |
|---|
| Median (43 companies) | 6.1% | 5.7% | 4.4% | 3.4% | 4.5% |
|---|
| Turkiye Garanti Bankasi ($39IS) | 6.2% | 5.2% | 4.9% | 4.3% | 5.5% |
