Annual Report 2014 BBVA Group Business areas Primary stakeholders



Constant €

Net attributable profit

€ 371 M

-1.1% vs. 2014

Strong activity continues

Good performance of recurring revenue

Outstanding asset quality indicators

​A detailed explanation of the aforementioned business area can be found in the Management Report. 

Definition of the area

This area includes BBVA's stake in Garanti (39.9% since the third quarter of 2015), which has been incorporated into the Group's financial statements by the full integration method.

Garanti is a banking institution with more than 23,000 employees that provides a wide range of financial services to its nearly 14 million customers through an extensive distribution network, with 971 branches in Turkey, 7 in Cyprus, 1 in Luxembourg and 1 in Malta. It also has 3 representative offices in London, Dusseldorf and Shanghai.

Garanti Bank footprint

Management priorities

In line with the six strategic priorities defined by the Group in 2015, Garanti has established its management priorities for 2016:

1. Strategic priority 1: To provide a new standard in customer experience

  • Improving customer experience is a key aspect for Garanti. The goal is always to provide a service above and beyond the customer’s expectations, seeking to offer an excellent customer experience not only with smart and streamlined processes, but also with an exceptional service quality. To do so, after-service surveys have been conducted to highlight the focus areas. Garanti is putting special emphasis on being more transparent, having more clear processes and behaving responsibly to its customers.
  • Increasing the customer base effectively, focusing on enhancing customer acquisition processes in a customer-friendly manner. In parallel with customer experience efforts, Garanti is seeking to improve their loyalty through specific retention initiatives.

2. Strategic priority 2: To drive digital sales

Extend the digitalization of the customer base and digital sales, offering an uninterrupted experience utilizing the most easily accessible channels. Garanti is a leader in both Internet and mobile banking in a market where a vast majority of non-cash financial transactions are conducted through digital channels. Increasing the share of digital channels in bank's total sales is another key priority. The goal is to leverage digital channels more by improving digital services with new features and by developing new applications and new digital products.

3. Strategic priority 4: To optimize capital allocation

  • Optimization of capital allocation to ensure sustainable growth and achieve optimal return. To do so, work is being carried out on the design of a product / segment based risk-adjusted return methodology to provide a more accurate assessment of the business opportunities with higher return.
  • Focus on high profitability through the sustainable value creation for investors and organic capital generation. Achieving a customer related core revenue generation is critical. To do so, Garanti seeks opportunities to diversify the sources of non-financial revenue. Effective spread management, prudent risk management and cost control policies are other key factors to maintain and improve profitability.
  • Prudent risk management as another lever to enhance performance. The high asset quality attained through advanced risk management systems and the internalization of a risk culture by all staff, is what differentiates Garanti in its market.
Garanti aligns its management priorities to BBVA Group strategic priorities

4. Strategic priority 5: To adapt the model, the processes and the structures to achieve an unrivaled efficiency

Ongoing improvement of the high level of efficiency achieved in processes and business models will continue to be a priority in the future, together with other cost reducing measures. Digitalization of customers and processes, together with the mobilization of sales force via digital solutions, are the bases supporting improvement of efficiency. In this regard, boosting the digital conversion of branch transactions will be another focus area.

5. Strategic priority 6: To develop, retain and motivate a first class workforce

Development of employee commitment, maintaining the loyalty of Garanti's highly qualified staff as the core for sustainable success. The leadership and competency model will be redesigned and integrated with other human resources and training practices, such as recruitment, performance management, succession planning and development plans.