GARAN 2Q25 REVIEW (OYAK YATIRIM) CORE REVENUES EXPAND ROE REMAINS HIGH GARANTI POSTED 2Q25 NET INCOME OF TL28,326MN (+12% Q/Q, +26% Y/Y), ABOVE BOTH MARKET CONSENSUS (TL23,389MN) AND OUR ESTIMATE (TL23,648MN). CORE REVENUES (NII + FEES) WIDENED BY 12% Q/Q ON HIGHER CORE SPREAD (+1PPT Q/Q) AND STRONG FEE GROWTH. LOWER FUNDING COSTS (MAINLY TL DEPOSITS) HELPED CORE REVENUES TO GROW. INDEED, TL SPREAD GREW BY 1.4PPT Q/Q DRIVEN BY RETREATED TL DEPOSIT COSTS. SWAP COSTS ROSE TO TL2.9BN IN 2Q FROM TL0.7BN IN 1Q ON HIGHER SWAP UTILIZATION. REFLECTING THESE AND Q/Q ALMOST STABLE CPI-LINKER INCOME, SWAP-ADJUSTED NIM DECLINED BY ONLY 47BP Q/Q. FEES REMAINED STRONG MANIFESTED BY 16% Q/Q AND 60% Y/Y EXPANSION THANKS TO GROWING LOANS, NEW CLIENT ACQUISITION AND PAYMENT SYSTEM CONTRIBUTION. OPEX EXPANDED BY 14% Q/Q AND 72% Y/Y DRIVEN BY HR-RELATED EXPENSES. NET TOTAL COR DECLINED TO 184BP THIS QUARTER FROM 225BP IN 1Q LED BY LARGE-TICKET PROVISION REVERSALS. NPL COVERAGE REMAINED UNCHANGED AT 65% IN 2Q. NPL RATIO CLIMBED TO 3.0% (+35BP Q/Q) IN 2Q ON SOME NEW NPL INFLOWS. ALL IN ALL, ROE INCHED UP TO 31.6% IN 2Q FROM 30.2% IN 1Q, YET DOWN FROM 33.7% A YEAR AGO. GARANTI KEEPS ITS 25E ROE GUIDANCE OF LOW-30S UNCHANGED ON 3PPT HIGHER NIM, LARGE-TICKET PROVISION RELEASES AND STRONG FEES. WE EXPECT 17% EARNINGS GROWTH FOR GARANTI WITH A ROE OF 31% IN 2025. 25E EARNINGS AND MP RATING MAINTAINED GARANTI TRADES FULLY AT 26E P/BV OF 1.5X AND 4.3X P/E, WHILE 26E ROE STANDS AT 35%. WE KEPT OUR TP UNCHANGED, IMPLYING NULL UPSIDE POTENTIAL. WE MAINTAIN OUR MARKETPERFORM RATING FOR THE STOCK. OYAK YATIRIM MENKUL DEGERLER A.S. HTTPS://WWW.OYAKYATIRIM.COM.TR/ *** YASAL UYARI BURADA YER ALAN YATIRIM BILGI, YORUM VE TAVSIYELER YATIRIM DANISMANLIGI KAPSAMINDA DEGILDIR.YATIRIM DANISMANLIGI HIZMETI ARACI KURUMLAR, PORTFOY YONETIM SIRKETLERI, MEVDUAT KABUL ETMEYEN BANKALAR ILE MUSTERI ARASINDA IMZALANACAK YATIRIM DANISMANLIGI SOZLESMESI CERCEVESINDE SUNULMAKTADIR.BURADA YER ALAN YORUM VE TAVSIYELER, YORUM VE TAVSIYEDE BULUNANLARIN KISISEL GORUSLERINE DAYANMAKTADIR.BU GORUSLER MALI DURUMUNUZ ILE RISK VE GETIRI TERCIHLERINIZE UYGUN OLMAYABILIR.BU NEDENLE, SADECE BURADA YER ALAN BILGILERE DAYANILARAK YATIRIM KARARI VERILMESI BEKLENTILERINIZE UYGUN SONUCLAR DOGURMAYABILIR. 31.07.2025 08:33:05