ISTANBUL - Turkiye Garanti Bankasi (IS:GARAN) A.S. (IST:TGBD), commonly known as Garanti BBVA (BME:BBVA), has finalized the sale of various non-performing loan (NPL) portfolios, as announced in a recent regulatory disclosure. The bank sold its NPL receivables, which include credit card debts, general purpose loans, commercial loans, and other related receivables, accumulated through the end of October 2024.
The sale was conducted in several tranches to different asset management companies. Gelecek Varlık Yönetim A.Ş. purchased a portfolio with a principal and interest amount totaling approximately 1.3 billion Turkish Lira (TL) for a consideration of TL 319.2 million. Ortak Varlık Yönetim A.Ş. acquired loans worth about TL 594.5 million for TL 151.8 million, while Birikim Varlık Yönetim A.Ş. took on debts totaling roughly TL 274.9 million for TL 71.7 million. Dünya Varlık Yönetim A.Ş. and Sümer Varlık Yönetim A.Ş. also participated, purchasing portfolios for TL 81.6 million and TL 77.2 million respectively.
In total, Garanti BBVA sold nine separate NPL portfolios for a combined consideration of TL 701.5 million. The sale is part of the bank’s strategy to clean up its balance sheet by offloading debts that have been deemed unrecoverable or unlikely to be paid.
The bank assured that the information disclosed is in accordance with the principles of the Board’s Communiqué, Serial II Nr.15.1, and accurately reflects the records, books, and documents of the bank. They have also stated their responsibility for the declarations made in this regard.
This transaction reflects the ongoing efforts by financial institutions in Turkey to manage credit risk and improve asset quality. Garanti BBVA’s move to divest these NPLs is based on a press release statement and aims to maintain the bank’s financial health and operational efficiency. The Turkish version of the disclosure will prevail in case of any contradictions between the English and Turkish versions.
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