Garanti BBVA sells non-performing loan portfolio for TL 113.5 million

Published 30/05/2025, 10:46
Garanti BBVA sells non-performing loan portfolio for TL 113.5 million

ISTANBUL - Turkiye Garanti Bankasi (IS:GARAN) A.S. (TGBD), a prominent Turkish bank, has completed the sale of a non-performing loans (NPL) portfolio to Sümer Varlık Yönetim A.Ş. The deal, finalized on April 28, 2025, involved the transfer of various debt instruments, including loans, credit cards, and overdraft accounts, with a total book value of TL 456.3 million.

The NPL portfolio sold by Garanti BBVA (BME:BBVA) encompasses the principal amount and accrued contractual interest of various credit products up to the date of the sale. The transaction was settled for TL 113.5 million, a significant discount on the portfolio’s nominal value, reflecting the typical market practice for NPL sales.

The sale is part of the bank’s efforts to clean up its balance sheet by offloading debts that are unlikely to be paid. Such strategic moves are common among banks seeking to improve their financial health and reduce the burden of managing non-performing assets.

The announcement, based on a press release statement from Garanti BBVA, underscores the bank’s adherence to the principles contained in the Board’s Communiqué, Serial II Nr.15.1. The bank assures that the information provided is accurate and reflects their records, taking full responsibility for the disclosure.

This transaction between Garanti BBVA and Sümer Varlık Yönetim A.Ş. could be indicative of the bank’s broader strategy to streamline its operations and focus on more profitable and performing assets.

Investors and stakeholders in the banking sector often monitor NPL sales closely as they can influence the financial stability and stock performance of the institutions involved. However, the announcement did not specify the impact of the sale on Garanti BBVA’s financial statements or future strategy.

The bank has made it clear that in the event of discrepancies between the Turkish and English versions of the public disclosure, the Turkish version shall prevail. This sale is a continuation of the trend in the banking industry where institutions manage their risk exposure by divesting non-core assets.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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