Garanti Second-Quarter Profit Drops, Missing Estimates

Turkiye Garanti Bankasi AS (GARAN), Turkey’s biggest bank by market value, said second-quarter profit fell 24 percent to 718.5 million liras ($399 million), missing estimates.

Net income dropped from 943.2 million liras in the same period of 2011, Garanti said in a statement to the Istanbul Stock Exchange today. The bank was expected to earn 746 million liras, according to the average of seven analyst estimates compiled by Bloomberg.

There was a sharp decline in Garanti’s revenue from inflation-linked bonds and growth in fees and and commissions was expected to slow, Istanbul-based broker FinansInvest said before the earnings were published.

Revenue from so-called other operations slid 77 percent yearly to 94.3 million liras in the second quarter, Garanti said. Income from fees and commissions declined an annual two percent in the period to 475.1 million liras, it said.

Net interest income climbed 28 percent to 1.39 billion liras, Garanti said.

Garanti rose 0.6 percent to 7.20 liras on the Istanbul Stock Exchange yesterday. The average 12-month price estimate for Garanti is 7.81 liras among 23 analysts, according to data compiled by Bloomberg. Thirty-two analysts rate the stock, with 18 buys, 13 holds and one sell.

To contact the reporters on this story: Aydan Eksin in Istanbul at; Sibel Akbay in Istanbul at

To contact the editor responsible for this story: Dale Crofts at

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