Garanti BBVA General Manager Baştuğ Talked About Economy

Recep Baştuğ, General Manager of Garanti BBVA, made evaluations about the capital returns, which are around 40%, and the inflation, which is around 70%. Baştuğ stated that these figures are not sustainable and that the authorities in Turkey have yet to make a decision on inflation accounting.

Recep Baştu, General Manager of Garanti BBVA, added that capital returns in the banking sector are around 40% and inflation is around 70%, which is not sustainable. Answering the questions of journalists in the press conference made by Garanti BBVA and WWF-Turkey (World Wildlife Fund), General Manager Recep Baştuğ said, "At a time when the inflation rate reaches 70 percent, the incomes of banks increase in absolute value, but are below inflation. Therefore, banking will have difficulties in terms of capital in the future. "If it continues like this in the following periods. Because bank profits, capital returns are around 40 percent, inflation is 70 percent, it is not sustainable. We all wish inflation to come down to reasonable levels. The banking sector is giving a good test in general." "There is no decision about inflation accounting yet" Garanti BBVA General Manager Baştuğ underlined that there is no decision yet taken by the authorities regarding inflation accounting in Turkey, and said, "We cannot apply inflation accounting locally at the moment. However, as per IFRS rules, BBVA consolidates us with inflation accounting. So we have our own inflation accounting in Turkey. We draw up our balance sheet, they consolidate it by applying inflation." Baştuğ finally stated that Garanti BBVA does not have any plans to exit the Stock Exchange and said, "The program finished in its normal time, it reached a rate of 85.97 percent. The program ended there." The share of BBVA, the main partner, increased by 36.1 percent to 86 percent as a result of the voluntary share purchase in Garanti BBVA, one of Turkey's most preferred banks.