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Brief History
Garanti Bank counts among the largest privately owned fiscal institutions in Turkey. This is based on asset size and recurrent banking revenue generation. It serves an average of 10 million clients in different sectors, including corporate clients, in addition, to small and medium business ventures. This position is also guaranteed since the firm has a presence in different business lines. At the end of 2009, the firm had assets worth $90 billion. The bank offers a variety of services, including commercial, private, retail and corporate banking services to its different clients (Garanti 2010).
Mission Statement, Vision Statement and Bank Strategy
The institution’s vision is to be the best bank in Europe. Its mission is to ensure a notable increase in the value created for shareholders, customers, the society, the environment and employees on a continuous basis. This will be achieved by making use of the firm’s agility, organizational efficiency and influence. The strategy laid down to achieve this entails ensuring sustainable growth by continued value creation over the long-term (Garanti 2010).
Local and International Representation
The institution boasts of 863 domestic branches and 6 overseas branches, which are located in Cyprus, Luxembourg and Malta. It is represented internationally, with offices in Dusseldorf, London, Geneva, Shanghai and Moscow. The bank also has over 3000 ATM service outlets, a functional internet and mobile banking service and a well-equipped call center. These achievements have earned the firm recognition internationally, with the Euromoney voting it the best Turkish bank. It has also been recognized as the best managed company in central and Eastern Europe. Investors in People, Contact Center World organization and the World Finance Magazine, issued other awards.
It is noteworthy that their internal network covers 96% of the Turkish state, while each of the 3000 ATM outlets registers an average of 140 transactions daily. It has the largest fiscal call center in Turkey, attending to an annual average of 51 million persons. It is a market leader in the internet and mobile banking sector. The bank continuously records leading figures in assets, loans and deposits per branch annually. The total of 14 million debit and credit cards among its clients make it a market leader in the number of cards, in addition, to having the largest merchant network with 450 000 Point of Sales terminals. Garanti boasts of a 20% market share in issuing and acquiring volumes for Pioneer payment systems. The bank is a market leader for spending per debit card, with average figures larger that the sector by 2.5 times (Garanti 2010).
It has a dynamic human resource strategy that ensures competence among employees is maintained using different methods. It has an effective team of 17000 employees, with 90% being university graduates. They are provided with a 9-day training period every year. The firm has a system of collecting innovative ideas from employees. This ensures the collection of over 5000 concepts from the employees every year. Most importantly, the workforce enabled the bank to be the first Turkish firm receiving an Investor in Persons award (Garanti 2011).
Notable Milestones in its History
In 1993, Garanti became the first Turkish fiscal firm to list shares in international stock markets. In 1997, Garanti became the first Turkish bank offering internet and telephone banking simultaneously. In the year 2000, it released the first chip based and multi branded credit card in Turkey. In 2002, it established the first interbank card platform with bonus cards. In 2005, it was the pioneer fiscal institution internationally to offer short message service based banking. In 2006, the Bank introduced a credit card with contactless chip technology. In addition, it was the only Turkish bank to offer American Express Centurion Line Cards and accept merchants to its network (Garanti 2010).
Competitive Advantage and Market Share
It is Turkey’s second largest private bank with a 13.3% total assets markets share. It is also the largest lender, with a 13.4% total loans market share. The firm boasts of an impressive 20.4% foreign currency loans market share, with a 12.8% customer loans market share. This makes it a market leader with its customer oriented growth strategy. Garanti is the second best relational banking institution with a 12.0% customer deposits market share. It is also has the second largest customer base, with a 13.0% market share for demand deposits (Garanti 2010).
Financial Indicators
Figures for the year 2010 indicate that Garanti is a sustainable institution due to the immense growth recorded by all departments. It recorded an 18% growth in assets to $137 billion from $116 billion. The volume of loans grew from $53 billion to $70 billion, representing a 31% growth. Securities grew by 8% from $14 billion to $17 billion. The firm also registered a 3% growth in net fees and commissions, from $1.6 billion to $2 billion. Lastly, ordinary banking income remained at $7 billion, matching figures of the previous year. These figures implied a 10% growth in net income from $3.1 billion to $3.4 billion. Summarily, the key financial ratios for the year indicated a 2.8% return on average assets, a 22% return on average equity, an 18.1% capital adequacy ratio and a 3.1% none performing loans ratio (Garanti 2010).
Social Responsibility
The bank gives priority to gainful and sustainable growth strategies for the long haul, by designing services that add value to the economy and society. This is anchored on the belief that the firm’s corporate mission is not limited to banking exclusively. Consequently, the bank avails continued support for educational, artistic, cultural, athletic and environmental segments of society. As a result, the bank perks up and executes national and international projects that enhance societal and individual visions hence create value through its corporate culture (Garanti 2010).
Management Approach and Performance Indicators
Garanti endeavors to enforce proper data collection, monitoring and reporting parameters with the aim of producing reporting material that satisfies internationally recognized processes. This enables the management and other stakeholders to benchmark actions against recognized international practices and provides a scaffold for improvement. As a result, several sectors have been placed under scrutiny, with prominence being given to the performance of emissions (Garanti 2010).
The bank strives to reduce direct carbon emissions by focusing on energy efficient operations. They are considered from internal use in the office and transportation vessels. It is noteworthy that the firm produces substantial amounts of emission; hence, the need for pronounced mitigation measures to contain the situation. Foremost, the bank has initiated low interest loan packages for persons interested in purchasing hybrid vehicles.
The firm has also shifted focus to energy efficient operations, by ensuring optimized consumption in buildings. It has also commenced the purchase of energy efficient IT and office equipment, in addition, to enforcing behavioral change and reduced business travel.
References
Garanti, 2010, Garati Bank Annual Report. Web.
Garanti 2010, Garanti Sustainability review. Web.
Garanti, 2011, Human Resource Policies.
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