Garanti BBVA Group Romania, which brings together the bank Garanti BBVA, Garanti BBVA Consumer Finance and Garanti BBVA Leasing, registered a consolidated net profit of RON 166.1 mln (some EUR 33 mln) in 2021, a 55% increase over the 2020 result.

On a stand-alone basis, the bank posted a net profit of RON 142.8 mln (EUR 28 mln) at the end of December, a 76% increase over the 2020 result.

The bank's strategy of focusing on growing a healthy and balanced portfolio led to a loan volume of RON 7.9 bln and a deposit volume of RON 8.8 bln. Deposits grew by 6%, primarily due to the SME segment, with a significant 19% increase in 2021 versus 2020, thus reflecting companies' confidence in the bank.

Fitch Ratings in early February has revised from negative to stable the outlook for the Romanian (Romania: 'BBB-'/negative) subsidiary of Turkish bank Garanti Bankasi (controlled by Banco Bilbao Vizcaya Argentaria BBVA), Garanti Bank Romania, while affirming the Romanian bank's Long-Term Issuer Default Rating (IDR) at 'BB-' and Viability Rating (VR) at 'bb-'.

The revision reflects easing pressure on the target bank's asset quality and profitability, improved capitalisation and stable funding and liquidity position over 1H21, which Fitch expects to have continued into 2H21 and to extend in 2022. The revision also reflects the rating agency's change in the outlook on the operating environment score for Romania to stable from negative.

andrei@romania-insider.com

(Photo source: the company)