BBVA’s González: “Garanti bank acquisition is exceeding expectations”

BBVA’s chairman Francisco González reviewed today the progress made by Turkey over the past decade, during which it has achieved great economic and institutional stability.

“Turkey is today a great economy with a capacity to attract substantial foreign direct investment and a very attractive market for exports,” he said at an event. More than 200 people attended the Spanish-Turkish meeting Investments and Opportunities in Turkey, including Spanish and Turkish business leaders. Fitch recently raised Turkey’s credit rating to investment grade.

BBVA’s Marqués de Salamanca Palace hosted the summit, arranged by the Turkey’s Ministry of Economy, the Investment Support and Promotion Agency of Turkey, the  Turkish Embassy in Madrid, the Spanish Confederation of Business Organisations CEOE and BBVA.

In 2011, BBVA had the opportunity to invest more than €4 billion in Turkey by acquiring 25% of Garanti Bank, making it the biggest Spanish investor in that market. Garanti has a network of close to 1,000 branches, more than 11 million customers and a market share of 13% in the lending business. “It is a solid, efficient and profitable bank, with top professionals and innovative products. Garanti leads the rankings in many of the main indicators of the Turkish banking sector and, in my opinion, it’s the best bank in Turkey,” BBVA added in a press release.

For González, “our investment in Garanti is exceeding all our expectations.” He said that “like Garanti and BBVA, Turkey and Spain have a great future ahead of them, because both countries have significant strengths and great growth potential.”

BBVA placed this week €2 billion in 5-year covered bonds. According to analysts at Afi, almost 90% of buyers were foreign investors.