Link Securities | Expansión reports today that BBVA has been forced to write down the value of Garanti, its subsidiary bank in Turkey, in its annual accounts due to the negative performance of the currency, which depreciated by 27% last year. It has done so by €130 million, bringing the cumulative impairment in recent years to €354 million. Added to this is the money BBVA is losing in the country because regulations require it to apply a special accounting method known as hyperinflationary accounting.
Garanti BBVA has shown ‘solid performance’ in lira, with high profitability (ROAE 29.1% in 2025) and deposit growth, which contrasts with the adverse accounting impact on the Spanish parent company’s accounts.
