Garanti BBVA Romania builds a strong foundation for sustained growth

Garanti BBVA Romania has established itself as a robust player in the local banking market by financing green economy projects and prioritizing digital innovation. Business Review sat down with Mustafa Tiftikçioglu, the CEO, to discuss the lender’s strategic vision.   Garanti BBVA recorded solid results in terms of both loans and deposits in the first half of 2024, reflecting the organisation’s ability to maintain a strong and balanced portfolio. How do you explain the outstanding development of your bank?   Garanti BBVA Romania’s development can be attributed to a strategic focus on customer-centric initiatives, digitalization, and sustainable growth. Garanti BBVA has always been a visionary player and we have constantly allocated resources to innovate and bring added value to our customers’ lifestyle, both for individuals and companies. Therefore, we started investing in our digital channels many years before the pandemic forced such digital transformations.This shift not only supported customers needs during challenging times but also established a strong foundation for sustained growth. We have continued to invest in digital innovation and we have recently embarked upon a new digital transformation process, enhancing thus the customer experience and strengthening our position as a significant player in the industry, achieving sustainable and balanced growth, that benefits both our clients and stakeholders.   How important are ESG and sustainability aspects for Garanti BBVA today?   Our approach emphasises advancing environmental initiatives, supporting social development, and upholding robust governance standards that enhance transparency and trust. This commitment enables us to not only meet financial objectives but also to deliver sustainable investments that create both economic returns and societal benefits. For Garanti BBVA, sustainability is not just an initiative—it is an integral part of how we do business and drive meaningful progress.   What were the biggest management challenges of 2024?   In 2024, one of the most significant challenges we faced as a banking institution was navigating the evolving economic environment. Inflation showed signs of moderation, but its earlier impact had shifted consumer behaviours and expectations. Balancing these changes, while ensuring sustained growth, required agility and a deep understanding of our customers’ evolving needs.   The rapid pace of digital transformation also posed its own set of challenges. While we have made significant strides in enhancing our digital offerings, meeting the rising expectations for seamless and personalised digital banking experiences demanded continuous innovation and investment. Ensuring that our systems remained secure, efficient, and user-friendly was a top priority, requiring close collaboration across teams.   What role does the Romanian banking system play in the transition to a green economy?   At Garanti BBVA, sustainability is at the core of our corporate strategy, reflecting the BBVA Group’s global commitment to the green transition. One prominent example of our efforts is our participation in the VIFOR Wind Farm project, where we extended EUR 10 million in financing for the development of a 192 MW onshore wind farm in Buzau. Once operational, this project will provide clean energy to approximately 108,000 households, supporting Romania’s renewable energy targets for 2030. We are also involved in the electrification of the Romanian automotive industry, by contributing EUR 48 million to Ford Otosan’s EUR 435 million syndicated loan. Beyond financial support, we have active partnerships with organisations like WWF Romania, to drive environmental conservation efforts.   What will be the main opportunities and challenges in the banking sector in 2025?   On the opportunities side, customers’ demand for loans remains high, setting the stage for continued growth in lending volumes, particularly in the consumer loans segment. In 2024, the volume of new loans increased and we expect this trend to continue. At the same time, refinancings remain a priority for customers, who are opting for loans with lower, fixed interest rates, which boosts banking activity. This trend can be reinforced by offering financial products that are tailored to customers’ needs and by the continued digitalization of services, which enables quick and efficient access to credit.   On the other hand, the sector will also face significant challenges. One of the most important is the risk of tax increases, given Romania’s high budget deficit, which cannot be sustained in the coming years. Increased taxation, whether it’s through higher VAT, corporate or property taxes, could affect the real incomes of the population and, implicitly, consumer spending trends.