Garanti Bank and Garanti Mortgage (Domenia Credit IFN) have announced on Wednesday they have initiated formal procedures for the merge of the two companies in Romania, which should be concluded by year end, following the approval of the central bank and the completion of all legal requirements.
The bank said the merger does not influence in any way lending conditions for all those that have loans with Garanti Mortgage and that customers will be notified on this move.
“Our decision to merge the two companies is part of our long-term local strategy aimed to create a simplified business model, so we can serve better Garanti Group’s clients in the mortgage segment, from a single point, by the retail department within the bank” said Ufuk Tandogan, Garanti Group’s CEO.
Last year, Garanti Mortgage has registered EUR 3.1 million in revenues and EUR 600,000 in profits. The company has around 3,400 customers and the average value of a loan stands at around EUR 30,000.
Garanti Group, which is owned Turkish Turkiye Garanti Bankasi, comprises Garanti Bank, Garanti Leasing, Garanti Consumer Finance and Garanti Mortgage.