Russia’s Sberbank reportedly considers selling Turkish unit Denizbank

By bne IntelliNews June 13, 2016

Russian lender Sberbank mulls selling its Turkish unit Denizbank amid rising tension between Ankara and Moscow, unnamed sources told Turkish financial news website Paranaliz.

Relations between Turkey and Russia went sour after a Russian bomber was downed by a Turkish jet near the Syrian border last year. In response, Moscow imposed a raft of economic sanctions that are hitting hard Turkey's export and tourism industry. Turkey still refuses to apologise for the plane incident.

Sberbank owns 99.85% of Denizbank, which the Russian lender acquired from Belgium’s Dexia for TRY6.47bn (€1.96bn) back in 2012. Denizbank closed the first quarter with a net income of TRY301mn, up from TRY269mn a year ago. Assets of the bank stood at TRY115bn at the end of March, up from TRY113bn at end-2015. Denizbank has 738 branches and 15,000 employees.

Back in March, the head of the Russian lender, German Gref, said he was satisfied with Sberbank’s business in Turkey and that he saw good opportunities to grow there.

The report on Sberbank’s plans to exit Turkey comes a week after Abraaj Group decided to enter the Turkish banking sector through the acquisition of a minority stake in Fibabanka.

Net income of Turkish banks increased by 32% y/y to TRY11bn (€3.3bn) in the first four months of 2016. Last year, the banking industry’s net profit rose by 5.9% to TRY26.1bn. Profit growth is projected to gain further strength this year with estimates by the Turkish Banking Association (TBB) pitching it at 12%.

Related Articles

Slovenian government approves privatisation plan for 2017

Slovenia’s government approved Slovenian Sovereign Holding’s (SSH) 2017 privatisation plan on January 19. The plan includes the sales of two 100% state owned banks, Slovenia’s largest lender ... more

Blow for Russian stocks as Kremlin backs away from higher dividend payouts

Russian stocks are facing a serious setback after it emerged that the Kremlin may be backing out of a decree to force state-owned companies to pay dividends worth 50% of their earnings. The ... more

Ukraine central bank slams PwC over PrivatBank audit

The National Bank of Ukraine (NBU) has accused PricewaterhouseCoopers, PrivatBank's auditing firm, of providing an inadequate evaluation of collateral under loans provided by the çountry's ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss