Shares in Turkey's Halkbank slump 14% after banker's US arrest

By bne IntelliNews March 30, 2017

Shares in state-owned Halkbank, Turkey’s sixth largest lender by assets, plunged on March 29 on the news that one of its top executives had been detained in the US on charges of helping Iran evade international sanctions.

The lender's share price fell by as much as 14.26% - the biggest daily decline ever seen by Halkbank - on March 29 to trade at TRY10.34 at the close, erasing TRY2.15bn (€548mn) from the bank's market value. The index tracking banking stocks was down 2.06% while the broader main stock exchange index, the BIST-100, dropped 1.01%.

The lira was trading at 3.6484 per dollar at 7:00am Istanbul time compared to 3.6458 at the end of trading on March 28.

Turkish officials plan to discuss the arrest of the banker with US Secretary of State Rex Tillerson who is expected to arrive in Ankara on March 30 for talks on Syria and other regional security issues.

It remains to be seen whether US authorities will launch probes into other executives of Halkbank or other Turkish entities over Iran sanctions.

Related Articles

Croatian central bank approves sale of Splitska Banka to Hungarian OTP’s Croatia unit

The Croatian central bank (HNB) council has approved the sale of a 100% stake in Croatia's Splitska Banka to Hungarian lender OTP Banka’s Zadar-based Croatian unit OTP banka d.d., ... more

Islamic Development Bank in talks to buy Istanbul stock exchange stake

Saudi Arabia-based Islamic Development Bank (IDB) is in talks to buy a stake in Turkey’s stock exchange, Borsa Istanbul, Himmet Karadag, chairman of BIST, told Reuters on April 19. With a ... more

Azerbaijan's biggest lender posts unexpected profit in Q1

The International Bank of Azerbaijan (IBA), the largest lender in the country, reported a 24% y/y increase in operating income to AZN218mn (€123.4) in the first quarter of 2017. The bank also ... 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