Akbank, one of Turkey’s largest private lenders, has sold a non-performing loans (NPL) portfolio worth TRY709mn (€180mn) to Istanbul Varlik Yonetim, Efes Varlik Yonetim, Hayat Varlik Yonetim and Final Varlik Yonetim for TRY39mn, a sum that corresponds to a recovery rate of 5.5%, the lender said on June 14 in a bourse filing.
Akbank's share price was up 0.20% d/d to TRY9.82 as of 15:00 on June 14, while the benchmark BIST-100 was up 0.51% to 99,809.
In April last year, Akbank sold an NPL portfolio worth TRY450.1mn worth to Guven Varlik Yonetim for TRY49.1mn, a figure equating to a recovery rate of 10.9%.
Akbank’s consolidated loan book grew by 17% y/y to TRY179bn at end-2016. Its share of NPLs in total loans stood at 2.39% having been recorded at 2.20% at end-2015 while the gross NPL portfolio had expanded by 26% y/y to TRY4.27bn at end-2016, following a 45% annual increase registered in 2015.
The bank is targeting 10-12% y/y loan growth in 2017. The target is in accordance with its loan growth forecast of 10-12% for the Turkish banking industry.
On June 9, Fitch Rating Services affirmed Akbank’s long-term foreign currency and local currency Issuer Default Ratings (IDR) at ‘BB+’ with a stable outlook.
The NPL/total loans ratio of the Turkish banking industry very slightly edged down from 3.32% at end-March to 3.31% at end-April, according to the latest data from banking watchdog BDDK.
Last month, Moody’s Investor Services cautioned that the challenging macro environment may drive problem loans to above 4% over the next 12-18 months from 3.2% at end-2016.
|Akbank Financials (consolidated)|
|Net Interest Income||7,220||7,589||7%||8,490||12%|
|Net Fee & Commissions||2,437||2,487||2%||2,569||3%|
Moldova’s central bank has approved the request of Romania’s Banca Transilvania to take over 100% of Moldova’s third-largest bank Victoriabank, Mold Street daily reported. A similar permission ... more
It is not possible to launch the privatisation of Slovenia’s largest lender Nova Ljubljanska Banka (NLB) under the current circumstances, the finance ministry said in a statement. ... more
Greece’s Eurobank said on November 10 that it expects to sell its Romanian units to local lender Banca Transilvania (BT) at the end of November. The transaction includes Bancpost, ERB Retail ... more