Istanbul-listed Garanti BBVA sells TRY 1.3bn NPL portfolio at 38% recovery rate

By bne IntelIiNews September 28, 2023

Garanti BBVA (GARAN), a unit of BBVA (Madrid/BBVA), has sold a Turkish lira (TRY) 1.29bn ($47mn) portfolio of non-performing loans (NPLs) for a consideration of TRY 492mn at a recovery rate of 38%, the lender said on September 25.

Ortak Varlik Yonetim (OVY) bought NPLs worth TRY 531mn for a consideration of TRY 211mn while Dunya Varlik Yonetim bought a TRY 531mn package for TRY 216mn and Sumer Varlik Yonetim took the remaining TRY 231mn of NPLs for TRY 65mn.

There are 23 active asset management companies in Turkey.

In line with local peers, Garanti, the fifth largest bank in Turkey with Turkish lira (TRY) 1.7 trillion ($61bn) worth of total assets at end-March, has a B-/Stable (one notch below Turkey’s sovereign rating and six notches below investment grade) from Fitch Ratings and a B3/Stable (six notches below investment grade in line with Turkey’s sovereign rating) from Moody’s Investors Service.


Major NPL sales by Turkish lenders
  Seller TRYmn Price Recovery Buyers
Sep-23 QNB Finansbank (QNBFB) 908 - - Ortak, Dunya, Emir
Sep-23 Garanti (GARAN) 1,293 492 38% Ortak, Dunya, Sumer
Jun-23 Yapi Kredi (YKBNK) 1,070 334 31% Birlesim, Dunya, Gelecek (GLCVY), Sumer
Jan-23 Denizbank 604 - - Ortak, Birlesim, Emir, Hedef, Dogru, Birlesim, Gelecek (GLCVY)
Dec-22 Denizbank 100 - - Birikim (BRKVY)
Dec-22 Garanti (GARAN) 691 164 24% Gelecek (GLCVY), Dunya
Sep-22 Yapi Kredi (YKBNK) 565 113 20% Emir, Denge, Efes, Hedef
Jun-22 Garanti (GARAN) 433 100 23% Dunya, Birikim (BRKVY)
Apr-22 Yapi Kredi (YKBNK) 1,324 205 15% Gelecek (GLCVY), Ilke, Birlesim, Dunya, Ortak, Arsan, Diriker
Apr-22 Akbank (AKBNK) 1,531 181 12% Birikim (BRKVY), Ortak, Met-Ay, Denge


Table: Major NPL sales by Turkish lenders.




Turkey Banking Industry: Problem Loans
  NPL Monitoring Restructured Problem   Performing Total NPL Monitoring Total Problem
TRYbn Stage 3-4-5 Stage 2 (In Stage 2) 2+3+4+5 Equity Stage 1 Loans Ratio Ratio Ratio
Jun-2023 158 794 425 952 1,688 8,690 9,718 1.6% 8.2% 9.8%
Sep-2022 151 624 405 775 1,189 5,879 6,714 2.2% 9.3% 11.5%
Jun-2022 151 596 368 747 1,027 5,387 6,185 2.4% 9.6% 12.1%
Dec-2021 149 543 342 692 714 4,147 4,883 3.1% 11.1% 14.2%




Table: Turkish banking industry: Problem loans.




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