Yapi Kredi Bank (YKBNK), a unit of Turkish conglomerate Koc Holding (KCHOL), has sold a portfolio of non-performing loans (NPLs), which was worth Turkish lira (TRY) 1.4bn ($49mn) at end-September, the lender said on November 15.
Sumer Varlik Yonetim, Istanbul-based Dunya Varlik Yonetim, Efes Varlik Yonetim (owned by the Isbank (ISCTR) group companies) and Gelecek Varlik Yonetim (GVY/GLCVY) bought the portfolio for a consideration of TRY 546mn.
There are 23 active asset management companies in Turkey.
In line with local peers, Yapi Kredi, the seventh largest bank in Turkey with Turkish lira (TRY) 1.4 trillion ($51bn) of total assets at end-June, 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.
Since 2018, Turkey has been applying widespread regulatory forbearance measures. As a result, the financials of Turkey’s corporations are far from a reflection of their actual financial situations.
Thanks to the heavy forbearance, bank balance sheets can take a shine that distracts from actual critical situations.
| Major NPL sales by Turkish lenders | |||||
| Seller | TRYmn | Price | Recovery | Buyers | |
| Nov-23 | Yapi Kredi (YKBNK) | 1,400 | 546 | 39% | Sumer, Efes, Gelecek (GLCVY), Dunya |
| 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 |
| Dec-21 | Garanti (GARAN) | 649 | 119 | 18% | Gelecek (GLCVY) |
| Dec-21 | Garanti (GARAN) | 543 | 42 | 8% | Emir |
| Dec-21 | Denizbank | 1,165 | - | - | Gelecek (GLCVY), Ortak, Ilke, Istanbul, Birlesim, Emir, Hedef, Dogru |
| Sep-21 | QNB Finansbank (QNBFB) | 1,055 | 206 | 20% | Ortak, Dunya, Hedef |
| Mar-21 | Isbank (ISCTR) | 745 | 72 | 10% | Emir, Istanbul, Gelecek, Hedef, Arsan |
| Dec-19 | ICBC (ICBCT) | 18 | - | - | Emir |
| Dec-19 | Sekerbank (SKBNK) | 150 | - | - | Sumer |
| Dec-19 | Akbank (AKBNK) | 715 | 33 | 5% | Istanbul, Gelecek |
| Dec-19 | Garanti (GARAN) | 323 | 25 | 8% | Efes, Gelecek |
| Oct-19 | Denizbank | 205 | - | - | Hedef, Emir |
| Sep-19 | Isbank (ISCTR) | 1,097 | 32 | 3% | Efes, Hayat, Birikim (BRKVY), Dogru |
| Jul-19 | Garanti (GARAN) | 260 | 19 | 7% | Gelecek |
| Jun-19 | Yapi Kredi (YKBNK) | 917 | 26 | 3% | Arsan, Dogru, Efes, Emir, Gelecek, Hayat, Sumer |
| Jun-19 | Sekerbank (SKBNK) | 203 | - | - | - |
| May-19 | Yapi Kredi (YKBNK) | 298 | 23 | 8% | Hayat, Arsan |
| May-19 | Isbank (ISCTR) | 418 | 30 | 7% | Efes, Gelecek |
| Apr-19 | Garanti (GARAN) | 365 | 19 | 5% | Sumer |
| Apr-19 | Yapi Kredi (YKBNK) | 529 | 16 | 3% | Gelecek, Hayat |
| Mar-19 | Yapi Kredi (YKBNK) | 396 | 24 | 6% | Efes, Gelecek |
| Jun-17 | ICBC (ICBCT) | 4 | 0.3 | 6% | Hedef |
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% |
| Sep-2021 | 137 | 406 | 246 | 543 | 655 | 3,475 | 4,060 | 3.4% | 10.0% | 13.4% |
| Jun-2021 | 140 | 417 | 233 | 557 | 631 | 3,345 | 3,904 | 3.6% | 10.7% | 14.3% |
Table: Turkish banking industry: Problem loans.
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