Istanbul-listed Yapi Kredi sells TRY 1.4bn NPL portfolio at 38% recovery rate

By Akin Nazli in Belgrade November 20, 2023

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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