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) | |||||
| (bn TRY) | 2014 | 2015 | 14/15 | 2016 | 15/16 |
| Total Assets | 219 | 252 | 15% | 295 | 17% |
| Deposits | 122 | 149 | 22% | 174 | 16% |
| Cash Loans | 136 | 153 | 13% | 179 | 17% |
| NPL | 2.33 | 3.37 | 45% | 4.27 | 26% |
| NPL Ratio | 1.71% | 2.20% | 0.005 | 2.39% | 0.002 |
| Branches | 991 | 902 | -89 | 841 | -61 |
| Capital Adequacy | 14.89% | 14.46% | -0.004 | 14.16% | -0.003 |
| (mn TRY) | 2014 | 2015 | 14/15 | 2016 | 15/16 |
| Net Interest Income | 7,220 | 7,589 | 7% | 8,490 | 12% |
| Net Fee & Commissions | 2,437 | 2,487 | 2% | 2,569 | 3% |
| Net Income | 3,379 | 3,229 | -4% | 4,854 | 50% |
| source: kap | |||||
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