Turkey’s Akbank sells €180mn NPL portfolio for €10mn

By bne IntelliNews June 14, 2017

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
Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

US hardens stance on RBI in Russia, sanctions Strabag-related companies

Deputy Secretary of the US Treasury Wally Adeyemo has reportedly warned Raiffeisen Bank International in writing that its access to the US financial system could be curbed because of its continuing ... more

Estonia’s Coop Pank nets €2.8mn in April

Estonia’s Coop Pank net €2.8mn in April, the number of the bank's clients increased by 2,400 and the number of active clients increased by 1,500, BNS, a Baltic newswire, reported on May ... more

Hungary’s OTP books hefty Q1 profit despite government levies

The consolidated adjusted net profit of OTP Bank rose 126% year on year to HUF240.0bn (€620mn) with all foreign units posting profits, accounting for three-quarters of earnings. Hungary's ... more

Follow Us On

Most Read

  1. Ukraine’s strategy of hitting Russian oil refineries is working
    8 days ago
  2. US Secretary of State Blinken says Ukraine free to use US-made weapons to strike Russia
    3 days ago
  3. EBRD2024: EBRD expects Emerging Europe growth boost in 2024, but slightly lowers forecast
    3 days ago
  4. Transit fee rivals Russia, Kazakhstan “happy” China-Kyrgyzstan-Uzbekistan railway not progressing
    5 days ago
  5. Russia's nuclear diplomacy binding emerging markets to the Kremlin
    4 days ago
  1. Ukraine's birth rate plummets to 300-year low as country’s population collapses
    1 month ago
  2. Shocking trial of ex-minister has shifted domestic violence attitudes in Kazakhstan, says brother
    16 days ago
  3. The models are wrong, climate change is accelerating faster than predicted
    23 days ago
  4. Fresh evidence suggests that the April 2022 Istanbul peace deal to end the war in Ukraine was stillborn
    1 month ago
  5. EU finally boosts defence investment into arms production as Ukraine runs out of ammo
    2 months ago

Reports

Dismiss