Turkish private lender Garanti Bankasi’s unconsolidated net profit grew by 7% y/y to Turkish lira (TRY) 1.67bn (€261mn)  in Q3, the lender said on October 25 in a bourse filing.

Garanti’s Q3 profit was slightly north of market expectations in a Reuters poll for TRY1.61bn.

The lender’s net fees and commissions income rose by 30% y/y to TRY1.26bn in the quarter. Non-performing loans (NPLs) reached 4.18% of TRY354.7bn worth of total loan as of end-September, while total assets stood at TRY456.3bn.

The bank’s return on equity stood at 17.5% and its return on assets was 2%.

Garanti Bankasi shares were down 1.80% d/d to TRY7.1 as of 12:00 local time on October 26 while the benchmark BIST-100 was down to 92,840 from 93,707 at the open. The annual loss on Garanti Bankasi shares stood at 24.71% versus the 19.54% fall of the BIST-100.

Turkey’s annual consumer price inflation rate sprang from 17.9% in August to 24.52% in September, the Turkish Statistical Institute (TUIK) announced on October 3.

Private lender Akbank’s unconsolidated net profit fell by 11% y/y to TRY1.33bn in Q3 due to rising provisions and operational expenses, the lender said on October 24 in a bourse filing. Markets had expected a net profit of TRY1.36bn for Q3.

The lender’s net interest income rose by 52% y/y to TRY3.79bn in the quarter while net fees and commissions increased by 28% y/y to TRY881mn.

Akbank shares were down 1.63% d/d to TRY6.65 as of 12:00 local time on October 26 while the annual loss on the shares stood at 27.95%.

Carmaker Otosan’s net profit up 2.3%
Carmaker Ford Otosan’s sales revenues rose by 42% y/y to TRY7.8bn in Q3 thanks to rising unit sales abroad and growing export revenues stemming from the depreciation in the lira, while net profit rose by a relatively limited 2.3% y/y to TRY354mn due to rising financing costs, again in relation to the depreciation in the local currency and also as a consequence of increasing tax expenses, the company said on October 25 in a bourse filing.

Ford Otosan’s exports rose 24% y/y to 73,292 units in Q3 while export revenues rose 79% y/y to TRY6.7bn. Domestic sales declined by 56% y/y to 11,276 units in the third quarter while domestic revenues declined by 38% y/y to TRY1.1bn. Domestic sales revenues declined by 6% y/y in the first nine months.

The carmaker also announced that it had cut its domestic sales forecast for the second time in 2018. Accordingly, the company reduced its overall domestic market expectation for 2018 to 550,000-600,000 units from the previous 780,000-830,000. Ford Otosan was now targeting sales of 60,000-70,000 units in domestic market, down from the previous target of 85,000-95,000. Its export target remained unchanged at 320,000-330,000 units.

The total sales target, as a result, fell to 380,000-400,000 units from 410,000-430,000 while the production target declined to 370,000-380,000 from 385,000-395,000.

The company also cut its investment target for 2018 to €180-200mn from €190-210mn.

Ford Otosan shares were down 6.04% d/d to TRY60.65 as of 12:00 local time on October 26 while the annual gain on the shares stood at 25.91%.

Local conglomerate Tekfen Holding’s net profit grew by 242% y/y to TRY448mn in Q3 while revenues rose by 89% y/y to TRY3.26bn, the company said on October 25 in a bourse filing.

Tekfen Holding shares were down 4.79% d/d to TRY21.46 as of 12:00 local time on October 26 versus an annual gain of 74.76%.

Steelmaker Erdemir’s net profit grew 69% y/y to TRY1.34bn in Q3 while revenues rose by 78% y/y to TRY7.79bn, the company said on October 25 in a bourse filing.

Erdemir shares were down 3.97% d/d to TRY9.18 as of 12:00 local time while the annual gain on the shares stood at 14.89%.

Turkcell’s net declines 60%
Telecom operator Turkcell’s net profit declined by 60% y/y to TRY241mn in the third quarter due to a rise in financing costs resulting from the lira depreciation while revenues rose by 26% y/y to TRY5.8bn, the company said on October 24 in a bourse filing.

Markets had expected Turkcell to announce a net loss for the quarter.

The company’s Ebitda rose 47% y/y to TRY2.4bn in the third quarter while its Ebitda margin rose by 5.8pp to 41.3% compared to the same quarter of last year.

Turkcell revised up its targets for the second time this year. Accordingly, the company moved up its Ebitda margin target to 39-41% from 37-40% and its sales growth target to 20-22% y/y from 16-18% y/y.

Turkcell shares were up 3.73% d/d to TRY11.97 as of 12:00 local time on October 26 while the annual loss on the shares stood at 7.07%.