Page 55 - TURKRptSept19

UniCredit, cited by one of the Bloomberg sources on August 28, seems like an attempt to raise the stakes in negotiations with Koc as the Turkish conglomerate was expected to move in to avoid an SPO that would hurt the market value and reputation of the local lender.
Yapi Kredi, founded in 1944, took over Garanti Bank’s place as the second largest private bank in Turkey as of the end of June, with its TRY385bn worth of assets versus Garanti’s TRY384bn, according to the latest data from the local banking association (TBB).
Yapi Kredi is currently Turkey’s fourth largest bank by assets, following state- owned Ziraat, private lender Isbank and state-run Halkbank.
Yapi Kredi’s loan volume stood at TRY238bn versus total deposits worth TRY218bn while the lender’s capital amounted to TRY41bn with TRY8.477bn worth of paid-in capital.
Yapi Kredi’s cash loans grew 5% y-t-d to TRY232bn at end-June, according to an investor presentation put out with its Q2 financials.
The lender’s loan growth is below the 10% target recently introduced by the central bank.
The lender had 854 branches and 17,191 employees at end-June.
The bank’s net profit declined by 9% y/y to TRY1.12bn in Q2 while its net interest income rose by 25% y/y to TRY3.9bn and its net fees & commissions income rose by 21% y/y to TRY1.2bn.
The market expected a net profit of TRY1bn in the quarter.
The lender’s H1 profit of TRY2.36bn was down 4.5% y/y with a ROAE of 12.2%.
In July, Fitch Ratings downgraded Yapi Kredi Bank to B+ from BB- with a negative outlook following a sovereign downgrade for Turkey.
In June, Moody’s Investors Service downgraded Yapi Kredi Bank to B3 from B2 following the sovereign downgrade.
In August last year, Standard and Poor’s cut the bank to B+ from BB- following the sovereign downgrade.
8.1.8 Banks news
Isbank’s solo net profit declined by 38% y/y to TRY951mn in Q2, mainly due to trade losses. Market expected TRY802mn net profit in the quarter. Trade loss jumped to TRY2.61bn in the quarter from TRY767mn a year ago while derivatives losses jumped to TRY6.53bn from TRY56mn. Loans rose by 1% y-t-d to TRY273bn at end-June while NPL ratio rose to 5.8% from 5.1% at end-Q1 and 4.7% at end-2018. Stage II problem loans rose to 14.3% at end- Q2 from 13.5% at end-March and 12.5% at end-2018. Total loans and deposits stood at TRY433bn and TRY259bn as of the end of the second quarter. Isbank’s net profit declined 28% y/y to TRY2.41bn in H1.
Vakifbank’s net income declined by 44% y/y to TRY368mn in Q2 (market expectation: TRY377mn) and by 52% y/y to TRY1.02bn in H1.
State-run Halkbank’s net profit declined by 72% y/y to TRY310mn in Q2. Trade losses jumped to a record TRY1.41bn in the quarter from TRY30mn a year ago, mainly due to the 24% q/q rise in swap losses to TRY1bn. Market expected a net profit of TRY316mn in the quarter. TRY385mn worth of cut in provisions limited the loss in the quarter. Loans grew by 18% y-t-d to
55 TURKEY Country Report September 2019 www.intellinews.com