Page 31 - TURKRptDec19

The combined net income of Turkey’s BIST-100 companies increased by 2.2% on an annual basis to Turkish lira (TRY) 62.6bn (€9.95bn) in the first nine months of the year​, business daily Dunya has reported. Out of 96 publicly traded companies, which have released their 9-month financials, 74 firms reported a profit for the period.
The combined net income of the listed companies in the third quarter alone also increased by 31.3% y/y to TRY25.7bn.
Twenty companies, including lenders Garanti, Yapi Kredi, Vakifbank, Akbank, and Isbank, GSM operator Turkcell, conglomerates Sabanci and Koc, airlines Turkish Airlines and Pegasus, as well as carmakers Ford Otosan and Tofas, reported a net income above TRY1bn.
A total of 42 companies reported a decline in their net income in the first nine months of the year compared with January-September 2018.
Turkish private lender Isbank increased its net income by 9% y/y to TRY1.35bn in Q3​. Net interest income fell 2% to TRY4.95bn but net fees & commissions rose 24% to TRY1.4bn. The bank provided the figures in a November 6 stock exchange filing.
Isbank’s profit performance in Q3 beat those of its three private peers, namely
Garanti (down 22% y/y to TRY1.3bn), Akbank (up 5% y/y to TRY1.4bn) and Yapi Kredi (down 12% y/y to TRY976mn)​.
The profits of all four banks were down in the first nine months as a whole, with an 18% y/y decline to TRY3.76bn reported by Isbank, a 12% y/y drop to TRY4.09bn posted by Akbank, a 11% y/y fall to TRY4.94bn announced by Garanti and a 7% y/y descent to TRY3.34bn stated by Yapi Kredi.
Markets expected a TRY775mn profit from Isbank in the third quarter.
Despite the positive profit performance, Isbank revised its non-performing loans (NPL) ratio guidance to 7-7.5% from the previous 6%.
Isbank’s lira loans growth remained at 6% y/y as of end-September, comparing significantly below the target range of 10-20% ‘advised’ by the government, calculations by Sevgi Onur of Seker showed.
Garanti did worse with 2% growth in lira loans, while its NPL ratio rose to 6.7% at end-September from 5.6% at end-June.
Akbank reported 4% y/y growth in lira loans, with the lender’s NPL share coming in at 6.7% in Q3 from 3.4% a year ago.
Yapi Kredi proved to be the ‘best citizen’. It hiked its lira loans by 13% y/y and its NPL ratio rose to 6.9% from 5.9% at end-Q2.
Yapi Kredi’s reported return on equity (ROE) dropped to 9.7% in Q3 (Akbank 11.1%, Garanti 10.2%) from 11.3% in Q2 while coverage-adjusted ROE would be 6.5% (Akbank 10.0%, Garanti 15.0%), TEB Investment said on November 5 in a research note.
Largest Turkish refiner Tupras has reported a net loss of Turkish lira (TRY) 156mn for the third quarter​ versus a net profit of TRY542mn for the same period of last year.
Revenues declined nearly 23% on an annual basis to TRY23.3bn in the quarter.
31​ TURKEY Country Report​ December 2019 ​ ​www.intellinews.com