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Weekly Lists
May 3, 2019 www.intellinews.com I Page 28
bne:Banker Recession-mired
Turkey undermines Q1 net profit of Spain’s BBVA bank
Hungary's OTP eyes new acquisition targets in Croatia
Spanish bank BBVA reported a 9.8% decline in first-quarter profit on April 29 as the still depreciating Turkish lira (TRY) impacted on earnings at its Turkish unit.
The lender, Spain’s second largest, posted net profit of €1.16bn ($1.3bn) for January-March, just above an average forecast of €1.15bn produced by a Reuters poll of analysts.
BBVA makes most of its profit overseas, mainly in Mexico, with Turkey its fourth-biggest market. However, with Turkey mired in a recession and the lira having plummeted against the dollar, the group’s profitability has weakened. BBVA’s Q1 net profit in Turkey, which accounts for about 10% of group earnings, dropped 29% to €142mn, the bank said.
Hungary's OTP Bank is interested in buying Croatia's seventh largest bank Addiko or the local unit of Raiffeisen, Croatian daily Jutarnji List said on April 29, citing unofficial sources. The Hungar- ian lender said it will focus on new acquisitions in the region.
Advent Investment Group had already begun preparations for the sale of Addiko Bank last September and OTP is seriously interested in buying the Croatian branch of the Austrian bank. Addiko Group is a network of banks in Bosnia & Herzegovina, Croatia, Montenegro, Slovenia, and Serbia. It was established after the split of Hypo Alpe Adria Bank International.
Hungary's largest commercial lender did not want to comment on press reports. "We constantly track market opportunities and promptly inform the public about important business decisions", it said.
S&P Global Ratings has raised its long- and short-term issuer credit ratings on Uzbekistan-based Turkiston Bank to ‘B-/B’ from ‘CCC+/C’ with a stable outlook.
The rating action reflects S&P’s “view of the bank’s stabilised liquidity profile, supported by an inflow of deposits from govern- ment-related entities (GREs) and a somewhat more cautious liquidity policy”. The ratings agency noted that its concerns about the bank’s reliance on business, financial, and economic conditions to meet its financial commitments have diminished.
“Turkiston Bank’s funding and liquidity metrics improved in 2019 after deterioration in 2018,” S&P Global Ratings said.
S&P upgrades issuer credit rating on Uzbekistan’s Turkiston Bank to ‘B-/B’ with stable outlook