Page 40 - TURKRptFeb20

Akbank’s FX loans growth for 2020 is seen by the lender as heading for the low single digits while its swap-adjusted net interest margin (NIM) is forecast at above 4%.
The private bank is also targeting a return on equity (ROE) in the mid-10%s for 2020 thanks to high single digit net fees and commissions growth.
“Akbank announced its 2020 budget with the full attendance of its upper management as always. In the 2020 budget, we see minor differences to our forecasts, which mainly derive from a stronger 4% GDP growth forecast [for Turkey] compared to our 3% estimate,” BGC Partners said in a note entitled “AKBANK 2020 BUDGET: Guiding for mid-teens ROE, broadly in line with expectations”.
Akbank’s NPL ratio stood at 6% as of end-September. That was versus 2019 guidance for "lower than 6%", according to the lender’s latest financials for Q3 2019.
The lender’s lira loans grew by 3.9% year-to-date at end-September while the 9-month NIM was at 4% versus a 2019 guidance for "higher than 3.5%".
Net fees and commissions grew by 35% y/y versus 2019 guidance for "higher than 20%".
On January 15, minority shareholders of Akbank sold a 1.9% stake in the lender at TRY8.45 per share. The share sale suggested that Turkey's primary equity capital markets (ECM) have opened for the first time since 2018, Global Capital reported on January 15 in a story entitled “Turkish ECM reopens at last with Akbank trade”. An undisclosed group of shareholders sold their shares.
JP Morgan was the sole bookrunner on the transaction for 101.1mn shares in Istanbul, worth TRY888.7mn ($151m) at Akbank’s closing price of TRY8.79 a share.
“AKBNK [Akbank] absorbed the sale of a 1.9% stake well last Thursday but questions linger why the strategic holder was getting out, especially just after a Capital Mkts Day brimming with corporate optimism,” Rimmer said on January 20.
● Isbank
Isbank is Turkey’s largest private lender by assets.
40 TURKEY Country Report OUTLOOK 2020 www.intellinews.com