Turkish banks post successful results
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Daily News with wires
Oluşturulma Tarihi: Mayıs 15, 2009 00:00
ISTANBUL - Things seem to be looking up for Turkey’s banking industry as several banks post rising profits for the first quarter of the year. Yapı Kredi posts 6 percent rise in profit for the period, while Fortis Turkey posts 11 percent rise
Yapı Kredi bank, the Turkish lender co-owned by Italy’s UniCredit SpA, said consolidated first-quarter profits rose 6 percent as revenue from loans and fees increased.
Net income was 471 million Turkish Liras ($300 million), Bloomberg reported, citing an e-mailed statement by Yapı Kredi yesterday. The Istanbul-based bank was expected to report unconsolidated earnings of 364 million liras, a decline of 27 percent annually, according to the median estimate of six analysts surveyed by Bloomberg.
Missing information
The bank didn’t give figures for unconsolidated earnings, which don’t include profits and losses from stakes it holds in other companies.
Turkish lenders have benefited from Central Bank rate cuts that have shaved 7 percentage points off the benchmark rate in six months, driving yields on lira-denominated bonds to about 14 percent at the end of the quarter from 16.5 percent at the end of 2008.
"The sector has been boosted by falling interest rates and Yapı Kredi hasn’t yet seen the impact of rising non-performing loans," said Alpay Dinçkoç, an analyst for Oyak Securities in Istanbul, before the announcement.
Total loans rose 1 percent to 39.2 billion liras, with net interest income gaining 33 percent due to the decline in interest rates, Yapı Kredi said. Growth in fees and commissions was 14 percent. Total deposits were little changed at 43.9 billion liras, the bank said.Yapı Kredi is the biggest provider of credit cards in Turkey. Non-performing loans increased to 5.3 percent of total loans at the end of March from 4.3 percent in the fourth quarter of last year, it said.
Impact of the crisis
The impact of the global economic crisis on customers’ ability to repay debt is likely to increase at Turkish banks, and particularly at Yapı Kredi because of its high proportion of credit card holders, Dinçkoç said.
"Yapı Kredi is a serious player in the credit card business and there’s no way it will be able to avoid the impact of rising non-performing loans," he said.
Fortis Bank Turkey is also among the banks that posted net consolidated profit for the first quarter of the year.
During the first three months of the year, the consolidated net profit of the bank increased 11 percent compared to the same period last year and reached 76.5 million liras. The bank’s total income reached 281 million liras, which was an increase of 5 percent.
The Industrial Development Bank of Turkey, or TSKB, also posted a consolidated net profit of 34.1 million liras for the first quarter of the year. That was an increase of 19 percent compared to the same period last year. The bank’s pretax profit, on the other hand, displayed an 11 percent increase to 42.7 million liras.
TSKB’s asset size increased 20.3 percent to 6.7 million liras during the first quarter of the year. TSKB’s equities have also reached 800 million liras according to March 31 data.
Net income was 471 million Turkish Liras ($300 million), Bloomberg reported, citing an e-mailed statement by Yapı Kredi yesterday. The Istanbul-based bank was expected to report unconsolidated earnings of 364 million liras, a decline of 27 percent annually, according to the median estimate of six analysts surveyed by Bloomberg.
Missing information
The bank didn’t give figures for unconsolidated earnings, which don’t include profits and losses from stakes it holds in other companies.
Turkish lenders have benefited from Central Bank rate cuts that have shaved 7 percentage points off the benchmark rate in six months, driving yields on lira-denominated bonds to about 14 percent at the end of the quarter from 16.5 percent at the end of 2008.
"The sector has been boosted by falling interest rates and Yapı Kredi hasn’t yet seen the impact of rising non-performing loans," said Alpay Dinçkoç, an analyst for Oyak Securities in Istanbul, before the announcement.
Total loans rose 1 percent to 39.2 billion liras, with net interest income gaining 33 percent due to the decline in interest rates, Yapı Kredi said. Growth in fees and commissions was 14 percent. Total deposits were little changed at 43.9 billion liras, the bank said.Yapı Kredi is the biggest provider of credit cards in Turkey. Non-performing loans increased to 5.3 percent of total loans at the end of March from 4.3 percent in the fourth quarter of last year, it said.
Impact of the crisis
The impact of the global economic crisis on customers’ ability to repay debt is likely to increase at Turkish banks, and particularly at Yapı Kredi because of its high proportion of credit card holders, Dinçkoç said.
"Yapı Kredi is a serious player in the credit card business and there’s no way it will be able to avoid the impact of rising non-performing loans," he said.
Fortis Bank Turkey is also among the banks that posted net consolidated profit for the first quarter of the year.
During the first three months of the year, the consolidated net profit of the bank increased 11 percent compared to the same period last year and reached 76.5 million liras. The bank’s total income reached 281 million liras, which was an increase of 5 percent.
The Industrial Development Bank of Turkey, or TSKB, also posted a consolidated net profit of 34.1 million liras for the first quarter of the year. That was an increase of 19 percent compared to the same period last year. The bank’s pretax profit, on the other hand, displayed an 11 percent increase to 42.7 million liras.
TSKB’s asset size increased 20.3 percent to 6.7 million liras during the first quarter of the year. TSKB’s equities have also reached 800 million liras according to March 31 data.