Turkey is attracting Gulf banks to take stakes in its banks

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Gulf banks are seeking to strengthen their presence in Turkey through acquisitions of Turkish banks and licensing applications. The bank said the bank “Spirk” of Russia that he is currently taking steps to assess the feasibility of the opportunity to sell its stake in the «Deniz Bank» Turkish, after the banks of several Gulf Arab countries and China desire to buy its share in the Turkish bank, according to a report by «Bloomberg »American media reported yesterday.

This coincided with the announcement by Emirates NBD that preliminary strategic talks with SpirBank would be held, including the possibility of acquiring its entire stake in Deniz Bank.

The Emirates Bank, Dubai’s largest lender by market value, said in a statement yesterday that it was in talks with the Russian bank Spirbank, which includes the possibility of acquiring its share in the Turkish bank. He pointed out that the talks are still in their initial stages, There is no assurance that this transaction will be concluded.

The deal is expected to reach $ 4.12 billion, with Deniz Bank accounting for $ 3.44 billion at the end of September last year.

Gulf banks are seeking to acquire banks in Turkey after Qatar National Bank (QNB), which in the year 2016 acquired the entire Greek National Bank stake in Turkish bank Finans Bank in a deal worth 2.7 billion euros, while Commercial Bank of Qatar Which is 25% of the total value of $ 222 million, making it the full owner of the bank.

“With many Gulf banks in Turkey, and due to geographic proximity, lenders are familiar with the Turkish economy and the banking system there,” said Treo Fam, Emerging Markets Credit Strategist at Mitsubishi Finance Group (MUFG). .

Turkey was providing favorable dynamics with a large proportion of young people in the population and a high GDP growth rate (close to 7 per cent for 2017); therefore, most major banks were relatively profitable in Turkey.

Turkey’s banking sector posted a net profit of about 13 billion in 2017, according to data from the Banks Regulatory and Control Agency issued on Tuesday. The net profit of Turkish banks in 2017 rose by 30.8 percent compared to 2016, which amounted to about 10.7 billion dollars.

Total deposits with banks in Turkey reached 1.71 trillion Turkish lira (about $ 453.4 billion) at the end of December 2017, an increase of 18 percent year-on-year. GDP growth rose 11.1 per cent in the third quarter of 2017.

On the other hand, the Chairman of the Board of Turkish exporters Mohammad Buyuk Akshi, the value of Turkish exports during the year 2017, by 10.1 per cent, compared with 2016.

Buyuk Akshi said in remarks yesterday: The value of Turkish exports amounted to about 158 ​​billion dollars, in the last 12 months. He expected exports to exceed $ 160 billion in a month or two and reach $ 170 billion by the end of the year.

The value of exports in January increased by 16.3 percent compared to the same month of last year 2017 to reach 12 billion and 198 million dollars, the official said. He pointed out that the automotive sector topped the list of the most profitable sectors during the last month, worth $ 2.3 billion, followed by the garment sector by $ 1.6 billion, and chemicals by $ 1.5 billion.

With regard to the markets to which the largest share of Turkish exports was directed, Buick Akshi pointed to a rise in the volume of Turkish exports to the European Union countries by 22.6 per cent, to Africa 8 per cent and to the CIS countries by 23.8 per cent in January. Turkish exports also rose to 23.8 per cent in North America and 2.6 per cent in the Middle East.