Akbank takes lion’s share from military
Akbank, the country’s biggest lender by market value, benefited from the “domestic capital” criterion introduced by the Turkish Armed Forces (TSK) after having sold Oyakbank to the Netherlands-based ING Bank.
Around 60 percent of all institutions affiliated with the TSK decided to break ties with Dutch ING, and agreed with new banks, among which Akbank has obtained the lion’s share, according to officials from Akbank, which closed the first quarter of the year with a net profit of YTL 720 million.
Due to the new criterion of the TSK, the units started to hold tenders one by one, said the authorities during a press conference in which Akbank’s managing director announced the bank’s first quarter balance sheet.
The TSK decided not to cooperate with the banks that have domestic capital below a certain amount, an Akbank official told business daily Referans.
Besides Akbank, the TSK is said to have invited İşbank, Garanti Bank, Vakıfbank and Turkish Economy Bank (TEB) to the tenders held for banking services. Due to domestic capital criterion, Oyakbank is unable to attend in any tender, said the bank’s officials. “Akbank obtained the highest share in the market that emerged with the decision of the TSK members to leave from Oyakbank. To date, 60 percent of the market determined its new bank. There is only 40 percent left, ” an official said.
Global risks an opportunity:
Speaking at the press conference, Zafer Kurtul, managing director of Akbank, said global risks may create several opportunities. Turkey has great potential in attaining political stability and continuing reforms, Kurtul said. “Our views on our country are very positive in the medium term,” he said. Although the closure case against the ruling Justice and Development Party (AKP) may create fluctuations in the short run, Turkey’s potential seems robust in the medium term, he said. “I believe Turkey is a democratic country that can find a democratic cure.”
There are many income-yielding projects in Turkey that attract foreigners, Kurtul said. “The projects such as energy and highways offer great opportunities. We are negotiating with investors on the issue. Turkey grew 26 percent in terms of project loans last year,” he said, “however, what is important is political and economic stability.”
source: Turkish Daily News
Tags: military banking market