Citi plans to stay in Turkey
Posted by meb at August 15th, 2008
Citigroup is not planning to leave the Turkish market and it would be very surprising for the bank if a global player decides to leave Turkey, Referans daily reported Steve Bideshi, the chief executive of Citigroup as saying on Friday.
It would not be understandable to leave a market like Turkey which is growing and has a good economic atmosphere, Referans quoted Bisdeshi as saying. “People and strategies could be changed if things do not go well. But a market should not be quit.”
Although Citigroup posted $2.5 billion profit loss globally in the first half of 2008, Citigroup Turkey stands very strong in Turkey, Bideshi also said. “We are as strong as the Rumeli Fortress, nobody can topple us. Our contracts in Turkey are also very strong.”
Citigroup has posted a $2.5 billion second-quarter loss that was smaller than expected. Citigroup owns a 20 percent stake in one of Turkey’s biggest banks, Akbank, which posted a 34 percent fall in second-quarter net profit to 494.6 million YTL ($417.03 million) year-on-year.
Global banks never think in the short term when they undertake investment decisions, and they do not implement an approach of leaving markets when they are unprofitable, Bideshi said adding that “These bank’s images are very important…For that reason, suddenly quitting a market is never debated.”
Citibank continues to maintain a profit in the Turkey, and to date has invested $4 billion, he also said. “Citibank does not transfer Turkish profits out of the country. We do not pay this sum to shareholders; profits stay inside the country each year…
Our capital adequacy ratio (CAR) gives allows us to transfer profit out. Despite this, profits are used each year for further investment.”
source: Hurriyet daily
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