Akbank T.A.S.

Akbank is a commercial bank. Co. operates in five segments: Retail banking offers a range of retail services, such as deposit accounts, loans, credit cards, insurance products and asset management services; Corporate and Small and Medium Size Enterprises banking provides financial solutions and banking services; Treasury Activities conducts regional and foreign currency spot and forward transactions, bonds and other domestic securities; Private banking offers banking and investment transactions for upper-income groups and the International banking provides services for foreign trade financing and Turkish Lira clearances, and money transfers through agent financial institutions.
  • TickerAKBNK
  • ISINTRAAKBNK91N6
  • ExchangeIstanbul Stock Exchange
  • SectorBanks
  • CountryTurkey
Research Team

The Rear-View Mirror – EME markets: Equity returns mixed as rebound forces weaken

EME Equity Market – June 2020 Market performance – in June, Turkish equities performed the best (+7.7%), while Hungary was the weakest (-2.2%). Following its rebound in the past couple of months, the MSCI EM Europe Index declined in June, losing 1.8% in EUR terms and 0.6% in local currency terms. Turkish equities were the best performers, with the ISE30 Index +7.7%, followed by Prague’s PX Index (+3.5%), and the WIG20 (+2.3%). After its good run in May, the Romanian BET lost 0.3% in June, while the Russian MOEX was down 2%. Greek equities declined 2.1%, while the worst-performing index was the...

Research Team

WOOD Daily: TL Banks; ATAD LI; ENA PW; TCELL TI; ATRS AV; PL Retail; CDR PW; PL Banks; AFLT RX; 11B PW

HEADLINES: • Turkish banks: let's talk Turkey (Garanti and Yapi Kredi stay BUY, Isbank upgraded to BUY and Akbank upgraded to HOLD) • Tatneft: dividends - to the shareholders • Enea: 1Q20 results in line with preliminaries NEUTRAL • Turkcell: Turkish Wealth Fund takes control POSITIVE • Atrium: issues EUR 200m bonds at 3.7% yield POSITIVE • Polish retail: Netto buys 301 Tesco stores in Poland NEGATIVE • CD Projekt: delays Cyberpunk 2077 release date by nine weeks NEUTRAL • Polish banks: Prime Minister Morawiecki rules out removal of bank tax in Poland NEUTRAL • Aeroflot: Kommersant suggest...

Duygun Kutucu

Turkish Banking Sector

When Covid-19 hit Turkey, the government, CBRT and BRSA introduced measures to buffer damage to the economy. These mainly involved providing liquidity at attractive rates to both consumers and corporates by increasing CBRT funding, boosting CGF guarantees and incentivizing banks to lend based on the ‘Asset Ratio’ rule. While such measures might be necessary now, and support banks’ asset quality in the short term, we think they raise their interest-rate risks, and that the normalization process could hurt. The CBRT substantially increased TL liquidity to the banking sector and CGF guarantee pro...

Alex Boulougouris, CFA ...
  • Can Demir

Turkish Banks: Let’s talk Turkey (Garanti and Yapi Kredi stay BUY, Isbank upgraded to BUY and Akbank upgraded to HOLD)

We are turning more constructive on the Turkish banks. We believe the valuations are undemanding, notwithstanding the tougher regulation and competition. In our view, the banks are already inexpensive relative to bonds. The global backdrop in the aftermath of the COVID-19 crisis also looks favourable, with DM interest rates and commodity prices potentially staying low. The recovery environment may also create a vacuum in which Turkey conducts orthodox policy and avoids political noise for a while, in our view. In this report, we have upgraded Isbank to BUY (new price target (PT) TRY 7.12/share...

AKBANK TAS sees an upgrade to Slightly Positive due to a better fundamental star rating

The general evaluation of AKBANK TAS (TR), a company active in the Money Center Banks industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 3 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date June 16, 2020, the closing price was TRY 5.84 and its potential was estimated at TRY 6.79.

Duygun Kutucu

Turkish Banking Sector

When Covid-19 hit Turkey, the government, CBRT and BRSA introduced measures to buffer damage to the economy. These mainly involved providing liquidity at attractive rates to both consumers and corporates by increasing CBRT funding, boosting CGF guarantees and incentivizing banks to lend based on the ‘Asset Ratio’ rule. While such measures might be necessary now, and support banks’ asset quality in the short term, we think they raise their interest-rate risks, and that the normalization process could hurt. The CBRT substantially increased TL liquidity to the banking sector and CGF guarantee pro...

Alex Boulougouris, CFA ...
  • Can Demir

Turkish Banks: Let’s talk Turkey (Garanti and Yapi Kredi stay BUY, Isbank upgraded to BUY and Akbank upgraded to HOLD)

We are turning more constructive on the Turkish banks. We believe the valuations are undemanding, notwithstanding the tougher regulation and competition. In our view, the banks are already inexpensive relative to bonds. The global backdrop in the aftermath of the COVID-19 crisis also looks favourable, with DM interest rates and commodity prices potentially staying low. The recovery environment may also create a vacuum in which Turkey conducts orthodox policy and avoids political noise for a while, in our view. In this report, we have upgraded Isbank to BUY (new price target (PT) TRY 7.12/share...

Research Team

The Rear-View Mirror – EME markets: Markets rebound from March’s meltdown, all indices in the black

EME Equity Market – April 2020 Market performance – in contrast to March, all indices recorded positive changes in April, with the Greek ASE Index advancing the most in EUR terms. The MSCI EM Europe Index gained 10.5% in EUR terms and 10.2% in local currency terms. The ASE Index was the best performer, +12.5%; followed by the PX Index, +11.5% in EUR terms. The Russian MOEX grew 11.2%; while the WIG20, the Polish benchmark, added 9.4%. A solid performance was reported in Hungary as well, where the BUX index rebounded 8.6%. The Turkish ISE30 Index showed a healthy advance of 5.4%, while the Roma...

WOOD Flash – Turkish and Russian banks: making sense of early indicators

We debuted our inaugural virtual conference last week, and hosted Akbank (SELL, PT TRY 6.80), Garanti (BUY, PT TRY 11.3) and Sberbank (ordinary shares BUY, PT RUB 286; preference shares BUY, PT RUB 243). In this flash note, we discuss the main takeaways from the meetings, and our take on the initial feedback. This kind of crisis is a novelty and no one has a crystal ball. However, we can tell that the expectations in both Russia and Turkey remain sanguine. Turkish banks still foresee 1-2% GDP growth in 2020E, and we believe the risk to this estimate is likely to be to the downside. Turkish cre...

Ovunc Gursoy

TURKISH BANKS - Banking monthly - January 2020

The BRSA announced banking sector KPIs for January, which is indicative of 1Q20. Banking sector net profit tripled m-m on normalized specific provisioning after a high base in 4Q. State banks’ (SBs) m-m net profit growth was better than that of private banks thanks to their improved net CoR. The TRY L/D spread and NIM performance were better at PBs. The TRY L/D spread of PBs rose 60bps m-m to 7.1%, while that of SBs contracted 12bps to 5.1%. We expect a continuation of spread accretion over the following months. Our view: We believe that profitability will be strong in 1Q20 such that we see a...

ING
Oleksiy Soroka, CFA

Turkish banking sector update/Beginning to quantify the Covid-19 impact

In early March we travelled to Turkey to visit local banks and regulatory bodies to gain insights into the outlook for FY20. Now, over two months later, the picture has changed, with early-year expectations likely to be revised down.

Akbank T.A.S.: Update to credit analysis

Our credit view of Akbank, highlighting satisfactory financials in a very weak operating environment and high government support

ING
Egor Fedorov ...
  • Oleksiy Soroka, CFA
  • Trieu Pham

EM Credit Spark/Akbank, MMK, Turkcell, LUKOIL, Alfa-bank

Akbank 1Q20 results show subdued loan growth; MMK, Turkcell: 1Q20 results review

Moody's announces completion of a periodic review of ratings of Akbank TAS

Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Akbank TAS. Global Credit Research- 31 Mar 2020. London, 31 March 2020-- Moody's Investors Service has completed a periodic review of the ratings of Akbank TAS and other ratings that are associated with the same analytical unit.

Isbank, Garanti, YapiKredi, Akbank: Nine-month results of Turkish private-sector banks deteriorate

Third quarter results highlight asset quality and profitability challenges for Turkey's four largest private lenders and deleveraging compared to state banks.

Research Team

The Rear-View Mirror – EME markets: Equity returns mixed as rebound forces weaken

EME Equity Market – June 2020 Market performance – in June, Turkish equities performed the best (+7.7%), while Hungary was the weakest (-2.2%). Following its rebound in the past couple of months, the MSCI EM Europe Index declined in June, losing 1.8% in EUR terms and 0.6% in local currency terms. Turkish equities were the best performers, with the ISE30 Index +7.7%, followed by Prague’s PX Index (+3.5%), and the WIG20 (+2.3%). After its good run in May, the Romanian BET lost 0.3% in June, while the Russian MOEX was down 2%. Greek equities declined 2.1%, while the worst-performing index was the...

Research Team

WOOD Daily: TL Banks; ATAD LI; ENA PW; TCELL TI; ATRS AV; PL Retail; CDR PW; PL Banks; AFLT RX; 11B PW

HEADLINES: • Turkish banks: let's talk Turkey (Garanti and Yapi Kredi stay BUY, Isbank upgraded to BUY and Akbank upgraded to HOLD) • Tatneft: dividends - to the shareholders • Enea: 1Q20 results in line with preliminaries NEUTRAL • Turkcell: Turkish Wealth Fund takes control POSITIVE • Atrium: issues EUR 200m bonds at 3.7% yield POSITIVE • Polish retail: Netto buys 301 Tesco stores in Poland NEGATIVE • CD Projekt: delays Cyberpunk 2077 release date by nine weeks NEUTRAL • Polish banks: Prime Minister Morawiecki rules out removal of bank tax in Poland NEUTRAL • Aeroflot: Kommersant suggest...

Research Team

WOOD Daily: YNDX US; BIZIM TI; AKBNK TI; TCELL TI; KCEL KZ; OPL PW; OMV AV; RU Macro; HU Macro; SPL PW; PL Banks; KER PW; AEFES TI; MOEX RX; RICHT HB; PL Telecoms; CPS PW; GARAN TI; NLMK LI; SBER RX

HEADLINES: • Yandex: 1Q20 results - gaining market share POSITIVE • Bizim Toptan: 1Q20 results - miss on EBITDA due to opex/sales ratio increase NEGATIVE • Akbank: 1Q20 results review - known unknowns NEUTRAL • Turkcell: 1Q20 results - 12% NI beat, driven by lower-than-expected financial expense and tax rate NEUTRAL • Kcell: 1Q20 results - strong, as expected, adjusted EBITDA up 13% yoy, in line with our forecasts NEUTRAL • Orange Polska: 1Q20 results - strong, with a 4.6% beat vs. consensus on adjusted EBITDAaL POSITIVE • OMV: 1Q20 results • Russia macro: no change of strategy • Hungary ma...

Research Team

WOOD Daily: SPL PW; CEZ CP; CPS PW; CCC PW; KTY PW; AKBNK TI; OGZD LI; MMK LI; DNP PW

HEADLINES: • Santander Bank Polska: posts material drop in net profit as provisioning starts before COVID-19 hit • CEZ: state approves framework for new nuclear, including price guarantee NEUTRAL • Cyfrowy Polsat: renegotiates debt repayment schedule POSITIVE • CCC: bookbuilding starts NEUTRAL • CCC: Dariusz Milek buys 1m shares from former manager NEUTRAL • Kety: postcard from the consumer conference NEUTRAL • Akbank: 1Q20E results preview (due out today) • Gazprom: 4Q19E results preview - focus on cost cutting (due out tomorrow) • MMK: 1Q20E financial results - rising EBITDA, but falling ...

Research Team

WOOD Daily: SPL PW; LPP PW; TEN PW; AKBNK TI; EME Macro; PL Macro; MIL PW; CPS PW; CIE PW; DNP PW; PL Telecoms; OPL PW preview

HEADLINES: • Santander Bank Polska: creates material provisions for FX mortgage loans and consumer loans repaid early NEGATIVE • LPP: preliminary 4Q19 results - broadly in line with expectations NEUTRAL • Ten Square Games: preliminary 4Q19 revenue POSITIVE • Akbank: analyst day and 2020E targets • EME Macro: overview of past war announcements • EME Macro: simplified oil impact estimates on CPI • Poland macro: inflation update • Bank Millennium: plans to cut a maximum of 260 FTEs in 1Q20E NEUTRAL • Cyfrowy Polsat: multi-SIM tariff prices changed at end of December POSITIVE • Ciech: negativ...

AKBANK TAS sees an upgrade to Slightly Positive due to a better fundamental star rating

The general evaluation of AKBANK TAS (TR), a company active in the Money Center Banks industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 3 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date June 16, 2020, the closing price was TRY 5.84 and its potential was estimated at TRY 6.79.

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the week...

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