Turkiye Vakiflar Bankasi (D)

Turkiye Vakiflar Bankasi (Vakifbank) is a banking and financial services company based in Turkey. Co. offers products and services that cover corporate, commercial, investment and small-scale enterprise banking as well as the retail and private banking sectors. Co. also provides financial leasing, portfolio management, real estate, insurance and factoring services through its financial participations. Co.'s deposit products include time and demand deposits, as well as loans comprise spot loans, foreign currency indexed loans, consumer loans, automobile and housing loans, working capital loans, gold loans, foreign currency loans, eximbank loans, and pre-export loans.
  • TickerVAKBN
  • ISINTREVKFB00019
  • ExchangeIstanbul Stock Exchange
  • SectorBanks
  • CountryTurkey
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...

Turkiye Vakiflar Bankasi T.A.O.: Update to credit analysis

Our credit view of VakifBank, highlighting increasing NPLs in a very weak environment, partly offset by adequate profitability and liquidity and very high government support.

Research Team

The Rear-View Mirror – EME markets: Rebound continues, all indices in the black on lower volumes

EME Equity Market – May 2020 Market performance – the rebound that started in April continued across the board, with the Romanian BET Index gaining the most in EUR terms (+8.9% mom). The MSCI EM Europe Index gained 6% in EUR terms and 7.5% in local currency; while the Romania BET Index grew 8.9% in EUR terms and 9.1% in RON terms, the best performer for the month. The MOEX Index added 7.5%, while the Polish WIG20 Index was up 6.6%. The Turkish benchmark, the ISE30 Index, added 4.5%, and the Greek ASE Index gained 3.9%, while the Hungarian BUX recorded an increase of 3.7%. The weakest performer...

Tolu Alamutu

Vakifbank: Q1 results highlights

Bank-only ROE exceeded 20%: Like Isbank, Vakifbank (VAKBN) also published Q1 results on May 8. We have Hold recommendations on Vakifbank’s USD-denominated senior and subordinated bonds. This commentary is largely based on bank-only figures. Net income of over TRY1.7bn more than doubled yoy and was up 34% qoq. Net income also beat consensus expectations. The annualised ROE was almost 21%, much higher than at Vakifbank’s major peers. Very strong net interest income drove the improvement in the ...

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.

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...

Research Team

The Rear-View Mirror – EME markets: Rebound continues, all indices in the black on lower volumes

EME Equity Market – May 2020 Market performance – the rebound that started in April continued across the board, with the Romanian BET Index gaining the most in EUR terms (+8.9% mom). The MSCI EM Europe Index gained 6% in EUR terms and 7.5% in local currency; while the Romania BET Index grew 8.9% in EUR terms and 9.1% in RON terms, the best performer for the month. The MOEX Index added 7.5%, while the Polish WIG20 Index was up 6.6%. The Turkish benchmark, the ISE30 Index, added 4.5%, and the Greek ASE Index gained 3.9%, while the Hungarian BUX recorded an increase of 3.7%. The weakest performer...

Turkey - Capital Injection to the State Banks

This analysis by GLOBAL Securities is presented to you by Raiffeisen Centrobank AG. Raiffeisen Centrobank AG acts solely as a distributor of this analysis and has not introduced any material changes to the content of this analysis or any recommendation included herein. TURKEY – Capital Injection to the State Banks A potential capital increase for Turkish state-owned banks was in banking sector’s agenda for a quite long time. According to the latest statements shared by the banks, Turkish Sovereign Wealth Fund (TVF) will inject TRY7.bn for each bank. We believe that these capital increas...

Research Team

The Rear-View Mirror – EME markets: All EME markets down on February coronavirus fears

EME Equity Market – February 2020 Market performance – Hungarian BUX lost the least, while the Greek ASE contracted the most in February, in EUR terms. While the MSCI Emerging Markets Europe Index lost 14% mom in EUR terms in February, the Hungarian BUX was down 7% mom in EUR terms, followed by the Romanian BET index (-9.7% mom) and the Czech PX index (also -9.8% mom). The rest of the regional indices contracted by double digits, with the largest drop in the Greek ASE index (-21% mom), followed by the Russian MOEX (-13% mom), the Turkish ISE30 (-15% mom) and the Polish WIG20 (-15% mom).

Ovunc Gursoy

Vakifbank (VAKBN TI) - Spreads improve; ROE up: Maintain Hold

Vakifbank posted 4Q19 net income of TRY1,280m ( up 154% q-q and 23% y-y), above both our estimate (TRY954m) and RT consensus (TRY1,026m). Lower-than-expected net provisions and trading losses are to blame for the deviation. Core revenues were up 28% q-q, aided by wider core spread (up 1.8ppt q-q vs BNPPe: 2.5ppt), lower repo costs and solid fee growth (42% y-y vs BNPPe: 32%). Despite lower October CPI, linker revenues increased in 4Q owing to higher real rate and new linker purchases (TRY2bn q-q). Trading losses on swap costs continued to weigh on earnings. Opex (down 8% y-y vs top-tier peers ...

Turkiye Vakiflar Bankasi T.A.O.: Update to credit analysis

Our credit view of VakifBank, highlighting increasing NPLs in a very weak environment, partly offset by adequate profitability and liquidity and very high government support.

Tolu Alamutu

Vakifbank: Q1 results highlights

Bank-only ROE exceeded 20%: Like Isbank, Vakifbank (VAKBN) also published Q1 results on May 8. We have Hold recommendations on Vakifbank’s USD-denominated senior and subordinated bonds. This commentary is largely based on bank-only figures. Net income of over TRY1.7bn more than doubled yoy and was up 34% qoq. Net income also beat consensus expectations. The annualised ROE was almost 21%, much higher than at Vakifbank’s major peers. Very strong net interest income drove the improvement in the ...

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.

Moody's announces completion of a periodic review of ratings of Turkiye Vakiflar Bankasi T.A.O.

Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Turkiye Vakiflar Bankasi T.A.O. Global Credit Research- 31 Mar 2020. London, 31 March 2020-- Moody's Investors Service has completed a periodic review of the ratings of Turkiye Vakiflar Bankasi T.A.O. and other ratings that are associated with the same analytical unit.

Turkiye Vakiflar Bankasi T.A.O.: Update to credit analysis

Our credit view of VakifBank, highlighting increasing NPLs, modest capital and high refinancing risk in a weak environment, offset by adequate profitability and very high government support.

Research Team

WOOD Daily: EAT PW; DNP PW; ROSN LI; MOEX RX; CE4 Macro; VAKBN TI; LWB PW; PL Utilities; GWI LN; MTELEKOM HB; TELEC CP; KOFOL CP; SFG RO

HEADLINES: • AmRest: 1Q20 poor, as expected, covenants breach, followed by very short waiver NEGATIVE • Dino: 1Q20 beat on 20% lfl POSITIVE • Rosneft: 1Q20 - strong FCF and net debt reduction POSITIVE • Moscow Exchange: 5% beat on adjusted EBITDA, mainly on lower opex POSITIVE • CE4 macro: relative calm before the storm • Vakifbank: TWF to acquire 36% of the bank for TRY 4.98/share • Bogdanka: suspends 2019 dividend • Polish utilities: more comments on mining and power consolidation POSITIVE • Globalworth: S&P and Fitch confirm rating POSITIVE • Magyar Telekom: key takeaways from interview...

Research Team

WOOD Daily: SBER RX; PEO PW; CEZ CP; VAKBN TI; MAVI TI; SPI AV; Turkish Automotive; ELPE GA; KGH PW; SNN RO

HEADLINES: • Sberbank: less compelling at peak P/E and 1x book (downgraded to HOLD) • Bank Pekao: results affected by COVID-19 and restructuring reserves, but solid otherwise • CEZ: 1Q20 beats trading gains, but FY20E guidance cut by CZK 1-2bn on COVID-19 NEGATIVE • Vakifbank: Turkey to boost state banks' capital by USD 3bn over pandemic NEGATIVE • Mavi: re-opening schedule for Turkey POSITIVE • S Immo: 1Q20 preliminaries - 5-8% yoy growth in underlying earnings, revaluation loss expected NEUTRAL • Turkish automotive: LV exports down by 90% in April - no surprise NEUTRAL • Hellenic Petroleum...

Research Team

WOOD Daily: MOEX RX; VAKBN TI; ISCTR TI; MIL PW; ENG PW; DNP PW; PLZL LI; JSW PW; CPS PW; CAR PW; CEZ CP

HEADLINES: • Moscow Exchange: profit (and dividend) taking after the rally (downgraded to HOLD) • Vakifbank: rights issue a real possibility and reporting may become convoluted in next two quarters • Isbank: 1Q20 - nothing to write home about, similar trends vs. peers NEUTRAL • Bank Millennium: 1Q20 results - misses expectations on provisioning charges spike NEGATIVE • Energa: additional impairment losses and RES settlement NEUTRAL • Dino: CEO resigns NEGATIVE • Polyus: reports COVID-19 infections at Olimpiada mine NEGATIVE • JSW: coronavirus at Pniowek mine NEGATIVE • Cyfrowy Polsat: launch...

Research Team

WOOD Daily: ALRS RM; VAKBN TI; YNDX US; PGN PW; CZ Macro; GR Macro; HU Macro; PL Macro; RO Macro; CEZ CP; SNP RO; PL Utilities; MOL HB; MTSS RX; WPL PW

HEADLINES: • Alrosa: diamonds are an investor's best friend (BUY - initiation of coverage) • Vakifbank: 4Q19 results - good quarter, but the best is over • Yandex: 4Q19 results - continued strong performance from core business • PGNiG: 4Q19 estimates, strong EBITDA and adjusted net income • Czech Republic macro: GDP soft, but transitory • Czech Republic macro: inflation update • Greece macro: inflation update • Hungary macro: strong GDP, high inflation, NBH on alert • Poland macro: 4Q19 GDP confirmed weak • Poland macro: inflation update • Romania macro: rebounds in 4Q, but watch o...

Research Team

Focus: downgrading Polyus to HOLD, with a higher USD 58.3/GDR PT; Vakifbank’s 3Q19 results review – 9M19 net income down 50% yoy; BIM’s 3Q19 results – below expectations; Aygaz’s 3Q19 results review; NIS’ 3Q19 results; Romanian politics

HEADLINES: • Polyus: low grade ore stockpiling to lower FCF (downgraded to HOLD) • Vakifbank: 3Q19 results review - 9M19 net income down 50% yoy • BIM: 3Q19 results - below expectations NEGATIVE • Aygaz: 3Q19 results review NEUTRAL • NIS: 3Q19 results NEUTRAL • Romanian politics: Presidential election results (first round) • Bucharest Stock Exchange: 3Q19 results review - strong NI on good cost control and financial income POSITIVE • AmRest: key takeaways from the 3Q conference call NEUTRAL • Dino: key takeaways from the 3Q conference call - cautious guidance on margin evolution NEGATIVE • ...

A double requalification allows TKI.VAKIFLAR BANKASI TAO to improve to Slightly Positive

TKI.VAKIFLAR BANKASI TAO (TR), a company active in the Money Center Banks industry, has received a double requalification by the independent financial analyst theScreener. Its fundamental valuation is now 2 out of 4 stars while its market behaviour can be considered as defensive. theScreener believes that the gain of a star(s) and an improvement in the market risk perception allows upgrading the general evaluation to Slightly Positive. As of the analysis date May 15, 2020, the closing price was TRY 4.59 and its potential was estimated at TRY 5.75.

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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