BGC Partners: AKBANK 2019 BUDGET: Guiding for 12% ROE
AKBANK 2019 BUDGET.. In the 2019 budget, we see minor differences to our forecasts, with the only meaningful deviation being a more aggressive, above 20% fee growth target of the bank. Banks guidance; loan growth- 10% vs our 9%, NIM 3.5% in line with our est, NPL below 6% vs our 6.9%. As a result, the bank targets ≥1.4% ROA and ≥12% ROE in 2019, in line with our respective estimates of 1.5% and 11.9%. In our estimates, these suggest a minor 2% EPS growth in 2019, following a 3% contraction in 2018. We observe that our 2018 and 2019 earnings estimates are some 5% and 8% below Bloomberg consensus estimates, respectively. Therefore, we would expect a neutral to slightly negative market reaction to the budget announcement. We currently rate Akbank a HOLD with our 12M TP of TL6.26/share offering an 8% total return potential, including a 1% dividend yieldAkbank 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.
BGC has been one of the major market players in Turkish OTC debt, FX and swaps markets since 1998.
We started offering corporate finance and investment banking services to our clients in 2013. We offer a complete range of financial services to help our clients achieve their goals. Our main areas of activity within investment banking are as follows:
- Mergers & Acquisitions
- Equity Capital Markets
- Debt Finance & Advisory
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