BGC Partners - HALKB 4Q19 Update: Strong NIM recovery from a low base
Halkbank reported TL797mn unconsolidated net income in 4Q19, broadly in line with the TL779mn consensus and slightly higher than TL715mn BGC estimates. The beat vs. our estimates stemmed from a lower net CoR, as a result of both lower-than-expected net NPL inflows and coverage. Remaining balance sheet and P&L items were in line with our expectations. In summary, Halkbank let go off some market share in 4Q while its NIM expanded strongly despite losses from CPI-linkers. Net NPL formation remained lower than peer-average while fees continued to grow robustly, and cost growth was contained. All in all, ROE rose to double-digits in 4Q19, after five quarters of c.4% ROE, bringing the FY19 ROE to just below 6%.Turkiye Halk Bankasi (Halkbank) is a banking and financial services company based in Turkey. Co. offers corporate and commercial banking products and services to a range of customers, from individuals to large corporations. Co.'s operations include: consumer and retail banking, consumer loans, credit and debit cards, deposit and overdraft accounts, payroll services, corporate and commercial banking, budget loans, credit line facilities, cash management, investment banking, brokerage, factoring, leasing and insurance services, and tradesmen/SME banking. As of Dec 31 2011, Co. operates 771 branches and had total assets of TL92,160,657,000.
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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