VAKIFBANK 2Q18 - IN LINE
TL1,074m NI in 2Q18 only 3% above cons for ROAE of 16.8%. Results were quite robust as expected, with in line with peers adjusted NII growth, higher fee & cost growth momentum, and lower net NPL formation. Net NPL formation rate was realised at 111bps in 2Q18, which seems to be less than half of what the private banks has suffered. Fee growth remained exceptionally strong at 64% y/y in 2Q18, which should gradually normalize as the base increases. Driven by a higher cost of equity assumption and lower div'd potential given the gradual erosion in capital ratios, TP cut to TL5.44/shr, from TL6.49/shr. We think that VAKBN’s multiples of 0.37x 2018E P/B and 2.8x 2018E P/E are fairly attractive, but we maintain our HOLD recommendation.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.
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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