Akbank - Core Operating Profitability Intact
Akbank posted 3Q17 financials yesterday, reporting TRY1,499 mln standalone net income, up 20% y-o-y but about flat Q-o-Q, yielding a 16.1% quarterly ROE. The bottom line was slightly above consensus, mainly due to the change to IAS-27 accounting, which resulted in a TRY115 mln equity pickup for the standalone financials (but not the consolidated financials). The core operating performance was broadly in line with our estimates. The most striking positive surprise was the improved net non-interest income in 3Q17 (with 13% y-o-y fee growth in 9m17 and 7% y-o-y cost growth). On the negative side, a depressed lira loan/deposit interest rate spread (down 80 bps Q-o-Q) resulted in a 20 bp Q-o-Q drop in swap-adjusted NIM. The results should be neutral for the share price, in our view.
Sberbank CIB Investment Research is a research firm offering equity, fixed income, economics, and strategy research. It covers analysis on all aspects of Russia’s capital markets, issues and industries. The firm analyzes trends in Russia and combines local knowledge with a global perspective. It processes macroeconomic data, market and company-specific news, stock quotes and other information for providing research reports. The firm provides details and latest prices on the most traded names and most traded paper on all segments Russian market. In strategy research, it provides thematic research, tips and descriptions of the methodology used to evaluate companies.
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