Yapi Kredi Bank - Beats 3Q17 Estimates Due to Lower General Provisions
Yapi Kredi Bank (YKB) released 3Q17 financials on Friday, posting TRY841 mln standalone net income, down 6% Q-o-Q and up 4% y-o-y, yielding an 11.7% quarterly ROE. The reported bottom line beat our estimate of TRY754 mln and the consensus of TRY758 mln mainly on the back of lower than expected general provisioning expenses. The other main positives were a 5 bp Q-o-Q improvement in swap-adjusted NIM, solid control over costs (about flat y-o-y in 3Q17, up only 4% y-o-y in 9m17), a 170 bp increase in the NPL coverage ratio to 78.0% and a further improvement in the "Group 2 loans + Restructured loans" line. Among the negatives were a sharp increase in the lira LDR to 157% from 131% in 2Q17 and a higher net NPL formation rate than the peer average (102 bps for YKB, versus around 50 bps for peers). We expect a slightly positive market reaction to the results due to the substantial beat on the consensus net income estimate.Yapi Ve Kredi Bankasi is a financial services group. Co. serves its customers through its retail banking segment comprising of individual banking, Small and Medium Size Enterprises banking and card payment systems, corporate and commercial banking as well as private banking and wealth management segments. Co.'s operations are supported by domestic subsidiaries in asset management, brokerage, leasing and factoring as well as international banking subsidiaries in the Netherlands, Russia and Azerbaijan. As of Dec 31 2014, Co. had total assets of TL194.96 billion and total deposits of TL107.63 billion.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.