Akbank: 2017E targets – no surprises, a year of "muddling through"
Akbank’s 2017E targets did not come as a surprise. The bank is budgeting for a flat NIM, a measured increase in CoR, normalised growth in fees, and CPI +2-3% opex growth in adjusted terms. We believe the market impact of the targets should be neutral, as the budget appears to reflect a year of “muddling throughâ€, which should not surprise the market, in our view. That said, we believe the risks for the NIM and COR targets are to the downside given the current backdrop, and would rather err on the side of the caution this year. The bank foresees 10% reported net income growth for 2017E vs. the 6% Bloomberg consensus. We rate Akbank a BUY, with the bank trading at 6.6x P/E and 0.9x P/TBV for 2017E, on our estimates.Akbank 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.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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