Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Al Baraka has announced a 2Q19 net income of TRY23m (-17% q-q, -77% y-y), below our estimate (TRY26m) and RT consensus’s (TRY25m). Weak top-line on contracted spreads are to blame for the quarterly drop in earnings. Core revenues (NII + fees) declined 17% q-q as core spread narrowed 50bp q-q on high deposit costs, despite strong fees. TRY loan-to-deposit spread contracted by 144bp q-q and FX spread by 12bp. Albaraka recorded strong fee growth at 71% y-y vs below-inflation opex growth of 12% y-y....
Istanbul elections now just days away: Near-term headline risk in Turkey remains elevated. The re-run of Istanbul’s mayoral elections is scheduled to take place on 23 June. In addition, US authorities have stated that sanctions will be imposed on Turkey if the NATO country takes delivery of the S-400 air and missile defence equipment from Russia, possibly in July. As we stated in a previous note, it is not clear how far-reaching such sanctions might be. However, even if these sanctions are lim...
We focus on the smaller lenders in this commentary. There are summaries for Alternatifbank, Albaraka Turk, Kuveyt Turk, Odeabank and Sekerbank below, with further details within the report. Also see Table 1 for key figures for these lenders.
Albaraka has announced 4Q18 net loss of TRY238m (3Q18: TRY176m, 4Q17: TRY96m) vs our TRY279m net loss expectation. Core revenue clocked a 44% q-q decline on core spread contraction (2.3ppt q-q), despite strong fee generation (+78% y-y), the second best growth after Vakifbank. TRY spread widened 1.6ppt on higher loan yields, while FX spread contracted 6ppt q-q. Opex increased 89% y-y, the highest increase among our coverage banks. NPL ratio rose to 7.2% (3Q: 6.5%) with sector low coverage of 47% ...
We forecast net earnings to grow 6%/15% in 2019/2020 for our coverage universe. Lower CPI linker yields in 2019 will likely lead to an average 25bp y-y decline in the swap-adjusted NIM. We expect a 5.2% NPL rate for our coverage in 2019 and the CoR to slide from 2018 highs as we do not expect any material IFRS 9 parameter change due to a large currency shock. We foresee loans growing an average of 12%/16% in 2019/2020 for our coverage. The Credit Guarantee Fund-backed loans will have a 100% ris...
Albaraka announced a 3Q18 net income of TRY176m (+79% q-q, 3Q17: TRY10m), above RT consensus (TRY135m) and our estimate (TRY145m). Core revenues showed 38% q-q growth on core spread widening (124bp) and higher securities yields. FX spreads inflated 2.4pp q-q on currency impact, which was behind the core spread improvement. Fee and opex went up in tandem with each other at 22% y-y. The trading line, on the other hand, supported earnings thanks to securities sell-offs and FX gains on tier-1 sub-de...
Albaraka announced 2Q18 net income of TRY98m (+1% q-q, +3% y-y), above the RT consensus (TRY76m) and our estimate (TRY73m). The deviation came mainly from better-than-expected net provisions. Core revenues showed 1% q-q growth on slight core spread widening (7bp) despite almost nil JV contributions. Fee growth was strong at 25% y-y, while opex went up 17% y-y. The trading line, on the other hand, supported earnings thanks to securities sell-offs and FX gains on Tier-I sub-debt. NPL ratio rose to...
Albaraka announced a 1Q18 net income of TRY98m (+2% q-q, +173% y-y), above both the RT consensus (TRY59m) and our estimate (TRY72m). The deviation came mainly from lower-than-expected net provisions on strong provisioning reversals. Core revenues declined 28% q-q mainly on almost nil JV contributions in 1Q, while fee growth was low at 2% q-q. NIM dropped 1.7pp q-q to 3.1% on lack of JV revenues and contracted core spread. The trading line was supportive thanks to sale of securities, while opex s...
ALBARAKA TURK (TR), a company active in the Money Center Banks industry, now shows a lower overall rating. The independent financial analyst theScreener confirms the fundamental rating of 2 out of 4 stars. However, the market behaviour deterioration triggered a risk requalification, which can be thus described as moderately risky. theScreener believes that increased risk justifies the general evaluation downgrade to Neutral. As of the analysis date October 24, 2017, the closing price was TRY 1.2...
> Market comment > Core inflation continues to rise in September > Turkish banks: Private banks outperform operationally in August > Garanti Bank sells 4.3% of its NPL portfolio > Albaraka Turk sells 16.1% of its NPL portfolio > LV registrations increase 6% y-o-y in September > Anadolu Cam to build new 150 kt glass furnace at Eskisehir plant > Emlak REIT tenders first phase of Kucukcekmece plot
Albaraka Turk reported 2Q17 standalone financials on Friday. It posted TRY96 mln of net income (up 167% Q-o-Q and 46% y-o-y), for a 16.4% quarterly ROE. First-half net income came to TRY131 mln, remaining almost flat over a year ago. The quarterly figure beat the TRY73 mln market consensus estimate and our estimate of TRY68 mln. But the beat on our estimate was of poor quality, as it was based on a TRY11 mln provision reversal and TRY25 mln of trading gains. Moreover, despite large share-income ...
> Market comment > Isbank 2Q17 results: Satisfactory but slightly missed estimates > Albaraka Turk 2Q17 results: Net-income beat of poor quality > Import duty for rebar imports reduced from 30% to 10% > Grain Board allowed to import wheat without duties until mid-2018 > Competition Board initiates investigation into mobile operators
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