Turkish banks: Valuations, results and the bugbear that is politics
Yapi Kredi reported results for Q1 on 3 May. Like Akbank, Garanti and TSKB before it, Yapi Kredi’s performance was better than expected. Net interest income and net fee and commission income were both stronger than a year ago. On capital – which has almost always been a focus at Yapi Kredi – the equity/assets ratio is back below 10%, but the recent AT1 issue added 113bps to the bank’s Tier 1 ratio, which was 12.1% at end-March. Please see Table 1, which shows key Q1 figures for four major Turkish banks. It is unlikely that the decision to re-run the vote would have come as a complete surprise to most people.