The Spanish giant BBVA, the second largest Iberian bank, in top ten of European credit institutions, remains in Turkey while UniCredit leaves the country entirely. The title of the group led by Andrea Orcel in Piazza Affari (gains 1.1% to 11.6 euros) after the board of directors of the institute decided late at night to sell the entire stake in the Turkish institute Yapi Kredi, on which the partner Koc confirmed its intention to exercise the right of pre-emption.
There Turkey is a country that is experiencing a serious currency and economic crisis and at the end of November 2019 the predecessor of Orcel, Jean Pierre Mustier, after leaving Poland (Bank Pekao), had decided to dilute its presence also in Ankara exiting the joint venture (Koc Finansal Hizmetler, Kfs) that controls Yapi, a choice that was part of the structure simplification group strategy and of optimization of capital allocation, also to strengthen iratios assets of UniCredit. Gae Aulenti square will therefore sell 18% of Yapi a Koc (the largest industrial conglomerate in Turkey headed by the Koc family, the richest in the country) for about 300 million (completion of the sale expected in the first quarter of 2022), while the remainder 2% will end up on the market.
The operation, underlined the institute led by Orcel, “will have a moderate positive impact on the overall Cet 1 ratio consolidated of UniCredit “, referred to as”low-mid single digit “, while for the year 2021 “will generate a negative impact on the consolidated income statement of approximately 1.6 billion, deriving mainly from the exchange rate fluctuation reserve relating to the investment in Yapi Kredi, which does not generate any impact on the Cet 1 as it is already currently taken over “.
Equity Sim pointed out that the share in Yapi was “already classified as a non-strategic investment” and that the transaction “is not expected to impact the net profit and consequently the dividend of the year” while “it will have a moderate positive impact on Cet1 due to the reduction of RWA“.” In view of the new business plan which will be presented on December 9, the transaction is consistent with the strategy of simplifying the group structure and optimizing the allocation of capital“, concluded Equita that UniCredit has rating buy with target price to 13.6 euros.
On the other hand, it is different on the country the strategy of the BBVA present in Turkey with the market leader subsidiary Garanti Bank. In an interview with Sole 24 Ore, the CEO of the Spanish giant Onur Genc explained that in Ankara the BBVA is a “long-term investor. Clearly, this is a country that faces major challenges in the short term, but in the long term fundamental characteristics of the country are exactly the same. Turkey is a large and dynamic market, with a young and growing population; strategically a very important production base for the European Union; with good long-term prospects and still shows room for banking growth. Guarantors Bbva it is the best bank in Turkey and has demonstrated its resilience during the years of crisis, a time when the best banks manage to emerge even stronger ”.
Failure of the Mps operation (the share capital increase of 6.3 billion requested by Piazza Gae Aulenti to the Treasury to light up the green light for the Sienese acquisition, a figure not accepted by the Mef), the eyes of the market are on UniCredit’s industrial plan which will be presented to the market on December 9th. “Our goal is to grow, generate sustainable average returns above the cost of capital and support our customers and the communities in which we operate, ”he explained yesterday in Banks Commission on the topic strategy Orcel, adding that he is “focused on unleashing the intrinsic value of the group”. “We are convinced – he concluded – that we have the means and skills to be able to achieve these objectives, for the benefit of all of ours stakeholders and, more generally, for the Italian economy as a whole “.
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