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Rabia Rahimbayeva Group moderator Ambassador
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Halkbank Eyes the Balkans for Opportunities
Turkish state-owned lender Halkbank is eyeing the Balkans after finding Syria too expensive to invest in. “Halkbank now seeks an opportunity in the Balkans for further growth overseas,” said Hüseyin Aydın, the general manager of Halkbank, in a press conference on Friday.

Halkbank, which targets a 25 percent increase in credits, is focusing on the Balkans for growth abroad. Aydın said a key reason to invest in the Balkans was the low penetration rate in the region. “Halkbank has the capital, integration potential and manpower to grow in the Balkans,” he said.

In accordance with its regional growth plans, the lender looked into the Syrian and Balkans market, finally deciding to focus in the Balkans for new investments.

“By distributing more credits, we aim to overcome the shrinkage of net interest margins in the sector more easily,” Aydın said. Turkish banks boosted profits last year due to rising net interest margins, but as overall market conditions improve, this margin is expected to shrink gradually over the following period, as the Central Bank waits for a convenient moment to increase interest rates.

“Damascus was too expensive to invest in,” said Aydın. “We are in ongoing negotiations [for the Balkans] and we expect them to reach a result before the year ends.”

Halkbank on Friday signed a one-year syndicated loan worth $580 million with 27 banks from 12 countries. The loan is “highly important” for the lender and it shows Halkbank’s crucial place in the syndicated loan market, according to Aydın.

Noting that the banks are quite eager to give credits and race with each other in order to finance the real economy, Aydın estimated that Halkbank would grow around 25 percent this year. “We are expecting the volume of credit to be slightly higher than expected,” he said. “We will open up 60 branches in Turkey, dominantly in Istanbul.”

Responding to a question over Akbank and İşbank’s plans to issue bonds, Aydın said Halkbank does not have such a plan. “But we would like to use all the instruments that are used in the sector as much as we could,” he added.

Regarding a possible secondary public offering for Halkbank, Aydın said, “The relevant body for [public offerings] is the Privatization Administration. So far, there has been no decision on such a road map. But, Halkbank is ready for it.”

Source: DHA
- 18 Jul 2010, 11:30 pm
Rabia Rahimbayeva wrote: > Turkish state-owned lender Halkbank is eyeing the Balkans after > finding Syria too expensive to invest in. “Halkbank now seeks an > opportunity in the Balkans for further growth overseas,” said Hüseyin > Aydın, the general manager of Halkbank, in a press conference on > Friday. > > Halkbank, which targets a 25 percent increase in credits, is focusing > on the Balkans for growth abroad. Aydın said a key reason to invest > in the Balkans was the low penetration rate in the region. “Halkbank > has the capital, integration potential and manpower to grow in the > Balkans,” he said. > > In accordance with its regional growth plans, the lender looked into > the Syrian and Balkans market, finally deciding to focus in the > Balkans for new investments. > > “By distributing more credits, we aim to overcome the shrinkage of > net interest margins in the sector more easily,” Aydın said. Turkish > banks boosted profits last year due to rising net interest margins, > but as overall market conditions improve, this margin is expected to > shrink gradually over the following period, as the Central Bank waits > for a convenient moment to increase interest rates. > > “Damascus was too expensive to invest in,” said Aydın. “We are in > ongoing negotiations [for the Balkans] and we expect them to reach a > result before the year ends.” > > Halkbank on Friday signed a one-year syndicated loan worth $580 > million with 27 banks from 12 countries. The loan is “highly > important” for the lender and it shows Halkbank’s crucial place in > the syndicated loan market, according to Aydın. > > Noting that the banks are quite eager to give credits and race with > each other in order to finance the real economy, Aydın estimated that > Halkbank would grow around 25 percent this year. “We are expecting > the volume of credit to be slightly higher than expected,” he said. > “We will open up 60 branches in Turkey, dominantly in Istanbul.” > > Responding to a question over Akbank and İşbank’s plans to issue > bonds, Aydın said Halkbank does not have such a plan. “But we would > like to use all the instruments that are used in the sector as much > as we could,” he added. > > Regarding a possible secondary public offering for Halkbank, Aydın > said, “The relevant body for [public offerings] is the Privatization > Administration. So far, there has been no decision on such a road > map. But, Halkbank is ready for it.” > > Source: DHA
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Turkish Business Club

Halkbank Eyes the Balkans for Opportunities