Growing pains
THE APRIL BATTLE for Finansbank waged between Citigroup and National Bank of Greece threw a spotlight on Turkey’s booming banking sector. National Bank of Greece trumped Citi’s offer by paying €2.3 billion for 46% of the Turkish bank, valuing it at about 3.6 times price to book, setting a new benchmark for Turkish bank acquisitions. Previous deals were done more cheaply: for example, Fortis’s acquisition of a 89% stake in Disbank, which was completed in July 2005, was priced at just 1.9 times price to book.
With deposits in Turkish banks expected to grow by 30% this year and loan books by 50%, it’s easy to see why even the world’s biggest banks are looking for a piece of the action.
Rumour mill
Talk of foreign interest in...
