BEST BANK
Akbank
BEST BOND HOUSE
JPMorgan Chase
BEST LOAN HOUSE
ABN Amro
BEST EQUITY HOUSE
Garanti Securities
BEST M&A HOUSE
TSKB
Turkey’s once crisis-prone financial sector is probably more robust than ever. That is partly thanks to the restructuring and growth of the economy as a whole, and the growth in deposits and consumer financial products. Substantial foreign investment has also begun in the sector, including UniCredit and Koc Financial Group’s acquisition of Yapi Kredi Bank in May.
Akbank, the winner of the best bank in Turkey award, has been well positioned to take advantage of the economy’s excellent performance. With its strong capital position – its capital adequacy ratio was 33% as of the first quarter of 2005 – it has managed to increase its Turkish lira-denominated loan portfolio by 70%, its SME loan portfolio by 131%, and its credit card business by 120%.
These consumer and SME loans have offered better returns than government securities, with an average yield of over 30%, so the boom in consumer lending has the added advantage of decreasing the bank’s reliance on government securities for profit. Thanks to this growth, net income was up 32% in the first quarter of 2005, and return on equity was 22.7%.
JPMorgan Chase wins the best bond house award. It has done the most deals, including the only corporate bond of 2004 – the $175 million debut deal for Petrol Ofisi. It also did a $325 million secured bond offering for Garanti Bank, as well as a dollar issue for the sovereign. And it is a leader in the secondary market, where it has a 21% market share of trading.
The best loan house award goes to ABN Amro. It did the most loans in the market, including the first ever syndicated letter of guarantee facility for Dogus Otomotiv, and the first ever syndicated letter of credit facility for Vestel.
TSKB has established itself as the leading Turkish adviser on M&A and privatization deals. It has had a lot of success in winning mandates from state institutions, such as advising the Savings Depository Insurance Fund on the sale of the Uzan and Sabah media groups. It has also helped local private companies establish partnerships with leading foreign firms, such as leading Turkish auto leasing company Alfa Oto, which it worked with on its partnership with Société Générale.
Garanti Securities takes the best equity house award, having lead managed the two biggest IPOs of the past 12 months – the $173 million offering of Dogus Otomotiv, and the $200 million offering of Akmerkez REIT; the latter was the largest Turkish IPO since 2000.
