Turkey’s banks put M&A centre stage

The enormous growth potential of the Turkish banking sector is attracting a lot of attention but the mortgage business, one of the industry’s biggest attractions, is suffering from profit shortfalls because of a lack of well-matched funding opportunities. Covered bond issuance and the imminent reawakening of the Turkish lira corporate bond market could provide a much-needed boost. Peter Koh reports.

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

Turkey’s banks put M&A centre stage

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Turkey’s banks put M&A centre stage

Thanks for your interest in Euromoney!To unlock this article:

How banks can make cybersecurity a revenue generator

Awards for Excellence Middle East and Islamic Finance winners celebrate in Dubai

Regulators should be upfront with taxpayers – and admit all deposits are guaranteed

The FX Files: Is it the end of the line for single-dealer platforms?

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