ratings is ‘Stable’.
ATKB is the largest of Turkey’s four participation banks, which operate on the basis of interest-free principles. The Bank was founded in 1996 as Asya Finans Kurumu A.Ş., as what was then known as a Special Finance House, and adopted its current style following the passage of the Banking Law of 2005.
Ownership is widely distributed among several companies and individuals, with the largest individual holding being a 10.6% interest in the Bank. Some seventeen shareholders own 61% of the Bank’s shares, with the remainder even more widely held.
The ratings are underpinned by the Bank’s base of retail customer deposits, high level of gross income emanating from a strong profit-share differential, and resultant operating profitability, which is consistently sound. Although ROAA is diminished by robust loan-loss provisioning, it remains one of the highest figures of all banks rated by CI. NPLs have grown sharply recently, but AKB continues to maintain high coverage by loan-loss reserves and has been very successful in collections of NPLs.
Ratings are constrained by the Bank’s liquidity, which is tight compared to most Turkish banks, although it improved in 2009 and is generally better than that of the other Turkish participation banks. A high cost structure also constrains the ratings.
Banking activities are conducted exclusively within Turkey. AKB ranks fourteenth by total assets of Turkey’s 49 banks, with total assets of TRY11.6 billion (USD equivalent 7.8 billion).
CONTACT
Primary Analyst
Tom Kenzik
Senior Credit Analyst
Tel: 00357 2534 2300
Email: tom.kenzik@ciratings.com
Secondary Analyst
Darren Stubing
Senior Adviser
Email: darren.stubing@ciratings.com
Rating Committee Chairman
Tom Kenzik
Senior Credit Analyst
The ratings have been initiated by Capital Intelligence. However, the issuer participated in the rating process. The information sources used to prepare the credit ratings are the rated entity and public information. Capital Intelligence had access to the accounts and other relevant internal documents of the issuer for the purpose of the rating and considers the quality of information available on the issuer to be satisfactory for the purposes of assigning and maintaining credit ratings. Capital Intelligence does not audit or independently verify information received during the rating process.
The rating has been disclosed to the rated entity and released with no amendment following that disclosure. This was the first time that the entity had been rated by Capital Intelligence.
The principal methodology used in determining the ratings is ‘Bank Rating Methodology’. The methodology and the meaning of each rating category and definition of default can be found at www.ciratings.com
Source : http://www.ciratings.com/ - Press Release Dec 15, 2010
