According to the BRSA (banking watchdog), Turkish banks reported TRY 1,530mn net profit in February 2011 marking a flattish performance both over the previous month and compared to a year ago. The monthly RoE came in at 13.7%, broadly in line with the previous month but well below the last one year's average figures. (full story)
The cumulative net earnings of the banking sector stood at TRY 3,097mn marking a 13.5% yoy drop over the same period of the last year. The 12-m trailing RoE came in at 17.3%, which has been continuously diminishing over the last one year.
The CAR was read at 18.1% as of February 2011 (down by around compared to 2010YE and 200bp down y/y).
Main highlights:
- Lira loan/deposit spread narrowed further to 4.2% / There is further room to go down in the short term but we may see a recovery in 2H11
- FX loan/deposit spread shrank by 50bp mom to 1.9% in February / However we expect to see a recovery in March thanks to the stronger Lira.
- Monthly NIM contracted by 70bp m/m to 3.4%, which we think to be a medium term trend level.
- 1Q11 NIM contraction may stand at around 40bp?45bp over the previous quarter. Further contraction is likely in 2Q11 due to the liquidity withdrawal thanks to the RRR hikes
- 1Q11 net earnings of the Turkish banking sector may contract by slightly over 20% yoy . However we expect a smoothening in earnings performance during the rest of the year, especially in 2H11.
- Earnings contraction in public banks is much more tolerable compared to the sector average. Therefore the reported figures may have positive impact on the share prices of Halkbank and Vakifbank.
-Participation banks enjoyed 4.5% y/y earnings growth in the first two months of the year. So Bank Asya and Albaraka Turk's share prices are likely to respond positively to the announced BRSA figures.
Source : bne
Source : http://www.balkans.com/open-news.php?uniquenumber=100631 - April 7, 2011
