In its 1Q11 financials, Bank Asya reported TRY 48mn net earnings, lagging behind both Erste and consensus estimate of TRY 69mn and TRY 73mn respectively; which can be attributable to lower than expected NII. 1Q11 net income marks 32% qoq and 19% yoy decline.(full story)
NIM dropped by 90bps with 155 qoq decline in the NII due to lower asset yields. In the quarter, Bank Asya's loan book only expanded by 3% qoq, lower than the sector average. Fee income came almostthe same with 4Q10. Overall, the results are disapponting with higher than margins compression, which led the RoE to drop to 9.8% from 14.9% in 4Q10.