Log in
Log in
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
Sign up
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
  1. Homepage
  2. Equities
  3. Turkey
  4. BORSA ISTANBUL
  5. Turkiye Garanti Bankasi A.S.
  6. News
  7. Summary
    GARAN   TRAGARAN91N1

TURKIYE GARANTI BANKASI A.S.

(GARAN)
  Report
End-of-day quote BORSA ISTANBUL  -  2022-09-28
18.80 TRY   -2.34%
09/14Turkey's bank stocks tumble 10% after futures-driven rally
RE
08/18Turkiye Garanti Bankasi : Announcement regarding the Inside Information
PU
07/29Turkiye Garanti Bankasi : 30 June 2022 Consolidated Financials and Footnotes
PU
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisionsFunds 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

BBVA says lira slide cuts price of Garanti deal by around 400 mln euros

11/29/2021 | 06:02am EDT
Spanish bank BBVA's Chief Executive Officer Onur Genc speaks during the annual results presentation at the company's headquarters in Madrid

MADRID, Nov 29 (Reuters) - The chief executive officer of Spain's BBVA said on Monday that the weaker Turkish lira has reduced the price of its deal to buy 50.15% of Turkish lender Garanti by more than 400 million euros at current exchange rates.

BBVA, which already owns part of Garanti, recently offered to buy the remaining stake in the lender in a deal that at the time was worth up to 2.25 billion euros ($2.54 billion).

On Monday, CEO Onur Genc said that the deal would now cost around 1.8 billion euros and capital consumption would be around 1.1 billion euros, down from the 1.4 billion euros initially estimated, as the deal had been structured in liras.

"The currency devaluation actually helps us, so we are going to buy 50% of the bank if we can for 1.8 billion euros in cash after 10 days (of a slide in the Turkish lira)," Genc said.

The deal, which is expected to close in the first quarter of 2022, was announced on November 19 and established a maximum price of 25.697 billion Turkish lira ($2.03 billion) or 12.20 lira per share, should all Garanti BBVA shareholders sell their shares.

"That entry price has improved, and has been improving every single day," Genc said.

Capital consumption is lower than the price of the acquisition as the bank already consolidates all of Garanti's risk-weighted assets but not all of its equity.

Still, Genc said he was aware of the short-term risks and macroeconomic uncertainty in Turkey.

On Monday, the Turkish lira slid as much as 4.6% against the dollar, nearing record lows touched last week after President Recep Tayyip Erdogan defended his low-rates policy despite widespread criticism.

Though analysts mostly agree the deal makes senses from a financial point of view, many highlight macroeconomic risks and were expecting BBVA to increase its presence in Spain to counter-balance its exposure to emerging markets.

Asked about resuming merger talks with Spanish lender Sabadell, Genc said that Spain was obviously BBVA's "home market" where the bank wanted to grow organically.

"There is nothing new to add," he said, regarding Sabadell, but reiterated the bank, as in other jurisdictions, would analyze opportunities if they added shareholder value.

($1 = 0.8861 euros) ($1 = 12.6679 liras) (Reporting by Jesús Aguado and Emma Pinedo; Editing by Kirsten Donovan)


© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
BANCO DE SABADELL, S.A. -2.30% 0.6894 Delayed Quote.19.23%
BBVA -1.96% 4.5525 Delayed Quote.-11.55%
CANADIAN DOLLAR / US DOLLAR (CAD/USD) -0.40% 0.7303 Delayed Quote.-7.88%
EURO / TURKISH LIRA (EUR/TRY) 0.88% 18.2052 Delayed Quote.16.55%
INDIAN RUPEE / US DOLLAR (INR/USD) -0.07% 0.012274 Delayed Quote.-8.86%
NEW ZEALAND DOLLAR / US DOLLAR (NZD/USD) 0.06% 0.57234 Delayed Quote.-17.64%
TURKIYE GARANTI BANKASI A.S. -2.34% 18.8 End-of-day quote.66.81%
US DOLLAR / TURKISH LIRA (USD/TRY) -0.06% 18.4933 Delayed Quote.38.50%
All news about TURKIYE GARANTI BANKASI A.S.
09/14Turkey's bank stocks tumble 10% after futures-driven rally
RE
08/18Turkiye Garanti Bankasi : Announcement regarding the Inside Information
PU
07/29Turkiye Garanti Bankasi : 30 June 2022 Consolidated Financials and Footnotes
PU
07/29Turkiye Garanti Bankasi : Garanti BBVA 30 June 2022 Unconsolidated Financials and Footnote..
PU
07/29Turkiye Garanti Bankasi : Announcement regarding Fitch Ratings
PU
07/29BBVA Still Expects Low Contribution From Turkish Unit In 2022 Due To Uncertainty
RE
07/29BBVA's Q2 net profit more than doubles compared to same period a year ago
RE
07/28Transcript : Turkiye Garanti Bankasi A.S., Q2 2022 Earnings Call, Jul 28, 202..
CI
07/28Turkiye Garanti Bankasi : Announcement regarding forward looking expectations
PU
07/28Turkiye Garanti Bankasi A.S. Reports Earnings Results for the Second Quarter and Six Mo..
CI
More news
Analyst Recommendations on TURKIYE GARANTI BANKASI A.S.
More recommendations
Financials
Sales 2022 84 249 M 4 548 M 4 548 M
Net income 2022 41 620 M 2 247 M 2 247 M
Net Debt 2022 - - -
P/E ratio 2022 2,24x
Yield 2022 9,13%
Capitalization 80 850 M 4 365 M 4 365 M
Capi. / Sales 2022 0,96x
Capi. / Sales 2023 0,99x
Nbr of Employees 18 569
Free-Float 14,0%
Chart TURKIYE GARANTI BANKASI A.S.
Duration : Period :
Turkiye Garanti Bankasi A.S. Technical Analysis Chart | MarketScreener
Full-screen chart
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 14
Last Close Price 19,25 TRY
Average target price 19,47 TRY
Spread / Average Target 1,16%
EPS Revisions
Managers and Directors
Recep Bastug Manager-Commercial Area
Aydin Güler Executive Vice President-Finance & Treasury
Süleyman Sözen Chairman
Emre Özbek Manager-Compliance
Mahmut Akten EVP-Investment Banking & Global Markets
Sector and Competitors