Lender grows with Kazakh partner
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Oluşturulma Tarihi: Aralık 25, 2008 00:00
ISTANBUL - Åžekerbank, the Turkish lender that sold a 33.98 percent stake to Kazakhstan's Bank TuranAlem, or BTA, Securities JSC in 2007, is raising its capital from YTL 400 million to YTL 500 million.
The Turkish lender’s rights issues following the arrival of its Kazakh partner will total YTL 375 million, or 300 percent.Â
Şekerbank will finance small commercial and agricultural enterprises with the funds attained by the capital increase, said Managing Director Meriç Uluşahin. "We have branches even in places where no other banks exist. We aim to become the leader in financing small enterprises with our power, particularly in Anatolia and our robust financial structure."
Bank TuranAlem paid YTL 424.7 million for Şekerbank’s 33.98 percent stake. The Kazakh bank participated with YTL 93.5 million in the 220 percent rights issue that took place last year after the partnership. For the recent 25 percent rights issue, the Kazakh bank will supply YTL 25 million. Thus, it will have invested a total of YTL 543.2 million in Şekerbank.
The size of Şekerbank’s assets, which stood at YTL 4 billion at the end of 2006, boomed swiftly following the partnership with TuranAlem, and reached YTL 8.14 billion as of the end of September.
The bank’s loans rose by 137 percent to surpass YTL 4.7 billion between the end of 2006 and the nine-month balance sheets of this year. Over the period, the bank’s deposits surged 86.3 percent and reached YTL 5.6 billion, while the number of its branches rose from 209 to 250.
Following the partnership deal, Åžekerbank had initially raised its paid-in capital from YTL 125 million to YTL 400 million. The increase was formerly planned as a part of the conditions of the deal with the Kazakh bank, said UluÅŸahin. "Moreover, it is also a part of our growth and business plan covering the years between 2007 and 2010. We aim to become among the top 10 private banks by 2010. Within the scope of these goals, we raise our registered capital by YTL 100 million to YTL 500 million."
Ratings maintained
Meanwhile, international ratings agency Fitch affirmed Şekerbank’s long-term foreign and local currency and short-term foreign and local currency Issuer Default Ratings, or IDRs, at 'B.'
"Åžekerbank's ratings reflect a high cost base, which constrains profitability, and rapid loan growth that may lead to a deterioration in asset quality. These factors are counterbalanced by declining, though still adequate, capitalization, improved risk management controls and a well-diversified core deposit base," Fitch said.
Şekerbank will finance small commercial and agricultural enterprises with the funds attained by the capital increase, said Managing Director Meriç Uluşahin. "We have branches even in places where no other banks exist. We aim to become the leader in financing small enterprises with our power, particularly in Anatolia and our robust financial structure."
Bank TuranAlem paid YTL 424.7 million for Şekerbank’s 33.98 percent stake. The Kazakh bank participated with YTL 93.5 million in the 220 percent rights issue that took place last year after the partnership. For the recent 25 percent rights issue, the Kazakh bank will supply YTL 25 million. Thus, it will have invested a total of YTL 543.2 million in Şekerbank.
The size of Şekerbank’s assets, which stood at YTL 4 billion at the end of 2006, boomed swiftly following the partnership with TuranAlem, and reached YTL 8.14 billion as of the end of September.
The bank’s loans rose by 137 percent to surpass YTL 4.7 billion between the end of 2006 and the nine-month balance sheets of this year. Over the period, the bank’s deposits surged 86.3 percent and reached YTL 5.6 billion, while the number of its branches rose from 209 to 250.
Following the partnership deal, Åžekerbank had initially raised its paid-in capital from YTL 125 million to YTL 400 million. The increase was formerly planned as a part of the conditions of the deal with the Kazakh bank, said UluÅŸahin. "Moreover, it is also a part of our growth and business plan covering the years between 2007 and 2010. We aim to become among the top 10 private banks by 2010. Within the scope of these goals, we raise our registered capital by YTL 100 million to YTL 500 million."
Ratings maintained
Meanwhile, international ratings agency Fitch affirmed Şekerbank’s long-term foreign and local currency and short-term foreign and local currency Issuer Default Ratings, or IDRs, at 'B.'
"Åžekerbank's ratings reflect a high cost base, which constrains profitability, and rapid loan growth that may lead to a deterioration in asset quality. These factors are counterbalanced by declining, though still adequate, capitalization, improved risk management controls and a well-diversified core deposit base," Fitch said.