BNP said the Turkish business is largely self-financed. It owns 50% of the TEB Holding joint venture with local partner Colakoglu Group. The French group operates diverse businesses in Turkey, from retail banking to leasing and insurance through various subsidiaries. The country generated a total income of 420 million euros in 2020, making it the Dutch bank's third-biggest market outside Europe after the United States and Australia.Īssets in Turkey stood at around 7.3 billion euros in 2020, or less than 1% out of a total of 937 billion euros. ING does wholesale and retail banking business in Turkey, where it operates through a wholly owned subsidiary. It sees an average cost of risk of around 200 basis points in the same period, above the management target of less than 150 bps. It estimates a compound annual growth rate in local currency of 13.5% in 2021-2024, versus the company's "high-teen" target. Jefferies has a cautious view on BBVA's Turkey performance. Loans and advances to customers in Turkey were 37.3 billion euros in 2020, more than 10% of the group's total and the fourth-largest total after Spain, the United States and Mexico. That represents 14.3% of BBVA profits excluding the corporate centre.
Country heat full#
In the full year 2020, its Turkey net attributable profit reached 563 million euros, making it the bank's third largest market after Mexico and Spain. It has commercial and small-and-medium enterprises banking businesses, as well as insurance and corporate and investment banking activities in the country, where it operates through Garanti BBVA (GARAN.IS).Įarlier this month BBVA offered to buy the rest of Garanti for up to 2.25 billion euros ($2.53 billion), taking advantage of a slide in the lira and raising fears in Turkey that foreigners might snap up assets at bargain prices. The Spanish lender is the most exposed to Turkey.
Here is a summary of listed European banks' Turkish exposure: Spanish banks have by far the largest loan exposure to Turkey among Western lenders at nearly $63 billion, followed by banks in France, Germany, Britain, United States, Japan and Italy, data from the Bank for International Settlements (BIS) shows.
Italy's UniCredit (CRDI.MI) is in the process of exiting the country.
BNP Paribas (BNPP.PA) of France and Dutch bank ING Groep (INGA.AS) also do business in Turkey and may be hit by a slump in its currency.