Sberbank boosts Turkey unit’s capital as assets top $37 billion
By Bloomberg
DenizBank AS, the Turkish lender owned by OAO Sberbank, is planning to raise 1.1 billion liras ($442 million) in capital as it seeks to maintain high loan growth.
“We’ve budgeted 550 million liras in the first quarter to fuel our growth,” said Hakan Ates, the chief executive officer of DenizBank, referring to the portion of the funding that will be allocated to Tier 1 capital. The bank’s assets have reached about 94 billion liras, he said, speaking by phone on Thursday after the Istanbul-based lender announced the plan.
Targets for loan growth in 2015 will be “ambitious,” if “not as vivid as before,” Ates said. A capital increase is required to pursue loan growth while maintaining the capital buffers required by regulators, he said. DenizBank is due to report 2014 results on Friday.
DenizBank is 99.85 percent owned by Russia’s biggest bank. DenizBank has 1.2 billion dollars of Tier 2 capital dating from the Moscow-based lender’s acquisition in an October 2012 deal, Ates said.
The stock advanced 7.1 percent to 7.40 liras by 2:10 p.m. in Istanbul trading, the biggest intraday gain this year.
New loan business will focus on small and medium enterprises, agribusiness and project finance deals, said Ates.
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