The valuation ranges of Turkish banks keep their attractiveness for international traders, spurring robust curiosity within the nation’s banking sector, as mirrored by current transactions, a senior official of U.S. large JPMorgan mentioned on Wednesday, highlighting Türkiye has develop into “an attractive market for investors again.”
This is clear by the 2 transactions accomplished within the final 4 months, the sale of Rabobank Türkiye to Rönesans Holding and the current deal for Odeabank, the subsidiary of Lebanon’s Bank Audi in Türkiye, Gökhan Özkan, an official at JPMorgan, advised Anadolu Agency (AA).
Abu Dhabi-based sovereign wealth fund ADQ final week acquired 96% of the share capital of Odeabank, and Özkan views the deal as a testomony to the rising financial ties between Gulf states and Türkiye.
“The acquisition of Odeabank by ADQ displays a strategic alignment the place each areas see mutual advantages in collaboration,” mentioned Özkan, managing director and head of Middle East, Türkiye, Africa FIG and EMEA Credit Management Services at JPMorgan.
“It indicators confidence within the Turkish banking market’s compelling potential and a dedication to strengthening bilateral relations between the UAE and Türkiye.”
In 2022, ADQ, in partnership with the Türkiye Wealth Fund (TWF), launched a $300 million funding fund centered on corporations advancing rising applied sciences or enhancing present applied sciences in important sectors.
In the identical yr, ADQ acquired Birgi Mefar Group, a number one Turkish pharmaceutical firm, which has since been built-in into Arcera, ADQ’s wholly owned world life sciences holding firm.
In 2023, ADQ strengthened bilateral relations with Türkiye by signing two memoranda of understanding aimed toward supporting the nation’s financial growth.
‘Once once more enticing market’
Özkan in the meantime emphasised that this funding showcases ADQ’s confidence in Türkiye’s banking potential, with the nation seeing regular financial progress in 2023, together with an actual gross home product (GDP) enhance of 4.5% and nominal GDP surpassing $1.1 trillion.
“Banking sector efficiency is commonly seen as a proxy for the power of an economic system,” he defined.
“Any transaction within the banking sector is linked to traders’ views on the general financial setting. Despite the challenges lately, Türkiye’s banking sector continues to current alternatives for international traders.”
Despite the volatility a number of years in the past, there was a extra steady financial setting and the nation continues to current substantial long-term progress potential, he underlined.
“With the orthodox macroeconomic insurance policies in place, Türkiye has as soon as once more develop into a pretty marketplace for each debt and fairness traders,” he asserted.
ADQ might develop Turkish banking footprint
Odeabank’s acquisition is a part of a broader pattern the place Gulf traders are more and more trying to diversify their portfolios by tapping into rising markets with robust progress prospects.
Özkan cited the current funding by Dubai Islamic Bank in T.O.M. Bank, a digital banking entity, as one other instance of this pattern.
According to him, the timing of the sale was influenced by Bank Audi’s strategic resolution to streamline its operations and refocus on its core markets in Lebanon and Europe.
“Odeabank has develop into a non-core asset for Bank Audi over the past years given the volatility in Lebanon, and capital injection necessities have been difficult regardless of robust efficiency and inside income era of the financial institution,” he mentioned.
For ADQ, he emphasised, this acquisition represents an opportune second to enter the Turkish banking market.
“The shut ties between Abu Dhabi and Ankara have definitely facilitated the method, making a supportive setting for strategic investments,” mentioned Özkan.
“This alignment of pursuits might enable ADQ to confidently develop its footprint in Türkiye’s banking sector, figuring out there’s a robust basis of additional mutual cooperation.”
Source: www.dailysabah.com