Emirati lender touts promise of Turkish acquisition

By Bahattin Gonultas and Dilara Zengin

ANKARA (AA) - The acquisition of stakes in Turkey's Denizbank will expand Dubai's Emirates NBD's banking operations, a spokesperson for the lender told Anadolu Agency on Wednesday.

"Turkey has strong trade and people linkages with multiple countries where Emirates NBD is present, like the UAE, Egypt, and Saudi Arabia. By linking Denizbank’s Turkish and Austrian operations to our existing network, we would be able to capture a greater share of banking business between these countries and serve our customer base better," said the spokesperson.

The main areas of cooperation are expected to be trade finance, cash management, corporate and investment banking, and wealth management, he said.

"Denizbank has a strong talent pool comprising of seasoned and experienced banking professionals and IT personnel in Turkey, providing Emirates NBD the opportunity to leverage human resources synergies post acquisition," the spokesperson noted.

He added that the bank believes in Turkey's long-term potential and is investing in the country for the long term.

"Economists expect that [Turkey's] economic growth for 2018 will come in at 3-4 percent and we are guided by that in our view," the spokesperson said.

The spokesperson added that Turkey fits all of the lender's key strategic and financial parameters for investment, including geographic proximity, cultural fit, and trade links and business flow.

"Turkey fits all these attributes and is also a growth market with a large population and potential for further penetration in the banking sector," he said.

Russia's largest bank, Sberbank, will sell its entire 99.85 percent stake in Turkey's fifth-largest private bank Denizbank to Dubai’s Emirates NBD, according to a joint statement on Tuesday.

"In accordance with the signed agreement, the consideration for 99.85 percent equals 14.6 billion Turkish liras ($3.1 billion) under a locked box mechanism, based on consolidated equity capital of Denizbank as of Oct. 31, 2017," a statement read.