Akbank will receive TRL 3 billion in proceeds from the issue, which is to be used to improve its capital base and solvency ratios.
Thursday 06, December 2018 BY KUDAKWASHE MUZORIWA
Turkey’s Akbank has announced plans to increase its capital by 30 per cent to TRL 5.2 billion ($966 million) through a rights issue.
The lender posted a capital adequacy ratio of 18.48 per cent, above the required legal limit and an NPL ratio of 3.3 per cent in its Q3 2018 financial results.
Bulent Sengonul, Equity Research Manager at Is Investment, said that the bank has taken this decision to protect itself from the possible impact of the expected increase of NPLs in the upcoming period due to the depreciating lira and slowdown in the economy.
This follows the lira losing its value in August, at one stage falling as much as 47 per cent from its level at the start of the year, reported Reuters.