NCB, Emirates NBD among Gulf lenders with exposure to Turkish banks

Four GCC-listed banks holding investments in Turkish banks are exposed to losses from the depreciation of the lira.

Saudi Arabia’s National Commercial Bank (NCB) acquired a 67.03 percent stake in Türkiye Finans Katılım Bankası for $1.08 billion in 2007. Türkiye Finans has total assets of $5.6 billion.

Dubai’s biggest lender, Emirates NBD, is finalizing a deal to acquire Denizbank from Russia’s state-owned Sberbank for $3.2 billion. This figure might be reduced to $2.27 billion after the lira’s plunge.

The deal is expected to be completed this year bringing DFM-listed Emirates NBD’s stake in the Turkish bank to 99.85 percent.

Turkey-listed Denizbank has total assets of $23 billion, market value of $2.1 billion and realized losses of $160 million as of market closing on Aug. 13.

The National Bank of Kuwait (NBK) took over 34.3 percent Kuveyt Turk Bank in 2007 for $160 million. Kuveyt Turk has a total assets value of $ 230 million and is not a listed bank.

Meanwhile, Qatar National Bank (QNB) owns 99.88 percent of Finansbank, which is Turkey’s fifth-largest privately owned bank by assets.