NCB says decline in Turkish lira will not impact profitability

National Commercial Bank (NCB) on Wednesday said the decline in Turkish lira will have an immaterial impact on its profitability and asset quality, given its suitable hedging strategy.

The bank has a 67.03 percent holding in its Turkish subsidiary TFKB, which contributes only 2.7 percent to NCB's net income attributable to equity holders, it said in a statement to Tadawul.

The TFKB stake represents only 3.7 percent of NCB's net assets, it added.

"Despite the volatility in the Turkish Lira, both NCB and TFKB continue to enjoy high capital adequacy and liquidity coverage ratios in excess of all regulatory requirements," the bank said.

While the Turkish lira eased slightly, it remained below 6.0 against the dollar on Thursday. The Turkish currency has fallen more than 40 percent against the dollar since the beginning of this year.