Finansbank on investor radars
(9 July 2015 – Turkey) Turkey’s Finansbank AS which is entirely owned by National Bank of Greece has benefited from growing speculation its parent bank will have to sell off more of its stake as Greek lenders run out of cash.
Finansbank’s shares have continued to gain as investors anticipate strengthening interest in the sale and the possibility that new ownership will bolster its capital.
National Bank of Greece, the country’s biggest bank, is required to sell 40 percent of Finansbank, its full market value of US$3.8 billion (A$5.1 billion) is equivalent to about seven times the money estimated to remain in Greek banks at the start of July.
Last year Finansbank made €318 million (A$472 million) in profit last year for National Bank of Greece, compared to the €283 million loss the parent company made on home turf.
Finansbank has no exposure to Greek debt securities as the Turkish banking system is well regulated with Finansbank ring-fenced from the potential liquidity problems of its parent.
Last year National Bank of Greece announced it would sell shares in Finansbank to reduce its holding in the Athens-based lender’s most profitable asset.
The bank’s former deputy chief executive, Paula Hadjisotiriou said in 2014 that National Bank of Greece was reluctant to make any reduction in Finansbank.
It’s also been exploring the possibility of a stake sale, two people familiar with the process told Bloomberg.
It was estimated on 6 July Greece had just €500 million left in cash reserves for its banking system.