Italian banking giant UniCredit is content with its stake in Yapı Kredi and has no intention of selling it, according to Gianni Franco Papa, the lender’s regional head for Central and Eastern Europe. Speaking to journalists in Vienna earlier this week, Papa says the bank’s five-year target in Turkey is to open 300 new branches, which corresponds to 60 new branches every year
 Italy's UniCredit has no intention of selling its stake in Turkish bank Yapı Kredi, according to one of its top managers. DAILY NEWS photo, Emrah GÜREL |
UniCredit, the biggest lender in Eastern Europe, has no intention of selling its stake in Turkish bank Yapı Kredi, according to Gianni Franco Papa, head of the Central and Eastern Europe, or CEE, division of the Italian bank.
His statement comes months after the head of Koç Group, UniCredit’s partner in Yapı Kredi, complained of the giant lender’s “too cautious” banking strategy.
“Our relations with the Koç Group are perfect. I do not see any problem, as the interests of the two groups are common,” Turkish newspaper Vatan quoted Papa as saying. He was speaking during the Euromoney conference in Vienna earlier this week, Vatan reported Friday.
Noting that Yapı Kredi’s market share in Turkey is increasing, Papa said the banking group has no intention of pulling back from the country.
Mustafa Koç, the Koç Holding chairman, had criticized UniCredit for Yapı Kredi’s slow growth in April last year. “Profits at Yapı Kredi grew slower than some rivals in 2009 because of the reluctance of UniCredit to take risks,” Koç had said at the time. “Our 50-50 partnership with UniCredit in Yapı Kredi puts the bank in shackles.”
Koçbank, which was co-owned by UniCredit, had strengthened its position in the Turkish banking market with the acquisition of 57.4 percent of Yapı Kredi. UniCredit and Koç paid $1.5 billion for 58 percent of Yapı Kredi in September 2005.
“Koç would be a serious buyer if its partner UniCredit decides to sell its stake in Yapı Kredi,” Milliyet had quoted Koç as saying in November last year. However, the Italian bank immediately responded, announcing it has no intention to sell its stake.
A big step forward
Yapı Kredi announced its third quarter results on Nov. 10, posting a net profit of 589.3 million Turkish Liras. The figure represented a huge leap compared to 2009’s 276.5 million liras.
In comparison, Akbank, the biggest Turkish bank by market value, reported a net income of 439.2 million liras, a decline considering it posted a net profit of 677.2 million liras in the same period of 2009.
The Turkish banking system is quite attractive as it has strong growth potential, Vatan quoted Papa as saying, and UniCredit has a great management team in the country.
“We have a conservative attitude. This not only applies for Turkey, but in our all enterprises throughout the world. We have not lost money in any of the countries we operate in. Including Turkey, we have always grown our market share,” Papa said.
The Turkish economy has shown a strong performance last year, Papa added. Noting that UniCredit will announce its company strategy in June, he said, “But in our Turkey strategy, we will take a position that will allow us to benefit from the advantages of rapid growth.
“Our five-year target in Turkey is to open 300 new branches,” he said. “This adds up to 60 new branches every year. Within the scope of our growth targets, we plan to open up to smaller cities.”
There is a great potential especially in the mortgage market in Turkey, Papa also said. “The ratio of the mortgage finance to gross domestic product is 4 percent in Turkey. This figure is around 40 percent in Europe.”
His statement comes months after the head of Koç Group, UniCredit’s partner in Yapı Kredi, complained of the giant lender’s “too cautious” banking strategy.
“Our relations with the Koç Group are perfect. I do not see any problem, as the interests of the two groups are common,” Turkish newspaper Vatan quoted Papa as saying. He was speaking during the Euromoney conference in Vienna earlier this week, Vatan reported Friday.
Noting that Yapı Kredi’s market share in Turkey is increasing, Papa said the banking group has no intention of pulling back from the country.
Mustafa Koç, the Koç Holding chairman, had criticized UniCredit for Yapı Kredi’s slow growth in April last year. “Profits at Yapı Kredi grew slower than some rivals in 2009 because of the reluctance of UniCredit to take risks,” Koç had said at the time. “Our 50-50 partnership with UniCredit in Yapı Kredi puts the bank in shackles.”
Koçbank, which was co-owned by UniCredit, had strengthened its position in the Turkish banking market with the acquisition of 57.4 percent of Yapı Kredi. UniCredit and Koç paid $1.5 billion for 58 percent of Yapı Kredi in September 2005.
“Koç would be a serious buyer if its partner UniCredit decides to sell its stake in Yapı Kredi,” Milliyet had quoted Koç as saying in November last year. However, the Italian bank immediately responded, announcing it has no intention to sell its stake.
A big step forward
Yapı Kredi announced its third quarter results on Nov. 10, posting a net profit of 589.3 million Turkish Liras. The figure represented a huge leap compared to 2009’s 276.5 million liras.
In comparison, Akbank, the biggest Turkish bank by market value, reported a net income of 439.2 million liras, a decline considering it posted a net profit of 677.2 million liras in the same period of 2009.
The Turkish banking system is quite attractive as it has strong growth potential, Vatan quoted Papa as saying, and UniCredit has a great management team in the country.
“We have a conservative attitude. This not only applies for Turkey, but in our all enterprises throughout the world. We have not lost money in any of the countries we operate in. Including Turkey, we have always grown our market share,” Papa said.
The Turkish economy has shown a strong performance last year, Papa added. Noting that UniCredit will announce its company strategy in June, he said, “But in our Turkey strategy, we will take a position that will allow us to benefit from the advantages of rapid growth.
“Our five-year target in Turkey is to open 300 new branches,” he said. “This adds up to 60 new branches every year. Within the scope of our growth targets, we plan to open up to smaller cities.”
There is a great potential especially in the mortgage market in Turkey, Papa also said. “The ratio of the mortgage finance to gross domestic product is 4 percent in Turkey. This figure is around 40 percent in Europe.”
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