“Sberbank is thinking about the sale of Denizbank, a Turkish Bank because of the competition and sanctions

Sberbank is thinking about the sale of Denizbank, a Turkish Bank because of increased competition and the impact of sanctions, said the President – Chairman of Sberbank German Gref.

“We have not formed a final opinion, because we’ve just started the preliminary work on the topic, due to the fact that it becomes difficult to work the market, due to the fact that competition on international markets is large enough, and in the Turkish market is a very tight competition, and we, being under sanctions, show a stable result it is very difficult,” said Gref, noting in particular the difficulty in attracting liabilities.

According to him, Denizbank, despite all the difficulties, shows good financial results.

“We assess very positively the prospects of the Turkish market and in General in the Turkish market we work very comfortable, but we did, say, the very best deals, and we entered into negotiations,” – said Gref.

“Then we will see depending on what happens on the market situation”, – he added.

The Bank’s Supervisory Board on Tuesday did not address the issue of the sale of Denizbank, Gref said.

In January the savings Bank has informed that carries on negotiations with Emirates NBD on the sale of a stake in its Turkish “daughter” of DenizBank. In 2017, the head of Sberbank German Gref said that the Bank is considering cutting its international presence.

Sberbank of Russia is under sanctions by the US and the EU, and the head of the Bank German Gref was in February on the list of “Kremlin report” of the United States.

Foreign subsidiary banks of Sberbank in 2017 earned about 40 billion rubles of profit, added Gref.

Denizbank during the first 9 months of 2017 received 1.4 billion Turkish liras in net profit (about $0.4 billion), and in 2016 – 1.4 billion lire, while in 2015, earned 0.9 billion Lira net profit (us $0.3 billion), follows from statements of the Bank. Its assets at 30 September 2017 increased to 151,98 billion Turkish liras (about $42.7 billion) 135,6 billion lire of December 31, 2016 ($38.4 billion).

Denizbank was bought by Sberbank in 2012, the Belgian group Dexia for 2.79 billion euros. In the middle of 2016 there is information on the sale of this Turkish “daughter”, but the Bank has denied the existence of such plans.

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