Best Bank:
Akbank
Best debt house:
Citigroup/Schroder Salomon Smith Barney
Best equity house:
Global Securities
Best M&A house:
Global Securities
The shakeout following Turkey's devaluation has finally made clear which banks have sustainable, real banking models and which do not. Banks whose main business was speculating in the government bond markets will see their portfolios thrown into loss by devaluation and inflation. Those whose main business was lending to the industry group that owns them will be hit hardest by bad debts and new regulations. Banks will fail and many of the larger institutions will be forced to merge or be acquired by foreigners.
In this environment the strengths of Akbank are particularly evident. It is much less reliant on its marketable securities book for profits than its rivals. Its net short dollar position is relatively smaller than its largest rivals, though its forward hedges are mostly with Sabanci Group companies. And its NPL ratio is significantly lower than Garanti, Isbank and YKB.
Akbank's loan portfolio is diversified both sectorally and geographically. Its customer base too is diverse - 3.5