Emirates NBD Group CEO Shayne Nelson said the bank would support Turkey’s Denizbank if it needed a capital increase, as the Dubai-based lender completed the purchase of Denizbank on Wednesday.
Speaking at the signing ceremony for Sberbank’s sale of its shares in Denizbank to Emirates NBD, Nelson said NBD was a long-term investor in Turkey.
The deal will help diversify Emirates NBD’s business, the bulk of which comes from the UAE. After the deal, 30% of NBD’s assets will be outside the UAE, the bank said.
“The Turkey business could account for 8% to 10% of group earnings,” said Malik Shabbir, a banking analyst at EFG Hermes.
Emirates NBD now owns 99.85% of the Turkish lender.
“While there is considerable cross-border trade and business activity across the MENAT (Middle East, North Africa and Turkey) region, few banks can claim to have a strong pan-regional presence,” said Hesham Abdulla al-Qassim, NBD vice chairman and managing director.
“Emirates NBD is now looking to change this with Denizbank, and we are pleased to have found a partner that has built a strong franchise and reputation as a leading banking group.”
In April, NBD said it was buying Denizbank from Sberbank for 15.48 billion lira ($2.8 billion), lower than a previously agreed price. Turkey’s BDDK banking watchdog approved the transaction in June and the sale was completed on Wednesday.
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