Halkbank plans to open 50 new branches in 2015

Halkbank notified the Public Disclosure Platform (KAP) of its 2015 estimates: it is expecting a 13 to 15 percent increase in its assets in 2015 and an overall increase of 12 to 14 percent between 2015 and 2018, accordingly. Furthermore, the bank estimates a 16 to 18percent growth in its loan-giving capacity and a 13 to 15 percent increase in its deposits and net interest income in 2015.

The bank has also announced that they will be opening 40 to 50 new branches in 2015, and the average return on equity for 2015 is expected to be around 20 to 22 percent, while the capital adequacy ratio is expected to be around 16 percent. According to Halkbank's macroeconomic expectations, the Turkish economy will grow by four percent and the inflation rate will be around 6 percent.

Halkbank's privatization of insurance and retirement companies

The Directorate of Privatization Administration also approved the privatization of the Halk Sigorta insurance company and the Halk Hayat ve Emeklilik retirement fund company, which are affiliates of Halkbank, through block sales according to the Directorate's announcement on the official bulletin today. The final bidding date for the tenders was announced as April 24, and the amount of guarantees for both tenders is set as $25 million. Accordingly, Halkbank will sell its 89.18 percent stake in Halk Sigorta and 4.31 percent of the shares belonging to Halk Yatırım Menkul Değerler, which totals 93.49 percent of the shares of Halk Sigorta, through block sales. Halk Sigorta's registered capital is TL 150 million ($64.07 million) and the company's issued capital is currently around TL 94 million.

A total of 90 percent of the shares belonging to Halkbank in Halk Hayat ve Emeklilik, or 100 percent of the shares if offered, will be sold, and the current capital of the company is around TL 183 million. According to the tender announcements, only judicial persons or joint ventures with a judicial personality will be able to bid for the tenders. However, other funds can bid for the tenders by forming joint ventures.

One of the requirements for taking part in tenders is that the participant must be an insurance company or be in control of an insurance company. Moreover, if the participant is a joint venture, the leading partner of the joint venture should be an insurance company or in control of an insurance company. Another requirement is either the participant, the leading partner or the groups' consolidated equities must be worth a minimum of $2 billion. There will be closed biddings, and if deemed necessary by the tender commission, the tender can be conducted as an auction.

Halkbank receives the approval to establish a participation bank

The Banking Regulation and Supervision Agency also approved Halkbank's request to establish a participation bank, listing Halk Bankası, Halk Yatırım Menkul Değerler, Halk Portföy Yönetimi, Halk Finansal Kiralama and Bileşim Alternatif Dağıtım Kanalları ve Ödeme Sistemleri as the founding partners with a capital amount of at least TL 1 billion.