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 United Arab Emirates. After the deal, 30 per cent of NBD’s assets will be outside the UAE, the bank said.
“The Turkey business could account for 8 per cent to 10 per cent of group earnings,” said Malik Shabbir, a banking analyst at EFG Hermes.
Emirates NBD now owns 99.85 per cent 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 15.48bn lira ($2.8bn), lower than a previously agreed price. Turkey’s BDDK banking watchdog approved the transaction in June and the sale was completed on Wednesday.