ECONOMY

Fitch: NBG subsidiary well positioned in Turkish market

Fitch Ratings said in a new report on Tuesday that second-tier foreign-owned Turkish banks are well positioned to face the challenges inherent in Turkey’s volatile operating environment.

Finansbank, owned by National Bank of Greece (NBG), enjoys the highest net interest margin among the country’s four foreign-owned lenders, reflecting a business mix more focused on retail banking.

Its core capital ratios are also the strongest among peers.

This is crucial since its parent, NBG, may not be able to inject additional capital into Finansbank, should this be required.

Its credit rating stands at BBB, as although NBG has a weak financial profile, Finansbank’s rating is driven by the Turkish lender’s own financial strength.

[Reuters]