x

Abu Dhabi, UAETuesday 18 September 2018

Qatar National Bank sinks on Turkey exposure 

The lender owns Finansbank, the fifth largest privately owned bank by assets in Turkey

QNB owns Turkish lender Finansbank, which it bought for €2.7 billion in 2016 from National Bank of Greece. Ryan Carter / The National
QNB owns Turkish lender Finansbank, which it bought for €2.7 billion in 2016 from National Bank of Greece. Ryan Carter / The National

Shares of Qatar National Bank, the Arabian Gulf state’s biggest lender, continued to slide on Monday amid fears about the effect of the Turkish economic crisis on its unit in the country.

QNB slumped 2.56 per cent at mid-day trading, one day after the shares shed 4.7 per cent, the largest drop in a single session since the start of a diplomatic fallout on June 5, 2017, with four Arab countries over Qatar’s support for terrorist groups and meddling in the internal affairs of other states.

QNB owns Turkish lender Finansbank, which it bought for €2.7 billion (Dh11.2bn) in 2016 from National Bank of Greece. About 15 per cent of QNB's assets and 13 per cent of its loans are linked to Turkey, according to Arqaam Capital.

Finansbank is the fifth-largest privately-owned bank by assets in Turkey.

____________

Read more:

Turkey faces tough choices as it teeters on brink of economic collapse

Turkish lira falls to record low against the dollar amid souring relations with the US

____________

The Turkish lira, the worst performing emerging-market currency, sank to its lowest level since 2001, roiling global markets on Friday, as tensions flared between Nato allies Turkey and the United States over Ankara’s imprisonment of an American pastor.

On Friday, US President Donald Trump doubled tariffs on Turkish metal imports, further exacerbating the Turkish economic crisis.

In the midst of the financial meltdown that puts at risk the country's banking system, Turkey’s central bank announced on Monday a slew of measures aimed at propping up the currency and ensuring financial stability.

bz1308-qnbk
Nosedive of Qatar National Bank shares
RELATED ARTICLES
Recommended