Qatar National Bank sinks on Turkey exposure
The lender owns Finansbank, the fifth largest privately owned bank by assets in Turkey
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 June 2017's diplomatic falling out with four Arab countries over Qatar’s support for terrorist groups and its 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 the 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.
The Turkish lira, the worst performing emerging-market currency, sank to its lowest level since 2001, upsetting global markets on Friday. Tensions also 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.
Amid the financial meltdown that puts at risk the country's banking system, Turkey’s central bank announced on Monday measures aimed at propping up the currency and ensuring financial stability.
Updated: October 7, 2018 02:20 PM