DB:AKB2

Stock Analysis Report

Executive Summary

Akbank T.A.S. provides various banking products and services.


Snowflake Analysis

Very undervalued with reasonable growth potential.


Similar Companies

Share Price & News

How has Akbank T.A.S's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AKB2's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

AKB2

3.2%

DE Banks

4.3%

DE Market


1 Year Return

-23.4%

AKB2

-37.3%

DE Banks

-14.2%

DE Market

Return vs Industry: AKB2 exceeded the German Banks industry which returned -39% over the past year.

Return vs Market: AKB2 underperformed the German Market which returned -16.6% over the past year.


Shareholder returns

AKB2IndustryMarket
7 Day0%3.2%4.3%
30 Day-26.1%-12.8%-9.0%
90 Day-34.4%-27.8%-21.6%
1 Year-23.4%-23.4%-35.3%-37.3%-11.7%-14.2%
3 Year-59.8%-64.9%-40.6%-43.5%-12.3%-19.6%
5 Year-67.3%-72.4%-41.3%-53.0%-14.0%-25.6%

Price Volatility Vs. Market

How volatile is Akbank T.A.S's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Akbank T.A.S undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AKB2 (€1.47) is trading below our estimate of fair value (€4.01)

Significantly Below Fair Value: AKB2 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AKB2 is good value based on its PE Ratio (5.2x) compared to the Banks industry average (15.2x).

PE vs Market: AKB2 is good value based on its PE Ratio (5.2x) compared to the German market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: AKB2 is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: AKB2 is good value based on its PB Ratio (0.5x) compared to the DE Banks industry average (0.8x).


Next Steps

Future Growth

How is Akbank T.A.S forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

21.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AKB2's forecast earnings growth (21.9% per year) is above the savings rate (-0.4%).

Earnings vs Market: AKB2's earnings (21.9% per year) are forecast to grow faster than the German market (14% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AKB2's revenue (19.9% per year) is forecast to grow faster than the German market (3.9% per year).

High Growth Revenue: AKB2's revenue (19.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AKB2's Return on Equity is forecast to be low in 3 years time (15.1%).


Next Steps

Past Performance

How has Akbank T.A.S performed over the past 5 years?

11.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AKB2 has a high level of non-cash earnings.

Growing Profit Margin: AKB2's current net profit margins (35.9%) are lower than last year (43.8%).


Past Earnings Growth Analysis

Earnings Trend: AKB2's earnings have grown by 11.6% per year over the past 5 years.

Accelerating Growth: AKB2's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AKB2 had negative earnings growth (-6.3%) over the past year, making it difficult to compare to the Banks industry average (0.7%).


Return on Equity

High ROE: AKB2's Return on Equity (9.8%) is considered low.


Next Steps

Financial Health

How is Akbank T.A.S's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: AKB2's level of assets compared to its equity is low.

Allowance for Bad Loans: AKB2 has a low allowance for bad loans.

Low Risk Liabilities: AKB2's liabilities are made up of primarily low risk sources of funding.

Loan Level: AKB2 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: AKB2's loans are broadly funded by customer deposits.

Level of Bad Loans: AKB2 has a high level of bad loans (6.65%)


Next Steps

Dividend

What is Akbank T.A.S's current dividend yield, its reliability and sustainability?

8.48%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AKB2's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AKB2's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AKB2's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AKB2's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: AKB2 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AKB2's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure


CEO

Sabri Binbasgil (59yo)

8.25s

Tenure

Mr. Sabri Hakan Binbasgil has been the Chief Executive Officer at Akbank T.A.S. since January 2012 and serves as its Member of International Advisory Board. Mr. Binbasgil served as the Deputy Chief Executi ...


Leadership Team

NamePositionTenureCompensationOwnership
Sabri Binbasgil
CEO, Director & Member of International Advisory Board8.25yrsno datano data
Eyüp Engin
Vice Chairman0.083yrno datano data
Erol Sabanci
Honorary Chairman & Consultant12.08yrsno datano data
Türker Tunali
Chief Financial Officer2.5yrsno datano data
Ilker Altintas
Executive Vice President of Technology & Operations3.25yrsno datano data
Josh Ellis
Chief Information Risk Officer2.83yrsno datano data
Kamile Ebru GÜVENIR
Senior Vice President of Investor Relations & Sustainabilityno datano datano data
Zakir Önal
Head of Compliance1yrno datano data
Pinar Anapa
Executive Vice President of People & Culture0.83yrno datano data
Ahmet Ayla
Executive Board Member & Member of International Advisory Board1.5yrsno datano data

3.0yrs

Average Tenure

59yo

Average Age

Experienced Management: AKB2's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sabri Binbasgil
CEO, Director & Member of International Advisory Board8.25yrsno datano data
Eyüp Engin
Vice Chairman0.083yrno datano data
Erol Sabanci
Honorary Chairman & Consultant12.08yrsno datano data
Ahmet Ayla
Executive Board Member & Member of International Advisory Board1.5yrsno datano data
Winfried Bischoff
Member of International Advisory Boardno datano datano data
Lubna Al-Olayan
Member of International Advisory Boardno datano datano data
Sakir Törüner
Independent Director22.08yrsno datano data
Ismail Günter
Independent Director6.08yrsno datano data
Suzan Sabanci Dinçer
Chairman & Chairman of International Advisory Board12.08yrsno data0.63% TRY24.8m
Emre Derman
Board Member5.08yrsno datano data

6.1yrs

Average Tenure

61yo

Average Age

Experienced Board: AKB2's board of directors are considered experienced (6.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 25.2%.


Top Shareholders

Company Information

Akbank T.A.S.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Akbank T.A.S.
  • Ticker: AKB2
  • Exchange: DB
  • Founded: 1948
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ₺29.016b
  • Listing Market Cap: ₺3.940b
  • Shares outstanding: 5.20b
  • Website: https://www.akbank.com

Number of Employees


Location

  • Akbank T.A.S.
  • Sabanci Center
  • 4.Levent
  • Istanbul
  • 34330
  • Turkey

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AKBNKIBSE (Borsa Istanbul (BIST))YesCommon StockTRTRYDec 1990
AKBT.YOTCPK (Pink Sheets LLC)ADR REP 2 ORD TRY1USUSDJan 2005
AKB2DB (Deutsche Boerse AG)ADR REP 2 ORD TRY1DEEURJan 2005

Biography

Akbank T.A.S. provides various banking products and services. It operates through three segments: Retail Banking; Commercial Banking, SME Banking, and Corporate-Investment and Private Banking; and Treasury. The company’s retail banking services comprise deposit accounts, retail loans, commercial installment loans, credit cards, insurance products, and asset management services, as well as bank cards, investment funds trading, automatic payment, foreign currency trading, safe deposit box rental, cheques, money transfers, investment banking, and telephone and Internet banking. It also offers services to large, medium, and small size corporate and commercial customers that include Turkish Lira (TL) and foreign currency denominated working capital loans, foreign trade financing, derivative instruments for hedging purposes of foreign currency and interest risk, letters of credit, foreign currency trading, corporate finance, and deposit and cash management services, as well as project finance loans; and timely and permanent solutions for corporate customers’ working capital management, delivering cash management services based on customers’ requests that include collection and payment services and liquidity and information management. In addition, the company engages in treasury activities consisting of TL and foreign currency spot and forward transactions, treasury and government bonds, Eurobonds, and private sector bond transactions, as well as derivative trading activities; marketing and pricing activities related treasury products; and the provision of long-term funding services, providing funding facility that reflects country risk, diversifying funding resources, and forming a base of international investors. Further, it engages in leasing activities. As of December 31, 2018, the company operated 780 branches in Turkey and 1 branch internationally. Akbank T.A.S. was founded in 1948 and is headquartered in Istanbul, Turkey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 23:04
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.