10/13/2010

Turkey to take center stage in Dexia’s growth plans

Reuters - Belgian-French financial group Dexia expects retail banking, particularly in fast-growing Turkey, to propel it to new goals for 2014 after its emergence from crisis and restructuring.

Dexia, which was the world's largest lender to public bodies before the credit crunch, said income would be under pressure this year and next by balance-sheet reduction and higher fund costs, but should rebound from 2012.

Ahead of an investor day on Tuesday, the group said retail and commercial banking would represent about 60 percent of sales in 2014, from 36 percent in 2007, and it would have 10 million clients after a rise in Turkey to 6 million from 4 million.

About a third of Dexia’s 2014 pre-tax income should come from Turkish unit DenizBank, the ninth-largest bank in Turkey, in which Dexia will invest EUR 250 million.

DenizBank will open around 300 branches in the next four years, swelling its network to more than 800, with a focus on big cities and agricultural clients in rural areas.
turkey; financial services sector; belgian-french; franco-belgian; dexia; denizbank; retail banking