Yapi Kredi Profit Falls 20%, Missing Estimate

Yapi & Kredi Bankasi AS, the Turkish bank owned by UniCredit SpA of Italy and Koc Holding AS, reported a 20 percent fall in second-quarter profit, missing estimates, as it set aside more money for bad loans.

Net income dropped to 352.4 million liras ($196 million) from 441.8 million liras in the year-earlier period, Yapi Kredi said in a statement today. The bank was expected to earn 411.7 million liras, according to the average prediction of 12 analysts surveyed by Bloomberg.

Turkish banks’ provisions may increase this year because of non-performing loans caused by a slowdown in the economy, Duygun Kutucu, an analyst at EFG Istanbul Securities, said in a telephone interview on July 31. Turkey’s economic growth is forecast to cool to 2.3 percent this year from 8.5 percent in 2011, the International Monetary Fund said in April.

Yapi Kredi’s general provisions rose to 150 million liras from 18 million liras, Cagdas Dogan, analyst at BNP Paribas Equity Research in Istanbul, said in a telephone interview today. Net fees and commission income fell to 415.1 million liras from 434.6 million liras. Losses from derivatives trading more than doubled to 461.5 million liras.

The shares fell 0.8 percent to 3.66 liras at 5:16 p.m. in Istanbul. The main ISE National 100 index lost 0.6 percent.

(Corrects attribution in fourth paragraph.)
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