Closure of Process for Divestiture of YKB’s Insurance Business
On 22 February 2008, Yapı Kredi Bank (YKB) had announced the launch of the process for the reorganisation of its insurance businesses, Yapı Kredi Sigorta (non-life) and Yapı Kredi Emeklilik (life and private pension fund), appointing Merrill Lynch International and UniCredit CAIB AG as joint financial advisors.
Despite significant level of interest from reputable international strategic partners, YKB decided to close the process due to current adverse market conditions which have not permitted appropriate value expectations to be met.
YKB will use this opportunity to take advantage of the strong growth potential for insurance and bancassurance in the Turkish market to further grow its insurance businesses in a successful and profitable way, as already confirmed by positive performance of both YK Sigorta and YK Emeklilik in 2008.
The closure of the divestiture process does not affect YKB’s capital strength at bank-only or at consolidated level, as the Bank completed in the beginnning of August a successful capital increase through a rights issue of 920 mln YTL at 100% shareholder subscription. As of end of September, YKB capital adequacy ratio is above 15% at bank-only level and above 13.5% at consolidated Group level.
İstanbul, 31 October 2008
Enquiries: Yapı Kredi Investor Relations
Tel: (90) (212) 339 7647
Email: yapikredi_investorrelations@yapikredi.com.tr
Yapı Kredi / 31 Oct 2008