... IDRs are driven by its intrinsic financial strength. The Viability Rating (VR) reflects the banks position as the leading second-tier bank, with a deposit market share of around 4.5%. The drive into high margin SME and retail business is delivering a sound performance but also higher impaired loan ratios. Capital ratios are above peers but Fitch Ratings considers this necessary to provide comfortable loss absorption buffers. Core Retail, SME Lending: Retail and SME loans represent around 85% of total lending. A high proportion of loans are Turkish lira denominated (which reduces exchange risk), short- term and frequently repriced. Impaired loans are somewhat high (6.5% of total end-2013 loans, above peer (3.4%) and sector (2.7%) averages) but reserve cover is ample. Credit risk has been well managed. Sound Risk Systems: Constantly updated automated systems support retail and SME underwriting decisions; more sophisticated tools support middle...
