BBVA has said its move to purchase a 14.9% stake in Garanti Bank will likely hit 3Q results by €1.8bn ($2 billion), a larger sum that initially expected due to the depreciating lira currency; this is up from a previous forecast of a negative impact of €1.5bn. The deal also includes an option for another €1bn worth of loans and guarantees if the bank fails to meet targets on capital adequacy or other measures.
BBVA has said its move to purchase a 14.9% stake in Garanti Bank will likely hit 3Q results by €1.8bn ($2 billion), a larger sum that initially expected due to the depreciating lira currency; this is up from a previous forecast of a negative impact of €1.5bn. The bank has also now said that the transaction will cut its Tier1 capital ratio by around 50 basis points, compared with the 48 points it originally predicted.