17 February 2005 -

Report Summary

Denizbank, 18% lower than our estimate, disclosed YTL 122.7 mn (US$91.8) on its bank only 2004 balance sheet. Despite the operatioanal income is in line with our estimation, higher than expected provision for possible loan losses and other provisions caused the difference from the actual figure.

Despite lower than expected net earnings, growth rates of Denizbank is quite satisfactory. 2005 growth performances may not be such high as it was in 2004. However high free capital base is an advantage for the bank in a mass competitive environment.

With its US$ 866 mn market capitalization Denizbank trades with 1.35X P/B and 9.43X P/E. The upside potential is limited according to our target valuation for the stock, we still maintain our "Hold" recommendation.

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