Why is Emirates NBD looking to bolt-on in Turkey?

Research evidence excerpt

Why is Emirates NBD looking to bolt-on in Turkey?

MENA Banks

Emirates NBD Bank (EMIRATES UH)

EQUITY RESEARCH Quick Take

June 30, 2026

Why is Emirates NBD looking to bolt-on in Turkey? Price: AED29.56

Price Target: AED46.20 Takeaways

Rating: Overweight In this note, we question why Emirates NBD (ENBD) may be looking to

Key Statistics: acquire HSBC's subsidiary in Turkey, as media reports suggest.

Symbol DIFX: EMIRATES

UH Although HSBC has shrunk its Turkish operations considerably since 2013

52-Week Range 22.80 - 37.40 (to 36 branches from 315), and has been trying to sell them since the

Market Cap 190,129.6 failed sale to ING Groep in 2015, we are very encouraged by its 1Q26

ADV (3 mo) 2,811,228 operating performance when compared to DenizBank, which is owned by

Free Float (%) 29.000 ENBD. Although DenizBank is slightly more than 7x the size of HSBC Turkey Shares Out (M) 6,316.6

based on total assets, its 1Q26 annualised RoATE is lower at 35.6% (vs 51.6%

at HSBC Turkey). Research Analysts:

Kato Mukuru With cost synergies and a good valuation, this deal may make more sense

+971 52 260 1988 for ENBD than a first glance would suggest. kato.mukuru@cantor.com

Summary

One-Year Price History

As reports suggest that these are early stage private discussions, we

35 believe it is too early to make a big call on ENBD stock on the back

30 of the news. However, we worry about prolonged discussions distracting

25 ENBD management from the continued turnaround of its existing Turkish

operations, which would not be good for the stock.

07/25 09/25 12/25 03/26 06/26

EMIRATES UH Created by BlueMatrix Investment Thesis

ENBD is a global UAE bank with an active presence in 12 countries and +9m global

customers. Although the market is focused on Turkey and the other international