Middle East

BBVA shares hit 4-month low on Turkish lira turmoil

1 minute read

A woman walks past a BBVA bank branch in Madrid, Spain, November 15, 2021. REUTERS/Juan Medina

MILAN, Nov 24 (Reuters) - Shares in Spanish bank BBVA (BBVA.MC) fell to their lowest level in four months on Wednesday as currency turmoil in Turkey raised concerns over the prospects of its local business.

BBVA, which operates in the country through Garanti BBVA (GARAN.IS), is the most exposed to Turkey among listed European banks. For a factbox on European banks exposure to Turkey, please see read more

By 0819 GMT, its shares were little changed after initially sliding nearly 1.7% to their lowest point since late July at 5.20 euros per share.

"The 12% fall in Turkish Lira yesterday alone makes the valuation of Garanti in euros more uncertain," said Morgan Stanley analyst Alvaro Serrano. The analyst however added he saw upside potential for the stock once the dust over Turkey settled.

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Reporting by Danilo Masoni; Editing by Saikat Chatterjee

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