BBVA falls more than 4% on stock market after uncertain elections in Turkey

Garanti BBVA

Capital Madrid | The Turkish bet of the former BBVA president, Francisco González (currently indicted in court for the conspiracy to spy on politicians, businessmen, and private individuals), has not stopped growing, even after several recent incidents of corruption. Political instability, terrorism, and excessive volatility are reducing its profitability to a minimum.

On the semi-holiday stock market day yesterday, Monday 15 May (Madrid was celebrating the day of its patron saint, Saint Isidro), its shares suffered the greatest fall on the Ibex 35, with a drop of more than 4% after the results of the Turkish elections were announced. These resulted in a narrow victory for the country’s president and candidate for re-election, Recep Tayyip Erdogan, which was not enough to make him the overall winner, meaning the country will have a second round in two weeks’ time. After a fall of 4.21%, BBVA shares were trading at €6.32 at the close of trading.

Erdogan won less than 50% of the votes, so it will be necessary to hold a second round between the current president and his main rival, Kemal Kiliçdaroglu, to find out who will be the country’s future president. The electoral commission has set this second round for 28 May.

Turkey is one of BBVA’s most important markets. Between January and March, BBVA’s subsidiary, Garanti, obtained a net attributable profit of €277 million in the country, 15% of the group’s net attributable profit of €1,846 million.

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