Bank Audi to double Turkish subsidiary’s capital

With $1 billion invested and up to 60 branches, Odea is Audi’s biggest operation abroad

Bank Audi’s Turkish subsidiary, Odea Bank, will increase its capital from $300 million to at least $600 million, said the bank’s general manager Hüseyin Özkaya, as quoted in the Turkish daily Hürriyet.

Odea Bank has already been incorporated and is awaiting operating permission from the Bank Regulation and Supervisory Commission in Turkey, according to Bank Audi’s website.

Preparations for opening Odea Bank are moving ahead “at full steam,” said Özkaya, “We are going through a very serious test phase. We test everything – the system, preparations, everything once again. All these [works] necessitate investment.”

He said that the investor has promised that the amount of capital that Odea Bank wants will be provided, which would at least double the current $300 million. “We are talking about a $1 billion investment here.”

Odea Bank was the first bank to obtain a banking license last year in Turkey after a 12-year hiatus during which time no new banking licenses were issued. Bank Audi could not register under the same name in Turkey as it conflicts with the name of the German auto maker, Hürriyet reported.

According to Bank Audi website, in the medium term, the bank looks to build a franchise in Turkey second only to its local operation in term of size, supported by a network of 50 to 60 branches. The bank will “explore the possibility for developing targeted retail products for specific segments, which would build a new value added franchise.”

Bank Audi is has positioned itself among the top regional banking institutions. In addition to its historic presence in Lebanon, Switzerland and France, the banking group currently has a presence in Jordan, Egypt, Saudi Arabia, Qatar, Abu Dhabi (through a representative office), Gibraltar, Monaco, and Turkey (incorporated in waiting for the operating permission) amongst others.