Sabanci Holding's Net Profit Jumps; Beats Estimate

Turkish banking-to-retailing conglomerate Sabanci Holding AS (SAHOL.IS) posted Thursday a 68% rise in second-quarter net profit, boosted by a gain from the sale of half its stake in Aksigorta AS (AKGRT.IS) to Belgian insurer Ageas NV (AGS.BT).

Sabanci Holding's net profit in the second quarter jumped to 706.6 million Turkish lira ($401.9 million) from TRY420 million a year earlier. The result was well above market consensus of TRY366 million.

Sales rose to TRY2.6 billion from TRY1.9 billion, while operating profit increased to TRY1.36 billion from TRY1.09 billion.

"We expect the second half of the year to continue to be a period of growth, investment and profitability for Sabanci Holding. Although global economic growth expectations have been downwardly revised, we believe that our country's successful performance will continue," Chief Executive Zafer Kurtul said in a statement.

Sabanci Holding is the parent company of Sabanci Group. Sabanci Group companies are organized under seven strategic business units: banking, tires, tire reinforcement materials and automotive, retail, cement, energy, and insurance.

The conglomerate's business partners include various multinational corporations. In February, Ageas NV signed an agreement with Sabanci Holding to acquire a 31% stake in Aksigorta.

-By Yeliz Candemir, Dow Jones Newswires, [phone]; [e-mail]

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