BANKING - Participation banks has grown 10 times in 8 years

www.dunya.com - ANKARA - "Islamic banking", "Interest-free banking" referred to with names such as, participation banks working on the basis of dividends rather than interest, noted the rapid growth of the last 8 years. Funds collected by the numbers 4 participation banks in Turkey, which is approximately 9 times in 8 years, kullandırdığı 12.8 times the volume of funds, assets have grown 10 times. Participation banks, the volume of total deposits in the banking sector, 5.7 percent, 6 percent of the credit volume, asset size reached a share of 4.6 percent.



"Interest-free banking", also known as participation banks working on the basis of dividend funds collected approximately 9 times the last eight years, kullandırdığı 12.8 times the volume of funds, assets have grown 10 times.

Participation Banks Association of Turkey (TKBB), Banking Regulation and Supervision Agency (BRSA) and the calculation made according to Central Bank data, a total of four participation banksassets grew by 29.6 percent in 2011 reached 56.1 billion pounds. The total size of the funds collected from the four participation banks increased by 19.2 percent last year, 39.9 billion, an increase of 28.9 percent of the volume of funds kullandırdığı was 41.5 billion pounds. Participation banks increased by 5.8 percent last year, the total profit was 803 million pounds. (source)

BANKING - Qatar Islamic Bank eyeing up Bank Asya

The new, but lucrative participation banking sector in Turkey is attracting the covetous glances of foreign Islamic banks, at a time when the Arab world is in turmoil. Local news source, Haberturk, raised the specter that foreign buyers were looking to secure a stake in Asya Katilim Bankasi, Turkey’s largest participation bank. Because of Turkey’s secularist constitution, Islamic banks are referred to as participation banks. The report claimed that HSBC had been mandated to sell 25% of Bank Asya to Qatar Islamic Bank – this was swiftly denied by Bank Asya, but neither confirmed nor denied by QIB. (full story)

BANKING - Turkish banks reported TRY 1,530mn net profit in Feb 2011

According to the BRSA (banking watchdog), Turkish banks reported TRY 1,530mn net profit in February 2011 marking a flattish performance both over the previous month and compared to a year ago. The monthly RoE came in at 13.7%, broadly in line with the previous month but well below the last one year's average figures. (full story)

FINANCE - Middle Eastern lenders discuss union

'We hope that the outcome of this conference will leave concrete milestones and a timeline for us to integrate the financial systems,' says Faris Sharaf, the Jordanian Central Bank governor.

Turkish Central Bank Gov. Durmuş Yılmaz called on Turkish lenders to invest in the Middle East to grow their businesses, while making a significant contribution to the banking systems of the region’s countries in the meantime.

Speaking on the first day of the “ShamGen Banking” meeting, an event hosted by Turkey’s Central Bank to discuss opportunities among Turkey, Syria, Lebanon and Jordan, Yılmaz said Turkey paved the way for cooperation for the entire region with its policy of “zero problems with neighbors.” (full story)

BANKING - Albaraka Turk - Is Investment Analysis Of Albaraka Turk

4Q10 figures might be a surprise. We paid a visit to Albaraka Turk Katilim Bankasi yesterday, and talked with the IR team about the bank's 2011 expectations and budget figures. The IR team mentioned right off the bat that 4Q10 results have been stronger than expected both in growth and profitability terms, and hence the bank has exceeded its 2010 budget targets. Recall that, as of 9M 2010, Albaraka's loan book including leasing transactions expanded by 17% YtD and the bank posted 16% annualised RoAE. 2010FY guidance was 22% loan growth and 17% RoAE for the whole year. (source)

BANKING - Turkey: Good growth so far in 4Q10 for the Banking sector - better spread formation is likely (and Participation Banks outperforming the sector again)

The BRSA (banking watchdog) released 26 November 2010 data for the banking sector. We have observed strong growth rates both in loans (4.8% qtd) and deposits (3.5% qtd) in 4Q10 so far following the end of 3Q10. YtD lending expansion stood at 26.5% as end of November, so that the annual loan growth in 2010 will be around 30% in the sector.

So far in 4Q10, corporate & commercial loans grew faster with 5.4% compared to the headline loan growth, which also calls for some drop in net interest margin (NIM) of the banking sector, as corporate loans are relatively lower yielding with respect to the other business lines. Other than the 1.3% qtd growth in credit card loans, the growth in consumer loans remained strong at 5.1% qtd, bringing the ytd consumer loan growth to over 32%.