www.cpifinancial.com - It also increased its equity by 19 per cent, total assets by 24 per cent, deposits by 25 per cent and financing and investments by 16 per cent in 2011.
The financial results of the bank showed an increase in total operating income by 25 per cent to TRY 530.9 million in 2011. After deducting expenses, provisions and taxes, net income increased by 19 per cent to TRY 160.5 million ($96 million) in 2011. (source)
In 2011, the assets of the bank increased by 24 per cent to TRY 10.5 billion ($5.5 billion) compared with TRY 8.4 billion in 2010. This increase was invested to finance the growth in financing and investments which increased by 16 per cent to TRY 7.8 billion ($4.1 billion) compared to previous year. This growth was financed by increasing the bank's range of investment products and branch network which led to an increase of 25 per cent in customer deposits and equity of investment account-holders to reach TRY 9.1 billion ($4.8 billion) in 2011, which funded 87 per cent of the total assets of the bank and which in turn reflects the bank's strong customer deposit base. The bank also strengthened its shareholders equity by 19 per cent to TRY 1 billion ($535.1 million) in total as at the end of 2011.
As for the results of the fourth quarter of 2011, the net income increased by six per cent to reach TRY 50.7 million ($28.3 million) compared to same period of the previous year as a result of 30 per cent growth in total operating income, which reached TRY 156.5 million during the same period.
On this occasion, Chairman of the Board of Directors of Al Baraka Turk Participation Bank and President and Chief Executive of Al Baraka Banking Group Adnan Ahmed Yousif said, "Given the difficult political and economic conditions prevailed the banks environment in 2011, we are very pleased with the excellent results that the Bank achieved in 2011. Such excellent achievements were the result of the hard work of the executive management and all the employees of the Bank as well as the strong support that the parent company extends to its subsidiary banks, which helped to consolidate the Bank's position in the Turkish market. Turkey is one of the key markets for the group because of the diversity and abundance of economic activities and huge promising opportunities that it offers".
Adnan Yousif added that "with the continuing and steady growth of Al Baraka Turk Participation Bank over the past decade, the bank has now passed the threshold of a small bank and can be said to qualify as a major player in the Turkish market".
Adnan Yousif said, "The branch network continued in 2011 its steady growth rate with the addition of 13 new branches - bringing the network up to 122 branches - and nine more ATMs. Al Baraka Turkey continues to expand its range of products and services in order to meet customer demand and needs. Participation accounts are offered in a variety of different types, offering the customer a selection of profit rates in relation to different maturities. Having become an authorized agent and member of the Turkish private pension system, it now offers customers a variety of non-interest bearing pension funds as well as Shari'ah-compliant life insurance. In the credit card arena it has created a card especially for the use of Hajj and Umrah pilgrims, providing electronic access to their bank accounts whilst on Pilgrimage and has also commenced the introduction to the market of credit cards payable by installments".
Fahrettin Yahsi, Member of the Board of Directors and General Manager of Al Baraka Turk Participation Bank, said, "The bank results benefited from the good performance of the Turkish economy, which remained strong in 2011, recording a GDP growth rate of 7.5 per cent compared with 8.6 per cent in 2011. Inflation was down at 5.9 per cent compared with 8.64 per cent the previous year. However, the continuing strong economic performance has primarily been fuelled by the low interest rate environment which has been maintained even in the teeth of threatening. In spite of intervention by the Central Bank in the foreign exchange markets to minimise the volatility of the Turkish Lira, the Lira had fallen by some 20 per cent over the year. However, fears of contagion from the euro zone crisis and global economic slowdown have so far proved unfounded."
Fahrettin added, "Products under development during 2012 include silver current accounts and Gold participation accounts carrying additional benefits to holders, export credit agency programs and precious metals credits and trading accounts. It also intends to initiate mobile banking, introduce a Platinum card and set up an investment fund. It will continue to expand its network, aiming to open 20 new branches a year over the next four years."
Source : http://www.cpifinancial.net/news/post/13410/al-baraka-turk-participation-bank-net-profits-rise-by-nineteen-per-cent - April 4, 2012
