1st Quarter Results

15 May 2009 07:00



14.05.2009 TRY 606 million net profit from Isbank at the end of the first quarter

Isbank posted TRY 606 million net profit in the first quarter of this year, with 9.2% increase compared to the same period of 2008 and its total assets reached TRY 98,608 million.

Isbank posted TRY 606 million net profit in the first quarter of the year 2009, with 9.2% increase compared to same period of the previous year. Isbank's total assets on the other hand grew by 1.1% and reached TRY 98,608 million.

As a consequence of the global economic crisis, the economic activity in Turkey has been slowing down since the last quarter of 2008, which caused shrinkage in demand for credit, whereas Isbank kept financing the real sector in line with its prudent and selective lending policy. Parallel to the general trend, Isbank's loan portfolio decreased to TRY 46,445 with a contraction of 2.4%.

Due to the contraction in credit volume and the negative market conditions, the NPL ratio increased from 4.4% to 5.1%, and the 100% provisioning policy was continued in the first quarter of 2009, as well.

In the last quarter, Isbank raised its deposits by 1.0% and increased its market share of deposits to 14.4%. Turkish Lira currency savings deposits, which have ever since been a diversified and stable source of funding for Isbank, grew 3% in this period. On the other hand, the decline in the market rates reflected on costs, due to the short-term structure of funding sources and contributed to profitability.

Isbank posted TRY 606 million net profit in the first quarter of 2009 and the 15.0% quarter on quarter increase in net interest income, as well as close monitoring of lending and careful controlling of and saving in operating expenses made significant contribution to profitability.

In the related period, Isbank's shareholders' equity grew by 3.8% and reached TRY 9,811 million, and its capital adequacy ratio as of March 31st, 2009 was 15.4%. The current level of this ratio helps Isbank to expand its assets and to strongly fulfill its role in the domestic economy, in an environment where many foreign international banks are in need of capital injection to continue their banking business.