Last checked at 4 Nov 2011 16:49
04.11.2011TL 1,803 million net profit from Isbank at the end of the third quarter
Isbank posted TL 1,803 million net profit in the first nine months of the year, and increased its asset size to TL 160 billion with 21% year to date growth.
In his written statement on the results of the first nine months of the year, Isbank's CEO Mr. Adnan Bali stated that "Turkey's largest private bank" Isbank, by sustaining its sound growth, raised its total assets by 21% from TL 132 billion to TL 160 billion in the first nine months of the year. He added that despite the developments that create pressure on the profitability and growth of the banking sector, Isbank performed in line with its profitability target and posted TL 1,803 million net profit in the period. On the other hand, Isbank's shareholders' equity increased by 5% in this period and reached TL 18 billion.
Strong Lending Performance
As a result of the strong growth performance both in Turkish Lira and Foreign Currency lending, total loans of Isbank that amounted to TL 64 billion at the end of 2010 rose by 33% and reached TL 85 billion at the end of the third quarter. 38% growth in commercial loans played a major role in the overall loan growth, and as a result of this, share of commercial loans in total loans increased to 72%. Isbank's CEO Mr. Bali underlined that these successful results once again showed Isbank's vigour and determination in supporting the real sector and contributing to the national economy.
Successful Management of Non-performing Loans
Isbank continued to set aside 100% provision for non-performing loans thanks to its strong financial structure. The Bank managed to reduce its non-performing loans by 10% as a result of a decline in non-performing loan formation due to the positive effect of the economic conjuncture, as well as its effective policies in non-performing loan collections. Isbank's non-performing loans ratio, which was 3.6% at year-end, decreased to 2.5% at the end of third quarter due to these positive changes and the solid growth in performing loans.
Symbol of Trust
During this period, in which cost management has become crucial due to the competitive structure in the banking sector and the increase in funding costs, Isbank followed a strategy, which aimed to keep funding costs under control. On the other hand, there has been 6% growth in Turkish Lira savings deposit, which has a wide customer base depending on the trust in Isbank and the services we render to our customers with our large branch network. With its deposit base reaching TL 96 billion, Isbank kept being the symbol of "trust".
TL 1,803 million net period profit
Isbank earned TL 3,247 million net interest income in the first nine months of the year 2011. In this business conjuncture where the fees and commissions gained from banking services became more significant, Isbank succeeded to increase its net fees and commissions income by 11% to TL 1,026 million. On the other hand, general provision expenses, which significantly increased due to the legislations made, led to a 15% increase in provisions for non-performing loans and other receivables, compared to the same period of the previous year. In conclusion, Isbank gained TL 1,803 million net profit at the end of the nine-month period despite this business conjuncture where funding costs increased and growth was kept under control.
Concluding his remarks, Isbank's Chief Executive Officer Mr. Adnan Bali said,"With its 1,194 branches and 24,788 employees, Isbank will continue its operations in the light of its vision "to be the most preferred bank in Turkey for the customers, shareholders and employees, by maintaining its position as the leading, pioneering and trustworthy bank".
* Isbank's bank-only and consolidated financial statements for 2011Q3 are available at:
http://www.isbank.com.tr/English/content/EN/Investor_Relations-548-363.aspx