Last checked at 15 Nov 2010 07:00
12.11.2010Isbank's Consolidated Net Profit for Nine Months is TL 2,440 million
While posting TL 2,440 million net profit for the first nine months of the year, with 21% increase when compared to the same period of the previous year, Isbank raised its total assets to TL 141,486 million. In this period Isbank increased its loan portfolio by 19% to TL 62,895 million, thus kept its leading position in terms of Turkish Lira lending. Isbank opened 42 branches in this period and increased the number of its branches to 1,135. Having recruited 1,859 employees during the period, Isbank strengthened its leadership among private banks in the number of branches and employees.
On the other hand, Isbank signed a share purchase agreement to wholly purchase Joint Stock Company Bank Sofia that operates in Russia.
In his written statement on the results regarding the first nine months of the year, Mr. Ersin Ozince, the CEO of Turkiye Is Bankasi, said: "Isbank raised its assets on a consolidated basis to TL 141 billion in the first nine months of the year, with a 10% increase when compared to the year-end and the Bank's consolidated net profit increased by 21%, compared to the same period of the previous year, reaching TL 2,440 million. While the high performance both in asset size and in profitability indicates that the Bank successfully implements its risk management and profit oriented growth strategy, the size of our shareholders' equity, which reached TL 17.5 billion, helps us to reinforce our regional power."
Market Leader in TL Loans
Isbank, which has contributed significantly to the development of the domestic economy by providing funds to the real sector since its establishment, successfully followed this mission in the first nine month period of the year, as well. On a consolidated basis, compared to year-end, the TL and FX loans of the Bank increased by 17% and 23%, respectively, leading to a 19% increase in total loans. The total loans of the Bank reached TL 62,895 million and the Bank has maintained its leading market position in TL loans. The Bank, which has managed to keep the increase in non-performing loans (NPLs) at a limited level, maintained its 100% provisioning policy for the NPLs.
Leader in Deposits Among Private Banks
With its distinctive corporate structure and identity, Isbank has managed to be one of the most trusted brands of the country since its establishment. Thanks to its strong franchise as well as high quality service it renders and the innovations it introduces to the sector, Isbank, maintained its position as the most preferred private bank by the depositors and retained its leading position among the private banks by its deposit volume of TL 80,406 million, on a consolidated basis. The Bank, which has managed to grow its TL savings deposits on a consolidated basis, above sector average, by 18% compared to year-end, has also increased its total deposits by 12% on a consolidated basis.
Continuously Improving Profitability Performance
Despite the narrowing interest margins, Isbank, thanks to the funds obtained at favorable costs, has gained TL 4,069 million net interest income on a consolidated basis in the first nine months. Parallel to the decline in the amount of loans transferred to the NPLs, the provision expenses of the Bank has decreased by 44% compared to the same period of the previous year. In addition to the aforementioned favorable developments as a result of high collection rates in NPLs and contribution from commission income, the Bank has increased its net profit on a consolidated basis to TL 2,440 million by 21% increase compared to previous September.
Profitable Growth Strategy and high employment rate
Continuing its investments to expand its branch network, Isbank has increased the number of branches to 1,135, which were 1,093 at the end of 2009. In the first nine month period, the number of people employed by the Bank, which retained its policy of creating employment, has reached 1,859. On the other hand, within the framework of its initiatives to perform banking services in the neighboring geography, the Bank has recently signed a share purchase agreement to wholly purchase Joint Stock Company Bank Sofia that operates in Russia.
Concluding his remarks, Isbank's Chief Executive Officer, Mr. Ersin Ozince stated that "Isbank, continuing its healthy growth, possesses the required determination, discipline and banking experience within its structure. The Bank, taking significant steps in its region as well, with its current levels of high shareholders' equity will continue to progress towards its objectives."
* Isbank's bank-only and consolidated financial statements for 2010Q3 are available at:
http://www.isbank.com.tr/English/content/EN/Investor_Relations-548-363.aspx