Turkiye Gdr Rgs Regulatory News (TIBD)

15.02.2010Isbank's total assets were TL 128 billion 916 million and net profit was TL 2 billion 752 million on a consolidated basis, in 2009.

Isbank made TL 2 million 752 million net profit on a consolidated basis in the year 2009 with a 51% increase compared to 2008 and its total Assets on a consolidated basis reached TL 128 billion 916 million. Isbank maintained its leadership in TL loans in this period, too.

Isbank raised its shareholders' equity to TL 15.3 billion on a consolidated basis, at the end of 2009 and became the largest bank in the banking sector with regards to shareholders' equity.

With the 54 branches added to its service network in 2009, Isbank increased the number of its branches to 1,093 and despite the negative conditions in the economy, the Bank continued its policy of expanding its banking services with its faith in Turkey's future. Isbank, which continued to contribute to domestic employment, increased the number of its employees by 1,549 people in 2009 and raised it to 22,473.

Isbank, which keeps its efforts to create profitable assets without giving away prudence, raised its total assets to TL 128,916 million on a consolidated basis, with a 16% increase compared to the previous year.

Largest portfolio in TL loans

Due to the massive contraction in demand for loans in the year 2009 caused by the global economic crisis, which was effective throughout the world and in Turkey beginning from the second half of the year 2008, and in parallel with this contraction in demand, the increasing prudency in lending in the banking sector led to a significant decrease in the total loan growth. Isbank, which kept its leading position in TL loan portfolio despite the crisis conditions, raised its TL loan portfolio by 5% on a consolidated basis and successfully increased its total loans by 2%. The Bank's total loan portfolio as at the end of 2009 reached TL 52,760 million on a consolidated basis.

Although there was a significant increase in non-performing loans due to the crisis, Isbank continued with its 100 percent provisioning policy with the help of its solid financial structure.

Securities portfolio grew by 53 percent

Due to the contraction in demand for loans and the increase in risks, the asset growth was rather in the securities portfolio, as it was in the banking sector in general. Within this frame, in total assets, the share of securities portfolio, which grew by 53% compared to the previous year, increased from 27% to 35%.

Net interest income and consolidated operating income increased by 25% and 22%, respectively

Despite the increasing interest rate sensitivity due to rapidly decreasing interest rates, the Bank has succeeded in both keeping the funding costs at favorable levels and increasing its deposits, by taking costs into utmost consideration in the funding of assets. In this context, while increasing its total deposits by 14,4%, the Bank has also utilized other funding opportunities at a favorable cost through funding sources other than deposits, and increased its net interest income by 25% compared to the end of the previous year.

In addition to the improvement in net interest income; with the contribution of other income, the Bank increased its consolidated operating income by 22%. Finally, the net consolidated profit of the Bank as a result of its operations in 2009 increased by 51% compared to the end of the previous year, reaching TL 2,752 million.

Largest Shareholders' Equity

High profitability as well as the positive developments in valuation of the securities and participations portfolio, increased Isbank's consolidated shareholder's equity by 28%, reaching TL 15 billion 306 million, the largest shareholder's equity figure in the Turkish banking system.

Largest Private Bank in terms of the Number of Branches and Employment

The disclosure made by the Bank drew attention to the fact that, while the negative effects of the crisis on employment has been effective to an extent in the banking system as well, Isbank contributed to increasing employment in 2009, performing its social responsibility by returning back to the country what it has received from it. In this respect, Isbank increased its number of employees by 1,549, reaching a total number of employees figure of 22,473 in 2009, and continued with its contribution to the employment in the country.

With the 54 branches added to its service network in 2009, Isbank increased the number of its branches to 1,093 and despite the negative conditions in the economy; the Bank continued its policy of expanding its banking services with its faith in Turkey's future.

In the disclosure made by the Bank, it was said that "Isbank will continue to contribute to the growth of our country with its customers, shareholders, employees and partners and to grow in the upcoming period as well, like it had in 2009 and before. Isbank will continue to grow its operations in Turkey as well as in nearby countries in light of its strategic targets, by using its strong shareholders' equity based on its 85 years of knowledge, accumulation and shareholders' support, with respect to efficiency and prudency principles."

* Isbank's bank-only and consolidated financial statements for 2009YE are available at:

http://www.isbank.com.tr/English/content/EN/Investor_Relations-548-363.aspx