Last checked at 14 Feb 2011 18:08
14.02.2011TL 3.2 billion net profit from Isbank, with a 17 percent increase
Having gained TL 5.4 billion net interest income on a consolidated basis thanks to its efficient cost management despite the reduction in interest rates on loans, Isbank's net consolidated profit increased by 17% compared to the previous year, realizing at TL 3,232 billion. The CEO of Isbank, Mr. Ersin Ozince said, "Isbank, with the power of its strong financial structure, will continue its determination to pursue its healthy and profitable growth in domestic economy and in the neighboring geography, with an increasing pace".
Isbank, whose consolidated assets reached TL 151 billion, posted TL 3.2 billion net consolidated profit in 2010. Isbank strengthened its financial structure by raising its shareholders' equity to TL 19 billion and Isbank maintained its market leadership among private banks with its deposits amounting to TL 88 billion. Also, total loans, which the Bank managed to increase by 31 percent when compared to the previous year, reached TL 69 billion.
Mr. Ersin Ozince, CEO of Turkiye Is Bankasi, said in his written statement on 2010 results that; "Thanks to its healthy and profitable growth strategy, which it executed with determination, Isbank managed to increase both its consolidated assets and its net consolidated profit by 17 percent, compared to the previous year and with its TL 151 billion consolidated assets and TL 3.2 billion net consolidated profit the Bank strengthened its solid position in the sector".
Full support to the real economy
Making significant contribution to domestic economy by extending funds to the real economy, Isbank increased its consolidated loan portfolio by 31 percent, compared to the previous year. As the leading TL lender in the sector, Isbank's total consolidated loan portfolio reached TL 69 billion, TL 45 billion of which is TL lending and TL 24 billion is in FX lending. The increase in consumer loans, mainly driven by housing loans, and the growth in corporate and commercial loans contributed to the Bank's successful performance.
Successful performance in non-performing loans
While the consolidated NPL ratio, which was 5.1 percent at the end of the previous year, retreated to 3.4 percent, Isbank continued to provide 100 percent coverage for the non-performing loans. The successful performance in the management of non-performing loans made significant contribution to the considerable reduction in the Bank's NPL ratio.
Largest deposit base among private banks
Being one of the most trustworthy and prestigious companies with the highest brand values, Isbank continued to be the most preferred bank by the deposit holders, both with these qualities and with its customer oriented service approach.
Isbank increased its consolidated deposit base by 23 percent, which is beyond the increase in the sector, to TL 88 billion. 27 percent and 45 percent increase in TL savings deposits and TL commercial deposits respectively, were effective in the afore-mentioned development.
TL 3.2 Billion Net Consolidated Profit
Despite the pressure on the interest income coming from the decreasing interest rates on loans, having gained TL 5.4 billion net interest income on a consolidated basis thanks to its effective cost management, Isbank's net profit increased by 17% compared to the previous year, realizing as TL 3,232 billion. The 50% decrease in loan loss provisions due to the decrease in additions to NPLs and recoveries from NPLs were other elements affecting this performance.
Strong Capital Structure
In addition to the continuously improving profitability performance, gains in the market capitalizations of listed participations resulted in 24 percent of increase in the consolidated shareholders' equity of the Bank that reached TL 19 billion and helped to strengthen the financial structure.
Largest branch network among private banks
Continuing its investments in the country, Isbank's number of branches, which was 1,093 at the end of last year, reached 1,142 as of the end of 2010. This expansion in branch network was reflected to the number of employees, and the number of employees, which was 22,473 at the end of 2009, reached 23,944 as of the end of 2010. Thus, Isbank's contribution to the employment in the labor market during the global crisis in recent years, continued increasingly.
Steps taken in becoming a regional bank
With the results obtained, the Bank has achieved a financial structure that helps it with regional effectiveness. Within the context of the Bank's growth strategy in the neighboring geography which has high banking potential and potential for creating synergies, the share purchase agreement was signed for the full acquisition of Bank Sofia operating in Russia and the transfer process has been initiated. In 2010, the Bank opened a representative office in Egypt. The Bank will start to operate a branch in each of Iraq's Baghdad and Arbil cities, and initiatives regards to opening a representative office in Syria are about to be finalized.
In his evalution on the subject, Mr. Ersin Ozince, Isbank's Chief Executive Officer, said"Isbank, with the power of its strong financial structure, will continue its determination to pursue its healthy and profitable growth in domestic economy and in the neighboring geography, with an increasing pace".
* Isbank's bank-only and consolidated financial statements for 2010YE are available at:
http://www.isbank.com.tr/English/content/EN/Investor_Relations-548-363.aspx