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14 Aug 2009 07:00
13.08.2009 Isbank posted the highest consolidated profit among private banks in the first half
Isbank posted TL 1,471 million net profit on a consolidated basis, reaching a total assets figure of TL 118,986 million
Ersin Özince, the Chief Executive Officer of Isbank, said in his statement, "Isbank strengthened its position as the largest private bank in Turkey as a result of its growth performance in spite of the economic contraction, due to its selective approach in asset creation."
On a consolidated basis, Isbank has increased its asset size by 7% and shareholders' equity by 12.8% in the first half of 2009, and its net profit by 20.8% compared to the same period of last year.
Isbank continued to be the most preferred private bank for deposit holders during the economic downturn, and managed to increase its consolidated deposits by 5.4%.
With its 1074 branches, and 22,027 employees, Isbank maintained its title as the largest private bank in terms of branch and employee number.
Ersin Özince said the following in his statement:
"In the first six months of 2009, during which the impacts of the global crisis were highly prominent, Isbank successfully maintained its strategy of profitable growth and increased its consolidated assets by 7% over the year-end to TL 118,986 million, and its consolidated shareholders' equity by 12.8% to TL 13,521 million. The Bank delivered TL 1,471 million net profit in the first half of the year on a consolidated basis, reflecting 20.8% growth compared to same period of the last year.
Isbank strengthened its position as the largest private bank in Turkey as a result of its growth performance in spite of the economic contraction, due to its selective approach in asset creation.
Isbank, which managed its loan portfolio by putting more emphasis on prudency under the conditions of crisis, kept the portfolio at TL 50,114 million level on a consolidated basis. On the other hand, the strong financial structure of the Bank enabled it to retain its 100% provisioning policy against non-performing loans, which grew only by 12.5% in the first half of the year.
Isbank has the highest deposit market share among private banks
Isbank, which continued to be the most preferred private bank for deposit holders during the economic downturn, managed to increase its consolidated deposits by 5.4% to TL 66,358 million. The 5.6% growth in TL saving deposits contributed to the continuous expansion of the deposit base. The Bank made use of non-deposit funding sources and secured a dual tranche syndicated loan of USD 255 million and EUR 225 million with a maturity of one year and an extension option of one year, at the most convenient cost. The credit, which was obtained with the participation of 28 banks from 14 different countries in a period of tight borrowing conditions, has been an indicator of the trust in the Bank in the international market, while on the other hand, the credit agreement signed with the European Investment Bank for EUR 250 million was another development during the period, which confirmed the international position of the Bank.
23.7% increase in gross profit
In the first half of the year, with 23.7% increase compared to the same period of the previous year, Isbank generated TL 2,794 million gross profit on a consolidated basis. With 22.3% increase, the Bank's consolidated net interest income reached TL 2,744 million. The strong contribution of the participations, which sustained their profitability despite all kinds of negative conditions caused by the crisis, especially during the second quarter of the year, helped the Bank to report a consolidated profit of TL 823 million in the second quarter and TL 1,471 million in the first half of the year. With this performance, Isbank has posted the highest profit on a consolidated basis among private banks.
Largest private bank in terms of branch and employee number despite the crisis
Despite the crisis, the Bank opened branches in the markets, which it deemed profitable and endeavored to expand its branch network. The number of branches, which was 1,039 at the end of the year, reached 1,074 in the first half. As a result of staff hiring in the first and second quarters, the Bank increased its number of employees from 20,924 to 22,027 in the related period; thus, it did not only transfer funds to the domestic economy, but also continued to support it by creating new job opportunities.
The Bank will make every effort to grow its activities in a profitable and healthy manner in the coming period, without overlooking the prudency required in the crisis conditions. Isbank, which combines its strong financial structure with its banking tradition, believes that it will obtain the support, which is needed to implement this strategy by the determination of its employees, the interest from its customers and the trust of its shareholders."
* Isbank's bank-only and consolidated financial statements for 2009H1 are available at:
http://www.isbank.com.tr/English/content/EN/Investor_Relations-548-363.aspx
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