Last checked at 23 Aug 2010 09:17
13.08.2010 TL 1,802 Million Net Profit From Isbank In The First Half Of The Year
At the end of the first half of 2010, Isbank posted a net profit of TL 1,802 million with a year-on-year increase of 31%. Asset size of the Bank reached TL 124 billion at the end of the period.
In his written statement about the first half results, Mr. Ersin Özince, Isbank's Chief Executive Officer, said "In the first six months of the year, Isbank managed to grow its total assets to TL 124 billion, implying a 9% increase compared to the year-end. Whilst displaying such a successful growth performance, the Bank continued to increase its interest earning assets and posted satisfactory results in profitability as well as in growth." Isbank's Chief Executive Officer Mr. Ersin Özince also stated that the consolidated total assets of Isbank reached TL 140 billion and the consolidated shareholders' equity rose to TL 16 billion, which is the highest level among the private sector banks.
Biggest Lender in the Banking Sector
Isbank, considering the support given to the Turkish industry and trade as one of its most important missions since its establishment, increased its TL loans by 15% and FC loans by 24%, and as a result, its total loan portfolio reached TL 57 billion, with an above sector growth rate of 18%. Isbank increased its loan portfolio by 17% reaching TL 62 billion on a consolidated basis and became the market leader in loans with this successful performance. Together with the 22% increase in corporate and commercial loan portfolio, the 16% growth in housing loans, as a result of the continuation of the successful performance in this category also in the second quarter, played an important role in the afore-mentioned outcomes. While growing its loan portfolio, the Bank maintained its 100% provisioning policy for the non-performing loans.
Primary choice of depositors
Isbank reinforced its leading position among private sector banks in deposits by outperforming the sector growth to achieve a deposit volume above TL 80 billion, and continued to be the primary choice of the depositors. While growing its total deposits by 11% compared to the year end, the Bank's growth in TL deposits was realized at 21%, which is substantially higher than the sector growth.
Strong profit performance
Despite the pressure on the net interest income due to the rise in funding costs and the repricing of interest earning assets in the first half of 2010, the Bank, thanks to its increasing business volume, succeeded to increase its net interest income compared to the same period of the previous year. Having a decline in the amount of loans transferred to NPLs and achieving a successful performance in the collection of NPLs, the Bank increased its profitability with the contribution of other operating income. Having also increased its dividend income from equity participations, the Bank gained TL 1,802 million net profit on an unconsolidated basis and due to the elimination effect of the dividends collected during the period, gained TL 1,756 million net profit on a consolidated basis.
Growing Branch Network and Increasing Employment
Isbank, as well as transferring funds to real sector, continued to contribute to the domestic economy by creating job opportunities within the framework of its investments aiming to widen its branch organization. The Bank's number of branches, which was 1,093 at the end of the year, reached 1,119, and the number of its employees, which was 22,473, reached 23,665. On the other hand, Isbank continued with its initiatives in performing banking services in the markets it considers to be profitable in the neighboring geography. In this context, the Bank's representative office in Cairo was opened in June.
Concluding his remarks Mr. Ersin Özince, Isbank's Chief Executive Officer stated that "Isbank, with its shareholders' equity exceeding TL 16 billion, is determined to continue to pursue its sound and sustainable growth strategy with profitability by making the best use of its strong financial structure, in an effort to increase the shareholder value and support the domestic economy."
* Isbank's bank-only and consolidated financial statements for 2010H1 are available at:
http://www.isbank.com.tr/English/content/EN/Investor_Relations-548-363.aspx