Last checked at 12 Aug 2008 07:00
Isbank's Net Profit is TRY 1,153 million
Isbank has attained TRY 598 million net profit in the second quarter of the year and increased its half year profit by 51% compared to same period of the previous year and managed to raise its net profit to TRY 1,153 million.
In the first half of the year, Isbank increased its loan portfolio by 24% and reached TRY 42,152 million, as a result of a rational growth with adequate cost of funding and efficient asset generation capacity which highly depends on its extensive deposit base. With this result, Isbank's share of total loans in total assets reached 48% from 42% with 6 percentage points increase in the first half of the year. The increase in retail loans, at which Isbank adopted a selective growth strategy on funding and placements, was 15%, and the increase in commercial and corporate loans was 29% in total.
Mainly TRY saving deposits, which increased 15%, and the volume of deposits, which reached TRY 53,795 with 11% increase, contributed to Isbank's strong loan growth. With its deposit volume, Isbank has maintained its leading position among private banks. With these results, Isbank increased its share in total loans, as well as increasing the weight of cheaper and widespread deposits in total deposits.
Isbank, which pays utmost attention to the prudency and efficiency principles, without compromising for its asset quality in its lending policies as much as possible, managed to improve its NPL ratio to 3.7% from 4.2% at the end-of-2007, as well as its above sector loan growth rate. The Bank's first quarter performance was mostly driven by the development in the FX corporate loan portfolio. In the second quarter, the corporate and retail loans extended to the real sector contributed to preserving the yield balance and on the other hand helped to diverse credit risk to a larger customer base.
Isbank increased its interest income on loans 22% compared to the same period of the year 2007, while being able to keep the increase in cost of funding at a limited level despite the pressure of interest rates on cost of funding, which tends to increase in the second quarter of the year. Isbank's said performance contributed to a high level of increase like 34% in net interest income, reaching TRY 1,819 million. Maintaining its first quarter performance in commission income generating transactions in the second quarter, Isbank obtained TRY 603 million net commission income with 17% increase. In the light of the positive changes in its balance sheet, Isbank increased its profit generation capacity and its cost/income ratio realized at a very positive level of 38.8%.
Providing a balanced and sound growth by closely monitoring the risks on the domestic economy and markets arising from the global financial problems is crucial for the protection of the current state of both of the domestic economy and Turkish Banking sector. Isbank aims to continue its leading role with its responsible attitude for the good of the domestic economy by its recent efforts to become closer to its customers, who are the prior factor of the bank's success.
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