Net Profits of Al Baraka Turk Participation Bank Rise by 16% in first nine months of 2015
Al Baraka Turk Participation Bank, a subsidiary banking unit of Al Baraka Banking Group B.S.C. (ABG), announced that it had achieved a large increase of 16% in its net profit in the first nine months of 2015 compared to the same period of 2014. It also increased its equity by 10%, total assets by 27%, deposits by 23% and financing and investments by 20% at the end of September 2015 comparing to the end of December 2014.
Al Baraka Turk Participation Bank, because of its possession of extensive resources and a wide branch network, was able to expand its investment and financing portfolio, which was reflected positively on all income sources. As a result, the financial results of the Bank showed an increase in total operating income by 20% to TRY 862 million for the first nine months of 2015 compared to the same period in 2014. After deducting operating expenses, net operating income increased by 12% to TRY 265 million, while net income reached TRY 212 million (US$ 70.6 million $1=3 TRY) for first nine months of 2015, an increase of 16% compared to same period in 2014.
As at the end of September 2015, the assets of the Bank increased by 27% to TRY 29.2 billion (US$ 9.7 billion) compared with TRY 23 billion in December 2014. This increase was invested to finance the growth in financing and investments which increased by 20% to TRY 21.1 billion (US$ 7 billion) at the end of September 2015 compared to December 2014. This growth, in turn, was financed by increasing the Bank's range of investment products and branch network which led to an increase of 22% in customer deposits and equity of investment account-holders to reach TRY 20 billion (US$ 6.8 billion) at the end of September 2015, which funded 70% of the total assets of the Bank, reflecting the Bank's strong customer deposit base. The Bank also strengthened its shareholders equity by 10% to TRY 2 billion (US$ 657 million) as at the end of September 2015 compared to December 2014.
On this occasion, Chairman of the Board of Directors of Al Baraka Turk Participation Bank and President & Chief Executive of Al Baraka Banking Group Mr. Adnan Ahmed Yousif said: "Given the difficult political and economic conditions prevailed the banks environment in the previous period, we are very pleased with the excellent results that the Bank achieved in first nine months of 2015. Such excellent achievements were the result of the hard work of the executive management and all the employees of the Bank as well as the strong support that the parent company (ABG) extends to its subsidiary banks, which helped to consolidate the Bank's position in the Turkish market. Turkey is one of the key markets for the Group because of the diversity and abundance of economic activities and huge promising opportunities that it offers".
Mr. Adnan Ahmed Yousif said "The Bank opened 8 new branches over the past nine months, which brought the branch network up to a total of 210 branches. Al Baraka Turkey intends to maintain the momentum of the present rate of branch expansion by opening new branches in accordance with its current plan to establish a network of 300 branches by 2018. Its ATM network is set to expand by a similar order of magnitude".
For his part, Dr. Fahrettin Yahsi, Member of the Board of Directors and General Manager of Al Baraka Turk Participation Bank said: "The bank's product range was again enhanced, with the introduction of finance packages tailored to the needs of small businesses (micro-finance), e-participation accounts, cumulative participation accounts and financing facilities to professionals and social housing.
He added " During the month of June 2015, Al Baraka Turk Participation Bank launched the new core system for its banking business, which connects directly and online the businesses of all its branches. The new system provides a lot of technical and operational features that improve the quality and speed of banking services provided to customers. The project was accomplished in record time of less than two years and it is considered the first of its kind in the Turkish banking industry and at the same time the system is compatible with the principles of Islamic banking. The cost of the project amounted to US $ 11 million."
"During September 2015, Al Baraka Turk Participation Bank concluded successfully a syndicated Sharia compliant Murabaha financing, raising a total of US$ 450 million (US$ 278 million and EUR 154.5 million). A number of 16 famous international banks from 11 countries participated in the facility covering all main world financial centers. We are indeed delighted at the large success of the syndicated Murabaha financing deal, despite the volatile financial markets and international economic situation, which endorses the reputation of Al Baraka Turk Participation Bank and its distinguished position in the Turkish market, based on the strength of its financial position and growing performance over the past many ears, as well as the distinguished reputation and position of the parent company, Al Baraka Banking Group, regionally and internationally" Dr. Yahsi said.
Al Baraka Banking Group (B.S.C) is licensed as an Islamic wholesale bank by the Central Bank of Bahrain, listed on Bahrain Bourse and Nasdaq Dubai stock exchanges. It is a leading international Islamic banking group providing its unique services in countries with a population totaling around one billion. It is jointly rated BBB+ (long term) / A3 (short term) on the international scale and A+ (bh) (long term) / A2 (bh) (short term) on the national scale with a Stable outlook by Islamic International Rating Agency & Dagong Global Credit Rating Company Limited, and by Standard & Poor's at BB+ (long term) / B (short term) with a Stable outlook. Al Baraka offers retail, corporate, treasury and investment banking services, strictly in accordance with the principles of the Islamic Shari'a. The authorized capital of Al Baraka is US$ 1.5 billion, while total equity is at about US$ 2 billion.
The Group has a wide geographical presence in the form of subsidiary banking units and representative offices in fifteen countries, which in turn provide their services through over 579 branches. Al Baraka currently has a strong presence in Turkey, Jordan, Egypt, Algeria, Tunisia, Sudan, Bahrain, Pakistan, South Africa, Lebanon, Syria, Iraq and Saudi Arabia, including two representative offices in Indonesia and Libya.