Al Baraka unit profit surges 19pc in 2011
Manama, April 4, 2012
Al Baraka Turk Participation Bank, a subsidiary banking unit of Bahrain-based Al Baraka Banking Group (ABG), said its net profit surged 19 per cent in 2011.
It also increased its equity by 19 per cent, total assets by 24 per cent, deposits by 25 per cent and financing and investments by 16 per cent in 2011.
As a result of the repercussions of the global economic crisis and sovereign debt as well political developments surrounding Turkey, 2011 was full of economic and financial challenges in the Turkish market.
However, Al Baraka Turk Participation Bank, because of its ability to deal effectively with these challenges and its possession of extensive resources and a wide branch network, was able to capitalise on the circumstances arising from the crisis to expand its investment and financing portfolio and at the same time strengthen its liquid assets to enable it deal with all possibilities.
As a result, the financial results of the bank showed an increase in total operating income by 25 per cent to 530.9 million Turkish lira ($298.8 million) in 2011.
After deducting expenses, provisions and taxes, net income increased by 19 per cent to $96 million in 2011.
Assets increased by 24 per cent to 10.5 billion Turkish lira compared with 8.4bn Turkish lira in 2010.
This increase was invested to finance the growth in financing and investments which increased by 16 per cent to $4.1 billion compared to previous year.
Net income increased by 6 per cent to reach $28.3 million in fourth quarter of 2011 compared with the same period of the previous year as a result of 30 per cent growth in total operating income.
'Given the difficult political and economic conditions and banks environment in 2011, we are very pleased with the excellent results the bank achieved in 2011,' Al Baraka Turk Participation Bank chairman and ABG president and chief executive Adnan Ahmed Yousif said.
'Such excellent achievements were the result of the hard work of the executive management and all employees of the bank as well as the strong support that the parent company ABG extends to its subsidiary banks, which helped consolidate the bank's position in the Turkish market.
'Turkey is one of the key markets for the group because of the diversity, abundance of economic activities and huge promising opportunities that it offers,' he said.
'With the continuing and steady growth of Al Baraka Turk Participation Bank over the past decade, it has now passed the threshold of a small bank and can be said to qualify as a major player in the Turkish market,' he added.
'The bank benefited from the good performance of the Turkish economy, which remained strong in 2011, recording a GDP growth rate of 7.5 per cent compared with 8.6 per cent in 2010,' Al Baraka Turk Participation Bank general manager and board member Fahrettin Yahsi said.
'Inflation was down at 5.9 per cent compared with 8.64 per cent the previous year. Products under development during 2012 include Silver current accounts and Gold participation accounts carrying additional benefits to holders, export credit agency programmes and precious metals credits and trading accounts,' he said.
'It also intends to initiate mobile banking, introduce a Platinum card and set up an investment fund. It will continue to expand its network, aiming to open 20 new branches a year over the next four years,' Yahsi added. – TradeArabia News Service