Al Baraka Turk Participation Bank, because of its possession of extensive resources and a wide branch network, was able in 2012 to capitalize upon the circumstances arising from the world 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 27% to TRY 648.6 million in 2012. After deducting operating expenses, net operating income increased by 15% to TRY 303.3 million in 2012, while net income reached TRY 195.6 million (US$ 108.7 million) in 2012, an increase of 22% compared to 2011.
In 2012, the assets of the Bank increased by 18% to TRY 12.3 billion (US$ 6.9 billion) compared with TRY 10.5 billion in 2011. This increase was invested to finance the growth in financing and investments which increased by 23% to TRY 9.6 billion (US$ 5.4 billion) compared to previous year. This growth was financed by increasing the Bank’s range of investment products and branch network which led to an increase of 17% in customer deposits and equity of investment account-holders to reach TRY 10.6 billion (US$ 5.9 billion) in 2012, which funded 86% of the total assets of the Bank and which in turn reflects the Bank’s strong customer deposit base. The Bank also strengthened its shareholders equity by 22% to TRY 1.2 billion (US$ 689.3 million) as at the end of 2012.
“Given the difficult political and economic conditions prevailed the banks environment in 2012, we are very pleased with the excellent results that the Bank achieved in 2012. 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,” Chairman of the Board of Directors of Al Baraka Turk Participation Bank and President & Chief Executive of Al Baraka Banking Group Adnan Ahmed Yousif, said.
“With the continuing and steady growth of Al Baraka Turk Participation Bank over the past decade, the Bank has now passed the threshold of a small bank and can be said to qualify as a major player in the Turkish market,” Adnan Yousif, added.
“The Bank opened 15 new branches over the year brought the branch network up to a total of 137 branches, one of which – in Erbil, the fourth largest city in Iraq – is the first overseas branch to be opened by the bank. It also installed a further 15 ATMs to bring its countrywide ATM network up to 149 branches. Al Baraka Turkey intends to maintain its steady expansion, including 20 new branches a year over the next 4 years,” Adnan Yousif said.
“The Turkish economy grew by only 2.8% in 2012, compared with 9.0% in 2011, reflecting poor trading conditions with the eurozone countries. The rate of inflation was an estimated 8.9%, down from 10.4% and slowing steadily in the last few months of the year. The government’s medium term program for 2013-15 envisages a tighter fiscal policy, which should help to bring the current account deficit down. The Central Bank has meanwhile taken measures to ease monetary policy by lowering the upper band of its interest rates. These developments created challenging environment for the Bank’s operations in 2012,” Fahrettin Yahsi, Member of the Board of Directors and General Manager of Al Baraka Turk Participation Bank said.
“Al Baraka Turkey continued to expand the range of products and services as it seeks to meet changing customer needs. Participation accounts (denominated in Lira, US dollars and euros) are offered with a variety of different profit rates in relation to different maturities. Its current accounts enable easy utility payment either in branch or via its Internet and telephone banking services (to which it has recently added a mobile banking service). Its Albaraka WorldCard Shari’a compliant credit cards span a variety of classes, including a card especially for the use of Hajj and Umrah pilgrims, providing electronic access to their bank accounts whilst on Pilgrimage. Similarly, its ATM range addresses the needs of different customer (personal, professional and business) types. Other products include export credit agency programs and precious metals credits and trading accounts. As an authorized agent and member of the Turkish private pension system, it offers customers a variety of non-interest bearing pension funds as well as Shari’a compliant life insurance,” Fahrettin added.
Al Baraka Türk Participation Bank was established in 1985 and started operations in the same year. Al Baraka Türk currently renders its services through its 137 branches throughout Turkey and 1 branch in Iraq, 60 of which are in Istanbul and 76 in the leading industrial and commercial cities.