Turkish participation banks' net profit up 55 pct in H1

By Gokhan Ergocun

ANKARA (AA) – Turkey's participation banks' net profit jumped 54.7 percent to reach nearly 1.2 billion Turkish liras ($290 million) in the first half of 2018, compared with the same period last year.

Five participation banks' total assets rose by 30 percent to reach 185.9 billion Turkish liras ($45.46 billion) during the January-June period, on a yearly basis, according to data compiled by an Anadolu Agency’s correspondent from Turkey's banking watchdog data, and independent audit reports.

Their deposits also jumped by 34.8 percent to 123.7 billion Turkish liras ($30.2 billion) year-on-year in the same period.

Loans issued by five participation banks rose by 32 percent to reach 111.1 billion Turkish liras ($27.15 billion) during the first six months of 2018, on a yearly basis.

Among five banks, Kuveyt Turk saw the highest net profit with 479.3 million Turkish liras ($117.2 million), up by 37.5 percent year-on-year in the first half of the current year.

While Turkiye Finans' net profit reached 203.9 million Turkish liras ($49.8 million), Albaraka recorded 196.2 million Turkish liras ($47.96 million) net profit.

State-run Ziraat and Vakif participation banks followed them with 151.3 million ($37 million) and 123.7 million Turkish liras ($30.2 million) net profit, respectively.

Participation banks' regulatory capital to risk-weighted assets ratio — a significant indicator to figure out minimum capital requirements of lenders — was at 15.99 percent as of June.

The total number of five banks' domestic and international branches was nearly 1,000, while they employ around 14,600 staff as of March.

Meanwhile, the Turkish banking sector — including all type of lenders — posted a 28.9 billion Turkish liras ($6.34 billion) net profit in the first half of 2018.

The total assets of Turkey's banking sector amounted to 3.67 trillion Turkish liras ($804.3 billion).

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