By Gokhan Ergocun
ISTANBUL (AA) – Turkey's participation banks’ net profit jumped 62 percent in the first 9 months of 2018 compared with the same period last year.
The net profit of Kuveyt Turk, Albaraka, Turkiye Finans, Ziraat and Vakif banks amounted nearly 1.89 billion Turkish liras ($411 million), according to data compiled by Anadolu Agency from Turkey's banking watchdog data, and banks' unconsolidated balance sheets.
Five participation banks' total assets rose by 43.3 percent to reach 212.6 billion Turkish liras ($35.34 billion) as of September on a yearly basis.
Their deposits also jumped by 42.9 percent to 139.6 billion Turkish liras ($23.2 billion) as of September compared with the same month last year.
Loans issued by five participation banks rose by 32.3 percent to reach 120.38 billion Turkish liras ($26.2 billion) during the first 9 months of 2018 on a yearly basis.
Among five banks, Kuveyt Turk saw the highest net profit with 667.74 million Turkish liras ($145.47 million), up by 20.4 percent year-on-year in the first three quarter of 2018.
While Albaraka's net profit reached 372 million Turkish liras ($81 million), Turkiye Finans recorded 315.6 million Turkish liras ($68.76 million) net profit.
State-run Ziraat and Vakif participation banks followed them with 242 million ($52.7 million) and 223.17 million Turkish liras ($48.6 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 17.91 percent as of September.
The total number of five banks' domestic and international branches was 1,093, while they employed around 15,557 staff as of September.
Meanwhile, the Turkish banking sector — including all type of lenders — posted a 42.17 billion Turkish liras ($7 billion) net profit in the 9-month period.
The total assets of Turkey's banking sector amounted to 4.2 trillion Turkish liras ($705.24 billion).
The average of the U.S. dollar/Turkish lira exchange rate was 4.59 in the first 9 months of 2018, and 6.09 in the end of September.
