Al Baraka Turk Participation Bank’s NOI rises by 18pc

Manama : The Net Operating Income (NOI) of Al Baraka Turk Participation Bank, a subsidiary banking unit of Al Baraka Banking Group B.S.C. (ABG), increased by 18 per cent in the first half of 2016 compared to the same period of 2015.

It also increased its equity by 4pc and financing and investments by 3pc at the end of June 2016 compared to the end of December 2015.

The financial results of the bank for the first half of 2016 showed an increase in total operating income by 19pc to TRY635 million compared to the same period in 2015. After deducting operating expenses, net operating income increased by 18pc to TRY270 million, but due to large increase in precautionary provisions as a result of general financial and economic conditions, the net income decreased by 12pc to reach TRY128million for first half of 2016.

As at the end of June 2016, the assets of the bank reached TRY29.4 billion, almost the same level of December 2015. Financing and investments portfolio increased by 3pc to TRY22 billion at the end of June 2016 compared to December 2015. While customer deposits decreased marginally by 2pc to reach TRY21.5 billion during the same period. The bank also strengthened its shareholders equity by 4pc to TRY2.2 billion as at the end of June 2016 compared to December 2015.

On this occasion, 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: “Given the difficult political and economic conditions prevailed in the previous period, we are very pleased with the excellent results that the bank achieved in first six months of 2016. 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.”

“The bank follows a strategy of expansion in the Turkish market through opening new branches in main areas and cities in Turkey in order to diversify customer base on one hand and to reach a wider classes of investors and borrowers, where branch network reached 213 at present, with a commensurate expansion of its ATM network to 257. 

“The bank also introduced a number of new products aimed at its commercial clients, including a supplier payment system and a suite of products geared to the food industry, once again expanding its already extensive product range, which includes a wide variety of consumer financing options, commodity and precious metal trading and savings and merchant financing supportive schemes,” he added.

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.”

“During the previous period, 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,” he added.