Isbank’s gross profit for 2004 exceeded trl 2.1 quadrillion
Chief Executive Officer of Isbank, Mr. Ersin Özince said “we are maintaining our position as the largest private bank in Turkey by widening the gap with our peers”, in his speech, evaluating the year 2004. According to inflation adjusted financial statements, Isbank’s net profit at the end of 2004 is TRL 635 trillion, and the gross profit is TRL 2,168 trillion before TRL 464 trillion of provision for taxes and TRL 1,069 trillion of other provisions. Evaluating the financial performance of Isbank in 2004, Chief Executive Officer, Mr. Ersin Özince made the following statements: “We are maintaining our position as the largest private bank in Turkey by widening the gap with our peers. The more unfair competition diminishes, the more we will be able to increase our market share and profitability. The asset size, which was USD 5 billion at the end of 1994, reached nearly USD 29 billion. In TRL terms, we have increased our total assets by 24% to TRL 38.5 quadrillion, compared to the previous year. Similarly, our total shareholders’ equity, which was USD 352 million ten years ago, grew 14 times bigger and exceeded USD 5.2 billion. Compared to the previous year, our shareholders’ equity increased by 36 % and exceeded TRL 7.6 quadrillion. Our capital adequacy ratio, which is the basic indicator of our strong, sound and reliable equity structure, has become 29.03% by the end of 2004. The proportional increase of Turkish Lira items in our balance sheet has continued throughout 2004 and the share of TRL items in total assets increased to 60%. Within this period, the share of interest earning assets in total assets have kept increasing and reached 77% of total assets. These improvements are factors that will create advantage regarding the low inflation and low interest rates, the importance of which will increase in the coming period.” Mr. Özince made the following evaluations on Isbank’s lending and deposit policies; “Isbank has carried on its efforts to finance the real sector in the year 2004 and increased its loan portfolio by 45% to TRL 12.5 quadrillion. We have maintained our policy of allocating 100% cash provision for non-performing loans (NPLs) also in 2004 and considering the collaterals for NPLs, we have preserved the hidden reserve created in this portfolio. On the other hand, compared to the previous year, the amount of total deposits increased by 24% reaching TRL 24.3 quadrillion, whereas the share of foreign currency deposits in total deposits decreased to 52% from 54%. The progress in deposits, achieved by our Bank, which has the highest amount of deposits with a clear distinction among private sector banks, is the most concrete indicator of the trust and loyalty to Isbank. We express our gratitude to all our fellow citizens who trust us.” Stating that successful results have been achieved in terms of non-interest earnings, which are gaining more and more importance as a result of narrowing interest margins, Mr. Özince continued his evaluations as follows; “In the year 2004, net commission income increased by 46% to TRL 709.5 trillion and contributed to Isbank’s profitability to a great extent. Our successful performance in 2004 has reflected on our year-end figures and our gross profit became TRL 2,168 trillion, and after provisioning of TRL 1,533 trillion, our net profit was TRL 635 trillion with an increase of 50% as compared to the year 2003. We strongly believe that Isbank, which produces the best returns and has the largest assets, deposits and shareholders’ equity in the private banking sector, will continue to increase its profitability and success in the process of development and change in the sector, through its high growth potential, its balance sheet, which was structured to achieve the maximum advantage also in the low interest rate environment, its capacity of creating non-interest income, its interest earning assets, most of which is in TRL and thus providing high spread, its low cost of funding, its widespread distribution network which will maximize the benefit from the development in the sector and the economy, and through its well-established loan culture and experience to pioneer the growth in the credit market. Our financial and industrial participations also contribute to our success with their increasing performances. During 2004, Isbank Group has also strengthened its position in Turkish economy as much as the Bank itself. Our target is to be the largest, most efficient and best bank, not only in Turkey but also in our region. Our target is to provide better service for Turkey, who believes us.”
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