History of Isbank Directors of Isbank Participations News On Isbank Annual Reports

Isbank’s financials for the year 2006 have been released. In the year 2006, Isbank managed to raise its asset size to TRY 75,205 million, its net profit to TRY 1,109 million and its gross profit to TRY 2,540 billion.

Isbank maintained its stable growth together with profitability and increased its total assets by 18% compared to previous year. Isbank has become the biggest bank in the sector, in terms of asset size. Mr. Ersin Ozince, the Chief Executive Officer of Isbank, made the following statements regarding the performance of the Bank in the year 2006: “In the first half of the year 2006, the increasing interest rates due to the fluctuations in the financial markets caused contractions in the demand for loans and negatively effected the profitability of interest-sensitive financial instruments due to the increase in the cost of funding. In addition to these negative factors in the macroeconomic environment, there have been some changes in the banking regulations, which effected the financial statements. The additional provisions and adjustments made on the financial statements as of 31st December 2006, in order to adapt the financial statements to the Turkish Accounting Standards in accordance with the international standards, had a negative effect on the profitability. Despite all these negativities, our Isbank managed to gain TRY 1,109 net profit.

Isbank continued its stabile growth by increasing its total assets 18% to an amount exceeding TRY 75 billion. With its loan portfolio, which increased 36% and reached TRY 29,818 million, Isbank improved its loan quality compared to the previous year and continued to transfer increasing amount of funds to the economy. In the same period, due to its customers’ trust, Isbank sustained its leading position among private net interest income banks with its total deposits reaching TRY 46,399 million, with an increase of %25. The growth in Isbank’s deposit volume is more evident in TRY denominated deposits. Thanks to its widespread deposit base, a growth rate of 37 % was achieved in terms of TRY denominated deposits.

As the biggest financial company in the region, with its capital power and shareholders’ equity, Turkiye Is Bankasi ended the year 2006 with a shareholders’ equity of TRY 9,140 million and capital adequacy ratio of %24 and maintained its strong capital structure. In 2006, Isbank gained TRY 2,521 million net interest income. By maintaining its non-interest income generation capacity in 2006, Isbank raised its net fees and commissions income to TRY 1,045 million with an increase of %17. Isbank will continue its growth with stability also in the forthcoming years and will realize its claim of being the regional power as the biggest bank of Turkey.”

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