Despite a decline in the pace of growth in the banking sector in 2014, Türkiye Finans surpassed the growth rates seen in both the sector and among participation banks. Türkiye Finans’ assets grew by 33% to TL 33.5 billion. The sector meanwhile recorded 15% growth with participation banks notching up 9% growth in the same period. Türkiye Finans increased its market share among participation banks from 26% to 32% in the space of the year.
Cash funds including financial leasing provided by the sector and participation banks in 2014 grew by 18% and 4% respectively. On the other hand Türkiye Finans recorded 33% growth in this area, with cash funds provided reaching TL 24.3 billion. The market share of Türkiye Finans increased to 1.9% in 2014 from 1.7% in 2013 while its share among participation banks rose from 27% to 34%. The share of Funds Supplied* in Türkiye Finans’ assets remained the same as in the previous year at 73%. For participation banks, this share decreased from 71% to 68%. Türkiye Finans sustained its rapid growth and outperformed both the sector and other participation banks in terms of asset quality. Türkiye Finans’ non-performing loan ratio stood at 2.4%.
Türkiye Finans increased its funds collected by %26 to TL 19.1 billion which is a better performance than the sector and participation banks. Funds collected in the sector and participation banks grew by 11% and 6%, respectively in the same period. Türkiye Finans’ market share in funds collected was realized at 1.8% in 2014.
While the supplied funds/collected funds ratio in all banking groups in the sector was within a 110-120% bracket, Türkiye Finans posted a 127% ratio as of the end of 2014.
Türkiye Finans’ equity increased by 25% to TL 3.2 billion. Its average return on equity was realized at 11.8%
While attaining a high level of growth, Türkiye Finans did not compromise on profitability, booking net income of TL 334 million in the year.
Türkiye Finans realized its target of 30 branch openings and reached a network of 280 branches. The Bank became a team of around 4,500 people by the year-end.
Installation limit on credit cards and increase in down payments in vehicle purchases with loan raised the demand for consumer loans. Depending on change in legislation, while consumer loans in the sector were growing by 11%, Türkiye Finans expanded its consumer loan volume by 250%. In contrast with the 20% contraction in vehicle loans in the sector, Türkiye Finans posted 10% growth in this area.
With its performance in 2014, Türkiye Finans stood out, enhancing its position in the sector and among participation banks.
By the end of 2014, Türkiye Finans outperformed the sector as a whole and participation banks in terms of assets, securities, funds supplied, funds collected, equity and profitability. The Bank increased its market share in related financials.
An NPL ratio lower than the sector and the average among participation banks.
Türkiye Finans achieved a more rapid increase in efficiency than both the sector and the average among participation banks, with 16% growth in funds supplied and collected per branch, even though the Bank’s rate of branch openings was higher than the sector. This success was derived from the following: effective human resources, innovative products designed to meet customers’ needs, and a continuous improvement in service quality.
In an Extraordinary General Assembly Meeting held on 29 August 2014, the decision was taken for Türkiye Finans, Turkey’s leading participation bank, to increase its capital from TL 1,775 million to TL 2,600 million. Türkiye Finans aims to contribute to employment by opening new branches with the resources provided through the capital increase. A total of TL 600 million of the increased capital was covered through bonus issues from legal reserves set aside in line with General Assembly’s decision, while TL 225 million was covered in the form of cash from shareholders.
Türkiye Finans has launched large murabaha syndicated loans in the participation banking sector over the last two years. This is an indication of the international financial markets’ trust in our country’s economy and in Türkiye Finans in particular. A total of 21 banks from 12 countries participated in the syndicated loan which has maturity of 1 year and was carried out on 30 June. As a result, a Murabaha Syndicated Loan of USD 350 million (USD 253.5 million and EUR 72 million) was obtained.
Türkiye Finans, which is the first participation bank in Turkey to have issued lease certificates to finance the real sector, is determined to enhance its position with new issuances. Within this context, a total of TL 102.5 million in lease certificate issues to three corporate customers was undertaken in 2014. Türkiye Finans is aims to introduce the lease certificate, a new and reliable funding method, to corporate customers by supporting them in issuances. We also aim to continue contributing to our country’s economy by creating an important market in this area. Türkiye Finans is highly confident that it content about creating another product through which the Bank will diversify its support offered to the real sector widely with a strong capital structure.
*Funds supplied, include “net non-performing loans”, “ Profit-share and revenue recognition rediscount” and “net financial leasing receivables”
Download PDF