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Sunday, 23 March 2008

Albaraka Turk Participation Bank - Banking on Success

(Gulf Daily, 23 March 08)

MANAMA: Albaraka Banking Group said its Turkish unit plans to expand its operations after posting a 31 per cent increase in last year's net income.

Albaraka Turk Participation Bank's net income surged to $65.48 million from $50.04m in the same period in 2006, the group said yesterday.

Albaraka Turk's total assets rose 80pc to $3.15 billion last year with the main contributors being Murabaha Sales Receivables, Ijarah Muntahia Bittamleek, investments and Liquid Assets.
These increases were financed by increases in customer deposits as a result of expanding the bank's branch network and the range of its products and investment offerings.

Customer deposits and unrestricted investment accounts rose 69pc to $2.56bn, it said.
The bank plans to add 100 branches by the end of this year, after adding 17 branches last year.
Last year, Turkey's smallest Islamic lender sold shares in an initial public offering that raised $5.4bn and was 32 times oversubscribed.

Albaraka Turk's equity surged by 164pc and and deposits by 69pc last year, the bank said following the conclusion of its ordinary general meeting, which approved the financial statements for the year.

"The bank also continued to expand its operations by opening a large number of branches and launching a number of new high-quality Sharia-compliant investment and financing products and services," the bank said.

"This had a very positive impact on the income from all operations especially the income from jointly financed accounts and investments as well as the income from the bank's own financing and investment operations.

The bank's operating income increased from $144.18m in 2006 to $189.13.
Albaraka Turk chairman and Albaraka Banking Group (ABG) president and chief executive Adnan Ahmed Yousif said we are very pleased with excellent results that the bank achieved last year.
"Such excellent performance was the result of the hard work of the executive management and all the employees of the bank as well as the strong support that the parent company (ABG) extends to its subsidiary banks, which helped to consolidate the bank's position in the Turkish market."

He added that Turkey was considered as one of the key markets for the group because of the variety and abundance of economic activities and huge promising opportunities that it offers.

Albaraka Turk board member and general manager Dr Adnan Buyukdeniz said the bank's branch network was witnessing rapid expansion as 20 more branches were added to the network in 2006 followed by a further 17 branches last year, ending the year with 80 branches in total.

"The bank intends to add 100 more branches by the end of this year each with its own ATM for customer use."

Dr Buyukdeniz added that the rapid growth in retail banking had been mirrored by a similar increase in the area of alternative distribution channels, with the number of Internet banking customers increasing by 43pc in 2006 to nearly 37,000 last year and that of telephone banking customers rising by 46pc to nearly 17,000.

The bank also intends to maintain the current rate of ATM network expansion. It also completed the enhancement of its IT Centre Security and Fire Security, ensuring continuous on-line service to its customers, in addition to further investments in power supply sources and disaster management.
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