Albaraka Türk Katilim Bankasi (ALBRK) Q2 2024 earnings summary

Executive summary

• Achieved 25.3% YoY and 105% QoQ net profit growth in 1H'24, reaching TL 1.87 billion, despite slow asset growth and rising funding costs.

• Maintained high asset quality and reduced cost of risk, with NPL ratio stable at 1.66%.

• Operational income declined 4.5% YoY due to a net trading loss, but core banking revenues grew strongly.

• Total assets increased by 15.7% to TL 268.6 billion as of June 30, 2024.

• The bank operates 225 branches (223 domestic, 2 foreign) and employs 2,725 staff.

Financial highlights

• Net profit reached TL 1.87 billion, up 25.3% YoY.

• Net profit share income rose 54% YoY; net fees and commissions income up 105% YoY.

• Total assets grew 15.7% YtD to TL 268.6 billion.

• Funded credits increased 10.4% YtD to TL 115.7 billion; collected funds up 11.0% to TL 179.6 billion.

• Net trading loss of TL 1.28 billion due to high swap costs.

Outlook and guidance

• Continued focus on maintaining asset quality and profitability amid high inflation and tight monetary policy.

• Expectation of moderate growth as monetary tightening and credit limits persist.

• Management expects continued asset quality improvement and digitalization investments.

• The bank aims to maintain sustainable profitable growth and strengthen its position in participation finance.