Albaraka Türk Katilim Bankasi (ALBRK) Q3 2024 earnings summary

Executive summary

• Delivered resilient profitability in Q3'24 despite tight monetary policy and high inflation, supported by effective cost and risk management.

• Total assets grew by 28% year-over-year to TL 297 billion as of September 30, 2024, with funded credit portfolio up 22.3% to TL 133.5 billion.

• Net profit for the nine-month period increased by 8.3% year-over-year to TL 2.7 billion, with a non-performing loan (NPL) ratio improvement from 1.65% to 1.45%.

• Funds collected through participation and special current accounts reached TL 196.4 billion, up 21.4% from the prior year.

Financial highlights

• Net profit for 9M'24 reached TL 2.7 billion, up 8.3% year-over-year.

• Net profit share income rose 12% YoY to TL 5.46 billion, while net fees and commissions income increased 56% YoY to TL 2.42 billion.

• Trading income/loss was negative at TL -247 million, compared to TL 3.37 billion in the prior period.

• Total assets grew 27.9% to TL 297 billion; funded credits increased 24.4% to TL 130.3 billion.

• Earnings per share reached TL 1.06564, up from TL 0.98420.

Outlook and guidance

• 2024 year-end guidance targets TL loan growth of ~20%, FC loan growth of ~30%, NPL ratio of 1.6-1.8%, and return on equity of 25-30%.

• Net profit share margin expected at ~3.8% for 2024.

• Management expects continued asset quality improvement and profitability, with a focus on digitalization and sustainability projects.

• The bank aims to maintain capital adequacy above regulatory requirements and further grow its participation banking market share.