Turkey-based Yapi Kredi has reported a full
year net income of TRY2.25bn ($1.4bn), up by 45% from the previous
fiscal.
Total revenues grew 10% year on year to
TRY6.65bn.
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Yapi Kredi said that the solid growth was
driven by an 11% year on year growth in fees and commission income
to TRY1.74bn.
But the increase in revenue was overshadowed
by margin pressure as a result of the Turkish Central Bank’s cut in
interest fees.
Net interest income fell 8% to TRY3.56bn
following a declinein the net interest margin of 1.1 percentage
points to 4.6% at year-end 2010.
In fiscal 2010, the net interest income
contributed 54% to total revenues, down by 10 percentage points
from the previous fiscal. Yapi Kredi’s retail banking division grew
its revenues by 16% to TRY1.73bn.
At group level, total lending increased by 40%
to TRY54.2bn in the twelve months to 31 December; deposits rose 27%
to TRY55.2bn.
Retail loans accounted for 43% of the lending portfolio.
Provisions for loan losses at the bank fell by a third to TRY1.12bn
while the non performing loans ratio improved by 1.6 percentage
points to 3.7%.
The bank had total assets of TRY92.8bn as of
31 December, 29% higher than at year-end 2009.
Credit card fees accounted for 40.7% of total
fees and commission income, a decline of 4.4 percentage points from
the previous fiscal as a result of low interest rates implemented
by the Turkish Central Bank.
