Transcript info about islamic banking
June, 2011
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PROFILE
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SHAREHOLDERS
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PRODUCTS AND SERVICES
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FINANCIALS
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RANKING, INFO ABOUT ISLAMIC BANKING
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CONTACT DETAILS
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TFKB PROFILE
BEFORE MERGER
Family Finans operated with special finance house status with interest free banking principles between 1985 – 2005 owned by Ulker Group.
Anadolu Finans operated with special finance house status with interest free banking principles between 1991-2005 owned by Boydak Holding.
AFTER MERGER SALES PROTOCOL CURRENT STATUS WITH
Family Finans and Anadolu Finans merged under the name of Turkiye Finans after the approval of BRSA dd.28.12.2005.
Special Finance House gained the status of Participation Bank in 2005.
In 2008, as a part of NCB’s international expansion strategy, 64.68% share of Turkiye Finans was acquired by NCB whereas Ulker Group and Boydak Holding remained as strategic partners with 13.76% and 21.56% shares respectively.
TFKB with NCB partnership will continue its growth performance and prove to be more competitive in both national and international markests in the forthcoming period.
183 branches and 6 regional branches all over Turkey.
More than 500.000 individual and 20.000 corporate customers.
360.356 credit cards and 3404 employees.
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SHAREHOLDERS
The National Commercial Bank is the most prominent of Saudi banks and was the first bank established in Saudi Arabia (1953).
The Bank operated 280 branches throughout the Kingdom, dedicated exclusively to Islamic Banking services.
They have an OBU in Bahrain a branch in Beirut, a rep. office in each London, Singapore and Seoul. They are aiming to open a rep. office in China and to take over a bank in Egypt.
The credit rating of the bank has increased to A by Fitch Agency and A+ by Standard and Poors. NCB is the largest Bank in terms of capital in the Arab world. The Bank’s paid-up capital at year-end of 2009 is US$ 4,000 million.
Total assets at year-end 2009 totaled US$ 68,654 million.
Net profit for fiscal year 2009 totaled US$ 1,077 million.
Shareholders’ equity at year-end 2009 totaled US$ 7,806 million.
Founded in 1959
USD 3.4 billion turnover in 2008 USD 363 million export volume
More than 11.000 employees
22 Companies
Leader of Furniture, Home Textile, Cable Sectors Factories are located in Turkey (Kayseri and Bursa,) .
Founded in 1944
10,9 billion USD turnover in 2008, 1,3 billion USD exports and international operations’ revenue.
Employing around 29,500 employees at 68 companies and 53 factories, 10 of which are in abroad.
13 companies of Ülker Group are enlisted among top 500 industrial firms in Turkey.
Market leader in many sub segments of food and beverage industries and operating in packaging, IT, real estate sectors. 4
BOARD OF DIRECTORS
Mr. Mustafa BOYDAK Chairman Mr. V.Derya GURERK Board Member/ Chief Executive Officer Mr. Abdulkareem Abu ALNASR Vice Chairman Mr. Varol ŞENEL Board Member Mr. Brian Keith BELCHER Board Member Mr. Donald Paul HILL Board Member/ Head of Executive Committee Mr. Mehmet Atila KURAMA Board Member 5
64.68%
SHAREHOLDERS STRUCTURE
21.56% 13.76%
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SME Sectoral Packages and SME Financing
FX
Guarantee Support
Leasing
Profit/ Loss Participation
Franchising and Agricultural Loans Letter of Credits and Guarantees
PRODUCTS AND SERVICES
Personal Financing
Credit Cards
POS
Invoice Payments
Securities
Correspondent Banking
Exports/ Imports
Customer Transfers
Check Collection
ECA/SEP/GSM/ITFC Credits
Syndications
Project Financing
Consulting Services
Treasury Transactions
Internet Banking
Mobile Banking
ATM Banking
SMS Banking
E-Reminder Service
Telephone Banking 7
TRANSFORMATION PROJECT
CUSTOMER FOCUSED SERVICING EMPHASIS ON RISK MANAGEMENT AND COMPLIANCE OPTIMIZATION OF ALTERNATIVE CHANNELS
2010
ESCALATION OF TREASURY INSTRUMENTS ACTIVIZATION OF BRANCH NETWORK RE-DEFINITION OF JOB FAMILIES 8
TFKB FIGURES LAST 5 YEARS BY GRAPHICS ASSETS
14 000 12 000 10 000 8 000 6 000 4 000 2 000 0 5 577 7 104 8 679 9 953 12 315 2007 2008 2009 2010 2011-II ASSETS X 1.000.000 TL 1 800 1 500 1 200 900 600 300 0
SHAREHOLDERS' EQUITY
1 169 1 340 1 481 591 1 001 SHARE HOLDERS' EQUITY X 1.000.000 TL 2007 2008 2009 2010 2011-II
NET PROFIT
250 200 150 100 50 0 147 160 199 205 91 2007 2008 2009 2010 2011-II NET PROFIT X 1.000.000 TL 10 000 8 000 6 000 4 000 2 000 0 4 306 5 312
DEPOSITS
8 397 8 885 6 894 2007 2008 2009 2010 2011-II DEPOSITS X 1.000.000 TL
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TFKB FIGURES LAST 5 YEARS BY GRAPHICS
12 000 10 000 8 000 6 000 4 000 2 000 0 7 127
FOREIGN TRADE VOLUME
10 680 8 120 8 255 6 588 FOREIGN TRADE VOLUME X USD 1.000.000
2007 2008 2009 2010 2011-II
CAPITAL ADEQUACY RATIO
20 15 10 5 0 14,58 16,84 2007 2008 17,21 17,08 2009 15,03 2010 2011-II CAPITAL ADEQUACY RATIO %
FUNDING
12 000 10 000 8 000 6 000 4 000 2 000 0 4 665 2007 5 498 7 165 7 975 2008 2009 2010 9 434 2011-II FUNDING X 1.000.000 TL 5 4 3 2 1 0 2,3 3,3 4,1
NPL
3,0 2,6 2007 2008 2009 2010 2011-II NPL %
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FOREIGN TRADE VOLUMES FOR LAST 5 YEARS
300 250 200 150 100 50 0 212
CONFIRMED L/Cs
258 261 251 193 2007 2008 2009 2010 2011-II CONFIRMED L/Cs X USD 1,000,000
UNCONFIRMED L/Cs
600 500 400 300 200 100 0 297,6 307,7 340,4 459,2 272,5 2007 2008 2009 2010 2011-II UNCONFIRMED L/Cs X USD 1.000.000
140 120 100 80 60 40 20 0
COUNTER GUARANTEE L/Gs
117,2 108,8 90,9 59,3 42,4 COUNTER GUARANTEE L/Gs X USD 1.000.000
2007 2008 2009 2010 2011-II
DIRECT L/Gs
90 75 60 45 30 15 0 25,9 28,9 36,3 66,1 56,6 2007 2008 2009 2010 2011-II DIRECT L/Gs X USD 1.000.000
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110 000 100 000 90 000 80 000 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0
RANKING* AMONG PRIVATE BANKS IN TURKEY Asset Size in mio USD Profitability in mio USD
2 400 000 2 200 000 2 000 000 1 800 000 1 600 000 1 400 000 1 200 000 1 000 000 800 000 600 000 400 000 200 000 0
* ** As of December 2010 TFKB ranks 12th by assets *** TFKB ranks 11th by profitability
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TFKB BY NUMBERS
183 Branches all over Turkey More than 500.000 Deposit / Individual Customers More than 20.000 Corporate Customers 360.356 Credit Cards in Circulation 3.404 Employees
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OUR BRANCHES
Kastamonu Giresun İSTANBUL : 72 Branches + İstanbul Anadolu and Avrupa Regional Branches ANKARA : 15 Branches+Ankara Regioal Branch İZMİR : 5 Branches + İzmir Regional Branch ADANA : 4 Branches + Adana Regional Branch KAYSERİ : 20 Branches + Kayseri Regional Branch THROUGHOUT TURKEY: 183 Branches Mardin 14
AWARDS
“2007 BEST ISLAMIC BANK AND THE SERVICE PROVIDING INSTITUTION” BY ISLAMIC FINANCE NEWS MAGAZINE “2008 BEST ISLAMIC BANK IN TURKEY” BY GLOBAL FINANCE MAGAZINE 15
“2009 BEST ISLAMIC BANK IN TURKEY” BY ISLAMIC FINANCE NEWS MAGAZINE” BY GLOBAL FINANCE NEWS MAGAZINE” 16
INFO ABOUT ISLAMIC BANKING
Governing principles are based on the strict refrainment from interest, speculation, goods and services contradicting Islamic values.
Islamic Banking promotes risk sharing between provider of capital (investor) and the user of funds (entrepreneur). It also aims at maximizing profit but subject to Islamic sharia principles. Participation in partnership business is the fundamental function of the Islamic banks. So they have to understand their customer's business very well. The status of Islamic bank in relation to its clients is that of partners, investors and trader, buyer and seller. The Islamic banks have no provision to charge any extra money from the defaulters. Only small amount of compensation and these proceeds is given to charity. Since it shares profit and loss, the Islamic banks pay greater attention to developing project appraisal and evaluations. It gives due importance to the public interest. Its ultimate aim is to ensure growth with equity. Fund collection is a profit-loss sharing based mudarabah concept, clients may have to share in a loss position.
Funds are being collected through mudaraba and placed mainly through murabaha. The existence of a trade transaction is essential. Functioning of Islamic Banking requires to be an integral part of the real sector.
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ISLAMIC BANKING DEFINITIONS
Mudaraba
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Participation accounts can be considered as a version of a Mudaraba.
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Bank utilises the funds deposited by account holders, which are accumulated in a pool for specific business activities.
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Any profits earned are shared between the account holder and the bank, in proportion to an agreed ratio.
Murabaha
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Bank provides finance by purchasing the desired commodity from a third party and reselling it to the purchaser at a predetermined higher price (mark-up) payable in instalments.
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Under commodity Murabaha, subject goods are commodities traded at the exchange and there is no purchase of goods that could be subject to a financing.
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Asset remains in the ownership of the bank until the facility is paid in full.
Musharakah
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Relationship established under a contract by the mutual consent of the parties for sharing of profits and losses in the joint business.
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The Islamic bank provides funds, which are mixed with the funds of the business enterprise and others.
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All providers of capital are entitled to participate in management, but not necessarily required to do so.
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The profit is distributed among the partners in pre-agreed ratios, while the loss is borne by each partner strictly in proportion to respective capital contributions.
Sukuk
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The Islamic equivalent of a bond and the generally applied structure involves transfer of fixed assets by the borrower to the financier for on lease to the borrower.
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Sukuks represent proportionate beneficial ownership. For a defined period the risk and returns associated with the cash flows generated from the assets belong to the sukuk holder. The characteristics of a sukuk are similar to a conventional bond with the difference that they are asset backed.
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INTERNATIONAL FINANCIAL INSTITUTIONS CONTACT DETAILS
Mr. M.Fatih
BULAÇ
Head of Financial Institutions
Phone:+90 212 393 10 90 E-mail: [email protected]
Correspondent Banking Senior Area Manager
Phone:+90 212 393 1093
ayla.akman@turkiyefinans.
Mrs. Ozgen AKYOL
Area Manager
Ms. Ayla AKMAN Phone: +90 212 393 1091
ozgen.akyol@turkiyefinan s.com.tr
com.tr
Mrs. Zeynep SAGDIC
Senior Area Manager
Phone:+90 212 393 1096
zeynep.sagdic@turkiyefinan s.com.tr
Mr. Ahmet CORUMLUGIL
Area Manager
Phone: +90 212 393 1077
ahmet.corumlugil@turkiy efinans.com.tr
Mr. Harun BAYKARA
Asst. Vice President
Phone:+90 212 393 1097
harun.baykara@turkiyefina ns.com.tr
Investment Banking
Mrs. Yesim CETIN
Senior Area Manager
Phone:+90 212 393 1095
yesim.cetin@turkiyefinans.
com.tr
Mr. Erhan DEMIRTAS
Senior Area Manager
Phone: +90 212 393 1094
erhan.demirtas@turkiyefin ans.com.tr
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