|
Albaraka Turkish Finance House (ATFH) was established pursuant to the decision of Council of Ministers No. 83/7506 dated 16 December 1983, and commenced operations on 21 January 1985. Issued capital of Turkish Lira (TRL) 9,000 Billion (US$16.589 million) is fully paid up and owned by 276 individual and institutional shareholders of whom 78% are resident in the Gulf. The Company has six branches in Istanbul, two in Ankara and thirteen in other major Turkish cities. The Year in Brief Despite a real contraction in the Turkish economy during 1999, ATFH performed reasonably well in 1999. In a year when GNP performance was one of the two worst for 20 years, there was real growth in the deposit base (over the inflation rate). Total deposits increased by 73% from TRL 193,795 billion in 1998 to TRL 335,525 billion in 1999. Only 10% of these deposits are denominated in TRL, the balance being in USD and DEM. Total Assets grew by 70% from TRL 219,945 billion in 1998 to TRL 373,569 billion in 1999 of which amount advances were TRL 309,940 billion in 1999 (1998: TRL 181,577 billion). Profit for 1999 was TRL 5,908 billion (US$10.89 million), up 36% from the 1998 figure of TRL 4,354 billion. Expenses (other than profit sharing) were higher at TRL 8,027 billion, up 66% (1998: TRL 4,834 billion). Ratio of Expenses to Net Profit was 53.33% (1998: 49.84%). At the end of 1999, interest-free banking institutions in Turkey became subject to the Banks Act, acquiring stronger legal status and leading to the need for additional capital. ATFH will therefore raise paid-up capital from TTL 9 trillion to TRL 20 trillion over the next two years Business Highlights Funds under Management: Two distinct types of account are available. Current accounts, without payment of interest provide a basis for a number of conventional banking products, while Participation accounts, with terms of 30, 90, 180, 360 days or longer can be general-purpose, utilised in trade finance, financial leasing or project financing or specific purpose, used to finance a specific project or transaction. In 1999, all funds under management were allocated directly to productive activities of companies in the economy. Balance of placements was TRL 309,940 billion, with 51% placed in trade financing (Murabaha placements), 30% in profit and loss sharing projects and 19% in leasing activities. Murabaha placements increased by 59% to TRL 158,085 billion, profit and loss sharing projects by 30% to TRL 93,999 billion and leasing transactions by 40.4% to TRL 57,856 billion. Foreign Exchange: Transactions ATFH operates 55 accounts with foreign banks in 13 different currencies. Foreign currency transactions during the year totalled US$1,304 million, 6.9% up from 1998 (US$1,220 million). Of the 1999 total, US$596 million related to trade and placement transactions, the balance to dealing room activities. Profit Distribution to Depositors: A weighted index 'unit value' is calculated for each participation pool each week. This is determined by dividing the total value of assets in each participation pool to the total account value of the preceding week. |
      |
|