Odeabank Continues to Grow Sustaining its Profitability​

Odeabank keeps its sustainable growth performance while increasing its profitability. Odeabank increased its net profit by 149% compared to the same period of last year, to 150.3 million TL. Odeabank’s net assets have reached to 37.4 billion TL, total loans to 26.8 billion TL, deposit size to 28.4 billion TL.

Odeabank’s net profits which were 60.3 million TL in the first half of last year, have increased to 150.3 million TL in the first half of 2017. These net profit results represent an ROE of 8.5%.

57.1 million TL of net profits were realized in the second quarter of 2017.

At end-June 2017 total assets were 37.4 billion TL, total loans 26.8 billion TL, total deposits were around 28.4 billion TL. Loans to deposits ratio was 94.4%.

As per Basel III Odeabank has 16.0% CAR ratio and 13.1% CET1 ratio.

Commenting on the 2017 Q2 financial results, Odebank General Manager Hüseyin Özkaya has said:

“We are continuing our strong financial performance in the second quarter of the year as well. We have succeeded to double our profitability in the first half of 2017 compared to the same period in 2016. In the meantime we have strengthened our capital ratios. As Odeabank we have also received inaugural Ba3 credit rating from Moody’s and BB- rating from Fitch. We have continued to support Turkey’s economic growth in the second quarter by extending more than TL 1.2 billion loans under the Credit Guarantee Fund scheme. Odeabank is committed to contribute to Turkey’s economic growth by supporting creation of value added in Turkish economy with support of our stakeholders in the coming period.”

Notes:

• Following a period of heightened political uncertainties due to the referendum in April 2017, the economic and financial landscape in Turkey continues to improve with strong signs of an economic upturn. GDP grew in real terms by 5% in the first quarter of the year, We have accordingly made an upward revision of growth estimates for 2017 and 2018. Within this context, the banking sector activity increased in the second quarter. Loan growth accelerated following the implementation of Credit Guarantee Fund (CGF) during the second quarter, when coupled with CBRT’s tight liquidity policy, resulted in a sharp increase in the cost of deposit.
• Odeabank achieved, in the second quarter of 2017, TRY 57.1 million of net profits after provisions and taxes, raising net profits to TRY 150.3 million in the first half of 2017, as compared to TRY 60.3 million the first half of 2016, representing a growth of 149%. This performance is mostly attributed to a sustained interest income and net commission income generation, despite pressures on spreads witnessed in the second quarter of 2017 as a result of the surge in the cost of deposits in the second quarter of 2017. After the allocation of TL 129.5 million of net loan loss provisions in the first half of 2017, credit cost ratio reached 1.0% of net loans over the first half of 2017.
• Total assets of Odeabank reached TRY 37.4 billion at June-end 2017, increasing by 20.6% compared to the same period of 2016 when it was TRY 31 billion, as a result of controlled growth. In parallel, total loans increased from TRY 21.9 billion at June 2016 to TRY 26.8 billion. Total credit exposure to customers is reaching TRY 29.5 million when including non-cash facilities.
• Corporate and commercial loans represent 64% of the loan portfolio, while SMEs 23% and retail 13%. TL 1.2 billion of loans have been originated with the CGF framework representing a share of 0.8% as compared to a loan market share of 1.4% for the Bank.
• The Bank’s assets continue to be primarily funded by deposits, accounting for 76% of its total liabilities and shareholders’ equity. The Bank’s total deposits reached TRY 28.4 billion at end-June 2017 as compared to TRY 24.3 billion as at end-June 2016, corresponding to an increase by 17%.
• Shareholders’ equity of Odeabank increased from TRY 3.4 billion at end-December 2016 to TRY 3.6 billion at end-June 2017 representing a growth of 5%. In parallel, total capital adequacy ratio increased from 14.96% at end-December 2016 to 15.98% at end-June. CET1 ratio increased to 13.10%. Odea Bank also competed on August 1st an inaugural international bond issuance of US$ 300 million. As a result the Bank’s CAR increased to 17.97%.