Odeabank has increased its profits by 51.4 million TL​

Odeabank, a subsidiary of Lebanon based Bank Audi in Turkey and a young player in the Turkish banking sector has increased its assets by 42.5%, to 29 billion TL, as of the 1st half of 2015, compared to the same period last year. The bank declared 20.4 million TL profit as of June 2015, reversing the 31 million TL net loss in the same period last year to positive with a profit increase of 52.4 million TL.

Odeabank, the first bank to acquire a new license after 15 years in Turkey and starting its operations in 2012, continues its healthy growth despite the fluctuations in foreign currency and uncertainty in global markets, finishing off the first half of the year with a net profit of 20.4 million TL. The bank has increased its profitability by 51.4 million TL compared to the same period last year.

In the first half of this year, Odeabank has increased its assets by 42.5% to 29 billion TL, total credits by 39.5% to 20 billion TL and total deposits by 39.5% to 23.5 billion TL compared to the same period last year, maintaining sustainable growth without sacrificing liquidity which has increased by 58.7% equaling about 7 billion TL. According to these results Odeabank achieved a credit/deposit ratio of 85%, while the loans per branch has increased from 318.4 million TL in the first half of last year to 377 million TL in the first half of this year.

Odeabank Board Member and General Manager Hüseyin Özkaya reviewed the results in his written statement, saying: “We expect further improvements in our key performance indicators in the remaining part of the year. We are very pleased with our financial achievements in the first quarter of the year, realized in spite of current, ambiguous economic conjuncture.”

Özkaya states that they have increased the bank capital by 30.7% increase to 2.5 billion TL, the number of employees to 1504 and the number of branches to 53 in the first half, supporting the sustainable growth of Turkey, adding: ”As a bank investing in the future of Turkey, we will continue to work and grow with solid steps with the goal of becoming one of the key players in the Turkish banking sector.”

'THE DEVALUATION OF THE TURKISH LIRA MAY BE LIMITED'

In his statement Özkaya also reviewed the current condition of the Turkish and global economy, pointing out that in real terms the Turkish Lira is in its lowest value against the US Dollar since April 2003, adding: “Although the market expectation that the US Central Bank (Fed) might raise the interest rates, with the intervention of the Turkish Central Bank (TCMB) the devaluation of the Turkish Lira might be limited compared to the first half of the year. We believe that Turkey, distinguished by its low public debt stocks and a firmly capitalized banking sector in the past 15 years, can also achieve this positive distinction in the coming period with an “awareness for financial stability” and with this conviction we aim to provide increased support to the economy. We are going through tough and uncertain times but we would like to note that it is important to not let long-term opportunities be overshadowed by short-term problems.”

THE PROJECTIONS WERE CORRECT

Özkaya pointed out that Odeabank's projections for global economic predictions have mostly been realized adding: “It can bee seen that our projection of chronic stagnation we described with global low inflation and growth rates and expressed in various platforms have been adopted by the segment at large. In light of this analysis, contrary to those who expect an interest rate increase from the Fed since the end of 2014, we have been pointing out that the interest rate increase would be delayed and more gradual than expected and after more than a year we see that market expectations are inclined thusly. When we shared our macroeconomic projections with our customers at the beginning of the year, we had foreseen two more key risks; the negative effect of Euro Zone's poor economic performance and monetary policy compared to the USA and the structural problems coming into the light in China with the slowing down of growth. Unfortunately our projections were realized in the first seven months of the year with the economic crisis in Greece and the collapse in the Chinese stock market.”​​