VakıfBank executive confident on profits

VakıfBank executive confident on profits

ISTANBUL- Hürriyet Daily News
VakıfBank executive confident on profits

Suleyman Kalkan of Vakıfbank says 2012 profits of Turkish lenders may drop.

VakıfBank, the state-owned lender, will preserve its 2011 profit rate next year as the overall sector will face a fall in profit margins due to steps by the Central Bank and the Banking Regulation and Supervision Agency (BDDK), said the lender’s general manager.

“I think our yearend net profit increase will not be less than 10 percent. As for the banking industry it will go around below 10 percent,” said Süleyman Kalkan.

Vakıfbank’s third quarter net profits rose to 316.09 million Turkish Liras, 40.6 percent above the figure for the same period last year.

This was supported by increases in net interest, fees and commissions, said Kalkan.

The bank enjoyed a 26.2 percent net profit increase in the first nine months of this year compared to the same period in 2010. “Overall profitability has come down in banking. Next year, management of passive assets will gain importance. Costs have increased a little lately, but this is transferred to the interest rates anyway,” said the general manager. VakıfBank’ plans to recruit 1,000 workers next year, said Kalkan.