Turkish lender Akbank’s first quarter net
income has slumped by almost a third from the year-ago period
(27.4%) to TRY728m ($474m).
Net interest income declined by 22% to
TRY1.1bn, while the bank’s net fee and commission income in the
three months to the end of March rose by 11.6% from the year-ago
quarter to TRY366m.
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The contribution of consumer loans to total
net fee and commission income declined from 9% to 7% compared with
the first quarter last year.
Credit card commissions, however, contributed
33% of the bank’s net fee and commission income, up from 30% a year
ago.
Consumer loans relieve margin
pressure
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By GlobalDataAkbank’s net interest margin fell from 5.5% in
the first quarter of 2010 to 3.7%.
On a positive note, the bank recorded a 9.2%
year on year increase in total loans to TRY63bn.
The bank said that consumer loans helped
relieve margin pressure.
Consumer loans grew by 8.8% from the year-ago
quarter to TRY14.3bn, while credit card loans rose by 1.3% to
TRY6.7bn.
Credit card issuing volume soared by 28% year
on year to TRY8.9bn.
Akbank’s non-performing loans ratio declined
from 2.9% to 1.9% in the three months to the end of March, compared
with the corresponding period a year ago.
