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10
Assessment of Financial Strength, Profitability
and Debt Repayment Capacity
Maintaining its high profitability, A&T Bank ranked first
in its peer group banks with a net profit for the period of
TL 49.6 million and return on equity at 12.02%
.
Profitability
In 2013, despite 293.7% increase (TL 7.8 million) in other
operating incomes, A&T Bank decreased its total operating
income by 4.8% (TL 6.2 million) due to decreases in net
interest income and net fees and commissions by 11.5% (TL
10.3 million) and 9.7% (TL 3.8 million), respectively.
As a result of its effective cost management approach, the Bank
achieved to restrict the increase in other operating expenses at
3% (TL 1.5 million). Meanwhile, total provisions increased by
97.3% (TL 4.8 million) derived from higher general provisions
as a result of increases in cash and non-cash loans.
Based on these results, the Bank closed the current period with
net profit of TL 49.6 million.
INCOME STATEMENT (THOUSAND TL)
2012
2013
Change
(Amount)
Change
(%)
Interest Income
118,925
103,666
-15,259
-12.8
Interest Expense (-)
29,407
24,443
-4,964
-16.9
Net Interest Income
89,518
79,223
-10,295
-11.5
Net Fees and Commission Income
38,612
34,853
-3,759
-9.7
Dividend Income
2,061
5,017
2,956
143.4
Net Trading Income/Expense
-2,716
-1,399
1,317
-48.5
Other Operating Income
3,319
6,871
3,552
107.0
Total Operating Income
130,794
124,565
-6,229
-4.8
Provision for Loan Losses and Other Receivables (-)
4,926
9,719
4,793
97.3
Other Operating Expenses (-)
51,504
53,027
1,523
3.0
Net Operating Income/Loss
74,364
61,819
-12,545
-16.9
Provision for Taxes on Income from Continuing Operations (-)
14,739
12,229
-2,510
-17.0
NET PROFIT
59,625
49,590
-10,035
-16.8
The return on assets and return on equity, at 2.46% and 16.58% as of year-end 2012, became 1.65% and 12.02%, respectively, as of
year-end 2013.
PROFITABILITY RATIOS (%)
2011
2012
2013
Return on Assets
2.12
2.46
1.65
Return on Equity
15.72
16.58
12.02
Thanks to its strong capital structure and ability to tap external sources of funding, A&T Bank experienced no difficulty in borrowing
in 2013. Moreover, its capital adequacy standard ratio is above the legal minimum by virtue of the Bank’s effective risk management
implementation. Thus, the Bank is able to meet its liabilities due to sufficient liquidity.