This excerpt taken from the NBG 6-K filed May 30, 2007.
Finansbank provides a new dynamic to Group performance
In Q1 2007, Finansbank Group net profit rose to TRY243 (132 million). The NBG Group now consolidates 99% of the results of Finansbank.
This strong performance in Finansbanks profitability, in spite of tight economic policy, reflects the dynamic path of its operations, particularly the spectacular expansion in its loan book which grew by 47.4% on an annual basis to over TRY13.5 billion at the end of Q1 2007, thereby boosting Finansbanks market share to 6%.
Retail banking was the main driving force behind the banks growth. In Q1 2007, Finansbanks retail lending overall soared to TRY4.9 billion, up 55% on an annual basis and 8% in the first three months of 2007.
Particularly impressive was the 75% growth in mortgage lending balances (on an annual basis). Specifically, Finansbanks share in new mortgage loan disbursements rose to 14.5%, thereby boosting market share to 9.3% at the end of Q1 2007.
A similarly impressive increase was recorded in consumer lending, where the relevant balances posted 48% growth on an annual basis, with Finansbanks market share now representing 5.6% of the total market.
Despite the economic climate in Turkey at present, business credit also presented a remarkable performance, growing to TRY 8.6 billion, up 43% on an annual basis, a rate almost double that of the market.
The rapid growth in lending did not affect the quality of the loan book, with NPLs representing a mere 2.0% of the total loan book, the lowest figure in the local market.
Private deposits in local currency posted particularly strong performance, up 19% to TRY4.7 billion, compared with TRY4.0 billion in Q1 2006. This highlights the confidence that Finansbanks wide customer base has in it.
At the same time, the banks network is expanding at an impressive pace. In the first months of 2007, around 1-2 new branches were opened each week, bringing the total to 342 in May, well on course for the end-of-year target of 400.
The growth in the banks presence is expected to give a further boost to its profitability and attract new customers. It is notable that already in 2007 Finansbanks customer base has grown by 3% to over 3.4 million customers.