Inspection of Private Participation Bank Profitability In Turkey Based On Quarterly Data For Period of 2014-2016
Türkiye’deki Özel Katılım Bankalarının Üç Aylık Periyotlarla 2014-2016 Döneminde Karlılıklarının Oran Analizi Yöntemiyle İncelenmesi

Author : Servet ÖNAL -& Murat MAT
Number of pages : 87-94

Abstract

Islamic (participation) banks in our country has increased the market share and their asset size in banking sector with high growth rate. Since 2000, Islamic banking sector has grown with an average 23 %. The increase in the share of banks, which maintain activity according to the principles of interest-free banking in the banking sector, is important for the development of financial markets and bringing the idle financial resorces into the system. In this study, it is aimed to evaluate the profitability of private islamic banks which are Albaraka Türk, Kuveyt Türk and Türkiye Finans between the years 2014-2016 in comparatively. The data used in the study were obtained from the statistics published by the Association of the Participation Banks of Turkey and from the financial statements of the banks. In the study, ratio analysis is preferred because it is an easy to understand and a common method. The financial ratios are calculated on the quarterly basis. In the study, the financial ratios which are used to analyze the profitability of the banks are the return on equity, return on assets, profit per branch, ratio of non-performing loan to total loan, capital adequacy ratio, ratio of net interest revenue to total assets, non-interest income to total assets, operating income to total assets, other operating costs to total operating revenue, ratio of allowance for decrease in value of credits to operating revenue. It is planned to increase gradually the share of participation banks within the banking sector from 5% to 15%. It is anticipated that this study will provide significant contributions to the healthy growth of participation banks.

Keywords

Participation Banks, Profitability, Ratio Analysis

Read: 1,108

Download: 348