Turkey’s six Islamic banks saw their net profit drop 10.26% for the first ten months of the year compared to the same period last year but the sector’s market share improved.
The participation banks, as Islamic banks are called in Turkey, posted $341 million in net profit versus $380 million last year, according to statistics released November 29 by the Banking Regulation and Supervision Agency (BDDK).
However, the Shariah-compliant banks held 6.07% of the banking sector’s assets in October, versus 5.34% on December 31, 2018.
Total assets of the six participation banks reached $46.07 billion at the end of October, a rise of 17.40% from $39.24 billion on December 31, 2018.
The government has set a goal to increase the market share of participatuion banks in the country to 15% by 2025.
The Islamic banks’ financing portfolio grew 5.56% from $20.88 billion in October last year to $22.04 billion in the same month in 2019.
Customer deposits increased by a higher 41.42% to $34.25 billion from $24.22 billion.
Turkey had five participation banks in 2018, and its sixth, Emlak, started operations earlier this year.
Turkey has a total of 51 state-owner, private and foreign banks.
© SalaamGateway.com 2019 All Rights Reserved