Isbank May Say Fourth-Quarter Profit Dropped 11 Percent
Turkiye Is Bankası AS (ISCTR), Turkey’s biggest bank by assets, may say fourth-quarter profit decreased an annual 11 percent, due to lower net interest margins, increasing funding costs and lower proceeds from non-performing loans.
Net income will probably be 535.1 million liras ($303 million), compared with 602.9 million liras in the fourth quarter of 2010, according to the average estimate of 14 analysts questioned by Bloomberg. Predictions ranged from 420 million liras to 642 million liras. Isbank had a profit of 327.4 million liras in the third quarter of 2011, a decrease of 43 percent from a year ago.
“Higher funding costs, lower trading profits and decreasing proceeds from non-performing loans will cause Isbank’s fourth quarter profit to fall on an annual basis,” Aykut Saribiyik, analyst at FinansInvest in Istanbul, said in a phone interview today. “But we expect an increase in profit on a quarterly basis and I think that’s more important from the bank’s perspective.”
Isbank is expected to report the earnings today.
To contact the reporter on this story: Sibel Akbay in Istanbul at firstname.lastname@example.org
To contact the editor responsible for this story: Mark Bentley at email@example.com