Albaraka Türk's Non-Consolidated Net Profit for H1 2025 Reaches TRY 9 Billion 102 Million

Albaraka Türk, Turkey's first and pioneering participation bank, posted a profit of TRY 9 billion 102 million for the first half of 2025 according to unconsolidated financial results.

Strong balance sheet structure and high asset quality maintained
Albaraka Türk disclosed its financial results for the first half of 2025 to the Public Disclosure Platform (KAP). The bank's cash financing support to the real sector increased 29% compared to end of 2024 and 61% compared to the same period of the previous year, reaching TRY 192.2 billion. Total assets reached TRY 388.7 billion.

Albaraka Türk continues to steadily pursue measures aimed at strengthening asset quality. The bank's non-performing loans (NPL) ratio, recorded at 1.36% at end of 2024, came in at 1.41% as of June 2025, while the provision rate for non-performing loans remained at a high level of 85.9%.

In the first half of the year, funds collected through special current accounts and participation accounts reached TRY 246 billion. While high funding costs remain one of the sector's primary concerns, the fact that the share of funds collected through special current accounts represented 46.5% of total deposits supports a strong funding structure.

Steady profitability growth supported capital adequacy
Sharing views on the financial results, Albaraka Türk General Manager and Board Member Malek Temsah said, "While pursuing our operations in line with participation banking principles, we achieved significant growth compared to the same period of the previous year despite tight policies. Our standalone net profit in the first half of 2025 rose 387% compared to the first half of the previous year, reaching TRY 9 billion 102 million. Excluding the free provisions we reversed in the first quarter of this year to support our capital and balance sheet, we achieved a 12% profit increase compared to the first half of the previous year, reaching TRY 2.1 billion in standalone net profit.

Malek Temsah said, "In 2025, we are maintaining momentum in our operations in line with our bank's vision and mission. In a manner consistent with participation finance principles and values, we are strengthening our customer-centric approach to best serve our customers' needs. On this journey, we are taking significant steps in digitalization and remaining committed to making our financial services more accessible and innovative. We continue to increase our sustainability-focused projects and fulfil our responsibility to society and the environment.

"Regarding our expectations for the coming period; we anticipate that the Central Bank of the Republic of Turkey's interest rate reduction process will reduce funding costs and consequently increase our net profit margins. We believe this development will make a positive contribution to our bank's operations in terms of both profitability and credit expansion."