Odeabank increased its net assets by 25%, deposits by 20%, credits by 21%, while increasing its net profits to 50.3 million TL, thus becoming the 8th largest bank in deposits and 9th largest bank in net assets.

Odeabank, the first bank to receive a banking licence after 15 years in Turkey and beginning its operations in 2012, increased its net assets by 25% to 32.1 billion TL, its deposits by 20% to 25.3 billion TL and total credits by 21% to 21.8 billion TL, closing 2015 with a net profit of 50.3 million TL, despite the stagnation in the domestic and foreign markets and being a newly established bank.

Odeabank, a subsidiary of the Lebanon based Bank Audi and a new player in the Turkish banking sector, has contributed to the growth of Turkish economy by exhibiting a growth performance above the sector average. In the 3 years since its establishment in Turkey, Odeabank's successful financial results has made it the 8th largest bank in terms of deposits and the 9th in terms of total assets.

Odeabank Board Member and General Manager Hüseyin Özkaya reviewed the 2015 financial results, saying: “We have brought a brand new and unique service approach to our sector with our bank we built from scratch. In line with the opportunities provided by the Turkish economy, we continued our activities with the aim of becoming one of the first banks that come to mind in all kinds of banking needs and exhibited a growth rate above the sector average, also in 2015.”

“I would like to point out that in a market like the Turkish banking sector where there is fierce competition, sustaining our profitability and achieving this performance is considered a “success story” not only in Turkey, but also in international platforms.

'THE GROWTH IN THE BANKING SECTOR WAS RELATIVELY SLOW”

Özkaya stated that the growth of the Turkish economy in 2015 was relatively high, however the growth of the banking sector was somewhat slow compared to the overall growth in the economy. He added: “According to the results of the Banking Regulation and Supervision Agency (BDDK) the assets of the banking sector has grown by 18.2% raising to 2 trillion 357 million TL in 2015 when compared to the year-end results of 2014. The total credits have increased by 19.7% to 1 trillion 485 billion TL, while the deposits have increased by 18.3% to 245 billion TL. While the tough financial conditions had a negative effect on profitability, we can say that the asset quality sustained its strength.”

THE ROUTE OF INFLATION MIGHT BE DETERMINED BY THE FOOD PRICES AND FOREIGN EXCHANGE RATES

Özkaya evaluated Turkey's economic outlook, pointing out that the low energy prices have not resulted in the desired improvement in the inflation rate which is an important challenge for the Turkish economy. He added: “CPI inflation in Turkey was 8.8% by the end of 2015. Yet in the first month of 2016, CPI has increased by 1.8% compared to the month before, increasing the annual inflation to 9.6%. In February, as the food prices have fallen under seasonal averages, the inflation rate has dropped to 8.8%, fortunately moving away from two-digit rates. In spite of the low energy prices, we think that in mid-term, the foreign exchange rates and food prices will cause an improvement in the inflation rates.”

Özkaya said that that the stability of foreign exchange rates is crucial to achieve a decrease in the inflation rate. He added: “The Central Bank might need to keep a strong hold of its liquidity policy in the short term. In the mid-term, we believe that it is necessary to implement structural reforms to support the battle against inflation.”

TURKEY MIGHT DISTINGUISH ITSELF WITH THE POSITIVE MORAL EFFECT OF THE REFORMS

Özkaya stated that the economic developments are shadowed by the political events happening in Turkey and the neighboring countries, adding that there might be developments in the second half of the year that differentiate domestic markets positively against the global markets. Özkaya said: “In the second half of the year when global uncertainties might be cleared, Turkey can focus on its homework to increase its potential. In this way, we think that we can see the effect of the structural reforms within this year and be less affected by the global volatility, differentiating ourselves positively from the rest.”

‘WE EXPECT THE TURKISH ECONOMY TO GROW 3.6%’

Özkaya said: “With the assumption that the slowdown in the global economy will be felt for a while, I think that the loss of acceleration observed in the first few months of 2016 will come to an end by the first half of 2016, and in the second half of the year, economic activity will pick up its strength.” He added that they expect that the Turkish economy will finish the year with a 3.6% growth, as both domestic and global uncertainties will subside.”​​