The first quarter of 2019 was a period of significant developments due to the lingering after-effects of the economic distress in 2018, the run up to the 31 March 2019 local election, the slowdown in the global economy and the uncertainty regarding Brexit in the European Union.
Turkey’s economy moderately recovered in the first quarter of this year, subsequent to the contraction witnessed in the last two quarters of 2018. The acceleration in sector loan growth contributed to this outlook.
As mentioned earlier, 2019 will be a year of recovery for Turkey’s economy. Containment of inflation is the chief priority of Turkey's economy. The current tightening stance in monetary policies and the commitment of the government with regards to financial discipline indicates that this issue will be effectively overcome. We forecast a decrease in inflation in the second half of 2019 with the measures taken. We also believe that the recovery in the current account deficit will continue and Turkey’s external fragilities will tail off.
As of March 31, 2019, the total assets of our Bank increased by 8 percent when compared to the year-end of 2018, reaching TRY 169 billion 802 million, while performing loans increased by 3 percent to TRY 98 billion 483 million and customer deposits grew by 5 percent to TRY 87 billion 168 million. Our Bank's net profit for the period realized TRY 631 million.
We, as QNB Finansbank, sustained our successful growth in the first quarter of 2019. Our Bank continues to progressively contribute to the sector, supported by the strength of our main shareholder, QNB Group.
Our ongoing capital strength allows QNB Finansbank to continue our commitment to fully participate in corporate social responsibility projects. Our volunteering bankers are again undertaking critical projects within the “Small Hands Big Dreams” platform, aimed at preparing our children for the future.
I would like to thank all of my colleagues and stakeholders once again, for their contribution towards the continued growth of QNB Finansbank.
Ömer A. Aras
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