The Assets of Kuveyt Türk Reached TRY 254 Billion

Kuveyt Türk, the leading participation finance institution of Türkiye, announced its financial results for 2021

Regional Economy 11.02.2022, 10:26
The Assets of Kuveyt Türk  Reached TRY 254 Billion

Successfully offering services to its customers for more than 30 years through its products and services developed under participation finance principles, Kuveyt Türk has announced its financial results for 2021. Besides maintaining its stable growth by increasing its profitability in 2021, Kuveyt Türk increased its net profit by 79% compared to the previous year and reached TRY 2.5 billion. The total net value of funds collected grew by 74% compared to 2020, reaching TRY 212.1 billion, while the total net value of funds provided by Kuveyt Türk grew by 56%, reaching TRY 123.4 billion. Increasing its shareholders' equity to TRY 10.5 billion and its asset size to TRY 254 billion, Kuveyt Türk brings itself among the top 10 in the banking sector in terms of asset size and strengthened its position in the first place among participation finance institutions.

"We offered innovative, technological, and advantageous solutions to our customers"

Sharing his comments in this regard, Ufuk Uyan, General Manager of Kuveyt Türk, said, "In 2021, when the effects of the pandemic kept being felt, the macroeconomic outlook and global economic activity followed a fluctuating path. In this period, we implemented many innovations by focusing on the expectations and demands of our customers in line with our digitalization approach. In this period, as always, we offered innovative solutions and made significant collaborations to meet the financial needs of our customers. Through our strong capital structure and dynamic corporate governance approach, we will keep taking steps that add value to our shareholders' savings. Focusing on customer satisfaction and experience, we will keep offering innovative products and services to our customers in 2022.

As one of the official partners of Miles&Smiles, Kuveyt Türk made breakthroughs

In 2021, Kuveyt Türk has become one of the official partners of Miles&Smiles through an agreement with Turkish Airlines, the flag carrier of our country. Under this agreement, Miles&Smiles Kuveyt Türk customers can earn miles from flights with Turkish Airlines and program partner airlines, through spending and shopping at program partners. As a result of this cooperation, Kuveyt Türk launched Miles&Smiles credit cards for its retail customers as well as SME customers. In addition, making a breakthrough in the sector, the miles-earning debit card was put into use. The Miles&Smiles Kuveyt Türk Business credit card was also a breakthrough in the sector, and the Miles&Smiles card was put into use for the first time for commercial companies as well as private companies.

The first sustainable subordinated sukuk issuance of Türkiye 

Having made the first "Global Sustainable Tier 2 Subordinated Sukuk Issuance" in Türkiye and around the world in 2021 in line with the principles of participation finance, Kuveyt Türk's sustainable sukuk issuance, with a 10-year maturity of USD 350 million and an early redemption option at the end of the 5th year, received more than USD 4.3 billion in demand by a wide geographical scope including Continental Europe, United Kingdom, USA, Asia, and Gulf. Kuveyt Türk will use the funds obtained from sustainable sukuk in green and social project financing, especially in renewable energy financing.

Financing support 24/7 via On-site Financing service

Maintaining its innovative products and services in 2021 without slowing down, Kuveyt Türk launched the "On-site Financing" service, making a breakthrough in order for meeting the financing needs of its customer in an easier and quicker manner. Through the On-site Financing service, Kuveyt Türk offers its customers the opportunity to afford periodic and high-stakes expenses such as marriage, travel, and home renovation under a high number of installments in line with participation finance rules. Through this system, customers can use financing in a short time for both physical and online shopping they make at contracted workplaces. Murabahah, a participation finance principle, is used in the On-site Financing system, which is a new generation solution using API technology. Customers can benefit from the On-site Financing service 24/7. 

"Exchange Rate Protected" and "Conversion Supported" TRY participation accounts

In December 2021, Kuveyt Türk introduced two new participation account products to its customers within the framework of interest-free finance principles. Customers who invest their savings in Turkish Lira or convert their foreign currency deposits into TRY in the "Exchange Rate Protected TRY Participation Account" can protect their savings against exchange rate changes in line with interest-free finance principles, with 3, 6, and 12-month maturity options. As of December 20, 2021, Kuveyt Türk customers who have deposits in US dollars, British pound, or Euro currencies are able to convert their savings into Turkish Lira, with 3, 6, and 12-month maturity options, in the "Conversion Supported TRY Participation Account" created under the principles of interest-free finance. Kuveyt Türk customers can open a Conversion Supported Participation Account via branches, the internet branch, and Kuveyt Türk Mobile and an Exchange Rate Protected TRY Participation Account via branches. 

Kuveyt Türk and Param enters into collaboration

Continuing to offer many facilities to its corporate customers in every field through its collaborations, Kuveyt Türk collaborated with Param, one of the leading companies in the field of electronic payment systems and financial technology. Within the scope of the agreement, businesses using Kuveyt Türk's Cebim POS product offer advantages to their customers over a much wider network by using the Param infrastructure and are able to make installment transactions over 22 banks and 9 card brands. Param, on the other hand, benefits from Kuveyt Türk's wide customer network. 

Best Workplace in Europe: Kuveyt Türk

Standing out with the unique human resources practices it has implemented for its employees, Kuveyt Türk has made another significant achievement. Succeeding to be the 'Best Workplace in Türkiye' for the fourth time in a row by ranking first in the category of "5000+ Employees", made a breakthrough in 2021 and won the 'Best Workplace in Europe' award. Hence, Kuveyt Türk became the first Turkish company to be selected as Best Workplace in Europe.

"Best Islamic Portfolio Management" award goes to KT Portföy

KT Portföy, a 100 percent subsidiary of Kuveyt Türk, was deemed worthy of the Best Islamic Portfolio Management award at The Next 100 Global Awards 2021, organized as part of the Global Banking & Finance Awards, which rewards the outstanding practices of companies in the banking and finance world in the fields of expertise and excellence. This award with international importance confirmed the accuracy of KT Portföy's strategies and innovative practices in the field of asset management.

Kuveyt Türk in figures as of the end of 2021

•    Kuveyt Türk provided TRY 140.8 billion support to the real economy via cash and non-cash funds.
•    It achieved a 56% growth in funds in 2021.
•    With a focus on high asset quality, the non-performing loans ratio was 2.49%.
•    Investments and foreign trade were financed under 148.9% foreign currency fund growth throughout the year.
•    The annual fund growth was 74% and a total volume of TRY 212.1 billion has been reached in the funds collected.
•    As a result of the 71% growth in TRY funds collected since last year, the share of Turkish Lira in the funding base has been increased.
•    The share of current deposits in the funds collected was 60.4%.
•    Average return on equity was 27.12%.
•    The capital adequacy ratio, whose legal limit is 12 percent, reached 23.05%.

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