Net income of JCS Bank TuranAlem increased for almost 40% from January till April 200703.07.2007 / Press-service
JSC Bank TuranAlem hereby would like to provide our fixed-income investors with a brief update on recent developments, including year-to-date financial performance, changes in credit ratings and funding strategy.
For the period from December 31, 2006 to May 1, 2007, the Bank’s assets grew to approximately US$20.4 bln from US$16.3 bln, reflecting a 25% increase. Total equity grew from US$1.53 bln to approximately US$1.97 bln, reflecting a 28% increase. Net income increased by approximately 39.7%, from US$136.4 mln to about US$190.0 mln.
The Bank plans to increase its total assets and total capital to US$26 bln and US$3.8 bln, respectively, by the end of 2007.
On June 22, 2007, following the implementation of the refined JDA methodology on external support, Moody’s downgraded the debt ratings of Bank TuranAlem, concluding the possible downgrade that initiated on May 4, 2007.
More specifically, the FC senior unsecured and subordinated debt ratings were downgraded from Baa1 to Baa3 and from Baa2 to Ba1, respectively. Bank TuranAlem’s junior subordinated debt rating was downgraded from Baa3 to Ba2. The D- bank financial strength rating (BFSR), which is an indicator of the Bank’s stand alone credit quality, was unchanged, reflecting solid capitalization, sound profitability and strong market position of the Bank. The long term foreign currency deposit rating of Ba1 also remained unchanged. All ratings have Stable outlook.
Moody’s recognizes that Bank TuranAlem’s credit ratings continue to reflect a very high degree of systemic importance.
In the first half of the year, the Bank raised US$1 billion through its very successful dual-tranche USD-denominated offering in January, 2007. In the loan markets, Bank TuranAlem raised an equivalent of $500 million in form of a 3-year Yen-denominated syndicated loan year-to-date. The Bank is fully on track with respect to its funding program for 2007.