Turkish Business Club

Turkish Business Club

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  • Rabia Rahimbayeva
    Rabia Rahimbayeva    Group moderator   Ambassador
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    Turkiye's Vakıfbank opens up to Middle East markets
    Turkiye’s state-owned Vakıfbank plans to open a branch in Iraq and a representative office in Syria according to the financial institution’s general manager.

    Attending an event in Adana on Friday, General Manager Süleyman Kalkan told Anatolia news agency that the bank planned to finish the procedures for the Iraq branch by the end of the year.

    “We have branches in New York and Bahrain. We have an established bank in Vienna, which has three branches in Austria and two in Germany. Vakıfbank already has considerable initiative abroad – we are looking to improve that,” he said.

    Since Kalkan took the seat, the bank has increased the number of its branches from 550 to 575, he said, adding that the bank is planning to establish 620 branches nationwide by year’s end, and 850 branches at the end of a three-year period.

    Kalkan said the bank currently has 10,500 personnel while it is set to interview a further 5,500 people for possible further recruitment after they passed an exam.

    Vakıfbank is planning to hire 600 clerks and 300 expert assistants among the applicants, he said, noting that the process would be finalized during summer.

    “The winners of the test will be sent to old branches, and we will hire more people for new branches. We need a 10-person staff for every new branch we are opening. We will probably have to organize another examination for recruitment to the new branches we will soon open,” he said. “Thus, we also will be supporting employment on our way.”

    * Optimistic on economic growth

    Vakıfbank foresees a 5 to 6 percent gross domestic product growth for Turkey in 2010. “This year will be much more positive compared to the last,” Kalkan said. “We have no worries about the Turkish economy. Our sole anxiety comes from Europe. They are in a problematical economic situation. Unfortunately, we will have to face the negative consequences of their problems.”

    Kalkan said there has been a considerable rise in use of bank loans, adding that the banks have seen great improvement, particularly in consumer and mortgage loans.

    “We conducted a credit facility on the overall sector last year. And we continue the same way this year,” he said.

    Noting that the profit margin has narrowed in the banking sector, Kalkan said Vakıfbank expected to retain its profit level this year.

    “Last year the spread between the credit and deposit interests was higher. Now it is narrower and making profits is really getting harder and harder,” he said. “I predict the sector will close the year with a 5 or 6 percent profit increase. The profitability prior to 2008 is no longer the case, I think.”


    Source: Anatolia News
    • 27 Jun 2010, 2:15 pm