JSC Bank TuranAlem
Bank TuranAlem has shown itself to be a fully market driven institution that recognises the importance of improving shareholder return. Despite fierce competition in the domestic market, the bank has reported a strong rise in profits, with returns on shareholder equity averaging 25% for the past four years. The bank’s positive performance is a reflection of lower costs and higher income, on the interest as well as non-interest side.
Despite a downward trend in interest rates, the bank managed to grow its interest income and fees and commissions, mainly through its trade finance business and settlement, cash and transfer operations. It plans to expand its business activities in neighbouring countries, particularly in markets in which trade finance can be developed in co-operation with local banks. By stretching its footprint across the entire Commonwealth of Independent States (CIS) region, Bank TuranAlem intends to capture trade-driven growth and profit opportunities, as the region becomes more integrated. This strategy is aimed at managing political and economic risks, raising the bank’s visibility and capitalising on growth opportunities in larger markets closer to Europe.
The bank’s domestic business is well balanced in its major product lines, averaging about 25% of its total income. The bank has announced plans to acquire other lenders and open representative offices throughout the CIS.
