Albaraka Türk Closes 2025 with Strong Growth and Profitability

Albaraka Türk Katılım Bankası announced its 2025 financial results. The bank demonstrated strong performance, achieving success in both profit generation and asset quality. According to consolidated financial results, total assets increased 51% year-on-year to reach TRY 471 billion, while net profit rose 191.1% to TRY 15 billion.

The bank's cash credit support to the economy reached TRY 237 billion, while non-cash credit support stood at TRY 67 billion, bringing total credit support above TRY 300 billion. Despite challenging market conditions, Albaraka Türk maintained strong asset quality, with collected funds reaching TRY 278 billion with a 36% increase, capital adequacy ratio at 21.2%, non-performing loans ratio at 1.70%, and return on equity at 65.4%.

"Growth Focused on Digitalization and Sustainability Will Continue"
Albaraka Türk General Director Malek K. Temsah emphasized that 2025 was a challenging period marked by heightened global and local economic uncertainties and intensified efforts to combat inflation. However, he noted that the bank's strong financial results reflect its commitment to the fundamental principles of participation banking and customer-centric approach. Temsah stated, "These successful results are confirmed by a 51% increase in assets and a 191% increase in net profit compared to the previous year. Thanks to decisive steps by economic management, the decline in inflation represents an important development for financial stability, and through the support we provided to the real sector during this period, we contributed to Turkey's economic growth."

Emphasizing that digitalization is among Albaraka Türk's priorities, Temsah noted that through innovations in mobile and internet banking platforms, a significant portion of financing and investment transactions can now be conducted through digital channels. He stated that the bank successfully completed the issuance of Asset-Backed Securities in compliance with participation finance principles—a first in the participation banking sector—and noted that by joining the payment ecosystem with Valenspara Payment Institution, they became the first participation bank to own a licensed payment institution in Turkey. He highlighted that through digital onboarding models and marketing strategies that simplified customer acquisition processes, approximately 50% of new customers were acquired through digital channels.

In 2025, strategic steps were taken to add depth to capital markets. On the international front, an international sukuk fund was established through cooperation between Albaraka Portfolio and SICO BSC, the bank joined the International Finance Corporation's (IFC) Global Trade Finance program to integrate into a global network in foreign trade financing, and a murabaha agreement was signed with the International Islamic Trade Finance Corporation (ITFC).

Temsah added that in the coming period, the bank will strengthen digitalization, data-driven decision-making processes and open banking collaborations, increase investments in green finance, and aim for a more active role in international markets. Regarding this, Temsah stated, "In 2026, as pioneers in participation banking, we will continue to create value for our customers, contribute to Turkey's economy, and build a sustainable future."