Profit Distribution Statement from TKBB

Participation Banks Association of Turkey (TKBB), made important statements regarding profit distribution.

The profit distribution statement came from the TKBB. Participation Banks Association of Turkey (TKBB) stated the following, “As in international practices, allowing a prudent redistribution of profit is important for both investors and our markets, and we believe that this practice will make a significant contribution to the increase of trust and interest of capitalists in our country.” This description has been expressed across the globe and the real economy of the coronavirus epidemic continues to impact in Turkey, however, financial markets, the negative impact of basis will continue in 2021 banks should continue to be cautious policy regarding the retention powerful of equity. The statement in question stated the following: “In this context, It was concluded that it would be beneficial for the shareholders not to distribute the profits, which will be made in 2020, and profits and reserves, which acquired before 2020 but not subject to distribution and kept under equity, in a way that would result in cash outflow. At the same time, it is concluded that possible profit distribution demands will be evaluated, provided that it does not exceed 10 percent of the net profit for the year 2020, by taking into consideration the precautionary principle and the special circumstances of the banks, especially the capital adequacy ratio.”