Albaraka Turk Katilim Bankasi

Albaraka Turk Katilim Bankasi A.S. is a participation bank, operating on interest-free banking principles, and has been in service since 1985. Its main shareholder is the Bahrain-based Albaraka Group. Its shares trade on Borsa Istanbul under the ticker ALBRK; ALBRK stock is among the shares representing participation banking.

Instead of deposits, the bank collects funds through participation accounts and current accounts, and extends these funds to retail and corporate clients through financing methods based on profit-and-loss sharing. Gold and silver accounts, debit and credit cards, foreign trade and cash management services, and digital banking channels are also part of its product range.

For participation banks, investors watch the spread between profit share rates and funding costs, financing growth, asset quality, capital adequacy and the returns on interest-free securities such as lease certificates (sukuk). Monetary policy and regulations on participation finance also affect results.