Following the Gross Domestic Product annual growth of 11% in the first quarter, the growth of Turkish economy significantly decelerated in the second quarter and exponent of the leading indicators such as capacity utilization rate and industrial production dropped below the first quarter's averages. However, the distortion of the external balance due to the sustained growth structure led generally by the domestic demand continued in the second quarter and the current account deficit exceeded 70 billion dollars by June, which broke a new record.
Decreasing to the lowest rate of the last forty years in the first quarter, inflation rate followed a fluctuating course in the second quarter due to the food prices. Although the annual inflation rate grew higher in comparison with the first quarter in accordance with the base effects, the rate of the second quarter was above the targeted year-end value with 6.2% but consistent with the forecasts of the Central Bank.
In the later 2010, implementing the political composition of low policy interest rate and increased required reserves, the Central Bank stuck to this policy stand in the second quarter. However, while the monetary constriction implemented in the second quarter in accordance with the growth deceleration remained limited, the Central Bank indicated the possibility of loosening the monetary policy due to downward risks intended to the global economy.
Within this conjuncture, in the second quarter, our Bank kept its seat in the league of successful financial institutions by sustaining its growth with the understanding of banking business, which supports the real sector, its leading position in product and service development and its special human resource potential.
In this period, we kept offering various credit products and attractive interest rates supporting our customers in retail banking. We submitted funds that offer investment opportunities in commodity products and commodity oriented capital protection funds. We accomplished to publicly promote our novel understanding of banking by our image campaign. What underlies behind this campaign is our new banking approach that we have been working on for over a year. The understanding underlined with the statement "Bizce Mümkün (Believing in Possibility)" consists of five basic principles: 1) Listening to the customers and understanding their needs, 2) Offering the most suitable products and services for these needs, 3) Offering 100% transparency in the product and service prices, 4) Creating rapid solutions to problems and 5) Creating lifelong partnerships by standing by our customers in good times and bad times.
Our Bank has the chance to express that it aims to be a bank that derives income only from the profits and gains it provides to the customers by implementing the five basic principles without any exceptions as stated in the image campaign launched in June.
In the second quarter of 2011, we accomplished many endorsement projects and achieved phenomenal success. Drawing the attention of the whole country with their Subway Video and supported by Card Finans GO, Bosphorus University Jazz Choir represented Turkey in the 2011 World Choir Championships in Austria. Being World Champion in Contemporary Music and Folklore categories and World Champion First Runner Up in Mixed Choir category, Bosphorus Jazz Choir collected two golden medals in the Grand Prix competing against the champions and returned to Turkey with five medals in total.
Finansbank's success in the application of credit cards and debit cards was certified with "Visa 2010 Accomplishment Awards." As a result of the evaluations, Finansbank received awards for "Bank with Biggest Growth in Visa Credit Card Shopping Volume" and "Bank with Biggest Growth in Visa Electron Card Shopping Volume." The awards were distributed in accordance with the evaluations based on the volumes and growth rates reached with debit cards, credit cards and commercial cards in 2010.
CardFinans "Babanız Olsa Yapmaz (Even Your Father Wouldn't)" campaign series, in which the features and promotions of CardFinans with its various versions were announced within the previous year, won the Crystal Apple Award, one of the most prestigious awards in the advertisement industry. "El Öpenlerin Şok Olsun (Make Your Hand Most Kissed)" application developed for Facebook page of Finansbank received runner-up prize in the social media category. In addition, we also received Silver Effie Award in the Card Payment Systems category in the Effie Awards and proved our marketing success regarding the advertisement creativity with "Babanız Olsa Yapmaz" campaign series.
Products, services, and applications of our Bank were deemed worthy of five awards in the "International Business Award", which is considered one of the most prestigious award organizations regarding the business world.
Finansbank's credit card that does not make its customers pay annual card fee, Fix Card, received Stevie Award in two categories. Being rewarded in "Product-Based Marketing Campaign" and "Financial Services Advertisement Campaign" categories, Fixed Card proved its success in the international arena.
Jury's Special Award was granted to Finansbank's social club for its employees, FinClub, its training portal Finarmoni and animation video titled "Finansbank'ı Geleceğe Taşımak (Bringing Finansbank to the Future)."
Following the thriving operations mentioned above, in the previous quarter, Finansbank followed a clear and consistent strategy with its risk-oriented approach, kept providing a perfect banking experience to its customers without compromising its transparent corporate management approach and its performance, and managed to reflect this to its financial performance.
Looking at our financial results within this framework, net operating profit of the first quarter of 2011 increased 39% in comparison to the same quarter in 2010 and reached TRY 477 million. Furthermore, our capital adequacy ratio was 15.9% in this period.
Our total credit increased 14% and reached TRY 29.6 billion while our total assets reached TRY 44.0 billion with an increase of 16% and our customer assets reached TRY 27.4 billion.
Our total equity capital reached TRY 5.394 billion with an increase of 3% and the number of our branches was 512 by the end of the second quarter of 2011.
Our Bank will keep creating value for all of its affiliated stakeholders with the strength and trust of its shareholders, customers, and employees. We acknowledge that the biggest contribution underlying behind our success belongs to our trusting partners, customers and the devoted family of Finansbank. Herewith, I would like to convey my profound thanks to our strategic business partners, corresponding banks, and our employees.
General Manager and Member of the Board of Directors