Albaraka Turk, Albaraka Banking Group's local unit, plans to double its sukuk issuance this year, Mustafa Cetin from the Islamic lender said. Depending on market conditions, Albaraka Turk plans sukuk issue worth between USD 300mn and USD 400mn this year, Cetin said. The Islamic lender issued USD 200mn worth of sukuk bonds at a cost of 7.75% in April 2013 . Albaraka Turk's unconsolidated net profit declined by 18.3% y/y to TRY 51.6mn in Q3/2013 from TRY 63.1mn unconsolidated net profit in Q3/2012. 9M unconsolidated net income of the lender rose by 1.7% y/y to TRY 151.7mm. Total assets increased by 25.1% to TRY 15.4bn as of end-September compared to TRY 12.3bn at end-2012 while total loans rose by 23% to TRY 11.1bn from TRY 9.1bn and total deposits rose 18.2% to TRY 10.9bn. In November last year, Standard & Poor's (S&P) said in an article that Turkey's Islamic banking sector could expand further if it gets more capital. Turkey's Islamic banks looked set to keep increasing their market shares over the medium term, but sluggish domestic savings and intensifying competition from conventional banks would likely limit the sector's progress without fresh capital and funding, S&P commented. Malaysia and the Arabian Gulf countries will continue to dominate new issuances, although Turkey and Indonesia have the potential to become key sukuk markets in the long term, Moody's said in a special report on Islamic finance in November.
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