Banking industry’s net income up 48 percent in January

ISTANBUL

Net profit of banks increased by 48 percent year-on-year to hit 47.35 billion Turkish Liras ($1.33 billion), according to data from the Banking Regulation and Supervision Agency (BDDK).

Lenders' assets grew by 2.2 percent, or by 709 billion liras, from the end of 2024 to reach 33.4 trillion liras, the agency said in a statement.

Loans, the largest item in assets, increased 2 percent over the same period to 16.37 trillion.

Interest revenues collected from loans surged 56 percent year-on-year to 383 billion liras, with interest income from consumer loans rising 59 percent to 52.7 billion liras. Banks’ interest income from credit cards also went up by 59 percent annually to 36.35 billion liras.

The share of non-performing loans in total loans in the banking industry was 1.87 percent as of the end of January versus 1.6 percent a year ago.

Deposits, the biggest fund resource of the banks, inched up by 0.8 percent compared with the end of 2023 to 19.05 trillion liras.

Interest payments to deposits rose by 54 percent year-on-year to 404 billion liras.

Consequently, banks’ net interest income amounted to 93.9 billion liras, a 74 percent increase from January last year.

Turkish lenders expanded their securities portfolio by 2.1 percent to 5.34 trillion liras.

The total shareholders' equity increased by 3.5 percent to around 3 trillion liras, and the capital adequacy ratio was 17.62 percent.

There were 64 lenders operating in Türkiye as of the end of January, up from 62 a year earlier, with 10,763 branches across the country.

The number of bank employees declined from 208,614 to 208,174.