Banking sector profit hits 252 bln Turkish Liras

ANKARA

The combined net income of Turkish banks stood at 252.2 billion Turkish Liras in January-August, rising by a staggering 420 percent from the same period of last year, data from the banking sector regulator (BDDK) have shown.

In the first eight months of last year, lenders posted a total profit of 48.5 billion liras.

Banks’ interest income from loans grew 79 percent to 481 billion liras, with the net interest income of lenders rising 215 percent year-on-year to 422 billion liras. Income from consumer credits increased by 52 percent to 92.6 billion liras.

The banking industry’s total assets increased by 37.8 percent from the end of 2021 to stand at 12.7 trillion liras, according to the BDDK.

Loans, the largest item in assets, amounted to 6.2 trillion liras as of July, rising 35.9 percent. The securities portfolio also exhibited a 40.8 percent rise over the same period to 2.01 trillion liras.

Deposits, the biggest fund resource of the banks, increased by 45.6 percent compared to the previous year-end to 7.74 trillion liras.

The total shareholders’ equity rose by 60.3 percent from the end of 2021 to 1.1 trillion liras compared to the end of 2021.

The non-performing loans to total loans ratio improved from 3.67 percent from August 2021 to 2.38 percent last month.

The capital adequacy ratio is almost unchanged from a year ago to stand at 18.7 percent, the BDDK said.

In August alone, banks collectively posted a net profit of 44.35 billion liras.

The number of banks in Türkiye increased from 53 to 55, while employment in the banking sector rose from 200,896 to 203,700 people.

Turkish banks had a total of 48,947 ATMs as of the end of July, up from 48,713 a year ago.