Banks’ profits hit 440 billion Turkish Liras

ANKARA

The combined net profit of Turkish banks increased by 53.5 percent in January-September from a year ago to 439.7 billion Turkish Liras ($16.1 billion).

Total assets of the banking sector rose more than 47 percent from the end of 2022 to amount to 21.09 trillion liras, data from the Banking Regulation and Supervision Agency (BDDK) showed.

Loans extended by lenders grew 41.3 percent over the same period to reach 10.7 trillion liras. Banks’ interest income from loans leaped 76 percent compared with the January-September period of 2022, but their interest expenses soared 161 percent.

They paid 907 billion liras in interest on deposits, up 209 percent year-on-year, while total interest expenses rose 161 percent. Consequently, banks’ net interest income declined 4.2 percent to 477 billion liras.

The share of non-performing loans in total loans was 1.53 percent at the end of September.

“Deposits, the biggest fund resource of the banks, increased by 50.2 percent compared to the end of last year to 13.3 trillion,” BDDK said.

The total shareholders' equity stood at 1.9 trillion liras, pointing to an annual increase of 35 percent. Banks boosted their securities portfolio by 51 percent to 6.75 trillion liras.

The capital adequacy standard ratio was 18.52 percent.

There were a total of 56 banks operating in Türkiye as of September, with nearly 11,000 branches and around 208,000 employees.