Turkish banks' net profit tops 190 billion liras

ISTANBUL

The combined net income of Turkish lenders increased by 44 percent from a year ago to 190.3 billion Turkish Liras ($7.3 billion) in January-May, data from the Banking Regulation and Supervision Agency (BDDK) have shown.

The banking industry’s total assets grew by 17.4 percent compared with the end of 2022 to stand at 16.84 trillion liras as of May.

Loans, the largest item in assets, increased by 21.9 percent over the same period to 9.24 trillion liras. Banks’ interest revenues from loans rose by 71 percent year-on-year to 453 billion liras, with interest income from consumer loans up 77 percent on an annual basis.

The banking sector’s net interest income was up 3 percent in the five months of the year to 224 billion liras.

The share of non-performing loans in total loans was 1.75 percent as of May.

Banks’ securities portfolio grew 20.4 percent from the end of 2022 to 2.85 trillion liras, the regulator said.

Deposits, the biggest fund resource of the banks, increased by 16.9 percent compared with the end of 2022 to amount to 10.4 trillion liras.

While the total shareholders' equity increased by 14.3 percent to 1.6 trillion, the banking industry’s capital adequacy standard ratio was 17.08 percent.

There were 54 banks operating in Türkiye as of May, with nearly 11,000 domestic branches and more than 206,000 employees.

On a related note, the Central Bank decided to provide foreign currency to private banks to meet their needs related to the maturing of forex-protected deposit accounts, KKM. The Central Bank sent the respective directive to all private lenders regarding the implementation of this measure.

More than 2.7 trillion liras were parked at the KKM accounts as of June 23, according to the BDDK data. The KKM deposits grew by 91.3 billion liras within a week.