Turkish banks’ profits rise 40 pct last year

ISTANBUL

Turkish banks’ net income increased by 40 percent last year from 2022 to stand at 603.6 billion Turkish Liras ($19.9 billion), the data from the banking watchdog BDDK have shown. 

Loans in the banking industry rose by 54 percent in 2023 compared to the previous year to 11.7 trillion liras.

Interests the lenders collected from loans rose 100 percent to 1.6 trillion liras, with interests from consumer loans increasing 79.2 percent.

The share of non-performing loans in total loans was only 1.6 percent, down from 2.1 percent in the previous year.

Banks’ interest income from credit cards soared 217 percent last year to 102 billion liras.

Deposits, the biggest fund resource of the banks, rose by 67.6 percent to 14.85 trillion liras.

Interests paid on deposits amounted to 1.55 trillion liras, marking a steep 250 percent increase from 2022.

Consequently, the banks’ net interest revenues declined 6 percent in 2023 compared to the previous year.

The total assets of the banking industry increased by 64 percent to 11.7 trillion liras, the watchdog said.

The banks’ securities portfolio grew more than 67 percent last year to reach around 4 trillion liras.

The capital adequacy standard ratio in the industry was 18.9 percent.

The number of banks in Türkiye increased from 54 in 2022 to 60, which nearly had 11,000 branches and some 208,000 employees, up from 54 banks.