Banking sector’s net profit up 41 percent
ISTANBUL
The combined net profit of Turkish banks increased by 41 percent in the January-July period from a year ago to 293.4 billion Turkish liras ($11.1 billion), the data from the Banking Regulation and Supervision Agency (BDDK) have shown.
In July alone, the banking sector’s net income was up around 12 percent to 43.3 billion liras.
Banks’ interest revenues from loans grew 71 percent year-on-year, but their interest expenditures leaped 155 percent. Net interest income of lenders plunged 17 percent from the first seven months of last year to 296 billion liras.
Total assets of the banking sector increased by 39.2 percent compared with the end of 2022 to stand at 19.97 trillion liras, while the loan volume rose by 36.2 percent over the same period to 10.3 trillion liras.
The non-performing loans/total loans ratio improved from 2.42 percent last year to 1.6 percent.
Deposits, the biggest fund resource of the banks, increased by 40.6 percent to 12.5 trillion.
Banks’ securities portfolio stood at 3.4 trillion liras, rising 42.3 percent from the end of 2022.
The capital adequacy ratio was 18.7 percent as of July, while the total shareholders' equity increased by 28 percent to 1.8 trillion liras.
There were 55 banks operating in Türkiye in July, up from 54 lenders a year ago. The number of branches declined from 11,024 to 10,968.
Banks increased the number of personnel they employed from 203,000 to 207,000.
