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Banking sector net profit up over 30 percent in Turkey

Staff Writer |
Turkey’s banking sector made 25.35 billion Turkish liras ($7.24 billion) net profit between January and June this year, according to Banking Regulation and Supervision Agency.

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Semiannual net profit of the banking sector rose 33.2 percent year-on-year, compared with 19.03 billion Turkish liras ($6.62 billion) net profit in the same period of 2016, the banking watchdog said in a report.

Total assets of the Turkish banking sector in the first six month of this year reached 2.97 trillion Turkish liras (some $849 billion), marking nearly 20 percent increase on a yearly basis.

Over the same period, loans provided by the banking sector as the biggest sub-category of assets, climbed to 1.92 trillion Turkish liras (around $548 billion), up from 1.57 trillion Turkish liras (some $546 billion) in June 2016.

The amount of deposits held by the sector increased to nearly 1.58 trillion Turkish liras ($451 billion) in the period of January-June 2017, compared with 1.31 trillion Turkish liras (some $456 billion) deposits in the same period last year.

As of June 2017, the banking sector's regulatory capital to total risk weighted assets ratio was recorded at 16.87 percent - a significant indicator to figure out minimum capital requirements of lenders.

The ratio of non-performing loans to total cash loans stood at 3.09 percent in the first six months of this year, it said.

In Turkey, over 50 state/private/foreign lenders, including deposit banks, participation banks, development and investment banks had nearly 12,000 domestic and overseas branches with more than 210,000 employees as of June, 2017.

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