According to data from the Banking Regulation and Supervision Agency (BDDK), the growth of consumer loans continued to decline in the week of February 28, while commercial loan growth accelerated to 32%.
BDDK’s weekly bulletin reported that the total loan volume in the banking sector increased by 166.63 billion TRY in the week of February 28, rising from 16.69 trillion TRY to 16.86 trillion TRY.
The 13-week annualized and exchange rate-adjusted growth of commercial loans continued its upward trend, reaching 32% during this period.
Meanwhile, consumer loan growth remained flat after experiencing sharp contractions in previous weeks. The gap between commercial and consumer loan growth, which had reached nearly 10 percentage points, remained stable in the February 28 week. Consumer loan growth was recorded at 41.1%.
Breakdown of Consumer Loans
As of February 28, the total consumer loan volume increased by 24.38 billion TRY to 2.12 trillion TRY. This amount included:
- 535.08 billion TRY in housing loans,
- 68.43 billion TRY in auto loans,
- 1.51 trillion TRY in personal loans.
During the same period, installment-based commercial loans rose by 19.93 billion TRY, reaching 2.39 trillion TRY.
Individual Credit Card Debt and Bank Reserves
The total outstanding balance on individual credit cards grew by 2.7%, reaching 1.93 trillion TRY. This amount consisted of:
- 661.50 billion TRY in installment-based debt,
- 1.26 trillion TRY in non-installment debt.
Non-Performing Loans and Banking Sector Reserves
The banking sector’s non-performing loans increased by 4.98 billion TRY, reaching 333.74 billion TRY as of February 28. Of this amount, 247.61 billion TRY was set aside as specific provisions.
During the same period, the total legal equity of the banking system rose by 57.76 billion TRY, reaching 3.70 trillion TRY.
Decline in KKM Deposits
The balance of foreign exchange-protected deposits (KKM) decreased by 32.77 billion TRY last week, falling to 846.58 billion TRY, which now represents 4.27% of total deposits.
Source: Bloomberght/ Prepared by: İlayda Gök