Business

Turkish banks’ profits increase 417 percent

The combined net income of Turkish banks stood at 207.8 billion Turkish Liras in January-July, rising from 40.2 billion liras in the same period of last year, data from the banking sector regulator (BDDK) have shown.

Interest income from loans grew 75 percent to 405 billion, with the net interest income of lenders rising 216 percent year-on-year to 359 billion liras.

The industry’s total assets increased by 33.5 percent from the end of 2021 to stand at 12.3 trillion liras, according to the BDDK.

Loans, the largest item in assets, amounted to 6.5 trillion liras as of July, rising 32.9 percent. The securities portfolio also exhibited a 38 percent rise over the same period to 2 trillion liras.

Deposits, the biggest fund resource of the banks, increased by 40.6 percent compared to the previous year-end to 7.46 trillion liras.

The total shareholders’ equity rose by 46.8 percent from the end of 2021 to 1,048,288 million liras compared to the end of 2021.

The non-performing loans to total loans ratio improved from 3.71 percent from July 2021 to 2.42 percent last month.

The capital adequacy ratio is almost unchanged from a year ago to stand at 18 percent,the BDDK said.

In July alone, banks collectively posted a net profit of 38.7 billion liras against a net profit of 6.4 billion liras a year ago.

The number of banks in Turkiye increased from 52 to 55, while employment in the banking sector increased from 200,700 to 203,000 people.

Turkish banks had a total of 48,736 ATMs as of the end of July, down from 48,717 a year ago.

Source
hurriyetdailynews

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