FKB Reports Significant Growth Across Key Sectors, Marking Strong Contributions to Turkiye’s Economy
Turkiye’s non-bank financial sector is experiencing robust growth, with transaction volumes soaring by 77% in the first half of 2024 compared to the same period last year. According to a report by the Financial Institutions Association (FKB), the sector’s asset size also expanded by 54.6%, reflecting a strong performance across key segments, including financial leasing, factoring, and asset management.
Significant Growth Across Key Sectors
FKB Chairman Ali Emre Ballı highlighted the impressive figures, noting that the non-bank financial sector continues to play a vital role in supporting Turkiye’s economy. The data, drawn from the consolidated six-month performance of sectors such as Financial Leasing, Factoring, Financing, Asset Management, and Savings Finance, points to sustained growth:
- Transaction Volume: The total transaction volume reached ₺830.5 billion, marking a 77% increase year-on-year.
- Asset Size: The sector’s total assets grew by 54.6%, totaling ₺786.7 billion.
- Equity Growth: The sector’s equity also saw substantial growth, reaching ₺147 billion, with a customer base of 6.2 million.
Strong Performance in Savings Finance and Factoring
Ballı emphasized the remarkable growth in the Savings Finance sector, which saw a 354.5% surge in equity, bringing the total to ₺17.4 billion. The transaction volume for this sector skyrocketed by 301.1% to ₺111.9 billion, while its assets increased by 207.7%, reaching ₺47.9 billion. The Factoring sector also posted significant gains, with equity rising by 99.6% to ₺45.5 billion, and transaction volume increasing by 64.2%, totaling ₺522 billion.
- Savings Finance Sector:
- Equity Growth: 354.5%, reaching ₺17.4 billion
- Transaction Volume: 301.1% increase, totaling ₺111.9 billion
- Asset Size: 207.7% growth, reaching ₺47.9 billion
- Factoring Sector:
- Equity Growth: 99.6%, reaching ₺45.5 billion
- Transaction Volume: 64.2% increase, totaling ₺522 billion
Financing and Financial Leasing Sector Expansion
The Financing sector recorded a 69.9% increase in transaction volume, bringing it to ₺122.5 billion. The sector’s receivables grew by 75.9%, reaching ₺138 billion, and its total assets expanded by 67.8%, surpassing ₺164 billion. Similarly, the Financial Leasing sector saw its equity rise by 73.3% to approximately ₺51 billion.
- Financing Sector:
- Transaction Volume: 69.9% growth, reaching ₺122.5 billion
- Receivables: 75.9% increase, totaling ₺138 billion
- Asset Size: 67.8% growth, surpassing ₺164 billion
- Financial Leasing Sector:
- Equity Growth: 73.3%, reaching ₺51 billion
Asset Management Sector Developments
The Asset Management sector also demonstrated strong performance, with assets growing by 114.6%, reaching over ₺24 billion. The sector’s equity increased by 76.9%, amounting to ₺11.4 billion.
- Asset Management Sector:
- Asset Size: 114.6% growth, exceeding ₺24 billion
- Equity Growth: 76.9%, totaling ₺11.4 billion
Future Outlook
Ali Emre Ballı expressed confidence in the sector’s future, emphasizing that FKB will continue to advocate for regulatory reforms to enhance the sector’s contribution to Turkiye’s economy. “Our goal is to elevate the share of our sector in the financial ecosystem to the levels seen in developed economies,” Ballı stated, underscoring the importance of sustainable growth and access to finance.
Source: AA / Prepared by Irem Yildiz