Turkey’s Banking Sector’s Net Profit Increases

THE DAILY TURKISH-

The Banking Regulation and Supervision Agency (BDDK) on Wednesday stated, the total net profit of Turkey’s banking sector counted to 33.5 billion Turkish Liras -$6.87- between January and July in the current year.

  Seven-month net profit of banking sector increased by 15.5 percent year on year, up from net profit about 29 billion Turkish liras -8.28 billion- in the same session last year.

The large subcategory of assets are loans that given by the banking sector. at the end of July loans are totalled 2.42 trillion Turkish liras ($495.6 billion), that showing a 24.5 percent increase on a yearly basis. 

Deposits held at the country’s lenders totalled 1.97 trillion Turkish liras ($403.7 billion) on the debts side as of July, marking an annual increase of 23.5 percent.

According to official statements, the risk weighted asset ratio of the banking sector is an important indicator of the minimum capital requirements of the lenders – which was 16.10 percent in July, compared to 16.95 percent in the same month of last year.

BDDK also reported that the ratio of monitored loans to total cash loans, which is another significant indicator showing how healthy the banking sector is, was 3.05 pct in July and 3.10 pct in the same month last year.

Last year, the net profit of the Turkish banking sector has reached a high level by 49 billion Turkish Lira -13 billion dollars- with an annual increase of 30.8 percent.

Between January and July period, average of US dollar/ Turkish Lira exchange rate was 4,19 while in the same period last year, an average dollar declined to 3,63 Turkish Lira.