Banking sector profits in Turkey increased by 5.1 percent in 2013 compared to a year before and rose to over TL 24.7 billion for the year, data released by the Banking Regulation and Supervision Agency (BDDK) on Thursday showed.

The BDDK said the main reason behind the increase in profits was the rise in net interest rate profits. The data also showed that 49 Turkish banks employed 214,263 workers in over 11,986 branches nationwide in 2013. According to the report, the increase in employment and the number of branches in 2013 was the highest since 2009. The total assets of the banking sector also increased by 26.4 percent year-on-year, totaling over TL 1.7 trillion. The amount of loans given out by banks went up by TL 252.7 billion at the end of 2013, compared to the same period a year before, with the 2013 value totaling TL 1.04 trillion, making up 60.5 percent of all assets of the sector. The banking sector grew by 4.2 percent in the first quarter, 7 percent in the second quarter and 7.9 percent in the third.

According to the data, a decline was seen in credit card debt via installment options since September, with the share of credit card debt via installments in total credit card debt reaching 56.7 percent. In addition, non-performing loans in the sector increased by TL 6.2 billion in 2013 year-on-year, totaling TL 29.6 billion. Banks’ securities also went up by 6.2 percent in 2013 compared to 2012 and increased to TL 286.7 billion.

The amount of funds in Turkish banks provided by foreign banks also grew in 2013, experiencing an increase of 23.7 percent year-on-year and reaching approximately TL 138.2 billion in 2013. Equities in the sector amounted to TL 194 billion in 2013. Consumer loans, credit card use up in Jan.The Central Bank of Turkey announced its latest weekly consumer loans data on Thursday, revealing that both consumer loans and credit card use increased in the week of Jan. 24-31.Consumer loans went up by 0.52 percent in the week of Jan. 24-31 compared to a week before, reaching TL 238.5 billion. Credit card use also increased by 2.42 percent during this period, reaching TL 92.7 billion. In the meantime, commercial loans experienced an increase of 0.71 percent to reach TL 126.1 billion.

Market share of participation banks in upward trend

A report prepared by Deloitte Turkey and released on Thursday indicates that the size of the participation banks in the country has been in an upward trend over the last five years and that their net profits in the third quarter of 2013 totaled TL 789 million, an increase of 9 percent compared to the same quarter of last year. The market share of the participation banks reached 6.1 percent in the third quarter of 2013 while the size of their assets was valued at TL 90.7 billion. The report underlined that participation banking has a great potential for growth in the country as the share of participation bank assets within the total assets of the banking sector was 2 percent in 2000 but increased to 4.3 percent in 2010 and now stands at 6.1 percent. The data showed that the market share of participation bank Kuveyt Türk in particular experienced a significant rise over the last five years, from 21 percent to 26 percent, among other participation banks. Bank Asya, another leading participation bank in the country, pegged its share at 31 to 32 percent while participation banks such as Albaraka Türk and Türkiye Finans lost 2 percent of their market share in the same time period.

Source Zaman

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