In the January-September period of this year, the net profit of the 10 deposit banks traded on the Borsa Istanbul Stock Exchange increased by 56.5 percent to TL 19.2 billion when compared to the same period the previous year
Ten deposit banks traded on the Borsa Istanbul Stock Exchange recorded a profit of TL 19.2 billion ($5.8 billion), an increase of 56.5 percent in the first nine months of 2016 compared to the same period the previous year, while the return on average equity stood at 13.8 percent.
Reportedly, the total non-consolidated assets of Akbank, DenizBank, QNB Finansbank, Garanti Bank, Halkbank, ICBC Turkey Bank, İş Bank, Şekerbank, VakıfBank and Yapı Kredi reached about TL 1.7 trillion as of the end of September, a 7.6 percent increase compared to the end of last year.
While the total equity of these banks exceeded TL 187 billion as of the end of September, a 10.8 percent increase compared to the end of last year, the return on average equity remained at around 13.8 percent. Among the deposit banks traded on the Borsa Istanbul, Garanti Bank had the highest profit with TL 3.9 billion, followed by Akbank with a net profit of TL 3.4 billion and İş Bank with TL 3.3 billion.
Yapı Kredi increased its net profit the most in the first nine months of this year with a profit growth of 92.8 percent compared to the same period of 2015, followed by DenizBank with 80.2 percent and Akbank with 65.1 percent.
Akbank, on the other hand, obtained the highest return on average equity with 15.7 percent as of September, followed by Garanti Bank with 15.3 percent, VakıfBank with 14.8 percent, Halkbank with 14.2 percent, DenizBank with 13.9 percent, İş Bank with 12.8 percent and Yapı Kredi with 12.7 percent.
According to the Banking Regulations and Supervision Agency (BDDK), the Turkish banking sector made a profit of TL 28.9 billion in the first nine months of the year, increasing by about 55 percent in comparison to the same period of 2015. Analysts said that banks increased their profitability in the first nine months of the year due to the the effect of the Central Bank's lowering of TL reserve ratios, the BDDK's reduction of cash reserve ratios in consumer and auto loans and one-time Visa incomes of some banks.
Turkey Macro View (TMV) Consulting Managing Director Ferhat Yükseltürk said that despite the risks in the economy, especially in the third quarter, the positive performance of the banks in the first nine months of the year maintained a level above that of the past three years due to falling interest rates.
Stating that the positive performance was affected by the sale of one-time assets and increases in consumer loans in line with the reduction of general provisions and that the rise in net interest income has remained relatively moderate, Yükseltürk said that special provision expenses, which rise in line with an increase in overdue receivables, are among the most important factors restricting profitability and that the return on average equity was over 14 percent due to low funding costs in public banks.
Stressing that positive performance is important for banks to increase their capital bases and hence their lending capacity in the coming period, Yükseltürk noted that even though there is a perception in the market suggesting that the profitability of banks is high, considering the deposit return and risk premium to be added, the returns are at quite reasonable levels despite the positive performance.
Foreseeing that this year's positive profit figures will support credit growth in the coming period given that profitability is an important element that support bank credit growth and hence economic growth by increasing equities as leverage, Yükseltürk said, on the other hand, that despite the positive performance in profitability for the past nine months, nearing the end of the decrease in the interest rates in line with the upward trend in the global interest rates will further increase the funding costs of banks in the coming period and decrease the net interest margin. Predicting that the upsurge in special provision expenses would continue due to depreciation of the Turkish lira and the slowdown in domestic demand, Yükseltürk said this year's positive profitability performance in the sector is expected to be replaced by deterioration in profitability next year.
to read our informative text prepared pursuant to the Law on the Protection of Personal Data No. 6698 and to get information about the
used on our website in accordance with the relevant legislation.
6698 sayılı Kişisel Verilerin Korunması Kanunu uyarınca hazırlanmış aydınlatma metnimizi okumak ve sitemizde ilgili mevzuata uygun olarak kullanılan
ilgili bilgi almak için lütfen