The profit of banks listed on Borsa Istanbul, Istanbul's stock exchange, decreased 3 percent in nine months when compared to the same period of last year.
The nine-month net profit of deposit banks traded on the Borsa Istanbul decreased by TL 12.3 billion ($4.287 billion) when compared to the first nine months of 2014, according to the September Report on Deposit Banks Traded on the BIST 100 index by the Turkish Banking Association (TBB). Currently, there are 10 deposit banks listed on the Borsa Istanbul, and these banks have 70 percent of the branches in the sector - 7,883 branches in total. They also have 72 percent of all employees in the sector, accounting for 141,103 employees in total.
The total assets of these deposit banks increased 24 percent to TL 1,590 billion as of the end of September when compared to the same period of last year, while liquid assets increased 48 percent. While the high-rate increase trend of the banking items continues, with the rise of required reserves, cash assets have also increased; however, the receivables from monetary markets have decreased. The securities portfolio increased 22 percent while loans increased 23 percent. Moreover, the growth in loans continued to be a determinant factor for growth on the balance sheet. The ratio of loans of total assets was 64 percent in September. When compared to the previous year, the non-performing loans increased 26 percent, while special provisions increased 27 percent. The gross coverage ratio of special provisions of non-performing loans increased 3.1 percent.
The annual growth of deposits as of September was 24 percent, reaching TL 930 billion. The deposits in Turkish liras increased by 12 percent when compared to the same period last year, and the lira equivalent of deposits in foreign currencies increased 41 percent. Therefore, the depreciation of the lira had a crucial role on the increase in deposits.
The equities of deposit banks traded on the Borsa Istanbul increased 13 percent as of September when compared to the same period of last year. The ratio of equities to total assets was around 10 percent. Non-deposit resources continued high ratio growth, and accounted for 23 percent of total liabilities as of September. Furthermore, the ratio of assets in foreign currencies to total assets was 41 percent, while the ratio of liabilities in foreign currencies to total liabilities was 48 percent. The interest income and interest expenses of deposit banks increased 16 percent, while net interest income rose 17 percent.
The decrease in net profits of deposit banks traded on the Borsa Istanbul was mainly due to the losses observed in market profit. The 12-month net profit of these banks dropped to TL 16.9 billion, and annual average equity profitability decreased 1 percent to 10.7 percent in September when compared to the previous quarter as well as the previous year.