The net profit of the Turkish banking sector rose 33.2 percent in the first six months of this year compared to the same period in 2016, reaching around TL 25.35 billion ($7.2 billion), the highest first half net profit of all time.
According to data compiled from the Banking Regulation and Supervision Agency (BDDK), the total interest income of the banks in the first half of this year increased by 22.5 percent compared to the same period of 2016.
The income of the banks from interest, which was recorded as TL 93.86 billion in the January-June period of last year, rose to TL 114.95 billion in the same period of 2017.
The amount gained by banks from interest on loans in the first six months reached TL 92.55 billion. The said income was composed of consumer loans of TL 22.3 billion, credit cards of TL 4.4 billion, installed commercial loans of TL 13.2 billion and interest on other loans of TL 52.6 billion.
On the other hand, the total interest expense of the sector increased by 17.4 percent in the January-June period of this year, compared to the same period of 2016, rising to TL 59.8 billion from TL 50.9 billion.
In the said period, the amount of interest given to deposits by the banks increased by 13.4 percent to TL 41.4 billion. Thus, the net interest income of the banks increased by 28.4 percent in the first six months of the year compared to the same period of the previous year, reaching TL 55.2 billion.
Historic peak in first
half's net profitThe Turkish banking sector achieved a net profit of TL 25.35 billion in the first half of this year. The net profit, which indicates a 33.2-percent increase compared to the same period of last year, was recorded as TL 19.33 billion in the first six months of last year.
On the other hand, while the net profit in the first half of this year was recorded as the highest first-half net profit of all time, it also exceeded the net profit of TL 24.61 billion recorded in the entire year of 2014. The sector achieved a net profit of TL 37.53 billion and TL 26.52 billion in 2016 and 2015, respectively.
Fees and commission from
loans exceeded TL 4BAccording to BDDK data, the banks saw noninterest income increase by 6 percent during the January-June period of this year compared to the same period of 2016 with TL 27.2 billion.
The share of fees and commission received from noninterest income loans was 14.8 percent. Moreover, the income from fees and commission increased by 17.8 percent compared to the same period of last year, reaching TL 4 billion.
As of the end of June, the amount of fees and commission received on cash loans was calculated as TL 1.9 billion, while the amount received on noncash loans was recorded at TL 2.1 billion.
In the first six months of 2017, revenue generated by bank provided services increased by 18.8 percent compared to the same period of the previous year and reached TL 13.5 billion.
The share of income from banking services in total noninterest income was recorded as 49.5 percent.
As of the end of June, total revenue from the sales of the assets was TL 625 million, while other, noninterest revenue and profit shares reached TL 8.1 billion and TL 977 million, respectively.
According to the BDDK's data, the banks' total noninterest expenditures were realized as TL 36.62 billion in the first six months of this year, increasing by 12.1 percent compared to the same period of 2016.
The share of personnel expenses in noninterest expenses was recorded as 32.5 percent. The said expense increased by 7.4 percent compared to the first six months of last year and rose to TL 11.89 billion. Thus, staff expenses accounted for 10.3 percent of the bank's total interest income.
As of the end of June, fees and commissions paid were recorded at TL 3.42 billion, while other, noninterest expenses reached TL 13.74 billion.