Page 41 - TURKRptDec21

6.0 Financial & capital markets 6.1 Bank sector overview
6.1.1 Earnings
The combined net income of Turkey’s banks grew 23% to TRY57bn (€5bn) in January-September from TRY46bn a year ago.
Annual inflation in Turkey was officially running at 19.58%, with some independent academic studies determining that the figure is actually at least twice that and possibly 50% or more. Banks also face the difficulty that analysts looking at their non-performing loans (NPLs) complain they cannot determine the ratios with any confidence given forbearance measures permitted by the government.
The BDDK said that the total assets of the banks topped TRY 7trn as of end-September, rising 17% y/y, while loans grew 13% y/y to TRY4trn. Deposits collected by the banks increased by 19% y/y to stand at TRY4.1trn. Amid the steep lira depreciation, Turkey is seeing alarming rates of dollarisation.
Unreliable: The sector-wide capital adequacy ratio declined to 17.3% at end-September from 19.4% a year ago while the ratio of NPLs to total loans was said to have improved to 3.5% from 4.1%.
Net income of the state-owned banks plunged 56% y/y in the same period to TRY5.5bn while private banks boosted their profit by 48% y/y to TRY23bn. Foreign-owned banks saw their net income increase nearly 68% y/y to TRY18.4bn.
As of the end of September, there were a total of 53 lenders, including deposit banks, participation banks, development and investment banks operating in Turkey. They were operating nearly 11,200 branches and employing 202,000 staff.
41 TURKEY Country Report December 2021 www.intellinews.com