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8.1.1 Earnings
The combined net income of the Turkish banking sector declined 10% on an annual basis to Turkish lira (TRY) 41.3bn (€6.52bn) in January-October, data from banking watchdog BDDK shows.
The sharp rise in the non-performing loans (NPLs)/total loans ratio from 3.47% in October 2018 to 5.15% as of end-October this year is particularly striking. It underscores the impact of the country’s economic woes on companies and households. But the banking industry’s capital adequacy ratio remained at 18.48%.
The banks’ loan volume grew only 4% as of end-October from a year ago to stand at TRY2.56trn while their assets increased 4.32% y/y to TRY4.32trn.
Interest income the banks collected from credit increased to TRY272bn from TRY230bn while lenders’ net income revenues amounted to TRY130bn versus TRY119bn a year earlier.
Data from the BDDK also revealed that the difficult operating environment hit employment in the banking industry. The country’s 50 lenders employed a total of 207,246 staff at 11,522 branches across Turkey as of end-Oct 2018. However, the figures for a year later show the number of bank employees down to 203,874 with the number of branches standing at 11,355.
54 TURKEY Country Report December 2019 www.intellinews.com
