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8.1.1 Earnings
The net profit of the banking sector was TRY 24.8bn in H1, a decrease of 14.6% y/y.
8.1.2 Loans
Total loans in Turkish banking sector stood at Turkish lira (TRY) 2.54 trillion ($455.5bn) as of end-June this year.
Turkish state-run lenders Ziraat, Vakifbank and Halkbank have cut their housing, consumer and corporate loan interest rates following the 425 bp benchmark interest rate cut adopted by the central bank last week. The central bank’s cut—the biggest in at least 17 years—brought the key rate to 19.75% from the 24% that it had stood at for 10 months since last year’s currency crisis. Ziraat said it was lowering its housing loan rates to a monthly 0.99% for loans worth up to Turkish lira (TRY) 500,000 with maturities up to 180 months. It added that it was cutting its consumer loan rates for maturities of up to 60 months to between 1.49%-1.59%. The bank, Turkey’s largest lender by asset size, also said that its annual interest rate on corporate loans, including restructured loans or loans with more than 24-month maturity, would be between 17.0%-19.0%. All the rate reductions were effective as of August 1.
Financing support for Turkish export companies awarded by Turkey’s Eximbank expanded by 4.4% on an annual basis to reach $21.4bn in the first half of this year, the lender said on July 18. A total of 11,535 companies
41 TURKEY Country Report August 2019 www.intellinews.com