Turkish banks post highest-ever 8-month net profits

The industry’s net profits stood at $5.52 billion in the first eight months of the year, up 30.8% as compared with last year, BDDK announced

The Turkish banking industry has succeeded its highest ever net profits for January through August, according to  Banking Regulation and Supervision Agency (BDDK), the country’s banking watchdog.

The industry’s net profits stood at TL 42.9 billion ($5.52 billion) in the first eight months of the year, up 30.8% as compared with last year, BDDK announced.

The watchdog added that the non-performing loans ratio in the banking industry stood at 4.14% as of the end of August, down from 4.25% a month earlier.

The loans in the industry reached TL 3.48 trillion by August’s end, increasing 37% year-on-year, data from the BDDK said.

Banks had seen their profits at TL 7.9 billion and TL 7.2 billion in January and February, up 147.2% and 133.4%, respectively. The figure dropped all the way down to TL 217 million in March, down 96.4% year-on-year, due to the COVID-19.

Per the BDDK’s data, the interest revenues of the lenders were down 6.6% compared with the same period in 2019. The interest revenues, which amounted to TL 287.1 billion at end of August of last year, dropped to TL 268.1 billion in the same period as this year.

The interest paid by banks on deposits fell

The banks’ interest revenues from loans in January through August of this year came in at TL 198.7 billion, of which TL 45.8 billion came from consumer loans, TL 6.6 billion from credit cards, TL 23.5 billion from installment commercial loans and TL 122.8 billion from other loans.

The interest paid by banks on deposits also fell by 44.3% to TL 70.7 billion, according to the BDDK. The banks’ net interest income increased by 47.7% to TL 148.3 billion as of the end of August compared with the same period of 2019.

According to BDDK, the lenders’ non-interest revenues stood at TL 67 billion at the end of August. On the other hand, the total non-interest expenditures in the 8-month period increased by 46.5% to TL 124.1 billion.

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