Turkey’s banking sector posted a net profit of 50 billion Turkish liras ($6.047 billion) in the first 10 months of 2020, the nation’s banking watchdog said on Monday.
The sector’s net profit was up 21%, compared with 41.3billion Turkish liras ($7.3 billion) in the same period last year, according to the Banking Regulation and Supervision Agency (BDDK).
DEPOSITS HELD AT LENDERS TOTALED NEARLY 3.6 TRILLION TURKISH LIRAS
Total assets of the sector rose 44.3% year-on-year to some 6.23 trillion Turkish liras ($751.9 billion) as of the end of October, a Banking Regulation and Supervision Agency (BRSA) report said. Loans, the biggest sub-category of assets, were 3.66 trillion Turkish liras ($441.4 billion), up 42.9% compared to the same period last year.
On the liabilities side, deposits held at lenders in Turkey – the largest liabilities item – totaled nearly 3.6 trillion Turkish liras ($433.5 billion), nearly a rise of 50% on an annual basis.
Pointing to lenders’ minimum capital requirements, the banking sector’s regulatory capital-to-risk-weighted-assets ratio – the higher the better – was 19.42% by the end of October, versus 18.49% in the same period of the previous year.
The ratio of non-performing loans to total cash loans – the lower the better – was 3.97% in the same period, versus 5.15% a year ago. A total of 52 state/private/foreign lenders – including deposit banks, participation banks, and development and investment banks – conducted banking activities in Turkey as of October.