Turkey’s banking sector records net profit of USD20.57B in 2023
(MENAFN) In 2023, Turkey’s banking sector demonstrated robust financial performance, as reported by the country's banking watchdog on Thursday. The sector recorded a net profit of 603.6 billion Turkish liras (USD20.57 billion), marking a significant 39.8 percent increase compared to the previous year, according to data released by the Banking Regulation and Supervision Agency (BRSA). This substantial growth underscores the resilience and adaptability of Turkey’s banking institutions in navigating challenging economic conditions.
The report further highlighted a substantial surge in the sector's total assets, which escalated by 64.3 percent year-on-year to reach 23.53 trillion Turkish liras (USD801.66 billion) by the end of December 2023. Notably, loans emerged as the largest sub-category of assets, totaling 11.67 trillion Turkish liras (USD397.74 billion), reflecting a notable increase of 53.9 percent compared to the preceding year.
On the liabilities front, deposits held at Turkey’s lenders, constituting the largest liabilities item, witnessed a significant uptick, totaling nearly 14.85 trillion Turkish liras (USD506.12 billion), reflecting a substantial 67.6 percent year-on-year growth. Such a surge in deposits indicates sustained confidence in Turkey’s banking sector among depositors.
Key indicators of the sector's health and stability were also disclosed in the report. The regulatory capital-to-risk-weighted-assets ratio, a crucial measure of financial strength, stood at 18.85 percent as of the end of 2023, underscoring the sector's robust capitalization. Additionally, the ratio of non-performing loans to total cash loans was reported at 1.6 percent, indicating a relatively healthy loan portfolio.
As of December 2023, Turkey’s banking landscape comprised a total of 60 state/private/foreign lenders, encompassing deposit, participation, development, and investment banks. These institutions operated through 10,949 branches both domestically and overseas, employing a workforce of 208,623 individuals. This expansive network underscores the significant role played by Turkey’s banking sector in facilitating financial intermediation, fostering economic growth, and supporting the needs of individuals and businesses across the country.
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