Page 28 - A&T BANK ANNUAL REPORT 2012

GENERAL INFORMATION
CORPORATE MANAGEMENT
FINANCIAL INFORMATION
The total assets of the banking industry had risen by 12.6%
year on year as of December 2012 to TL 1,371 billion.
Regulatory changes made in the second half of 2011 to
increase credit costs, as well as the widening of the interest
rate corridor and decline in funds from repo transactions in
line with the Central Bank’s contractionary monetary policy,
influenced the industry until the first half of 2012. Due to
higher funding costs, the increase in credits and the industry’s
growth rate decelerated during this period. And starting from
mid-year, in line with positive developments in the current
account deficit and the economy overall, the Central Bank
took measures to increase liquidity and reduce funding costs.
Nevertheless, weak domestic and external demand restricted
the banking industry’s growth.
As of December 2012, loans constituted the largest share, at
57.9% of total assets with a value of TL 794.8 billion. A TL 42
billion (37.6%) climb in individual loans, TL 35 billion (31.3%),
an increase in corporate/commercial loans and a TL 34.8
billion (31.1%) rise in SME loans were the main drivers of the
TL 111.9 billion increase in the sectors’ total loan volume.
THE TURKISH BANKING INDUSTRY IN 2012
Compared to 2011-end, non-performing loans had risen by
TL 4.4 billion (23.4%) as of December 2012 to TL 23.4 billion.
Aging of the loans in parallel with a very strong increase in
2010 and 2011 are as the main reasons of the rise in non-
performing loans.
The total deposits of the Turkish banking industry had
increased by 11% in 2012. The share of deposits in total
liabilities has been decreasing since 2009 due to the decrease
in the growth rate of domestic savings, opportunities to use
overseas markets, repurchase agreements and security
issuance of banks for borrowings.
At the end of 2012, the net profit of the industry was at TL
23,574 million, marking an increase of TL 3.8 billion (19.2%)
over the same period of the previous year. The returns on
assets and equity, were 1.8% and 15.8%, respectively, while
the capital adequacy standard ratio was 17.9% at the end of
2012.
Total loans of the banking sector increased 16.4%
in 2012 mainly due to a rise in individual loans and
corporate/commercial loans.