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The Turkish Banking Industry in 2013
The banking industry increasingly contributes
to the Turkish economy through its asset
quality, solid equity structure and high level of
capital adequacy ratio.
Although profitability and margins were
decreased, total assets of the sector
grew by 26.4% to TL 1,732 bilion.
Increases in loans continued as an
indicator of contribution to growth. As
of year-end, total loans volume reached
TL 1,047 billion with an increase
of 31.8% compared to 2012-end.
Within this period, Turkish lira and
US$ denominated foreign currency
loans increased by 27.9% and 19.3%,
respectively.
The enlargement in deposits continues.
Total deposits volume increased by
22.5% to TL 946 billion in 2013. Within
the same period, the increase in the
volume of Turkish lira deposits was
14.1%whereas US dollar denominated
foreign currency deposits increased by
16.7%.
Compared to the previous year-end,
total equities in the sector rose by 6.5%
to TL 194 billion. Capital Adequcy Ratio
of the sector stand at 15.3%.
In parallel to an increase in risk appetite,
contraction in liquidity policy and
upward movement in global interest
rates, nominal interests at all maturities
have been increasing since May, and
real interest rates have also displayed
a similar tendency. As a result of
these developments, all interest rates
representing the banks’ Turkish lira-
denominated funding costs increased,
including the interest rates of issued
bonds and bills, deposits and credits.
In the light of these developments,
the sector’s net profit reached
TL 24,7 billion with an increase of
5.1% compared to the previous year’s
figure and return on equities realized as
14.2%. On the other hand, in the second
half of 2013, the sector’s profitability
decreased compared to the first half of
the year due to increasing interest rates
as well as a series of regulations related
to provisions and redetermination of
upper limits for some credit ratios.
It is expected that the banking sector
continue to support Turkish economy
by its high asset quality as well as
strong capital structure in 2014. The
total assets of the banking sector are
expected to increase by 15%whereas
loans and deposits are expected to rise
by 18%.
194
Total Equities (TL Billion)
Total equities in the
banking sector rose by
6.5% in 2013.