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General Information
Corporate Management
Financial Information
The Turkish Banking Industry in 2014
In 2014, net profits in the banking industry realized
TL 24.7 billion, same as the previous year.
Despite increasing uncertainty in global markets, the Turkish
banking sector, with ample liquidity and a strong capital
structure, continued to be the driving force of the economy.
After the Central Bank raised the policy interest rate in the first
quarter, an uptrend occurred in deposit and loan interest rates.
Starting in May, total loans and deposits began to pick up as
loan interest rates eased and consumer confidence rebounded
in part after the Central Bank lowered interest rates.
Total assets of the Turkish banking sector grew 26.4% in 2013,
and at year-end 2014, the industry’s total assets had increased
15.1%, climbing to TL 1,994.2 billion. On the other hand, loan
volume, the most important placement item for the banking
industry, expanded 18.5% in 2014, rising to TL 1,240.7 billion,
due to new restrictive regulations on the use of loans, compared
to a 31.8% rise in 2013. Of total loans, some TL 881 billion were
Turkish lira denominated, with TL 359.7 billion in foreign currency
loans. The total amount of non-performing loans (NPL gross),
which consisted mostly of personal and SME loans, increased
TL 6.8 billion in 2014 to TL 36.4 billion. As a result, the sector’s
NPL ratio rose to 2.84%.
As banks have increasingly turned to non-deposit funding
sources, total deposits increased 11.3% in 2014 to
TL 1,052.7 billion, while it had risen 22.5% in 2013.
The share of foreign currency deposits in total deposits
was 37.2%. Shareholders’ equity increased 19.8% to
TL 232.1 billion while the capital adequacy ratio stood at 16.30%.
The industry’s net profit for the period realized TL 24.7 billion,
same as the previous year, while return on equity declined to
12.2% from 14.2% at year-end 2013.