Turkey's Isbank (ISCTR) has reported that its inflation-adjusted net profit in 2022 declined to Turkish lira (TRY) 48bn ($2bn) from a revised figure of TRY 62bn, BloombergHT reported on June 20.

As a result, its return on equity declined to 19%.

Fellow Turkish lender Garanti BBVA (GARAN), meanwhile, reported that its adjusted profit for 2022 declined to TRY 15bn from a revised TRY 59bn.

As a result, its return on equity declined to 10%.

In 2022,  the Turkish government delayed the implementation of hyperinflationary accounting rules, in accordance with IAS 29 accounting standards, for local companies to end-2023.

Isbank is the fourth largest bank in Turkey with TRY 1.6 trillion ($76bn) of assets at end-March.

In May, the bank reported a 53% y/y growth in its Q1 2023 profit to TRY 13bn. The return on average equity fell, meanwhile, to 27% from 35% in 1Q22.

The USD/TRY pair was up 31% y/y at end-March. Official consumer price index (CPI) inflation in Turkey in March stood at 51% y/y. Official producer price index (PPI) inflation was reported as 62% y/y.

The Istanbul-based ENAG inflation research group of economists released an inflation figure of 113% y/y for March.

For 2022, Isbank reported that its profit jumped to TRY 62bn from TRY 13bn in 2021.

Official inflation stood at 64% at end-2022.

Garanti is a unit of BBVA (Madrid/BBVA) and the fifth largest bank in Turkey with Turkish lira (TRY) 1.3 trillion ($63bn) worth of total assets at end-March.

For 2022, Garanti reported that its net profit jumped to TRY 59bn from TRY 14bn in 2021.