Turkish banks posted a net profit of TRY190.3bn in January-May, a 44% year-on-year increase, data from the banking regulator BDDK have shown.
The combined assets of the lenders grew by 17% from the end of 2022 to stand at TRY16.84 trillion, while loans grew by 22% during the same period to TRY9.2 trillion.
Banks’ interest income from loans rose by 71% y/y to TRY453bn, with interest income from consumer loans up 77% y/y.
Lenders’ net interest income, on the other hand, inched up only 3% in the first five months of 2023 from a year ago.
The non-performing loans/total loans ratio improved from 2.61% in May last year to 1.75% in May 2023, while the industry-wide capital adequacy ratio came down from 18% to 17.08%.
Banks expanded their securities portfolio by more than 20% compared with end-2022 to TRY2.85 trillion.
There were 54 banks operating in Turkey as of May with more than 11,000 branches across the country and over 201,000 staff.
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