Banking sector net profit at 11-month low
January-February net profit of the banking sector increased by 68.1 percent year on year.
According to the data announced by the Banking Regulation and Supervision Agency (BDDK), the share of non-performing loans in total cash loans decreased to 1.93 percent in February. This rate was at the level of 3.02 percent in the second month of last year.
The net profit of the sector, which was 39 billion liras in January-February 2022, rose to 65.6 billion liras in the first two months of this year.
The core capital adequacy ratio was 14 percent, at the same level as February 2022, and the capital adequacy standard ratio was 17 percent.
According to the data of the Banking Regulation and Supervision Agency (BDDK), the total asset size of the Turkish banking sector increased by 686 billion 981 million liras compared to the end of 2022 and reached 15 trillion 34.4 billion liras as of February.
The “Unconsolidated Main Indicators of the Turkish Banking Sector” report for the period of February 2023 was published by the BRSA.
According to the report, the asset size of the banking sector in February was 15 trillion 34 billion 371 million liras. While the sector’s total assets increased by 686 billion 981 million liras compared to the end of 2022, its proportional equivalent was 4.8 percent.
Compared to the end of 2022 in February, loans, the largest asset item of the sector, increased by 6.3 percent to 8 trillion 54 billion 958 million liras, and the total securities increased by 6.6 percent to 2 trillion 528 billion 165 million liras. In this period, the NPL ratio of loans stood at 1.93 percent.
Deposits increased by 6.5 percent
Deposit, which is the biggest source of funds among banks’ resources, increased by 6.5 percent in February compared to the end of 2022 and reached 9 trillion 437 billion 901 million liras.
In the same period, the total equity reached 1 trillion 487 billion 723 million liras with an increase of 5.8 percent. As of the end of February, the sector’s net profit for the period was 65 billion 564 million TL, and the capital adequacy standard ratio was 17.15 percent.