Making evaluations about the banking sector, Ömür Tan, General Manager of QNB Finansbank, pointed out that the return on equity will decrease in the system.
Stating that we entered the last year with the expectation of decreasing the effects of the epidemic and normalization, Tan explained that since January, political, economic and geopolitical problems have emerged in various parts of the world, especially in Europe, and that there have been rapid fluctuations in energy and commodity prices, especially after the Russia-Ukraine war.
Pointing out that the inflationary process in the world economy has accelerated in this process, Tan said that 2022 will be a year in which uncertainty comes to the fore. Noting that the effects of the Ukraine-Russia war are diminishing at the moment, however, there are deteriorations in the supply chain due to the increasing COVID-19 cases in China in the second half of 2022, Tan said: “The probability of a recession in the global economy has also increased in an inflationary environment. When we look at it from the perspective of Turkey, there were many risk factors in our geography, in an environment where the effects of the pandemic were diminishing. The most critical issue was inflation, and with the effect of global conditions, it rose to its highest level in recent years. In this period, the economy showed a good growth performance. In this respect, 2022 was a difficult year, but the normalization process continued after the epidemic. Although 2023 carries some risks, we can say that we have passed a difficult threshold.”
“Banking is not a sector that can only be followed with profitability”
Ömür Tan stated that as QNB Finansbank, they spent the year 2022 very productively and provided uninterrupted support to the economy and its customers with accelerated growth.
Stating that they left their competitors behind in loan and deposit growth as of the third quarter of last year, Tan said, “We continued to gain market share with our strong growth. In terms of profitability, we saw a banking sector that reached a high level of equity profitability, which has not been seen in recent years.” he said.
Reminding that the profitability was doing very well within the framework of increasing net interest incomes and securities incomes indexed to inflation, Tan said: “Despite a strong nominal profitability level, the level of equity profitability remained below the inflation rate. On the other hand, banking is not a sector that can be followed only with financial figures and profitability. Customer acquisition and deepening are also very important issues for us. Last year, we gained a significant amount of new customers on both the retail and corporate sides. Also, while our own operations are digitalized, we are also helping our customers to digitalize. We have taken steps. As a bank that closely follows digitalization and innovation, we became the first bank to establish a team within the scope of service banking, which is an innovation in the sector. Therefore, 2022 has been a good and productive year for us.”
“I think the economic outlook will be more positive”
QNB Finansbank General Manager Tan stated that they think that the effects of the epidemic will decrease this year and that the economies will return to pre-epidemic levels.
Emphasizing that many countries in the global economy, though not in Turkey, are concerned about recession, Tan said that the economic outlook will be more positive once the inflationary pressure is broken and energy and commodity prices normalize.
Mentioning that 2023 could be a positive year for banking from this point of view, Tan continued as follows: “Legal regulations and changes come to the fore in terms of the banking sector. Within the scope of the economic conjuncture, many legislative changes were made in 2022. While some of these had a positive impact on the sector, some were challenging for the banks. I think that the growth in the banking sector will continue in 2023, the demand for loans in Turkish lira will increase in parallel with the growth of the Turkish economy, and especially small businesses and real person customers will be more enthusiastic on the demand side. In addition, on the deposit side, savings in Turkish lira were encouraged with Currency Protected Deposits, and this year, the banking sector will continue its Liraization Strategy on both the loan and deposit sides.
“We will prioritize Turkish lira denominated products in growth”
Ömür Tan mentioned the importance of 2023 for the country and reminded that both presidential and parliamentary elections will be held.
Stating that he thinks it will be an economically active year as in the previous election periods, Tan said, “We expect that the growth in the Turkish economy will continue without slowing down, inflation will decrease due to the base effect, and employment will increase even more.” he said.
Emphasizing that they will continue to support employment as a bank this year, Tan stated that they currently employ more than 11 thousand personnel as QNB Finansbank.
Explaining that the return on equity targets will be shaped in line with consumer inflation, Tan said, “Even though we see high profitability in nominal terms in the banking system this year, the return on equity will decrease, but the target will at least be to achieve the return on equity at the inflation level. As QNB Finansbank, we always prioritize growth in terms of market share. “Because we are a bank, we want to gain market share in all strategic metrics. We will prioritize Turkish lira denominated products in growth.” used the phrases.
“We will focus on our real sector customers”
Ömür Tan stated that as QNB Finansbank, its total loans increased by 53 percent in the 9 months of 2022 compared to the end of 2021, reaching 312 billion liras, and in this period, loan supports increased by 52 percent to 217 billion liras in the real sector, and to 95 billion liras with an increase of 54 percent in individual customers.
Explaining that they provided much more resources to the real sector in Turkish lira, Tan pointed out that the growth rate remained more limited as there was a contraction in foreign currency loans in the sector.
Emphasizing that they will continue to support both the real sector and individual customers this year, Tan said, “We will focus on our producers, exporters and SME-scale real sector customers. In 2023, we will continue to provide financial support to our customers in all these areas and grow within the framework of their needs.” used the phrases.
Sharing his views on the effects of the monetary policies implemented last year on the banking sector, Tan said: “While the Central Bank of the Republic of Turkey (CBRT) reduced the policy rate to single digits, the emphasis on liraization came to the fore in the policies implemented and new regulations in general terms. Both monetary policy and new regulations. It affects the banking sector from various aspects. First of all, the funding provided by the banking sector is not only dependent on the monetary policy, but is also affected by the changes in the policy rate. In addition, there are many regulations currently implemented by the CBRT and the BRSA that directly affect the banking sector. Banks, market conditions and applied It shapes the balance sheet management within the framework of policies. While monetary policy instruments affect the decisions of banks on balance sheet management, they also lead banks to set shorter-term targets. Monetary policy implemented in this respect, It can be considered as one of the most important elements that determine the target and strategy in bitterness.”
“A rapidly decreasing inflation will create positive effects for the economy”
Ömür Tan, General Manager of QNB Finansbank, stated that the Turkish economy has come to the fore in the world in terms of growth, and that global economic activity has slowed down with the epidemic, while Turkey is positively differentiated.
Noting that tourism and export revenues have increased, but the foreign trade deficit continues to increase with the rise in energy and commodity prices, Tan said, “Financing the current account deficit stands out as one of our most important issues from the perspective of our country. ” said.
Pointing out that there are important opportunities in tourism and exports, Tan concluded his speech as follows: “When we look at internal factors, we saw a serious fluctuation in exchange rates last year. Subsequently, we faced high inflation. As of today, we see that the fluctuation in exchange rates has stopped and inflation is due to the base effect. It will also decrease. Further increase in the rate of decrease in inflation is very important in terms of purchasing power. A rapidly decreasing inflation this year will have positive effects for the economy. The wheels are working in the economy. We need to attract more investment and get a bigger share from the changing global supply chain. As an individual and as a company, we have responsibilities. As a bank, we provide the necessary financial support for the growth of the Turkish economy in this context.”