Categories: Economy

The banks submitted their profit sharing requests to the BRSA

The banks submitted their profit sharing requests to the BRSA

Three bank sources close to the matter said they want to split the banks’ profits this year, saying the banks have forwarded their requests to the Banking Regulation and Supervision Agency (BDDK) and discussed it.

Although the BRSA makes recommendations every year regarding the distribution of bank profits, in recent years it has been making decisions to add profit to capital.

BRSA had no comment on the matter.

PROFITS INCREASE 408 PERCENT IN THE JANUARY-OCTOBER PERIOD

With the contribution of inflation-indexed bond yields in a high-inflation environment, the Turkish banking sector posted record profits this year. The net profit of the banking sector in the January-October period increased by 408 percent compared to the same period last year and reached 335.92 billion lira.

While the sector is expected to have a profitable year next year, there is a widespread belief that no gains will be made this year, with the expectation that the same returns on CPI-indexed bonds will not be made in parallel with the decline. . in inflation.

A banking source said that some banks, especially private ones, had profit sharing requests, and that these requests were forwarded to BRSA and the institution was also evaluating this.

NOT ALLOWED IN 2018 AND 2019

Although the BRSA informed banks that a profit sharing of up to 10 percent of net income was considered appropriate last year, it passed on its recommendations to banks in previous years to add profit to capital and maintain it. Using a prudent approach, the institution did not allow the distribution of profits for 2018 and 2019 in order to ensure that shareholder equity remained strong.

Another bank source stated that BRSA’s general approach to profit sharing is “Don’t spread it, add it to capital” and said:

“However, last year, the BRSA evaluated this problem in a banking way. He suggested the distribution of profits up to a certain rate according to the capital adequacy indices and some indicators of the banks.

BRSA is expected to announce the banks’ November net earnings tomorrow. (Reuters)

Source: Sozcu

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