Banks’ net profit increased 44 percent in the first five months

The Banking Regulation and Supervision Agency (BDDK) published the profit and loss statement of the banking sector for May 2023.

Consequently, the sector’s net profit in the January-May 2023 period increased by 44 percent compared to the same period last year, reaching 190.3 billion lira.

The sector’s net interest income increased by 3 percent in the period January-May 2023 compared to the same period of the previous year and reached TL 223.85 billion.

EXPECTED LOSS AFTER SECOND HALF

The banking sector is expected to start punishing from the second half of this year, due to the deposit-loan interest differential, which has opened up with the effect of regulations in recent years, while profits are expected to remain below last year.

While the sector’s total assets increased by 17.4 percent compared to the end of 2022, it reached 16.85 trillion lira, while total loans reached 9.24 trillion lira with an increase of 21.9 percent in the same period.

Deposits in the banking sector at the end of May increased by 16.9 percent compared to the end of 2022 and reached 10.36 trillion lira.

While the sector’s capital adequacy ratio (CAR) was 17 percent in May, the non-performing loan ratio, which continued to decline, fell to 1.75 percent.

The default rate was 2.1 percent at the end of 2022. (SOZCU, REUTERS)