Banks’ first-half profit rocketed 400 percent

Turkish banks collectively posted a net income of 169.2 billion Turkish Liras in the first half of 2022, up by 400 percent from a year ago, data from the Banking Regulation and Supervision Agency (BDDK) have shown.

Interest income from loans increased 69 percent year-on-year to 330 billion liras with interest income from consumer loans rising 48 percent to 65 billion liras in January-June.

Banks' combined assets grew 27.1 percent compared with the end of 2021, reaching 11.7 trillion liras. Loans increased by 28.1 percent over the same period to 6.28 trillion liras.

Deposits collected by lenders, the biggest fund resource of the banks, stood at 6.8 trillion liras, rising 28.1 percent from the end of last year.

The capital adequacy rate in the banking industry was 18.05 percent as of end-June, remaining almost unchanged from a year ago.

The non-performing loans/total loans ratio improved from 3.66 percent in June last year to 2.49 percent in June 2022.

The total shareholders' equity increased by 43.9 percent from the end of last year to stand at 1.03 trillion liras, while the securities portfolio grew by 28.9 percent to 1.9 trillion liras, the BDDK said.

There were 55 banks operating in Türkiye as of end-June, up from 52 lenders in the same period of 2021.

Banks had 11,015 branches, down from 11,090 branches, while the number of bank employees increased from 201,280 to 201,823.

Turkish banks widened the network of ATMs from 48,722 to 48,814.

Economy, profit,