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Turkey’s banking sector: Facts & Figures

Updated September 2019 – For earlier editions of Facts & Figures click here

The number of banks operating in the banking sector was 53 as of April 2019: 33 of them were deposit banks, and 13 of them development and investment banks. Of the deposit banks, three were state-owned banks and eight were private banks. There are six participation (Islamic) banks.

The share of assets of deposit banks in the banking sector was 88%, while the shares of development and investment banks and participation banks were 7% and 5%, respectively.

The number of employees did not significantly change compared to the end of the previous year and reached 208,000 people in 2018. The number of branches declined by six to 11,576.

As of December 2018, the share of the five largest banks in total assets was 56%. According to the loan and deposit volume, the share of the five largest banks in total increased by one percentage point and reached to the 61% and 56%, respectively, while their share in assets remained the same.

Total assets reached $732 billion as of 2018. The ratio of total assets to GDP was 104%. Loans and securities had, respectively, shares of 62% and 12% in total assets.

Loan volume of the banking sector reached $453 billion and the ratio of loans to GDP was 65%. Some 53% of total loans was extended to large scale companies and project financing, 25% to SMEs, and 22% to consumers.

In the last quarter of the year 2018, a relatively slowdown was recorded in loans. Turkish lira (TL) loans decreased by TL 54 billion, while FX loans increased by $1 billion. TL deposits and FX deposits increased by TL 7 billion and $8 billion. Loan-to-deposit ratio decreased by 4 percentage points to 115%. The ratio of non-performing loans to total loans was 4%.

53% of assets was financed by deposits, while 26%, by non-deposit funds. The ratio of shareholders’ equity to total assets was 11%.

Total deposits reached $386 billion. The share of TL deposits in total deposits decreased by five percentage points to 51%.

Shareholders’ equity increased to $80 billion. Capital adequacy ratio was 17.3%. Core capital adequacy ratio remained at a high level and was 13.8%.

Interest income and interest expenditures increased by 49% and 66%, respectively, in 2018. Thus, net interest income increased by 29%.

Net profit increased by 22% to $10 billion. In 2018, average return on equity was 13.6%. Average return on assets decreased by 10 basis points to 1.5% level compared to the previous year.

As of December 2018, the number of active customers using digital banking transactions reached 44 million. 96% of the customers were household, and 4% were corporate.

Contributor: Emre Inan