Profit of Turkish banks decreases by over 30%

The profit of Turkish banks in the first half of this year amounted to 24.776 billion liras, while the figure was 36 billion liras in the same period of 2018, Trend reports Aug. 26 referring to Banking Regulation and Supervision Authority of Turkey.

During the year, the profit of Turkish banks decreased by 31 percent. The share of profit in national currency amounted to 80 percent of the total volume.

Net interest income of banks, increasing by almost 40 percent, amounted to 73.402 billion liras. Of these, 86 percent accounted for national currency - 62.864 billion liras (an increase of 9.6 percent). Net interest income was generated from interest income in the amount of 213.035 billion liras (growth for the year by almost 10 percent), of which the share of national currency amounted to 81 percent, and interest expense in the amount of 139.633 billion liras (growth for the year by 63 percent), of which the share of national currency amounted to 79 percent. The growth of interest expenses in national currency amounted to 71 percent.

Non-interest income as of July 1, 2019, increased by more than 1.5 times year on year, and amounted to 54.293 billion liras. At the same time, 83 percent accounted for the national currency. Non-interest expenses amounted to 64.488 billion liras (an increase of 32 percent), 86 percent of which accounted for expenses in local currency. Thus, the net non-interest loss of banks for the year amounted to 11.667 billion liras, having increased by 93 percent over the year.

($1= 5.7538 liras on Aug. 26)