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Follow on Google News | Turkey’s banks prove resilient to global headwinds. Assets to top TRY 2.6 trillion by 2016“The robust condition of Turkey’s banks is contrasting with the troubled banking sectors in Western Europe” says Marcin Mazurek, director of Inteliace Research, during a presentation of its report, Banking Market in Turkey, 2014-2016.
Turkey’s economy grew at a 3.3 percent annual rate in the first half of 2014 despite increasing global economic headwinds. Reflecting the robust economy, key banking volumes jumped higher, however, growing at decelerating rates. Total assets increased to a record TRY 1.65 trillion (EUR 631 billion) as of June 2014. Lending remained relatively strong (+5% growth in value of outstanding loans during Jan.-Jun.2014) In terms of profits, banks were able to post solid results in H1 2014. Despite gradually falling (since 2012) interest margins and stagnating fee & commission income, banks managed to produce higher profits thanks to growing underlying volumes. A closer look at P&L statements of the banking sector in H1 2014 points to a good control of operating costs and a falling impact of bad-loan provisions (on a relative basis vs. total assets). The NPL* ratios for commercial loans and housing loans keep falling, however, credit card debt and other consumer lending showed first signs of deterioration, which could be attributed to higher interest rates and growing unemployment. About The Report “Banking Market in Turkey 2014–2016” About Inteliace Research Inteliace Research is an independent consulting company that focuses on the financial markets in Central and Eastern Europe (http://encyclopedia.thefreedictionary.com/ During 2005–2014, Inteliace Research provided its products and services to more than 60 clients, including major CEE banks and several “The Banker” top world banks. To learn more about the company, visit Inteliace Research’s webpage: www.inteliace.com. End
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