Profits of Turkish banks soared by 40 percent in the previous year.

The Turkish banking industry in Istanbul saw a significant increase in net income last year, with a 40 percent rise from 2022 to reach 603.6 billion Turkish Liras ($19.9 billion), according to data from the banking watchdog BDDK. This growth was largely driven by a 54 percent increase in loans, which reached 11.7 trillion liras in 2023.

The interest collected from these loans also saw a significant increase of 100 percent, reaching 1.6 trillion liras. Consumer loans in particular saw a rise of 79.2 percent in interest income. Despite this growth, the share of non-performing loans in total loans decreased from 2.1 percent to 1.6 percent.

The banking industry also saw a surge in interest income from credit cards, with a 217 percent increase to 102 billion liras. Deposits, which are the main source of funds for banks, also saw a significant increase of 67.6 percent to reach 14.85 trillion liras. However, the interest paid on these deposits also increased by 250 percent to 1.55 trillion liras, resulting in a 6 percent decline in net interest revenues for the banks in 2023.

The total assets of the banking industry also saw a significant increase of 64 percent, reaching 11.7 trillion liras. The banks’ securities portfolio also grew by 67 percent to approximately 4 trillion liras. The industry’s capital adequacy standard ratio was reported at 18.9 percent.

The number of banks in Turkey increased from 54 in 2022 to 60 in 2023, with a total of 11,000 branches and 208,000 employees. This growth in the banking industry highlights the strong economic growth and stability in Istanbul, making it an attractive location for both domestic and international investors.  

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