State-run Ziraat Bank sees significant rise in net profits amid strong loan growth

State-run Ziraat Bank sees significant rise in net profits amid strong loan growth

ISTANBUL
State-run Ziraat Bank sees significant rise in net profits amid strong loan growth

State-owned Ziraat Bank, one of Turkey’s largest lenders, announced late on Aug. 15 its second quarter net profits rose 21.7 percent on the year to 2.2 billion Turkish Liras ($622.37 million), mainly thanks to a strong growth in loans and net interest income. 

The bank’s loans and receivables rose to 270.9 billion liras in the second quarter with a 16.4 percent increase compared to the end of 2016, according to its statement to the Public Disclosure Platform (KAP). 

Its loan growth was announced as 34.5 percent in the mentioned period, data compiled by Reuters has shown. 

Turkish lenders gave “what they had” to offer loans to businesses in the first half of the year to give a boost to the economy and it is now time for lenders to take a rest in order to slash their operational costs, Ziraat Bank CEO and Turkish Banks Association (TBB) President Hüseyin Aydın said last week. 

Aydın told a group of journalists on Aug. 8 that loan growth for this year is expected at 16-18 percent and profitability increase at 15-20 percent during a TBB press meeting.

Ziraat Bank’s net interest income rose to 4.1 billion liras in the second quarter with a 26 percent increase compared to the same period of 2016.

Its net fee and commission income also rose to 556 million liras with a 39.8 percent year-on-year increase.