Banking profits may hit 23 billion Turkish liras this year
ANKARA - Hürriyet Daily News
The Turkish banking industry is likely to continue growth n next 10 years, says Öztekin, the head of the banking regulator. AA photoProfits in the Turkish banking system are estimated to reach 23 billion Turkish Liras if the current trend continues, Mukim Öztekin, president of the Banking Regulation and Supervision Agency (BDDK), has said, according to Anatolia news agency.
“The Turkish banking industry has registered a net growth of 10.5 percent in the last 10 years and that it is highly likely the industry will keep up this upward trend in the next 10 years,” said Öztekin.
Banking profits have grown 14.1 percent in twelve months as of the end of May, he said at a meeting with several economy reporters, adding that the total profits were 19 billion liras in 2011. Public lenders have a significant share in profits, while private ones have partially seen profits drop, he said.
The total assets of the Turkish banking industry increased 4.3 percent reaching 1.27 trillion liras in May compared with the end of 2011, he said.
No new license application
Öztekin said no candidates other than Odea Bank have applied for a banking license yet, according to Reuters.
Bank of Tokyo-Mitsubishi UFJ (BTMU), the largest bank in Japan, was reportedly planning to establish a lending institution in Turkey as BDDK gave way to granting a banking license after 14 years of hiatus in the Turkish banking sector. Lebanese Bank Audi founded its Turkish unit Odea upon receiving its banking license from BBDK last year.
“We want the banking sector to grow. Turkey is seen as one of the most trusted safe havens [in the world]. [Banks], which are to enter Turkish banking industry should be strong and should contribute to the industry,” he said.
He said that a limit of $300 million (500 million liras) in capital was set for banks, which would aspire to enter the sector, will not be changed.
“A capital of 500 million liras is an important figure to gain trust for a [newly founded] bank,” he said.
The share of foreigners in the banking sector’s size of assets is 41 percent as of may 2012, he said.
The size of banking sector in Europe is 3.5 fold of the gross domestic product, while in Turkey the size of the Turkish banking sector has recently come to be on a par with the gross domestic product, he said.
No foreign partner in the Turkish banking sector is thinking of leaving as the sector is very profitable, he said.
He also said that new regulations will be designed to address numerous complaints about credit cards and personal loans which have been lodged with the BDDK. Consumers complain primarily about the high interest rates banks charge on credit card debts.