Fees make up 20 pct of bank profits

Fees make up 20 pct of bank profits

ISTANBUL - Radikal
Fees and commissions that Turkish banks collect for loan services reached 23 billion Turkish Liras in the last 10 years, making up nearly one-fifth of their total profits of 134.3 billion liras.

The amount of commissions and fees charged by loan services hit 2.1 billion liras in the first half of the year, according to a report by Enuygun.com, a local price comparison portal. “Banks should pay back 10 years of retroactive fees and commissions that they charged on all kinds of loans according to a Supreme Court of Appeals decision. But if all the consumers apply for repayment, the figure that the banks will have to pay is close to the banking sector’s annual profit,” said Betül Sungurlu, the chief analyst at Enuygun.com, adding that some consumers managed to get repayment, while others failed.

Banks should clarify the matter, she said, adding that clarity would benefit both consumers and arbitration courts and banks.

The Turkish banking sector recorded 19.8 billion liras in profits last year, and the figure is 11.5 billion liras for the first half of the year, she said. Some 60 million consumer loans were received from banks in the last 10 years, 55 million of which were for personal finance, while the rest were housing and vehicle loans, she added.

Eliminating all fees and commissions is not a solution as banks may hike loan interest to compensate for such expenses, according to Sungurlu.