Lenders in Turkey cover staff expenses by charges
ISTANBUL
![Lenders in Turkey cover staff expenses by charges](http://image.hurimg.com/i/hurriyet/75/0x0/59c7672545d2a027e83abc32.jpg)
Headquarters of major Turkish banks in Istanbul’s financial district are seen. Turkey’s banks earned 14.8 billion Turkish Liras from service charges last year. DAILY NEWS photo, Emrah GÜREL
The revenues gained by the Turkish banking sector from service charges, which amounted to 14.8 billion Turkish Liras last year, only just covered banks’ staff expenses that cost 14.2 billion liras.While the banking sector’s net profits reached 23.6 billion liras - a 19.2 percent increase in 2012 from a year earlier - bank charges received from customer transactions made up a considerable part of this at 14.8 billion liras, according to figures from the Banking Regulation and Supervision Agency.
Bank charges and commissions obtained from credits made 19.2 billion liras in non-interest income last year, up from 17.1 billion liras in 2011. While credit fees and commissions totaled 4.4 billion liras, the bank charges received from customers amounted to 14.8 billion liras that was able to cover staff expenses cost 14.2 billion liras.
Non-interest income at 27 billion liras
As all non-interest income contributed 27 billion liras to the total income, interest income, which is the main portion of banks’ income, reached 109.9 billion liras.
The figures indicate that the profits made from non-interest items were a quarter of interest those made from interest items.
However, Economy Minister Zafer Çağlayan has criticized banks for demanding “too high” charges.
“Bank charges should not be exaggerated, but rather should be simpler. Some banks are morally corrupt about this matter,” he said on Feb. 15.
He stated that the banking sector should support the private sector, tradesmen, workers and peasants by giving low-cost credits, recalling that state-run Halkbank loaned credits with a 5 percent interest rate.
Separately, İşbank’s General Manager Adnan Bali said on Feb. 15 that credit loans for small and medium size enterprises (SME) reached 23.8 billion liras in 2012, representing a 20.4 percent increase from a year earlier.
TURKISH BANKS’ PROFITS JUMP
ISTANBUL - Hurriyet Daily News
Vakıfbank saw its all-time-highest annual net profit last year with 1.46 billion liras and a 19 percent rise.
State-run Ziraat Bank’s net profit in the last quarter of last year was worth 2.65 billion liras.
Yapı Kredi Bank’s net profit for last year was declared as 2.98 billion liras, as its credit loan reached 77.8 billion liras.
TEB’s profits rose to 486 million liras last year with a 135 percent increase from 2011.