Tough year for banking sector, say bank leaders

Tough year for banking sector, say bank leaders

ISTANBUL - Hürriyet Daily News
Tough year for banking sector, say bank leaders

Garanti Bank CEO Ergun Özen

The year 2012 has been bad for the banking sector, Garanti Bank General Manager Ergün Özen said at an Istanbul meeting Oct. 5.

“For Garanti Bank loan growth, the quality of profits and margins are falling. This looks like it will continue,” said Özen at the Vodafone-sponsored CEO Club meeting covering the banking sector. He did, however, add that he expected 2013 to be a better year than 2012.

Ziraat Bank General Manager Hüseyin Aydın echoed these sentiments. “Next year will be better compared to 2012 as the sector will be giving more loans,” he said.

Akbank General Manager Hakan Binbaşgil also said loans would grow in 2013, while Denizbank General Manager Hakan Ateş warned that falling growth, loss of profits and a fall in the quality of financial assets would be difficulties facing the sector in 2013.

Aydın said growth must continue since the banking sector is still too small and for this to happen, there needs to be concerted efforts.

Meanwhile, touching on the recent escalation on Turkey’s border with Syria, TEB General Manager Varol Civil said, “The night the Syria events happened, we did not sleep well as a people, but from a financial point of view, we slept well.” He attributed this to the growth of Turkey’s banking sector over the past three years.