Net profits of Turkish banks continued to fall in the second quarter of 2011, a report of Turkey's Banking Regulation and Supervisory Agency showed on Friday.
Total Q2 net profits of Turkish banks dropped 15.2 percent year-on-year to 10.3 billion Turkish lira ($5.9 billion) said the report on the outlook on Turkish banking industry in the first half.
Total assets rose 13.9 percent to 1.1 trillion lira in the first half, as loans rose 94.5 billion lira, or 9.9 percent, since the beginning of the year and reached 620.4 billion lira in June.
The report said continued loan growth was related to economic growth, attractive interest rates and household demand for loans.
In first half of the year, 42.8 percent of loans was corporate loans and 33.1 was individual loans. 24.1 percent was taken out by small and medium-sized enterprises.
Turkey's loan market is dominated by 16 banks. 88.1 percent of individual loans and 92.4 percent of other loans was granted by these 16 banks, the report revealed.
In June, the Banking Regulation and Supervisory Agency raised provisions if lending threshold is breached in a bid to cool loan growth surge which fuels imports into Turkish economy and current account deficit.
AALast Mod: 05 Ağustos 2011, 17:39