Business

Banks reached all-time high profits in 2020

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The Turkish banking sector achieved the highest annual profit of all time with approximately 60 billion lira in 2020, when the new type of corona virus (Covid-19) epidemic was intense.

According to the information gathered from the data of the Banking Regulation and Supervision Agency (BRSA), the Turkish banking sector achieved a net profit of TL 59 billion 973 million last year.

Compared to 2019, the increase in earnings indicated 22.3 percent. Thus, the highest annual profit of all time was achieved. The Turkish banking sector made a profit of 49 billion 43 million lira in 2019.

When evaluated monthly with the effect of the Covid-19 outbreak, a fluctuating course was observed in the sector’s profits.

In December last year, the profit of the sector increased by 7.2 percent compared to the same period in 2019 and rose to 2.7 billion lire. The industry achieved the second lowest monthly profit of 2020 in December.

BANK INTEREST INCOME INCREASED 0.7 PERCENT

According to the data, total interest income generated by banks last year increased by 0.7 percent compared to 2019. Interest income from banks, which was 423.5 billion lira at the end of December, was of around $ 420.5 billion in 2019.

The banks generated interest income of Lire 308.1 billion from loans in the 12-month period. Of these revenues, 72.1 billion lira from consumer loans, 10.5 billion lira from credit cards, 36 billion lira from commercial installment loans and 189.5 billion lira from other loans.

THE INTEREST EXPENDITURE OF THE BANKS DECREASED 19.2 PERCENT

The sector’s total interest expense decreased 19.2 percent in 12 months compared to 2019, to 208.7 billion lira. In 2019, the total interest expense of banks was 258.2 billion lira.

Last year, interest paid by banks on deposits decreased 29.6 percent to 123 billion lira. 59 percent of total interest expense consisted of interest on deposits and 10.9 percent in banks.

Banks’ net interest income increased 32.3 percent compared to the same period in 2019 at the end of December and reached 214.8 billion lira.

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