Banking/Financial Institutions
Banking dominates the Turkish financial sector, accounting for more than 70 percent of overall financial services, while insurance services and other financial activities also have significant growth potential. There are 57 banks in Türkiye (32 deposit banks, 16 development and investment banks, 6 participation banks, and 3 banks under the management of the Savings Deposit Insurance Fund). Out of the 57 banks, 25 are classified as foreign banks.
The Turkish insurance market is still underpenetrated compared to peer countries. It is poised to capitalize on its significant potential as new insurers set up shop and gain access to the relatively untapped Turkish market. Türkiye has seen strong economic growth, fueled in part by a young and dynamic population that is increasingly in need of financial products and services.
A key driver of the Turkish financial sector has been the county’s robust economy with a bright future. During the 2003-2021 period, the Turkish economy grew at an average annual real GDP growth rate of 5.4 percent, and the growth momentum is expected to continue. Türkiye’s sizeable and diverse economy has achieved remarkable growth, becoming the 11th largest economy in the world in 2021.
According to temporary data reported by banks, as of October 2023 total assets of Turkish Banking Sector realized as TRY 21.757.871 million. Total assets of the banking sector increased by TRY 7.410.481 million compared to 2022 year-end. As of October 2023, loans, the largest item in assets amounted to TRY 10.991.153 million and securities amounted to TRY 3.698.425 million. Compared to the end of 2022:
- Total assets increased by 51.7%,
- Total loans increased by 45.0%
- The securities portfolio increased by 56.0%.
The share of non-performing loans in total loans realized as 1.54%. Deposits, the biggest fund resource of the banks, increased by 56.3% compared to the previous year-end to TRY 13.848.142 million. While the total shareholders’ equity increased by 37.7% to TRY 1.935.364 million compared to the end of 2022; in October 2023 period, the net profit of the period is 486.030 million TRY and the capital adequacy standard ratio is 18.44%. All financial executives have a lot to deal with these days. While companies are trying to hedge their risks with risky market situations, financial institutions have to be very careful in choosing their business solution partners.
With more than 30 years of experience serving financial institutions across Turkey, we cultivate solutions to assist financial institutions in today’s challenging economic environment. From accounting and tax to specialized risk management and consulting services, we serve banks and savings institutions, mortgage companies, and finance and leasing companies.
Our approach;
- We offer practical, receptive, risk-based service led by dedicated industry professionals.
- We are proactively involved in the banking industry and its support groups.
