Turkish Banking Sector Analysis: Q3 2024

The report provides summary observations of the financial position, performance, and loan and deposit dynamics of Turkish banks, both together and individually. And the user-friendly, interactive PowerBi format allows the reader to explore various data points related to banks’ performance, position, loans, and deposits:

The report is available in two languages: English and Turkish.

Highlights for Q3 2024

• Banking sector structure remained unchanged in the 3rd quarter of 2024 both in terms ownership and licenses types and market share. Still it’s worth mentioning the new Enpara Bank, which was previously a digital branch of QNB Bank. It may indicate the demand for digital banking in the country
• Slowed-down weakening of TRY to USD in the 2nd quarter 2024 led to the surge in the growth rate of assets in USD terms, indicating that the overall growth just quite significantly outpaced foreign exchange rate changes during that period, which has not happened since at least early 2022. In the 3rd quarter 2024 TRY weakened to USD by 15% ann., however the assets in USD terms still grew faster (19.9%) continuing this positive trend
• While the key rate remained stable since March 2024 loan rates and deposit rates continued their growth with slight decrease in NIM
• Loan portfolio grew mainly in the corporate segment supported with credit cards
• Deposit maturity structure worsened for the first time in the last 12 months and shifted towards short-term deposits, which is normal in the rates growing environment
• The latter three highlights together potentially means, that the system began to hunt for additional funding to support its increasing lending activity