Banks’ assets rise but profits decline .hurriyet2008-detailbox-newslink { font-family: Arial, Helvetica, sans-serif; font-size:13px; font-weight:bold; text-decoration:none; color:#000000;} .hurriyet2008-detailbox-newslink:hover { font-family: Arial, Helvetica, sans-serif; font-size:13px; font-weight:bold; text-decoration:underline; color:#990000;} ISTANBUL - Total assets of Turkey’s banking sector post a monthly increase of 5.2 percent, showing the healthy state of Turkish banks. But at the same time, total profits in banking decline to YTL11.9 billion, an annual decline of 10.5 percent.

The total assets of Turkey’s banking sector rose 5.2 percent in October from the previous month, according to data from a banking watchdog.
The industry’s total assets climbed from YTL 679.8 billion to YTL 715.5 billion from September to October, the Banking Regulation and Supervision Agency, or BDDK, announced in its December bulletin that also included data for October.

Total profits of the industry, however, declined 10.5 percent during the same period. The industry’s net term profit, which stood at YTL 13.3 billion in October last year, dropped to YTL 11.9 billion.

Total assets in Turkish currency terms that totaled YTL 492.8 billion in the September period, rose 1.1 percent to YTL 498.5 billion. Over the same period, total assets in euro terms declined 1.5 percent to 37.2 billion euros. Total assets in dollar terms and in the dollar’s equivalence to other currencies, rose 0.3 percent to $91.6 billion.

The share of total assets held by deposit banks, participation banks, development and investment banks was 93.4 percent, 3.5 percent and 3.1 percent respectively. The share of domestic private banks, public banks and foreign banks in the industry’s assets was 52.9 percent, 29.6 percent and 17.5 percent, respectively.

The sector’s total loans, which stood at YTL 361.1 billion in September, rose 3.3 percent to YTL 373.1 billion in October. Over the same period, the sector’s securities portfolio rose 5.2 percent from YTL 179.8 billion to YTL 189.3 billion.

In terms of the resource structure of the banks, external resources constituted 88.6 percent while equity capital constituted 11.4 percent of total liabilities in October.

Deposits, which constitute banks’ largest fund resource, had 60.4 percent share among total liabilities of the sector. In terms of external resources, debts to banks ranked second after deposits, with a share of 13.4 percent.

Syndicated loans declined by 4.6 percent to $12.8 billion, compared to the previous month. Security loans, on the other hand, dropped 2.2 percent to $12.6 billion. Debts to banks abroad, which mainly consist of resources obtained from abroad, rose 11.4 percent to YTL 95.9 billion.

The banking industry’s total loans climbed to YTL 373.1 billion in October. The sector provided YTL 99 billion in cash loans and YTL 33 billion in non-cash loans to small- and medium-size enterprises, or SMEs. Out of that figure, YTL 4.4 billion were non-performing, and would fall under an administrative follow-up.