THE TURKISH ECONOMY
IN 2012, THE BANKING
SECTOR CONTINUED
TO GROW IN TERMS OF
TOTAL ASSETS, NUMBER
OF NEW BRANCHES, AND
THE NUMBER OF PEOPLE
EMPLOYED.
DEVELOPMENTS IN
THE TURKISH BANKING
INDUSTRY IN 2012
THE BANKING SECTOR KEEPS
GROWING.
In 2012, the banking sector continued to
grow in terms of total assets, number of
new branches, and the number of people
employed. Total assets available to the
entire banking sector had sustained a year-
on increase of 12.6% at the end of 2012 and
rose to TL 1,371 billion.
The tightening monetary policy
implementations, in effect until mid-year
2012 based on the 2011 decisions adopted
by the BRSA and the CBRT to increase loan
costs with a view to observing financial
stability, drove funding costs upward in the
banking industry and slowed the rate of
increase in the loan volume.
From the second half of the year, conversely,
the rebalancing process and the current
deficit’s tendency to contract became
more marked; the policy mix introduced
by the CBRT in this period reduced the
funding costs of the banking sector. Yet the
sustained negative outlook of the overseas
markets and weak domestic demand had a
restrictive impact on growth trends in the
banking industry.
THE SECTOR’S FUNDING SOURCES
PRESERVED DIVERSITY.
During 2012, the banking industry
continued to meet its financing needs via
borrowing from abroad and through funds
generated on repo transactions, as well as
from deposits that represent its primary
source of funding. The sale of securities
portfolio assets and bonds issues, in
particular, also made a strong contribution.
Bank bonds issues increased by 105% and
rose to TL 37.9 billion in December 2012
from TL 18.4 billion at year-end 2011.
HIGH CAPITAL ADEQUACY RATIO
Overall, the industry’s capital adequacy ratio
rose by 1.3 percentage points year-on-year
and stood at 17.9% as of December 2012,
thereby maintaining its high level. Due to
the short-term composition of liabilities,
interest rate declines positively influenced
the net interest margin, and in turn,
profitability in 2012. The net profit posted
by the entire sector in the reporting period
amounted to TL 24 billion.
FUTURE EXPECTATIONS
A MORE BALANCED GROWTH
COMPOSITION
In the soft landing process experienced
by the Turkish economy in 2012, domestic
demand lost pace, while foreign demand
was the main growth driver. It is expected
that the contribution of net exports and
consumption and investment expenditures
will present a more balanced outlook
DEPOSITS AND LOANS IN 2012
(*)
(CHANGE COMPARED TO YEAR-END 2011) (%)
-5
J
F
M A M J
J
A
S
O N D
0
5
10
15
20
TL Deposits
FC Deposits
Loans
(*)
As of January - September
24
İŞBANK
ANNUAL REPORT 2012
1...,16,17,18,19,20,21,22,23,24,25 27,28,29,30,31,32,33,34,35,36,...300