EUR 8.54 For Business Accounts Only

TURKISH BANKS – Weekly banking review

In the week ended 15 March, growth in deposits was eye catching with TRY deposits expanding 2.6% w-w vs 2.3% growth for FX deposits (+USD4.7b w-w). As a result, since September 2018 FX deposits have increased by USD22b. This week’s growth was predominantly led by private banks.

There was a pick-up in both TRY and FX loans as well. After a long gap, we witnessed meaningful growth in TRY loans at private banks; in fact, growth in TRY loans at private banks (1.2% w-w) aced the one at state banks (1.0% w-w). On strong deposit growth, LTD ratio of private banks slid to 100% from 102% a week ago. In y-y terms, state banks’ TRY loan growth reached 15.5% vs. 7.6% contraction for private banks. The sector’s LDR declined 113% (TRY: 138%, FX: 90%) from 115% a week ago. Although sector’s NPL ratio was stable at 4.1%, NPL volume increased by 0.4% w-w, the 18.4% ytd hike in participation banks’ NPL volume particularly needs highlighting. XBANK gained 5.8% this week bringing YTD gains to 19.2% --- XBANK’s positive divergence vs EM/European banks YTD now stands at 12.1%/10.6%: Both are new highs.