TABLE OF CONTENTS Number of Banks, Branches and Personnel.................................. 1 Selected Balance-Sheet Items....................................................... 2 On-balance Sheet Figures............................................................. 4 Off-balance Sheet Figures ……………………..…………………………………. 5 Development of Main Figures ..............……..……………………………… 7 Profitability.................................................................................... 8 Loans............................................................................................. 10 Non-Performing Loans.................................................................. 14 Securities....................................................................................... 16 Deposits........................................................................................ 17 Payables to Banks and Repo………................................................. 19 Capital Adequacy........................................................................... 20 Explanations.................................................................................. 22 BRSA, Department of Data and System Management 2 Number of Banks, Branches and Personnel Number of Banks Total 40 25 As of December 2018, there are 52 banks operating in Turkish Banking Sector as; 20 •34 Deposit banks, 34 35 30 13 15 •13 Development and Investment banks, 10 5 •5 Participation banks. 5 0 COMMERCIAL DEVELOPMENT and INVESTMENT PARTICIPATION Number of Branches Total 4.500 4.000 PUBLIC 3.922 PRIVATE 3.977 FOREIGN 3.666 3.500 3.000 Number of branches and personnel in banking sector decreased by 29 and 913, respectively when compared to the previous quarter (September 2018). 2.500 2.000 1.500 1.000 500 0 December 2018 Number of Personnel Total 80.000 70.000 PUBLIC 66.391 PRIVATE 73.135 60.000 50.000 FOREIGN 68.190 As of December 2018 period, number of branches realized as 11.565 while number of personnel realized as 207.716. 40.000 30.000 20.000 10.000 0 December 2018 BRSA, Department of Data and System Management 1 Selected Balance Sheet Items ASSETS Total 412 159 2.395 97 478 424 3.867 -14,4 -5,1 -7,5 12,1 -2,4 -12,4 -8,1 Previous End of Year 57,6 -30,0 14,1 51,0 19,0 57,2 18,7 2.036 563 -4,7 -18,0 19,0 18,4 97 -33,2 -2,4 174 421 577 3.867 -15,0 3,2 -8,5 -8,1 19,6 17,4 23,0 18,7 (Billion TL) CASH and CASH EQUIVALENTS* REQUIRED RESERVES LOANS NON-PERFORMING LOANS (GROSS) SECURITIES OTHER ASSETS TOTAL ASSETS Changes (%) Previous Quarter LIABILITIES DEPOSITS DUE TO BANKS FUNDS FROM REPO TRANSACTIONS SECURITIES ISSUED EQUITIES OTHER LIABILITIES TOTAL LIABILITIES Total assets of Turkish Banking Sector increased by 18,7% to TL 3.867 billion in December 2018 when compared to the previous year-end. * Sum of Cash, Receivables from Central Bank, Money Market, and banks items Of off-balance sheet items, OFF-BALANCE SHEET ITEMS Total (Billion TL) Contingencies Commitments - Derivative Financial Instruments - Other Commitments 781 3.566 2.905 660 BRSA, Department of Data and System Management Changes (%) Previous Quarter -12,1 -16,5 -17,4 -12,2 Previous End of Year 18,6 9,8 14,3 -6,4 - Contingencies increased by 18,6%; - Derivative financial assets increased by 14,3% in December 2018 when compared to the previous year-end. 2 Total Assets/GDP Billion TL 4.400 4.000 3.600 3.200 2.800 2.400 2.000 1.600 1.200 800 400 0 1,05 1,10 1,05 1,01 0,98 0,96 0,87 0,87 1,00 0,87 0,90 0,80 2010 2011 2012 GDP 2013 2014 Total Assets 2015 2016 2017 Sep.18 Dec.18 0,70 Total Assets/GDP The ratio of asset size of Turkish Banking Sector to GDP realized as 1,05 as of end-2017. BRSA, Department of Data and System Management 3 Selected Balance Sheet Figures Balance Sheet Asset-Liability Items Billion TL 2.395 2.500 2.250 2.036 2.000 956 1.750 994 1.500 1.250 1.000 412 1.439 478 146 338 332 Cash, Securities Required Loans Cash-like Reserves Items 421 1.042 250 510 0 53 158 0 98 Other TRY 577 563 500 125 159 314 750 463 97 Deposits Due to Banks FX 41 55 174 135 0 421 246 331 39 Funds Securities Equities From Issued Repo Trans. Other The ratio of FX assets in balance sheet to total assets realized as 44% while the ratio of total FX liabilities to total liabilities realized as 50%. The share of FX loans in total loans is 40% while the ratio of FX deposit to total deposit is 49%. Total Liabilities Total Assets Other 12% Cash and Cash-like Items 6% Other 11% Securities 12% Required Reserves 4% Loans 61% Equities 11% Securities Issued 4% Funds From Repo Trans. 2% Deposits 53% Due to Banks 19% The share of loans, securities and required reserves in total assets realized as 61%, 12% and 4%, respectively. While deposit has the biggest share by 53% in total liabilities, share of payables to banks is 19% and funds from repo is 2%. The share of equities in total liabilities is 11%. BRSA, Department of Data and System Management 4 Off-Balance Sheet Figures Contingencies in Series Billion TL 1.000 889 900 781 800 658 700 552 600 459 500 334 400 300 200 164 219 241 2011 2012 384 100 0 2010 2013 2014 TRY 2015 2016 2017 Sep.18 Dec.18 FX As of December 2018, size of contingencies realized as TL 781 billion. Other Contingencies 10% Contingencies Letters of Credit 12% Uncolleteralized Letters of Guarantee 22% Bankers Acceptance 4% Letters of Guarantee for Other Guarantee 20% As letters of guarantee is the biggest share in contingencies, share of letters of credit is 12%. Letters of Guarantee for Bill Guarantee 32% BRSA, Department of Data and System Management 5 Derivative Financial Instruments 1.772 1.457 1.269 989 793 195 2010 -196 289 310 2011 2012 -287 -311 545 612 2013 2014 -544 -613 2015 2016 2017 Eyl.18 Ara.18 -791 -982 -1.273 -1.448 -1.746 Purchase-TRY Purchase-FX Sale-TRY Sale-FX As of December 2018, derivative purchase amount realized as TL 1.457 billion and derivative sales amount realized as TL 1.448 billion. Derivative Financial Instruments Forward FX Transactions 7% Other Derivative Transactions 12% Money Swaps 49% Interest Rate Swaps 32% BRSA, Department of Data and System Management 49% of derivative transactions in off-balance sheet items is from swap money transactions, 32% from swap interest rate transactions and 7% is from forward exchange transactions. 6 Development of Main Figures Loan to Deposit Ratio Billion TL Ratio 3.000 1,40 2.500 1,12 1,06 0,95 2.000 1,13 1,15 1,12 1,12 1,08 1,20 0,99 1,00 0,83 0,80 1.500 2.386 1.000 1.967 500 510 617 660 695 764 772 2010 2011 2012 1.002 946 1.183 1.053 2013 2014 1.411 1.634 1.245 0,60 2.137 2.201 2.036 0,40 1.711 1.454 0,20 0 0,00 Loans Deposits 2015 2016 2017 Sep.18 Dec.18 Loan to Deposit Ratio (Right Axis) While loans in the third quarter of the year realized as TL 2.201 billion, deposit realized as TL 2.036 billion. Conversion ratio of deposit to loans is 1,08 as of December 2018. *Total loans don’t include loans of development and investment banks. Foreign Exchange Position Billion TL 250 200 150 100 50 0 -50 22 34 31 2010 -21 2011 -33 2012 -28 63 71 2013 -64 2014 -77 96 2015 -93 184 192 191 2017 Sep.18 Dec.18 -182 -187 -176 71 2016 -75 -100 -150 -200 -250 On-Balance Sheet FX Position Off-Balance Sheet FX Position FX Net General Position Off-balance sheet FX position has a surplus of TL 191 billion while on-balance sheet FX position has a deficit of TL 176 billion and FX Net General Position has a surplus of approximately TL 5 billion. BRSA, Department of Data and System Management 7 PROFITABILITY Billion TL 400 Income Statement 146 300 200 368 100 77 0 -100 -222 -122 -35 54 -12 -45 -200 -300 -400 Interest Income/Expense Special Provisions for NPLs Non-Interest Income/Expense Expense Provisions for Taxes Net Income Income In the income statement of banking sector, interest income realized as TL 368 billion and interest expense realized as TL 222 billion. As of December 2018, net income of Turkish Banking Sector is TL 54 billion. Net Income Billion TL 25,00 20,00 17,71 18,20 19,45 17,34 15,87 13,59 15,00 Dec.17 Dec.18 10,00 5,00 0,00 PUBLIC DOMESTIC PRIVATE FOREIGN Net income of December 2018 period increased in public, domestic private and foreign bank groups when compared to the same period of 2017. BRSA, Department of Data and System Management 8 Ratio (%) 17,5 16,94 17 Return On Equity 16,5 15,88 16 15,59 15,46 15,5 15,13 15 14,5 14,27 14,67 14,45 Dec.17 Dec.18 14 13,5 13 12,5 PUBLIC DOMESTIC PRIVATE FOREIGN 1,97 2,00 1,80 ROA of Turkish banking sector as of December 2018 realized lower as to the same period of the previous year. SECTOR Return On Assets Ratio (%) 2,14 2,20 1,79 1,95 1,89 ROE of Turkish banking sector realized lower in public, domestic private and foreign banks groups when compared to the same period of the previous year. 2,02 1,76 1,62 1,60 1,40 1,20 Dec.17 1,00 Dec.18 0,80 0,60 0,40 0,20 0,00 PUBLIC DOMESTIC PRIVATE FOREIGN BRSA, Department of Data and System Management SECTOR 9 LOANS Loans (TRY - FX) Billion TL 2.588 2.395 2.500 2.098 1.096 2.000 684 1.485 1.500 603 1.241 472 1.047 1.000 683 526 500 956 1.734 198 795 360 295 206 142 384 485 588 2010 2011 2012 753 881 1.013 1.414 1.492 1.439 2017 Sep.18 Dec.18 1.131 0 2013 2014 TRY 2015 2016 FX As of December 2018, total loans amount to TL 2.395 billion and TL 1.439 billion of the mentioned amount is comprised of TL loans while TL 956 billion is comprised of FX loans. Distribution of Loans SME Loans 26% Consumer Loans and Credit Cards 21% Commercial and Corporate Loans 53% BRSA, Department of Data and System Management Share of commercial and corporate loans is 53%, share of SMEs loans is 26% and share of consumer loans (including credit cards) is 21% in total loans. 10 Development of Loans by Types Billion TL 2.588 2.395 2.500 2.098 2.000 1.734 1.408 1.278 1.485 1.500 894 1.047 1.000 683 526 500 0 1.097 1.241 296 228 125 173 2010 163 711 551 795 444 513 329 200 224 266 332 2011 2012 2013 Consumer Loans and Credit Cards 612 389 421 356 385 420 488 517 504 2014 2015 2016 2017 Sep.2018 Dec.2018 333 271 663 SME Loans Commercial and Corporate Loans As of December 2018; commercial and corporate loans realized as TL 1.278 billion, SMEs loans as TL 612 billion while consumer loans and credit cards realized as TL 504 billion. Selected Sector Loans to Total Loans Construction 8,70 Whole Sale and Brokarage 8,58 Electric, Gas and Water Resources 7,50 Agriculture 4,03 Research, Consulting, Advertising and Other Activities 3,86 Retail Trade and Personal Products 3,63 Textile and Textile Products Industry 3,25 Main Metal Industry 3,18 Food, Beverage and Tobacco Industry 2,82 Hotels 2,53 0,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 8,0 9,0 10,0 The share of wholesale trade and brokerage sector in total loans is 8,58% and share of construction sector is 8,70%. .. BRSA, Department of Data and System Management 11 SMEs Loans Billion TL 700 The Definition of SMEs was updated. 663 The Definition of SMEs was updated. 650 612 600 550 513 500 243,59 450 389 400 157 271 300 200 200 163 150 125 100 51 32 43 2010 171 214 83 65 111 133 140 99 110 134 2015 2016 2017 86 63 43 195 166 115 55 54 71 88 2011 2012 2013 2014 Micro Enterprises 4 213 133 250 0 421 333 350 50 269 Small Enterprises 180 174 Sep.18 Dec.18 Medium Enterprises According to operating classes, medium enterprises SMEs loans decreased when compared to the previous quarter. Consumer Loans Billion TL 600 489 500 400 332 266 300 200 224 173 44 100 0 74 86 129 100 63 6 61 7 8 75 2010 2011 420 9 149 156 199 212 205 7 7 7 192 197 188 7 144 164 86 126 2012 2013 2014 2015 2016 Vehicle 105 167 111 Housing 102 82 6 7 91 505 79 84 72 55 356 385 518 Personel Finance 2017 Sep.18 Dec.18 Credit Cards In December 2018 period, consumer loans increased as to the previous quarter and realized as TL 505 billion. Housing loans, credit cards as well as personal finance loans realized as TL 188 billion, TL 105 billion and TL 205 billion, respectively. BRSA, Department of Data and System Management 12 Distribution of Consumer Loans Consumer Credit Cards 21% In consumer loans, the share of personal finance loans is 41%, housing loans 37% and share of credit cards is 21%. Housing 37% Personel Finance 41% Vehicle 1% Consumer Credit Cards Billion TL 120 100 102 105 58 61 44 43 91 84 74 72 80 36 55 60 49 41 43 44 34 36 39 42 2014 2015 2016 2017 33 44 79 82 29 40 24 20 0 19 26 2010 2011 47 38 2012 2013 Installment Sep.18 Dec.18 Non Installment Personal credit cards amount is the same when compared to the previous period and realized as TL 105 billion in December 2018. BRSA, Department of Data and System Management 13 Non-performing Loans Non-Performing Loans Billion TL 120 97 100 86 80 58 60 48 40 20 0 20 19 7 6 7 2010 7 5 7 2011 23 9 7 8 2012 30 11 9 10 2013 36 13 18 35 64 32 21 14 16 22 25 44 36 11 12 17 19 18 18 18 2014 2015 2016 2017 Sep.18 Dec.18 Consumer Loans and Credit Cards SMEs Loans Commercial Loans As of December 2018, gross amount of NPLs is TL 97 billion. Non-Performing Loans Ratio Ratio 8 7 6 5 4 3 2 3,66 1 0 2010 2,70 2,86 2,75 2,85 3,10 2011 2012 2013 2014 2015 3,24 2,96 2016 2017 Non-Performing Loans Ratio Commercial NPLs Ratio Consumer and Credit Cards NPLs Ratio SMEs NPLs Ratio 3,22 Sep.18 3,88 Dec.18 NPLs to Loans ratio in banking sector realized as 3,88% in December 2018. BRSA, Department of Data and System Management 14 Selected Sectors NPLs Ratios Whole Sale and Brokarage 5,47 Construction 5,63 Electric, Gas and Water Resources 3,40 Retail Trade and Personal Products 3,76 Agriculture 1,67 Research, Consulting, Advertising and Other… 5,23 Textile and Textile Products Industry 3,82 Main Metal Industry 3,75 Food, Beverage and Tobacco Industry 5,67 Hotels 4,33 0,00 1,00 2,00 3,00 4,00 5,00 6,00 Ratio NPLs to Loans ratio in sectoral loans realized as 5,47% in wholesale trade and brokerage, 5,63% in construction sector and 3,76% in retail trade and personal products sector. Consumer NPLs Ratios Ratio 9 8 7 6 5 4 3 2 4,13 1 2,88 2,95 2,87 3,38 2011 2012 2013 2014 4,28 4,30 2015 2016 3,46 3,34 3,41 2017 Sep.18 Dec.18 0 2010 Consumer (Credit Cards Included) NPLs Ratio Housing NPLs Ratio Consumer Credit Cards NPLs Ratio Vehicle NPLs Ratio Personal Finance NPLs Ratio NPLs to Loans ratio of consumer loans (including personal credit cards) realized as 3,41% in December 2018 period. BRSA, Department of Data and System Management 15 Securities Securities Billion TL 600 490 478 212 206 267 255 253 500 402 400 300 288 285 270 302 287 352 330 81 119 84 102 95 88 66 86 186 187 196 196 219 242 246 7 10 8 5 3 3 3 15 22 20 2010 2011 2012 2013 2014 2015 2016 2017 Sep.18 Dec.18 200 100 0 Securities Held for Trading Securities Available for Sale Securities Held to Maturity Total securities increased when compared to the previous quarter and realized as TL 478 billion. Distribution of Securities Eurobonds Issued by Treasury 24% Ijara Certificates Issued Domestically and Abroad by the Treasury 3% Other 6% Government Bonds 67% BRSA, Department of Data and System Management 67% of securities are comprised of Government bonds, 24% are Eurobonds issued by Treasury and 3% are comprised of Ijara certificates issued domestically and abroad by the treasury (sukuk). 16 Deposits Deposits Billion TL 2.500 2136 40 2.000 2036 41 1711 1245 617 2 181 695 14 221 772 21 19 233 331 1.062 17 953 732 11 1053 946 1.000 500 24 1453 1.500 591 16 519 375 460 520 661 434 594 715 2010 2011 2012 2013 2014 2015 845 954 1.035 1.042 2017 Sep.18 Dec.18 0 TRY Deposits FX Deposits 2016 Precious Metals TL 1.042 billion of total deposits is comprised of TL Deposits /Participation Funds, TL 953 billion comprised of FX Deposits Account/Participation Funds and TL 41 billion is comprised of precious metals accounts. Distribution of Deposits Precious Metals 2% FX Deposits 47% TRY Deposits 51% BRSA, Department of Data and System Management 51% of total Deposits are TRY Deposits/Participation funds, 47% of FX Deposits/Participation funds and 2% of Precious Metals. 17 Deposits According to Types Commercial and Other Instutions Deposits 34% Official Instutions Deposits 4% Natural Persons Deposits 62% While 62% of deposits are comprised of natural person deposits, the share of commercial and other institutions deposits is 34% and share of official institutions' deposits is 4%. Deposits According to Maturity(%) 1 Year and More Between 5% 6-12 Months 4% Demand Deposits 21% Between 3-6 Months 6% Between 1-3 Months 51% BRSA, Department of Data and System Management The share of demand deposits in total deposits by their opening maturities is 21% and share of 1-3 month deposits is 51%. Up to 1 Month 13% 18 Payables to Banks and Repo Transactions Payables to Banks Billion TL 686 700 563 600 475 500 418 361 400 634 293 300 200 100 0 510 254 167 173 122 219 251 325 381 441 141 146 29 26 28 35 43 36 37 34 52 53 2010 2011 2012 2013 2014 2015 2016 2017 Sep.18 Dec.18 93 TRY FX Payables to banks amount to a total of TL 563 billion as TL 53 billion Turkish Lira and TL 510 billion FX. Funds From Repo Transactions Billion TL 180 157 160 137 140 100 97 80 27 60 58 45 60 80 109 69 78 97 41 93 93 47 46 52 53 33 70 99 50 12 40 20 47 119 120 144 138 55 46 0 2010 2011 2012 2013 2014 TRY 2015 2016 2017 Sep.18 Dec.18 FX Funds amount from Repo transactions decreased when compared to the previous quarter and realized as TL 97 billion in December 2018. BRSA, Department of Data and System Management 19 Capital Adequacy Capital Adequacy Ratio Billion TL 3.000 % 18,97 18,09 17,86 16,55 15,28 2.500 16,28 16,85 15,57 20 17,27 15,57 15 2.000 1.500 2.904 1.000 1.461 500 0 138 725 2010 954 158 2011 Regulatory Capital 1.967 1.663 2.230 2.982 10 2.484 5 1.099 196 223 2012 2013 271 306 2014 2015 Risk Weighted Assets 347 2016 419 525 515 Sep.18 Dec.18 0 2017 Capital Adequacy Standard Ratio (Right Axis) Capital adequacy ratio of Turkish Banking Sector realized as 17,27 % in December 2018. Capital Adequacy Ratio % 20 Sector Sector 17,27 %17,27 18 16 14 12 10 8 16,59 16,81 Public Private 18,78 6 4 2 0 Foreign By bank ownership groups, capital adequacy of foreign banks is above the sector average by 18,78 %. BRSA, Department of Data and System Management 20 Capital Adequacy Ratio % 30 25 Sector Sector 17,27 %17,27 20 15 23,95 10 16,91 15,76 Commercial Participation 5 0 Investment By function groups, capital adequacy ratio realized as 16,91%, 15,76% and 23,95% for deposit bank, participation banks as well as development and investment banks, respectively. Value at Operational Risk 7% Risk Weighted Items Value at Market Risk 2% Value at Credit Risk 91% BRSA, Department of Data and System Management In capital adequacy calculation, 91% of riskweighted assets is comprised of amount subject to credit risk, 7% comprised of amount subject to operational risk and 2% comprised of amount subject to market risk. 21 EXPLANATIONS In Turkish Banking Sector Main Financial Data publication prepared by the Banking Regulation and Supervision Agency (BRSA), statistical information on selected financial statements of banks are prepared by using non-consolidated temporary financial statements. Gross Domestic Product (GDP) is the data on current prices published by Turkish Statistical Institute. Resource of the information published is the periodical reports taken via Bank Reporting System and sent by banks on electronic media. Mentioned periodic information may change after its publication due to the updates made by various reasons. Monetary amounts published, unless stated otherwise, is “TL Billion” and there may be differences in some sub-groups arising from arithmetic sum and rounding. Detailed data by sector, bank groups and function groups can be accessed from Turkish Banking Sector Interactive Monthly Bulletin application. Data and explanations on the scope of data in Interactive Monthly Bulletin are also valid for the data included in this publication. Department of Data and System Management Banking Regulation and Supervision Agency December 2018 BRSA, Department of Data and System Management 22 BRSA, Department of Data and System Management 23