The Turkish banking sector kicked off 2025 with a strong performance, recording a 48.16% year-on-year increase in net profits, reaching TL 47.34 billion ($1.33 billion) in January, according to data from the Banking Regulation and Supervision Agency (BDDK).
Key Financial Indicators
- Total assets: TL 33.36 trillion
- Total loans: TL 16.37 trillion
- Total deposits: TL 19.05 trillion
Loans remained the largest asset category, while deposits constituted the biggest liability for Turkish lenders.
Banking Sector’s Financial Health
- Capital Adequacy Ratio (CAR): 17.66% (up from 16.89% in January 2024)
- Non-Performing Loan (NPL) Ratio: 1.87% (slightly higher than 1.6% a year ago)
The improved CAR suggests a stronger financial cushion, while the slight rise in NPLs indicates some deterioration in loan quality.
Sector Overview
As of January, the Turkish banking sector comprised 62 institutions, including:
- Deposit banks
- Participation banks
- Development and investment banks
These lenders operated 10,958 branches both in Turkey and abroad, employing 209,507 personnel.
The sector’s continued profitability underscores its resilience amid economic fluctuations, with strong asset growth and capital buffers supporting stability.