Türkiye: Weekly Banking Tracker, 01 November 2024

On the week of 1st November, the weekly growth of FX-adjusted credits slightly decelerated from 0.6% to 0.5% due to both consumer and commercial credits in the sector. However, last 2 weeks’ push moved up the trend rate of total credit growth a bit.

Key points

• Key points:
• Deceleration in consumer credits was seen in all of its subsegments, led by private banks. Consumer credit cards’ accelerated due to strong increase in public banks. However, its 4w trend rate continues to imply a moderation in this segment taking into account previous months’ averages.
• Weekly deceleration in TL commercial credits continued mainly due to non-SME lending in private banks which brought down the 4 week trend rate close to 0% .
• FC credits’ weekly growth accelerated; and turned back to positive growth rates after contraction in the last 2 weeks of October.
• The Non-Performing Loans (NPL) amount rose significantly last week with the fastest weekly increase since 2019. The NPL ratio rose to 1.78%.
• Compared to year-end, the NPL ratio for consumer credit cards rose from 1.3% to 2.7% and for consumer credits from 2% to 2.6%.The ratio for commercial credits remained rather stable hovering btw 1.6-1.7%. The slight weekly upward movements in the NPL ratio of commercial credits is caused by SME credits where the NPL ratio reached 2%.

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