Türkiye: Weekly Banking Tracker, 08 November 2024

Since Nov 8th was the day for finalizing credit growth monthly caps, the weekly growth of FX-adjusted credits decelerated further from 0.5% to 0.2% due to consumer credits in the sector. 4w trend rate of total credit growth remained stable at 0.4%.

Key points

• Key points:
• Total credit growth trend rates of public and private banks have been converging since July and as we approach the end of year, they continue to move at the same growth rate. Regarding the segments, the trend rate of total fx adj. commercial credits remains below that of consumer credits.
• Deceleration in consumer credits was seen in auto and general purpose loans whereas housing credits accelerated in the sector. Consumer credit cards decelerated sharply in both public and private banks. The overall trend in consumer credits came down.
• Weekly deceleration in TL commercial credits continued due to negative growth in public banks, which keeps the trend rate at low levels. Deceleration in FC credits’ weekly growth was limited which moved up further its trend rate.
• The Non-Performing Loans (NPL) ratio of the sector rose to 1.79%, albeit with a slower weekly increase compared to previous week. The ratio for consumer credit cards continued to rise further to 2.74% but remained stable for other consumer credits at 2.6%.
• The slow but steady weekly upward movements in the NPL ratio of commercial credits are due to SME credits and corporate credit cards where the NPL ratio reached 2.04% and 1.4%, respectively.

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