TODAY’S – Banks association not expecting profit growth in 2014

Banks association not expecting profit growth in 2014Turkish Banks Association (TBB) Secretary-General Ekrem Keskin announced at a press conference in Istanbul on Tuesday that it was not expecting higher profits than last yearAt the conference, Keskin and TBB President Huseyin AydIn unveiled banking sector figures pertaining to the first six months of 2014, as well as highlighting important developments and expectations for the remaining half of the year The association expects asset growth to fall between 15 and 20 percent for the year, while it anticipates that credit growth will be around the 18-22 percent mark.During the first half of the year, use of personal credit slowed down, while commercial credit, particularly credit taken out by small and medium-sized enterprises, continued to grow at a high rate.

Restrictions on installment-plan spending that went into effect earlier this year are likely to have impacted personal credit use.A decision by the central bank to sharply raise interest rates earlier this year was a negative one for the banking sector, according to the TBB, as the heightened rates chipped away at profit margins and hurt trade volume.

The central bank opted to raise overnight borrowing and lending rates in January in order to rescue the tumbling lira, which had fallen to nearly 240 to the dollarAydIn opted not to respond to two questions from journalists regarding the state-run Ziraat BankasI and the private Islamic lender Bank Asya, saying the TBB was impartial on the matter Earlier this month, Deputy Prime Minister Ali Babacan said the state-run lender was planning to purchase Bank Asya, although YiIit Bulut, the top aiser to President-elect Recep Tayyip ErdoIan, contradicted Babacanand#39s claim the next day.andldquoWe believe the current crises in the region are temporary,andrdquo said AydIn, following a question on how the conflicts in Iraq would affect the Turkish banks doing business in the bordering country.

AydIn said Turkish banks with branches in Iraq are continuing to operate.

SOURCE: Today’s Zaman