Non-performing loan ratio in the banking sector at its highest level since 2021

According to data from the Banking Regulation and Supervision Agency (BDDK), the balance of non-performing loans in Turkish Lira in the banking sector has risen to 933.8 billion liras. While the sale of non-performing loans by banks to asset management companies reached 75 billion liras as of October 23, it was calculated that the non-performing loan balance would have exceeded 1 trillion liras had these sales not taken place.

The total ratio of non-performing loans in Turkish Lira in the sector rose to 5.12 percent, reaching the highest point seen since December 17, 2021. For individual credit cards and consumer loans, the non-performing loan ratio hit 5.72 percent, the highest level recorded since the start of the data series. This rate rose to 7.05 percent for personal loans and 6.13 percent for individual credit cards.

According to data from the Financial Institutions Association, the sale of non-performing loans, which was 64.7 billion liras for the whole of last year, reached 75 billion liras in the first 10 months of this year. While sales by Garanti BBVA, İş Bankası, and DenizBank stood out, it was noted that public banks did not hold any non-performing loan sale tenders this year. According to Ak Yatırım's analysis, the increase in the volume of troubled loans in the third quarter occurred at the level of 145 billion liras.