18 İşbank
Annual Report 2015
Developments in the foreign currency
exchange rates had a significant
impact on loan growth.
In 2015, the banking sector continued to
grow in terms of total assets, branch number
and personnel. The total assets of the
banking sector increased by 18.4% year-on-
year in 2015, amounting to TL 2,237
(*)
billion.
Interest rate reductions undertaken at
the start of the year had a positive impact
on funding costs of the banking sector.
However, in the following period, in parallel
to the depreciation in the Turkish lira, the
CBRT maintained its cautious monetary
policy stance resulting in a rise in the
weighted average cost of funding. In
addition to these developments, growth
in loan volume was limited also due to
political uncertainties. On the other hand,
the increase in foreign currency loans in TL
terms due to high increases in exchange
rates was an important driving force behind
the expansion in the total loan volume.
Banking sector continued to diversify
Banking sector continued to diversify
its funding sources.
Banking sector in 2015 continued to meet
its financing needs through deposits, the
main funding source, as well as domestic
and foreign securities issues, and funds
borrowed from foreign markets. Despite large
fluctuations in international markets, the
sector did not face any problems in acquiring
funds from abroad. Hence, in 2015, the long-
term debt roll-over ratio of the banking sector
was 327%.
The banking sector sustained its strong
outlook.
The capital adequacy ratio fell from 16.4%
(*)
at end-2014 to 15.6%
(*)
at end-2015 mainly
due to the rises in the foreign exchange
rates and the increase in value at credit risk.
Meanwhile, sector’s net profit increased by
4.9% compared to the previous year, rising to
TL 25.7
(*)
billion.
Banking Sector
Despite fluctuations in international markets in 2015,
the sector did not face any problems in raising funds
from abroad.
Deposits and Loans in 2015
(*)
(Change Compared to Year-end) (%)
0
10
20
30
40
50
(*)
Calculated using monthly sector data published by the Banking Regulation and Supervision Agency. Interest accruals and rediscounts are not taken into
account. Participation banks are excluded from sector numbers.
FC Deposits
Loans
TL Deposits
January
February
March
April
May
June
July
August
September
October
November
December
Source: BRSA Monthly Bulletin
(*)
2,237
The total assets of the
banking sector rose to
TL 2,237
(*)
billion in 2015.
