Turkey’s non-financing institutions see sharp rise in profits

ISTANBUL - Reuters

Non-banking institutions, including financial leasing, factoring and financing companies, increased their consolidated profit by 16.7 percent to 1.35 billion Turkish Liras in the first nine months of the year compared to the same period of last year due to a sharp rise in demand from the real sector.Total assets of these three sectors also increased by 25.2 percent to 93.76 billion liras in the mentioned period, said the head of the Association of Financial Institutions (FKB), Osman Zeki Özger, in a press meeting on Nov. 18.According to data revealed at the meeting, there are 110 companies under the heading of the FKB, 69 of which are factoring companies, 28 financial leasing companies and 13 financing companies. The share of these companies in Turkey’s finance sector is around 3.8 percent by asset volume and 5.3 percent by the volume of loans that are mobilized.“Despite the fluctuations in financial markets, domestic uncertainties and geopolitical problems, FKB members have kept supporting the real sector,” said Özger, adding that the 2016 performance is expected to be good with the maintenance of political stability and economic reform agenda.FKB members offered around 83 billion liras of financing in the first nine months of the year, he noted.