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Turkish private lender Akbank targets 50% growth in SME loans.

February 19, 2014



Akbank, one of Turkey's largest private banks, targets a 50% growth in SME loans this year, Bulent Oguz from the lender said on Tuesday.

SME loans in the Turkish banking industry are expected to increase by 20% in 2014, according to Oguz. Akbank provided a total of TRY 13.9bn (EUR 4.6bn) worth of loans to SMEs last year, representing a 51% y/y increase, above the industry average of 36%.

Akbank's consolidated net income rose by 2% y/y to TRY 3.1bn in 2013. Consolidated total loans of the lender increased 28% y/y to TRY 118bn last year while its consolidated deposits grew 24% y/y to TRY 112bn. The bank's consolidated assets recorded a 20% y/y growth to TRY 195bn at end-2013 from TRY 163bn at end-2012.

Earlier this week the rating agency Moody's warned that the impact from Central Bank's rate hike would be higher for SMEs. More restrictive monetary policy through interest rate hikes will increase the arrears levels for residential mortgage and SME loans primarily, Moody's said in a report. SME loans are more sensitive to economic contraction, and are more rapidly affected by the higher rates because the borrowers have shorter loan maturities and refinance their loans regularly, according to Moody's.


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Source: IntelliNews - Weekly Reports


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