Strategy Note

There are some surprises in BRSA December figures

BRSA December data points to a significant loss of momentum in banks' net interest income and a narrowing in net interest margins in the last month of the year. It is acceptable due to the increasing deposit interest rates in December, however, banks' losses in this area were covered by strong increases in fee & commission income, income from foreign exchange transactions and other operating income. Thus, the sector, which experienced a 6% and 7% annual profit contraction in October and November, respectively, achieved a surprising increase in annual profit growth of 60% in December.

If we look at the figures, the net profit of the sector in December was 68.2 billion TL, increasing by 38% monthly and 60% annually. The total net profit of the sector in 2023 was 603.6 billion TL, and the year that started with the expectations of profit contraction was completed with an annual profit growth of 40% compared to 2022.