Loan Balance Sheet
Loan and Credit published the summary of 2013 in terms of loans. The analysis of interest rate changes, loan demand and disbursement rates, as well as loan growth rates, includes striking results for 2013 and expectations for 2014.
Retail Credit Volume Grows 27.9%
The downward trend in interest rates, which started at the end of 2012 and continued in the first half of 2013, increased the growth in retail loan volume to more than 30%. According to BRSA October 2012-2013 data, despite this slowdown, retail loan volume increased by 27.9% and reached TL 239 billion.
Consumer loans showed the fastest increase in consumer loans with 35.9% year-on-year growth, while housing loans grew by 29.5% and vehicle loans grew by 7.9%.
End-Year Competition Rates in Housing Loans Lowered
Housing loan interest rates continued to decline in the last quarter of 2012 and fell to below 10% per annum, followed by a decline to 7.5% per annum in June 2013 with the continuation of this downtrend. In May, FED’s announcement that it would end the monetary expansion disrupted this trend and increased rates.
Rising above 10% year-on-year again with the rise, banks’ year-end campaigns were relieved slightly in November-December. According to the analysis of Loan and Credit by evaluating the best loan offers offered by banks, housing loan interest rates are at the level of 10%, which is November 2012 value of the previous year.
Eastern Provinces Grow Faster in Housing
The shares of İstanbul, Ankara and İzmir, which constitute 55% of the total volume of housing loans, have decreased in the last one year. The fastest growing provinces were Tunceli, Muş and Bitlis from the Eastern Anatolia Region. In this period, Eastern and Southeastern Anatolia regions were the fastest growing regions, increasing their share in total volume by 10%.
Housing Loans to GDP ratio was 7%, follow-up decreased
Other housing loans to GDP ratio is compared to developed economies, this rate is quite low end of the 3rd quarter of 2013 rose 7% in Turkey. Even though this ratio, which was 5.8% in the same period of last year and which shows the development of housing loans market, has increased significantly, it is still far behind the EU average of 50%.
In addition, the NPL ratio of housing loans, which is considered as one of the robustness indicators of the sector, decreased from 8 per thousand in the previous year to 6 per thousand.