ANKARA Jan 9 Turkish bank profits will be hit
significantly this year by increased non-performing loans,
ratings agency Moody's said on Monday, and it warned of a
"general worsening" in the investment climate in the country.
"We expect asset quality trends to worsen in this year,
driven by the combination of high inflation, lira depreciation
and the general worsening of the investment climate because of
security issues and geopolitical tensions," it said in a report.
The rating agency said it expected gross non-performing
loans to be above 4 percent by the end of the year, a level
which it said would require increased provisioning expenses and
would reduce banks' profitability.
(Reporting by Ece Toksabay; Editing by Nick Tattersall)