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Moody's says Turkish bank profits will be hit by rise in bad loans
January 9, 2017 / 9:04 AM / a year ago

Moody's says Turkish bank profits will be hit by rise in bad loans

ANKARA, Jan 9 (Reuters) - 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)

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