International credit rating agency Fitch revealed that Turkish banks’ performance declined in the first quarter of 2025 due to narrowing margins, rising non-performing loans, and increased credit provisions.
According to Fitch’s report on the Turkish economy, which included observations on banks’ performance in Q1, high interest rates and slower economic growth generally led to an increase in non-performing loans, which raised the average non-performing loan ratio among banks.
The agency noted that the average non-performing loan ratio among the evaluated banks rose as bad loans increased in an environment characterized by high Turkish lira interest rates and slow economic growth.
Source (Al-Sharq Al-Awsat Newspaper, Edited)
