2016 HAS BEEN A PRODUCTIVE YEAR; DESPITE THE PRESSURE STEMMING FROM INTENSE COMPETITION, THE AFTER-TAX PROFITABILITY OF THE OVERALL SECTOR WAS REGISTERED AS 12.5%.

IN 2016, THE RATIO OF NON-PERFORMING LOANS TO THE LEASING PORTFOLIO WENT UP BY 4% TO 6.3%.

Having started 2016 with a moderate growth target, the financial leasing sector suffered 4% decline in its transaction volume, which went down to USD 6.1 billion, due to the negative developments in the investment climate.

In 2016, the investment climate in our country was adversely affected by the global economic fluctuations, and the fast depreciation of the Turkish lira in the aftermath of the domestic uncertainty environment, the aggravated terror climate, and regional geopolitical sensitivity; hence, new leasing volume shrank by 4% to USD 6.1 billion.

During the year, the arrangements that expanded the scope of sale-and-leaseback implementation and resolved the issues stemming from the regulations by reducing intermediation costs and improving the competitive environment served to motivate the sector.

Over the course of 31 years since its debut, the Turkish financial leasing sector has facilitated total investments worth USD 81 billion. Denoting the share the leasing sector takes from investments, the penetration rate, which was 6.03% in 2015, stood at 5.7% in the second quarter of 2016.

During 2016, the leasing sector’s receivables grew by 19.9% to TL 44 billion, while non-performing loans increased by 25% year-on, whereas the ratio of non-performing loans to the leasing sector picked up by 4% to reach 6.3%.

2016 has been a productive year; despite the pressure stemming from intense competition, after-tax profitability of the overall sector was registered as 12.5%. The performance of the leasing sector, which still presents development and growth potential, is closely correlated with economic growth and stability. In connection with the ongoing uncertainty environment, Turkey’s growth dynamics and global developments, the financial leasing sector is projected to follow a flat course in 2017 and reach a transaction volume of USD 6 billion.