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Message from the Financing Companies
Sector Representatives Board
Healthy growth continues.
Financing companies, which supply credit to finance purchases
of goods in a host of sectors ranging from automotives,
commercial vehicles, and mortgages to durable consumer
goods, educational services, and telecommunications, continued
to grow in 2016. The said companies make substantial
contributions to economic growth by supporting domestic
demand through the provision of financing for purchases
of goods and services not only by individuals but also by
companies, especially those of the small- and medium-sized
enterprises.
In 2016 Turkey’s financing companies’ total assets were up
by 20.5% year-on and reached TL 33 billion in value while
their aggregate business volume, which topped TL 22 billion,
also grew by 16.2%. During the same twelve-month period,
financing companies’ total receivables rose to TL 28 billion.
Commercial loans accounted for 53% of total lending.
53% of the loans extended by financing companies in 2016
qualified as commercial lending. These loans were granted to
finance purchases of such goods as light commercial vehicles,
heavy vehicles, trucks, buses, trailers, and automobiles (the
majority of which were manufactured in Turkey) needed by
the economic powerhouse that is the construction industry’s
highway, bridge, airport, and infrastructure projects as well as a
variety of sectors such as tourism where SMEs are also active.
Personal loans grew by 32%.
In 2016 financing companies that provide consumer credit were
included in the financing companies sector. With this addition,
the sector’s total portfolio increased by about 32% from TL 10
billion to TL 13 billion in one go. In the years ahead we can
also expect to see still more newcomers joining our sector and
further expanding its business. This increase in consumer loans
was even more noticeable in terms of borrower numbers, which
shot up from 600 thousand or so to 2.4 million.
It is in this context then that I should emphasize that financing
companies play crucially important roles in trade finance.
Strong growth performance
The more than TL 22 billion worth of business that Turkey’s financing companies wrote in 2016 corresponds to
a 16.2% year-on increase.
Mehmet Cantekin
Chairman
(on behalf of Financing Companies Sector Representatives Board)
Annual Report 2016
The Association of Financial Institutions
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