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Turkey has been through extraordinary times.
2016 was a difficult year both economically and politically in
Turkey: besides global macroeconomic pressures our country
also had to contend with a heinous attempted coup which it
thwarted thanks to its commitment to democracy. Meanwhile
Turkey’s risk premiums also suffered from the conflicts in
neighboring countries and from the ongoing struggle against
both internal and cross-border terrorism.
Driven by domestic consumption, growth continued to
falter in parallel with developments taking place in the third
quarter of the year. Thanks to countervailing measures which
those responsible for managing the economy took in order
to encourage consumer spending in the aftermath of the
unsuccessful coup of July 15
th
, something of an uptick was
to be observed throughout the economy in the last quarter
and in some cases there was even a recovery in private-sector
consumption that was attributable to demand being brought
forward.
Members of AFI performed successfully.
Despite both financial market volatilities and the regional
geopolitical problems that seriously beset our country, members
of AFI continued to support real-sector business concerns and
to power their growth by increasing their contributions to the
economy.
As of end-2016, the leasing, factoring, and financing companies
that make up AFI had total assets worth TL 114.4 billion, up by
21% year-on. The combined business volumes of these three
sectors reached TL 163.6 and their operational receivables
amounted to TL 102.9, figures which correspond to year-on
rises of 4.8% and 20.3% respectively. Total equity, which was
up by 17.9%, was worth TL 15.6 billion and our industry’s
aggregate return on equity was up to 13.5%. At TL 1.9
billion, our members’ total net profit was also up by 25.4% as
compared with the previous year.
The non-bank financial institutions which we represent as AFI
account for 4% of the overall financial services industry’s total
assets, 5.6% of its total receivables, and 4.9% of its total equity.
Their combined business volumes correspond to about a 6.3%
share of Turkey’s GDP.
These financial results, which were achieved in a macroeconomic
and political context that was dominated by unfavorable
conditions, confirm that our industry continues to advance
successfully on the sound foundations that underpin it.
Our members work closely with 750 thousand SMEs.
While fulfilling our duties to improve the competitive
environment in 2016, AFI also continued to maximize its efforts
to manage communication between the public sector and its
members’ sectors in the most effective way possible, to increase
small- and medium-sized enterprises’ abilities to access
financing, and to identify the need for statutory and regulatory
changes that would support our sectors’ development and to
make recommendations accordingly.
We continue to expand and improve our support for the small-
and medium-sized enterprises which are the capillaries of the
Turkish economy and which shoulder the brunt of the economic
development and the future.
Economic
growth
Driven by domestic consumption, growth continued
to falter in parallel with developments taking place
in the third quarter of the year.
Supporting
the real sector
AFI members continued to support real-sector
business concerns and to power their growth by
increasing their contributions to the economy.
The Association of Financial Institutions
Annual Report 2016
3