According to the KPMG report, Turkey’s banking sector is signaling a strong future performance for 2020 after weathering a challenging period in 2018-2019 with success. The sector is expected to spearhead economic recovery due to its open channels to international financial sources and to show better performance compared to the other industries
KPMG’s Financial Services Sector Leader Kerem Vardar said that Turkish banks have moved to a better position in 2019 in terms of having better access to foreign financial assets.
Vardar underlined that it was natural for the banking sector to be the first industry to reflect the overall recovery in the economy, which performed better than expectations despite the international pressure over Turkey’s Operation Peace Spring in Syria, domestic political tensions and expectations over a contraction in the economy.
“After overcoming the 2018-2019 period successfully, the banking sector’s 2020 focus will now be on preserving its asset quality,” Vardar said, adding that the economic activity by various sectors renewed after the turbulent period will make a significant contribution to the banking sector’s profitability.
Digital transformation remains to be at the top of the sector’s agenda as many of the Turkish banks have become “digital champions,” leading the adoption of digital technologies.
The report said that the banks continue to allocate a significant portion of their investment expenditures and budgets to improve their digital platforms.