Development and Investment Bank of Türkiye Increases Its Assets to TRY 22 Billion

Playing an active role in efforts to mitigate the adverse economic effects of the pandemic, Development and Investment Bank of Türkiye increased its assets by 12.5% and its loans by 13.2% compared with year-end 2019. The ratio of gross non-performing loans to total loans declined by 0.14 percentage points year-on-year to 0.65% in the second quarter of 2020. The Bank’s capital adequacy ratio stood at 21.24% as of June, while profit for the six-month period amounted to TRY 190.6 million.

Noting that domestic economic activity began to weaken as of March due to declines in foreign trade, tourism and domestic demand caused by the coronavirus pandemic, TKYB CEO İbrahim Öztop said: “While this slowdown became more pronounced in April, we observed that the recovery began in May thanks to gradual normalisation measures. The comprehensive and supportive fiscal policies implemented by the economic administration to mitigate the adverse effects of the pandemic, together with the measures taken by the Central Bank to maintain the sound functioning of financial markets, the credit channel and companies’ cash flows, have been key drivers of the recovery in economic activity.”

Stating that the Bank brought international resources into the economy during this period, İbrahim Öztop said: “We secured a 25-year, EUR 316 million loan from the World Bank to increase registered employment in Türkiye. During the same period, we also made available the fixed-rate Investment Support Turkish Lira Loan, backed by a TRY 18 billion Advance Loan Against Investment Commitment facility funded by the Central Bank of the Republic of Türkiye and offering maturities of up to 10 years. Our USD 300 million resource under the Asian Infrastructure Investment Bank’s Türkiye COVID-19 Credit Line was approved. We will extend this resource to businesses affected by the pandemic to support increased production and employment. We are also continuing our efforts to secure funding from the Japan Bank for International Cooperation (JBIC) and China Development Bank. Contributing to sustainable growth through the financing it provides for investments aligned with Türkiye’s development objectives, our Bank will continue supporting the national economy through its development and investment banking activities in the period ahead.”