Global economic activity ground to a halt because of fast spreading coronavirus cases in the second quarter. The governments declared numerous supporting incentives while central banks provided the markets with abundant liquidity. Turkish Central Bank, followed suit, by cutting policy rate by 150 basis points reaching 8.25. The pandemic reached its peak in Turkey and USD/TL parity tested 7.26 at the beginning of May. The bond rates, foreign currency prices eased and Bourse Istanbul surged in mid-June following the government’s incentives and reductions in credit interest rates led by state banks coupled with recessing case numbers Recently, USD/TL exhibited a stable band; 6.75-6.85, two year benchmark oscillated in 9.00%-9.50% range.
PASHA Bank completed second quarter with TL 11.1 million net income. Our asset size reached TL 2,023 million. Gross cash and non cash credit amount including leasing receivables stood around TL1,739 million, out of this TL1,387 million constituted cash credits and leasing receivables.
Turkish economy, although grew 4.5% in the first quarter, expected to contract in the second quarter on the back of pandemic in parallel with global economy. The economy exhibits some vigour as a result of partial global easing of lockdowns by the summer months. We expect the annual inflation to hover around 9-9.5% by year end and the economic growth mobilized upward dependent on the virus’s effect. I firmly believe Turkish economy and the Banking industry will overcome this tough phase as in other rough times.
H. Cenk EYNEHAN
General Manager and Board Member