Turkish Lira exhibited a relative calm oscillating between 5.85-6.15 against USD in the first two months of the year. Bourse Istanbul 100 index once again rose to records levels at 123,500. However, with the outbreak of new coronavirus first spotted in China then fast spreading to Europe and tumbling oil prices coupled with deep worries for global recession forced FED and followed by other many central banks to rate cuts at extraordinary meetings. The announcements by FED and many central banks for providing the market with ample liquidity as a result of the pandemic also felt also in the USA, has not been sufficient to comfort the global markets. We witnessed the weakening of Turkish Lira to 6.70 against USD and Borsa Istanbul 100 index falling down to 85,000 following the emergence of the virus in Turkey in the second half of March. Turkish Central Bank cut rates by 225 base points in the first quarter and offered additional liquidity facilities to the markets. We believe Turkish Central Bank to continue with rate cuts along with extended liquidity measures in the second quarter of the year.
PASHA Bank, posted a net profit of 8.5 million in the first quarter of 2020, whereas asset size reached TL 1,900 million. At the same time, gross total cash and non cash loans including leasing receivables realized as TL 1,651 million, out of that amount TL 1,298 million consists of cash loans and leasing receivables.
We hope, this situation to be normalised starting summer months without knowing that when and how this virus will be eradicated. We also expect, in Turkey the inflation to be finish the year around 8-8.5% band and growth slowing down in the second and the third quarter, however commencing with its ascent to where it left off, of course dictated by the developments with regards to virus situation. We also strongly believe that, the Banking industry which is off to a rocky in 2020 will successfully see the year through.
H. Cenk EYNEHAN
CEO and Member of the Board of Directors