While Turkish Lira has exhibited a relatively calm trade; 5.60-5.80 against USD in the third quarter, annual inflation in September eased to 9.26%.
After the second quarter, Central Bank cut rates three times for a total of 1000 bps and thus the policy rate was reduced to 14.00%. We’ll closely watch external developments such as US – China Trade wars, Brexit, global growth worries, FED and ECB’s actions and geopolitical developments on the domestic front in the last quarter following benign (relatively calm) summer months.
We anticipate further 200-250 basis points rate cuts for the remainder of the year. We also predict, the annual inflation rate to be at 12%-13% by the close of the year.
We, PASHA Bank maintained our efforts to issue bills in domestic capital markets and diversify our long term foreign exchange denominated funding.
We reported a net profit of TL 17.3 million as of third quarter while asset size reached TL 1,605 million. Total Cash and non-cash credit amount including leasing receivables realized as TL 1,366 million before provisions, out of that cash credits and leasing receivables total was TL 1,055 million.
Our expectation for the growth to gain upward momentum during the last quarter on the back of recovery of domestic demand supported by falling interest rates.
We wish the Banking industry completes 2019 with success.
H. Cenk EYNEHAN
General Manager and Board Member