Aug 09 2019

Turkey state-run Halkbank profit slides on foreign exchange losses

Turkish state-owned lender Halkbank said profit slid an annual 53 percent in the second quarter of the year.

Net income fell to 434.7 million liras ($79 million) from 1.11 billion liras in the second quarter of last year, the bank said in its consolidated earnings report published on Friday.

Losses from foreign exchange trading more than quadrupled to 909.9 million liras, the report showed.

Halkbank is one of three large Turkish state-run banks lending more to businesses and consumers to help the economy emerge from a painful downturn caused by a currency crisis that peaked a year ago. The lenders have restructured client's debts and have also slashed interest rates on some loans to below the current inflation rate of 16.7 percent.

The company is controlled by Turkey's sovereign wealth fund, which is chaired by President Recep Tayyip Erdoğan.