KPMG: The Number of Banks Is Increasing While the Number of Branches Is Decreasing

KPMG Turkey Banking Sector Report

KPMG Turkey has published a report titled “Banking Sector Overview - 2025,” evaluating the banking sector for the year 2025. According to the data presented in the report, as of 2023, the sector's total assets amounted to 32.7 trillion TL and the deposit volume recorded 18.9 trillion TL. The net profit of the banking sector reached 658.9 billion TL, an increase of 6.2 percent.

Growth and Transformation in the Banking Sector

According to data from the Turkish Banking Association (TBB), the number of banks increased from 63 to 67 in 2024. Out of these banks, 38 operate as deposit banks, 20 as development and investment banks, and 9 as participation banks.

Decline in Number of Branches Due to Digitalization

With the impact of digitalization, a decrease in the number of bank branches has been observed. In 2024, the number of branches fell to 9,329, down by 168 from 9,497. The number of employees also showed a similar trend, declining from 189,107 to 187,918.

Growth in Digital Banking

In 2024, the number of active digital banking customers in Turkey increased by 8,572,000 to reach 119,160,000. Among these customers, 1,405,000 are using only internet banking, while 109,644,000 are utilizing mobile banking services.

Total Net Profit of the Sector is Rising

According to KPMG's report, by the end of 2024, the sector reached a total of 32.7 trillion TL in assets and 18.9 trillion TL in deposit volume. However, while total net profit increased from 620.5 billion TL at the end of 2023 to 658.9 billion TL, this represents a lower rate of increase compared to the previous annual increase of 43.8 percent.

Increase in Loan and Deposit Volume

The loan volume in the sector reached 16 trillion TL in 2024, while the deposit volume increased by 27.5 percent to 17.6 trillion TL. By the end of the year, the share of consumer loans within the total rose to 24.2 percent, gaining significant momentum.

KPMG Commented

KPMG Turkey Banking Sector Leader Kerem Vardar stated, “Banks are undergoing a continuous transformation process to not only maintain financial stability but also to respond to the changing needs of customers. Digital agility will be among the key factors determining the future competitive strength of Turkish banking,” he remarked.