Fitch warns of rising risks for Turkish finance companies
International credit rating agency Fitch Ratings has warned that leasing and factoring companies in Türkiye could face increasing asset quality risks and narrowing profit margins in 2026 and 2027.
The agency said elevated funding costs, persistent inflation, and pressure on small and medium-sized enterprises' (SMEs) repayment capacity are weighing on the sector's outlook. According to Fitch, although the direct impact of financial market volatility remains limited, deterioration in borrowers' financial conditions could negatively affect companies' loan portfolios.
According to the report, new business volumes in the leasing sector increased by 48% in US dollar terms during the first half of 2026, while the non-performing loan (NPL) ratio stood at 1.9%. Fitch expects this ratio to rise gradually through the end of 2027. In the factoring sector, transaction volumes increased by 33% to TRY 1.1 trillion, while the NPL ratio reached 2.3%. The sector's average return on assets declined from 8.1% to 6.4%. The agency warned that rising financing costs and credit risks could place further pressure on companies' profitability in the coming period.
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