...The Turkish leasing sector is fairly underdeveloped compared with the banking sector. Leasing sector assets accounted for just 1.7% of total banking-sector assets. The corporate and commercial segment has the lion's share of the lease book with 57% at end-2015 followed by micro and SME sectors at 29% and 14%, respectively. The top 25 loans at end-2015 represented 19% of the total lease book, equal to 60% of equity. 92% of total funding consists of long- term funding (original maturity), 93% of these funding is in foreign currencies (two-thirds of that in euros). Funding from foreign banks comprised 48% of total funding. Almost all interest earning assets were fixed rate while 44% of total funding were floating. As a result, the company had a moderate interest-rate risk (1% change in interest rate causes would have an 12% impact in net income). The high share of past due but not impaired loans (2015: 11% of total lease receivables) could indicate a deterioration in underlying asset quality....
