Banks in Turkey declared exceptional earnings in the first half of 2025, largely driven by service charges, transaction fees, and insurance premiums.

In the first half of 2025, Turkey's four largest banks generated substantial revenues from fees, commissions, and insurance contributions. The earnings totalled approximately ₺65.1, ₺64.2, ₺51.2, and ₺59.8 billion, surpassing net interest income for these banks. This shift towards fee-based revenues has become the primary profit driver for these financial institutions.

Common charges include EFT/wire transfer fees, credit allocation fees, early repayment penalties, and annual credit card fees. These costs have raised concerns among consumer groups, who call for transparency, fairness, and reasonable fee levels. They also demand that commissions and insurance not be applied without consumer consent.

The ten largest Turkish banks saw a 40% year-on-year increase in total assets, reaching ₺32.5 trillion. However, experts warn that banks are increasingly relying on consumer charges to offset shrinking interest margins. Some charges are automatically applied without consumer consent, and technical shortcomings and inadequate planning by banks leave citizens, particularly retirees, struggling with access to cash, especially during pension payouts and month-start periods.

Insurance-related revenues have surged, especially for compulsory insurance tied to housing, personal, and vehicle loans. This trend has led some banks' insurance commissions to approach their total interest income. Business representatives, including MUŞİAD, have raised concerns over high commissions and fees, suggesting a 50% reduction.

ATM malfunctions remain a problem, adding to the financial burden for low- and middle-income households, who are already struggling with the impact of various charges. Consumer associations highlight that fees and charges, including EFT/wire transfer fees and mandatory insurance, pose a significant financial burden for these households.

Commercial banking also generates high fees from guarantees, letters of credit, and check/bill operations. Some banks solicit ideas from employees on generating new fee and commission streams to further increase revenue. This practice has sparked criticism, with consumer groups demanding that banks not rely primarily on minor charges collected from citizens.

In conclusion, while Turkey's top banks have seen significant growth in their fee-based revenues, concerns remain about the impact of these charges on consumers, particularly low- and middle-income households. Transparency, fairness, and reasonable fee levels are key issues that need to be addressed to ensure a balanced and sustainable banking sector.