Abstract:

The main function of the deposit banks is to mediate the supply and demand of funds. In this context, the most important sources of income are interest income. In line with increasing competition and customer demands, banks offer many services today, except for deposits and credit transactions. As a result, the income diversity of the deposit banks has increased. The aim of this study is to determine the impact of the non-profit income levels of the deposit banks on their financial performance. Method - The scope of the work is the Turkish banking sector. In this context, 23 deposit banks operating in Turkey have been identified as a sample. The data set consists of the quarterly data of the banks concerned for the period 2007-2017. As an indicator of financial performance, the asset profitability of the banks and the capital profitability of the banks, as an independent variable, are also used as the ratio of the total income of the non-profit revenues of the banks. There are also various control variables included in the analysis to healthier findings. Panel Data Analysis is preferred as a method because the data set has both the unit and the time size. The findings - The findings found a positive interaction between the variables while the non-interest income levels showed that they have an effect on both the active profitability and the capital profitability of the banks. Discussions - In particular in the industry, intense competitive banks are directed to provide different services beyond their basic activities. The number of customers and the volume of transactions is increasing and the income levels of the banking sector are also significantly increasing. The results obtained within the framework of the study indicate that non-profit income pens has a significant impact on the financial performance of the deposit banks. Providing various services in accordance with customer needs and satisfaction provides a significant contribution to the banks.

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