Comparative Financial Performance Analysis of Domestic and Foreign Participation Banks in Turkey

Abstract

As of October 2019, there are 6 participation banks in Turkey. 3 of them are participation banks under the control of foreign capital and 3 of them are under the control of domestic capital. The aim of the study is to make comparative analysis of these banks. In the research, bank performances were analyzed by ratio analysis, trend analysis and comparative vertical analysis methods. As a result of the research, it is seen that the foreign banks have a higher market share but they have lost this against domestic banks. According to the analysis, it was observed that domestic banks performed better than foreign banks. It has been determined that foreign banks are superior to domestic banks only in gross operating profitability, and this is due to low profit share costs.