Financial Services Confidence in Turkey Rises in June
Turkish Lira
Optimism continues to build in Turkey’s financial services sector, as the Financial Services Confidence Index (FHGE) rose by 2.7 points in June, reaching 171.2, according to the Central Bank of the Republic of Turkey (CBRT). This marks the second-highest level recorded in 2025, reflecting strengthened expectations around demand and profitability.
Based on the responses of 147 financial institutions, the June FHGE data reveals a mixed short-term view but a clear longer-term recovery narrative. While current business conditions saw a slight pullback, the index was lifted by strong demand trends—both actual and expected.
Resilient Demand, Rising Optimism
The survey showed increased assessments of higher demand over the past three months, and even stronger expectations for the next quarter, signaling that confidence in a sector-wide revival remains intact.
Employment Expectations Rebound
Though recent employment data suggests a slowdown in hiring over the past three months, expectations for job growth in the upcoming quarter have improved, hinting at a return to a positive employment trajectory.
Subsector Trends Show Variation
According to the NACE Rev.2 classification, subsector results varied:
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“64 – Financial Services Activities” rose by 3.0 points
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“66 – Support Activities for Financial and Insurance Services” jumped 5.6 points
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In contrast, “65 – Insurance, Reinsurance, and Pension Funds” declined slightly by 0.5 points
Profitability Expectations Strengthen
The outlook for profitability in the next three months also turned more optimistic, with many institutions forecasting an increase in operating income, reinforcing perceptions of a healthy financial performance on the horizon.
As geopolitical and domestic uncertainties persist, the June FHGE report reflects renewed confidence in Turkey’s financial services sector, underpinned by robust demand, improving sentiment, and expectations of profitability.
