International credit rating agency Fitch Ratings published its assessment of the financial leasing and factoring sectors in Turkey.
In its report dated October 19, 2026, Fitch reminded that the outlook for the EMEA Emerging European financing and leasing sector, which includes Turkey, was revised as "worsening" in June.
The organization stated that the slowdown in global growth, persistent inflation, high funding costs and asset quality pressures arising from small and medium-sized enterprises were effective in this assessment.
THE DIRECT EFFECT OF MARKET FLUCTUATIONS IS LIMITED
According to Fitch, the direct impact of recent market fluctuations in Turkey on financial leasing and factoring companies remained limited.
It was stated that financial leasing companies' direct market risks are low, their securities portfolios are limited and their funding channels are relatively established.
It was stated that factoring companies, which are bank subsidiaries, also benefit from shareholder support and stable funding opportunities.
THE MAIN RISK IS ON THE DEBTORS
Fitch pointed out that market stress may indirectly negatively affect the asset quality of companies through their debtors.
It was stated that rising Turkish Lira interest rates and the increase in credit default swap (CDS) premiums may also increase funding costs.
For this reason, the organization predicted that the deterioration in asset quality may become more evident in the sector, especially in the 2026 and 2027 period.
BUSINESS VOLUME IN FINANCIAL RENTAL INCREASED BY 48 PERCENT
The new business volume of the financial leasing sector in Turkey increased by 48 percent annually in dollar terms in the first half of 2026.
The share of sale and leaseback transactions in new business volume was 38 percent.
Fitch stated that this table shows that there remains demand for working capital financing rather than investments.
The organization stated that sale and leaseback transactions carry higher risks because they increase exposure to commercial real estate valuation and residual value risks.
AN INCREASE EXPECTATION IN THE NON-PERFORMING LOAN RATE
The non-performing loan rate in the financial leasing sector decreased to 1.9 percent.
Fitch announced that it expects this rate to gradually rise again in late 2026 and 2027.
While the average return on equity in the sector is around 30 percent, it was stated that basic profit margins may narrow.
The leverage ratio increased from 3.8 times to 4.9 times at the end of 2025.
FACTORING VOLUME INCREASED TO 1.1 TRILLION TL
The transaction volume of the factoring sector increased by 33 percent in the first half of 2026, reaching 1.1 trillion TL.
Fitch reported that it expects growth of 32 percent for the whole year.
The organization predicted that this increase was generally compatible with inflation and that real growth would remain flat.
PROFITABILITY DECREASED
The non-performing loan rate in the factoring sector was 2.3 percent.
Despite this, it was stated that new problematic loans and impairment expenses continued to remain high.
While average asset return decreased from 8.1 percent in 2025 to 6.4 percent, the leverage ratio increased to 4.1 times.
While Fitch evaluated that the current leverage level is still moderate, he emphasized that the main risks for the sector are the pressure on asset quality and profitability.
