Need help from a banker (I)

or someone knows banking- BTW, this is my first question in the Blogger Appreciation Day.

There was a report at Reuters last week that Akbank was issuing 5-year bonds at 362.5bp above US Treasuries of same maturity, which would bring the yield at around 5.5%. A similar news appeared yesterday about Yapi Kredi. So far so good, but when I burned some brain cells, I began to get confused.

For one thing, the yield on corporate loans is around 5.5% right now, so if I am not missing something, the banks are breaking even. How about the cost of of the issue in local currency? With 5-year cross currency swaps at around 7.5%, the cost in local currency of the issue would be 13%. Now if you look at domestic currency lending rates, while consumer loans would be higher, housing loans are around 13-13.5% as well.

I am not a banking analyst, so I would really appreciate if a banker or banking analyst or someone who knows more about banks than me would enlighten me on what is going on? Is this competition eating away profits, or am I missing something? And if these issues are not profitable at the going rates, why are Akbank and Yapi Kredi going through with them?