The American banking giant predicted that economic opportunities would increase in Turkey.

The US-based investment bank BofA has published a report regarding Turkish banks. The report, which calculates the profitability ratios of the banks, indicates that private banks stand out with attractive campaigns. The report points out that there is limited room for reassessment in public banks, noting "low performance" for Halkbank and Vakıfbank.

In the report signed by David Taranto and Zümrüt İmamoğlu, it is stated that the recovery in the net interest margin of Turkish banks is a moving target due to macroprudential measures being broader and more permanent than expected.

"ASSET QUALITY CYCLE IS AT A MANAGEABLE LEVEL"

It was expressed that interest rate cuts could also be a solution to the long-standing income problem of Turkish banks. The report sees the upcoming asset quality cycle as manageable. BofA continues to prefer Akbank, Garanti BBVA, İş Bankası, and Yapı Kredi, stating that it anticipates a weakening in bank balance sheets as an attractive buying opportunity in the second half of 2024.

OPPORTUNITIES WILL INCREASE IN 2025!

BofA emphasizes that the period of high-quality EPS growth has begun and that improvements in inflation and net asset growth support this process. It is particularly noted that the revaluation process will intensify in 2025, calling on investors to take advantage of early reservation benefits. The target prices for Turkish banks in the bank's analysis are listed as follows: