Turkish Banks’ Margin Outlook Constrained by High Interest Rates
- Estimates for earnings have dropped 28% since end September
- Sticky inflation has pushed back bets for start of rate cuts
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Tight monetary policy and limitations on lending are weighing on Turkish banks’ outlook, prompting analysts to predict a later-than-anticipated start of a recovery in their profits.
Analysts’ estimates for Turkish lenders’ earnings in the next 12 months have dropped about 28% since the end of September, the first such retreat since the quarter ending March 2021, according to data compiled by Bloomberg.