Browsing: Equities

Sector Reports
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Turkish Banks: 4Q 2015 Earnings Preview

Turkish banks are up 3.5% on average year-to-date with tailwinds from a better outlook for 2016 and easing regulation standards. However, since last year, Turkish banks have performed remarkable worse in a MENA context. The “exciting” period regarding the political risks and the continuation of…

Sector Reports
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Do Turkish Banks Add Economic Value?

Time and time again I have been directing sharp criticism for the relatively poor financial performance, and more importantly, for the industry’s lack of focus on low profitability. In September, return on equity, or ROE, for the whole industry, came down to a level that…

Sector Reports
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Prospects of A Liquidity Shortfall

In a country where average maturity of deposits is very short, liquidity risk management for financial instructions is of paramount importance. Most particularly, in Turkey, a country seeking high growth where the consumption is the engine of the economy, the liquidity balance become even more…

Equities
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Turkish Stocks: Banks v Industrials

One of the key market themes that marked this year has been the bank stocks trading with low multiples and the advancement in the industrials. Time and time again we uttered that the golden age of Turkish banking is over (see here and here) which…

Sector Reports
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Alarming Rise in Energy Loans

Turkish banks have been lending to energy industry firms at a rapid clip. The share of the industry in total corporate loans rose from 3% in 2007 to 7.4% in 2H15, and this came amid a lending boom that had been a major concern about…

Sector Reports
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Banks to Face Risks from FX Liabilities

The U.S. Federal Reserve tightening that is to set off a big exodus from emerging markets, coupled with rising geopolitical tensions in the Middle East has currently weighed on Turkish markets. We have seen all Turkish asset classes posting heavy losses as well as Turkish…

Sector Reports
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State-Owned Banks under Pressure

Considering the fact that poor performance from main bank stocks is more able to drag the whole market down in Turkey than anywhere else, I have been trying to provide comprehensive information about the key themes in the industry in order to measure the changing…

Sector Reports
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Are Turkish Banks Undervalued?

Turkish banks had outperformed European peers over the course of last year. However, rising risks around Turkish central bank’s independency depressed the asset prices in the country as well as the share prices. Therefore, the gap between Turkish banks and their European peers began to…

Business Reports
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On HSBC’s Exit from Turkey

In response to the global financial crisis, financial institutions in advanced economies have increased their focus on risk management leading some of the big names in the industry bowing out of emerging markets with low risk-reward profile. Specifically, Turkey has been a unique stage for…