HSBC maintains “buy” ratings for Turkish private banks

HSBC Global Investment Research has maintained a “buy” recommendation for major Turkish private banks, including Akbank, Garanti BBVA, İş Bankası, and Yapı Kredi, despite revising some target prices downward.

The institution notes that Turkish bank stocks are currently trading at approximately a 25 percent discount in price-to-book value compared to other emerging market banks. While HSBC lowered target prices for Akbank, İş Bankası, and Yapı Kredi, it maintained its 160 TL target for Garanti BBVA.

Looking ahead, HSBC anticipates a recovery in net interest margins starting in the fourth quarter of 2024 following interest rate adjustments. Although the bank expects a 300 basis point hike could pressure margins in the fourth quarter of 2026, it forecasts significant margin expansion in 2027. The research predicts a compound annual growth rate of approximately 70 percent in profits for Turkish banks between 2026 and 2028.