S&P Global: Profitability in the Turkish Banking Sector is Improving

S&P Global's Assessment of the Turkish Banking Sector

S&P Global Ratings made significant assessments regarding the Turkish banking sector. The institution predicted that high net interest margins would increase the profitability of Turkish banks by 2026.

Margin Recovery and Policy Interest Rates

The report stated that the speed of margin recovery is directly related to the magnitude and timing of future policy interest rate cuts. It was expressed that, despite the decline in inflation, the pressure on asset quality is expected to continue until 2026 due to high financing costs and persistently high levels.

Key Risks

In this context, changes in monetary policy were emphasized as one of the most important risk factors for Turkish banks.