This report reviews the Turkish banking sector, noting a moderation in April 2026 profitability alongside an expansion in TL loan-deposit spreads in May 2026. The authors remain optimistic on Garanti and Isbank due to defensive positioning and valuation.
Key Takeaways
- 1.Turkish banking sector profitability moderated in April 2026 with a 38% mom net profit decline and 23% ROE, down from 38% in March.
- 2.TL loan-deposit spreads widened to 10.4% in May 2026, up from 9.8% in April, driven by loan yield adjustments and lower deposit costs.
- 3.GS maintains Buy ratings on Garanti and Isbank, while Neutral on Akbank and Yapi Kredi, citing defensive funding profiles and valuation discounts.
Table of Contents
- Turkiye Banks
- Reviewing the latest sector trends; TL spreads expand in May'26
- What's new across the sector?
- Turkish banking sector data: Latest data points
- Profitability
- Loan and deposit growth
- Loan yields, deposit costs and loan-deposit spreads
- Disclosure Appendix
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Authors
Ashwath P TKazim AndacGokul Vinayak L
Securities
GarantiIsbankAKBNKYKBNK
Themes
Banking Profitability ModerationRegulatory Loan Growth CapsNIM Compression
Regions
OtherTurkey