Strategy Note

According to BRSA October data, increases in bond and deposit interest rates began to put some pressure on banking margins. A weak start to 4Q23 may also negatively affect financial expectations for the last quarter for the banks. Sector's net profit in October is 46.4 billion TL, shrinking by 48% monthly and 6% annually. However, the total net profit of the sector in the first ten months increased by 45% annually compared to the same period in 2022, with 486.0 billion TL. The 12-month cumulative net profit growth continued its downward trend and fell to 60% after reaching 400% in 2022, which was an exceptional year.