Strategy Note

According to BRSA November data, the pressure of increases in resource costs on bank margins continues as the tightening process of CBRT continues. Following October, the annual contraction in the sector's total profit figures continued in the second month of 4Q23. Thus, we saw a limited decline (-7%) in the profitability of the sector in the 28th month after the 27th month, which has seen annual growth for 26 consecutive months.

If we look at the figures, the sector's net profit in November increased by 7% monthly with 49.4 billion TL, but decreased by 7% annually. However, the sector's eleven-month total net profit was 535.5 billion TL, recording the slowest growth of this year, with an annual increase of 38% compared to the same period in 2022. The 12-month cumulative net profit growth rate continued its downward trend and fell to 42%, the lowest rate of the last two years.