Green Light from Morgan Stanley: Turkish Banks Set for a Major Profit Comeback

15:37 - 27.08.2026


August 27, Fineko/abc.az. Investment bank Morgan Stanley has resumed its coverage of the Turkish banking sector, highlighting an emerging recovery in profitability and maintaining a "cautiously optimistic" stance on the industry.

Supported by strong capital buffers, increased policy predictability, and disinflation trends, analysts named Garanti BBVA and Akbank as the sector's top picks with an "Overweight" rating. Meanwhile, Yapı Kredi and İşbank received an "Equal-weight" rating.

Morgan Stanley anticipates that the central bank's policy easing and reduced funding costs will boost net interest margins and return on equity starting from the second half of the year.