HSBC Updated The Bank Shares And CBRT Expectations

HSBC published a research report in which it updated the CBRT and bank stock expectations.

HSBC updated the bank shares and CBRT expectations. In the research report released by the bank, the Central Bank of the Republic of Turkey revised its expectation and updated its target price forecast for the four major banks. In a research report published by HSBC analysts, including Cihan Saraoğlu, it was stated that the interest rate expectations of the Central Bank of the Republic of Turkey were revised as 100 basis points. Underlining that they have always said that the first half of 2011 will be a very difficult period for banks, analysts stated that now the margin outlook has worsened and therefore they expect an interest rate increase of 100 basis points from the CBRT. Noting that Turkish banks still maintain their value in the long term, HSBC stated that a recovery in revenues in the coming years will be supportive for banks. Changing its share purchase recommendation for İşbank to 'BUY', HSBC stated that while maintaining the 'BUY' recommendation for Akbank and Garanti, it maintained the 'HOLD' recommendation for Yapı Kredi. Stating that it has revised its target price for the four major bank shares, HSBC lowered the target price for Akbank from 8.55 to 7.90, while it decreased the target price for Garanti from 12.10 to 11.30. The institution, which increased its target price from 7.90 to 8.90 for İşbank, reduced its target for Yapı Kredi from 3.45 to 3.25.