HALISTER1: JPMorgan Cuts Turkey Banks’ 2016-17 EPS Estimates by 5%-6%

JPMorgan Cuts Turkey Banks’ 2016-17 EPS Estimates by 5%-6%

(Bloomberg) -- Cut was mostly because of higher provisions, say analysts Paul Formanko, Ekaterina Petrovich, Anna Marshall in an e-mailed report.
  • “Recent events force us to take a more cautious view on the near-term performance by Turkish banks”
  • “Although near-term outperformance could be more challenging, the market will likely be looking for re- confirmation of resilient fundamentals” the second half “and credit rating action”
  • “We continue to see the combination of good value and growth attractive in the global low-growth, negative rates environment”
  • “Banks continue to manage volatility with prudent asset quality among the best globally”
  • Downside risks for Turkey banks include material lira depreciation, asset quality, political instability driving tighter liquidity and higher funding costs, faster Fed hikes and adverse regulatory action, sovereign credit rating downgrade
  • Upside risks are NIM widening, stronger economic growth, lower cost of risk
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
AKBNK TI (Akbank TAS)
GARAN TI (Turkiye Garanti Bankasi AS)
HALKB TI (Turkiye Halk Bankasi AS)
VAKBN TI (Turkiye Vakiflar Bankasi TAO)

People
Anna Marshall (JP Morgan Securities LLC)
Ekaterina Petrovich (JP Morgan Securities PLC)
Paul Formanko (JP Morgan Securities PLC)

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