Bloomberg News

Turkey Banks Less Attractive Than Russia on Savings, GS Says

February 26, 2012

(Updates with market moves from sixth paragraph.)

Feb. 24 (Bloomberg) -- Turkish banks are less attractive than their Russian counterparts because Turkey has low savings ratios and consumption is high, Goldman Sachs Group Inc. said.

“We believe slow growth in deposits will eventually turn into a slowdown in loan growth, justifying structurally lower multiples for Turkish banks,” Goldman analysts including Waleed Mohsin and Dmitry Trembovolsky said in an e-mailed report today. “In a CEEMEA context we continue to prefer Russian banks.”

Goldman cut Yapi & Kredi Bankasi AS, the bank part-owned by UniCredit SpA, to “sell” from “neutral,” saying it has the highest loans to deposits ratio.

Akbank TAS and Turkiye Garanti Bankasi AS were raised to “neutral” from “sell,” Goldman said.

“Both now have 6 percent potential upside which no longer justifies a sell rating,” the report said. Turkiye Halk Bankasi AS, a state-run lender, kept its “buy” rating because the bank will “deliver superior return on equity,” it said.

Turkey’s banking index declined 1.3 percent to 112,221.8 as of 3:25 p.m. in Istanbul. The measure has advanced 14 percent this year, trailing a 15 percent increase in the overall ISE National 100 Index.

Yapi Kredi dropped 3 percent to 3.2 liras. Akbank erased earlier gains to little changed, Garanti fell 0.9 percent to 6.42 liras and Halkbank retreated 2.1 percent to 11.8 liras.

--Editors: Ash Kumar, Alex Nicholson

To contact the reporter on this story: Benjamin Harvey in Istanbul at

To contact the editor responsible for this story: Gavin Serkin at

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