Akbank, a leading financial institution in Turkey, has reported impressive results for the first quarter of 2025, with a net profit reaching TRY13.7 billion. This represents a notable 49% increase compared to the previous quarter and a 4% rise year-on-year. The bank’s return on equity (ROE) for this period was 22.7%.
Despite the favorable performance in core net interest margin (NIM), excluding the impact of the Consumer Price Index (CPI), Akbank acknowledges challenges ahead. The recent monetary tightening and the potential for the cost of risk to reach the upper end of the anticipated 150-200bps range could make achieving this year’s NIM targets difficult.
In response to these dynamics, Citi has adjusted its earnings forecasts for Akbank. The bank’s earnings projections for this year have been revised downward by 16%. However, the delay in the rate cut cycle has prompted Citi to anticipate a more substantial NIM expansion in the coming year, leading to a 15% increase in its FY2026 earnings forecast.
Furthermore, minor adjustments have been made to Citi’s FY2027 earnings estimates, with a 3% reduction. These revisions, along with an increased cost of equity, have resulted in a new target price for Akbank, set at TRY70. Despite these changes, Citi maintains a Buy rating for Akbank’s stock.
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