TURKEY MARKET OUTLOOK - Key ideas reshuffle
We have carried out an interim reshuffle of our model portfolio by replacing Akbank (AKBNK TI; HOLD; CP: TRY6.61; TP: TRY7.46), with Isbank (ISCTR TI; BUY; CP: TRY5.04; TP: TRY6.62). Isbank has a strong liquidity profile depicted by a high FX LCR (231%). We foresee Isbank’s 2019E net total CoR (177bp) remaining significantly below top-tier peers on well-managed asset quality. In addition to cautious risk management, relatively lower exposure in uncollateralized credit cards also limit the banks’ CoR. We are removing Akbank from our model portfolio as we think its valuation is demanding on 2019E P/BV of 0.7x and P/E of 5.8x. We do not think Akbank deserves to trade at a premium over remaining top-tier private banks with its subdued growth and 2019F ROE that is likely to lag behind.
TEB Investment equity research analysts and strategist team consists of 8 analysts with an average finance sector experience of 15 years and special focus on international investors.
With our 6 equity research analysts we cover 93 companies across 21 sectors, reflecting 80% of the total market capitalization of all BIST companies and 86% of the BIST100 companies. Our strategy team provides in depth top-down and bottom-up market views with insight on FX and bond markets by publishing sectoral and strategic reports both in English and Turkish.
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