Turkish banks are currently facing a difficult outlook due to the impact of high interest rates and tight monetary policy on their profitability.

Analysts have recently revised their earnings estimates for Turkish lenders downward by around 28% since the end of September, which is the first decrease in projections since March 2021.

The constraints on lending and the prevailing economic conditions are causing experts to anticipate a delayed recovery in bank profits, raising concerns about the resilience of the financial sector in the face of ongoing economic pressures.

This situation underscores the significant challenges that Turkish banks must navigate in the current financial landscape.