Industry

Goldman Sachs Drops Profitability Expectation of Turkish Banks

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US’s five biggest bank Goldman Sachs Group has made a “warning” about Turkey.

In its report released today (July 26), it stated that they dropped their profitability estimates by 17 percent for Turkish banks concerning the period of 2018-2020.

Goldman Sachs has drawn attention to the expectation that macro uncertainty, exchange rate volatility and high interest rates may generate pressure on the economic growth.

However, Goldman Sachs also underlined that banks in Turkey are managed well.

Based in New York, Goldman Sachs Group is a multinational investment bank. Founded in 1869, the bank provides investment banking, financial consultancy, financial management, etc. services to corporate clients.

Fitch had placed 25 banks on rating watch negative

International credit rating agency Fitch placed 25 banks in Turkey on rating watch negative on June 2, 2018.

In the press release published on the official website of the Fitch on June 1, it was emphasized that the decision of the agency regarding Turkey’s 25 banks “reflects risks to their performance, asset quality, capitalisation and, in most cases, liquidity and funding profiles.” (HK/TK)