High profit expectation for banks in Ünlü&Co report

Ünlü&Co published the Equity Research Report before the 2022 4th quarter financials. The institution pointed to net profit growth of 309 percent on an annual basis and 17 percent on a quarterly basis for banks.

Ünlü&Co published its Equity Research report before January 25, when the financials for the fourth quarter of 2022 will begin to be announced. In his famous assumptions, the subject pointed to a net profit increase of 309 percent for banks in the quarter compared to the previous year and 17 percent compared to the previous quarter.

For famous non-financial companies, he predicted a 136 percent increase in net profit compared to the previous year, a decrease of 15 percent compared to the previous quarter, and claimed a 50 percent year-on-year growth in EBITDA growth and a 20 percent decrease compared to the previous quarter. The institution stated that they expect the stocks within the scope of the research to increase by 194 percent on an annual basis and by 3 percent on a quarterly basis in the fourth quarter.

Ünlü & Co stated that they expect banks to announce a net profit of TL 89.6 billion in total with the increase in their net interest yields. With the increasing TÜFEX revenues, a 150 basis point smoothing in the average net interest margin can be predicted, and a 70 basis point contraction in the loan deposit spread was claimed in the report.

The corporation expects commercial profit to decline from TL 9.9 billion in the last quarter to TL 7.3 billion due to the decline in core commercial profits. He underlined that he foresees a growth of 106 percent on an annual basis. In the report, it was noted that Vakıfbank, Halkbank and İşbank are believed to achieve the highest quarterly profit growth.

While Ünlü voiced the expectation of an annual net profit increase of 136 percent for non-bank companies, it was observed that there was a strong base effect on the operating profits of non-financial companies, the decrease in the value of TL, slowing economic growth, the decline in the prices of some commodities and some deceleration due to seasonal reasons. highlighted.

It was stated that while the operating EBITDA increase of non-financial companies is expected to be 50 percent annually, a 20 percent decrease is expected on a quarterly basis, while the net profit increase is expected to be 136 percent. He stated that the reasons for the relatively more positive trend in net profits were that the loss of exchange rate differences was much less due to the fact that the loss of TL was much less in the last quarter, and that some companies recorded deferred tax revenues.

In the report, it was stated that the segments that are expected to show a relatively strong performance are automotive, aviation, food retail, power and communication companies.