Citi forecasts a significant recovery in Turkish banking earnings in 2025, driven by ongoing rate-cutting measures. The report highlights that Turkish banks' combined profit rose by 9% year-on-year in the first eleven months of 2024, reaching 583 billion Turkish Liras. Citi anticipates a 72% year-on-year growth in earnings for its coverage universe in 2025 and a 30% growth in 2026. The analysis suggests İşbank and Yapı Kredi are poised to benefit from lower rates, while Garanti is least well-positioned. HSBC also predicts a decline in aggregate non-bank profits for the fourth quarter of 2024, citing slowing domestic demand and a challenging pricing environment.

White & Case and GKC Partners advised Yapı Kredi, one of the largest private banks in Türkiye, on the issuance of US$500 million in Additional Tier 1 notes. This transaction is part of a larger fundraising effort by the bank, which has raised US$2 billion in the last seven months.

Signs of recovery in Turkey's financial markets, including debt issuance and potential IPOs, are emerging despite ongoing inflation concerns. Banks such as VakifBank, Yapi Kredi, Ziraat Bank, and QNB Finansbank have returned to debt markets, and rumours suggest First Abu Dhabi Bank (FAB) may acquire a Turkish bank. The Istanbul stock market has seen significant growth, but large international IPOs and foreign investments remain scarce. Yapi Kredi, a major target for foreign acquisitions, could attract Gulf banks like FAB, illustrating the potential for foreign investment in Turkey.