ISTANBUL - Bloomberg
Akbank, Yapı Kredi and İşbank were downgraded by JPMorgan Chase &Co., which cited high interest rates and lower business volumes during the Ramadan holiday season.
Akbank and Yapı Kredi were lowered to �neutral� from �overweight� and İşbank, Turkey's biggest listed lender, was cut to �underweight� from �neutral,� analysts, including Paul Formanko, wrote in a note to clients dated Friday.
�We expect the third quarter to be mired by the negative impact of the 50 basis points rate rise therein and sluggishness in business resulting from the Ramadan holiday season,� Formanko wrote. �The fourth quarter should be stronger as the positive impact of flattening rates seeps into the asset book, boosting margins.�The brokerage cut its price estimate for Asya Katılım Bankası to YTL 3.40 from YTL 3.75, while raising its price estimate for Garanti Bank by 11 percent to YTL 4.70.