Turkish equities continue to be on fire as BIST-100’s year-to-date return reached 26.6%, led by the banks strong performance yesterday. The banks will have a bombastic 1Q helped by enormous CPI linkers income. Yapı Kredi, Akbank and İsbank do have the largest CPI linker portfolios.
Depending on at what level each bank sets its new 2022 CPI estimate, 1Q net income can easily shoot up to minimum 50% of FY21 profits. Banks are still cheap on an historical level, 55% discount to EM banks, mostly dogged by macro concerns on inflation itself & looming large CA deficit. We would ride current positions into the earnings season that will start in 3 weeks.
*DOAS TI> goes ex-dividend today, paying TL5.68/shr (7.99% div. yield) The reference price will be TL 65,418
8 April: DOAS dividend payment TL 5.68/share