Investment summary

In what was a challenging year for investment banks around the world, IS Yatirim Menkul Degerler (ISY) saw its PBT decline 12% to TRY98.9m as operating revenues were unable to keep pace with rising operating costs. Despite the market volatility, ISY was still able to grow its revenues by 10% due to the solid performance of its interest and trading and brokerage business lines. Due to its market-leading position, strong balance sheet and fair valuation, ISY remains well positioned to benefit from any recovery in global markets and domestic interest rates.

Last updated on 04/05/2012

Industry outlook

The Turkish current account deficit for 2011 came in at $77bn or 10% of GDP. Total foreign investment at $13.4bn financed only 17% of the deficit. In January foreign direct investment was a disappointing $0.8bn. Turkey has c $130bn of external debt maturing by the end of 2012. Refinancing of this debt will be an important factor in the gradual reduction of the current account deficit.

Last updated on 23/04/2012