After a decade of high growth, the Turkish banking sector is reaching maturity.
This life-stage change will usher in new challenges: In addition to a continued decline in profitability, banks will likely also see smaller revenue margins. To offset those shifts, banks will need to revamp their operating models and re-evaluate risk-return calculations to lower their operational and risk costs. If they execute these new models successfully, Turkish banks could achieve historic levels of profitability – above 15% ROE.
