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Bank Asya Penalized in Erdogan-Gulen Brawl Over Graft Probe

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Among all the casualties of the feud between Turkish Prime Minister Recep Tayyip Erdogan and U.S.- based cleric Fethullah Gulen, none has been punished more than Asya Katilim Bankasi AS.

Shares in the Islamic bank have slumped 46 percent since Dec. 16, the day before a graft probe targeting the government became public, the biggest drop on the nation’s benchmark stock index, which lost 17 percent in the period. It trades at a multiple of 3.3 to projected 12-month earnings, widening the spread with Albaraka Turk Katilim Bankasi AS, Turkey’s only other publicly-traded Islamic bank, to a record 2, according to data compiled by Bloomberg.