Erdogan-Inspired Incentives Seen Boosting Turkish Bank Profits

  • Lenders set to benefit from measures aimed at spurring economy
  • Deutsche Bank predicts 46% surge in first-quarter profits

QuickTake: Erdogan’s Expansion of Power in Turkey

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Politics is proving to be a boon for Turkey’s banks that may continue for months to come.

First-quarter profit at Turkey’s six largest banks, which will start reporting this week, is expected to jump by an average of 46 percent from a year earlier, according to Deutsche Bank AG. Lenders are benefiting from a raft of incentives brought in by President Recep Tayyip Erdogan’s administration that has led to a surge in lending, boosting the revenue the companies make from charging interest.