Turkish banking stocks skyrocketed in the third quarter as several lenders hit historic share-price highs, in turn outperforming their European peers, S&P Global Market Intelligence data shows.

The Borsa Istanbul Banks Index began its steady climb July 14 and hit a peak Sept. 12. Over the course of the two-month rally, the banking index surged more than 150% in lira terms. But since reaching its highest point, the index had plummeted nearly 39% by September-end.

The rise and fall of Turkish bank stocks was driven by domestic investors, who turned to equities to safeguard their savings amid rampant inflation and then rushed to cash in on their investments, Reuters reported.

Inflation in Turkey climbed to 83.5% in September, the highest level in more than two decades. This on the back of the Turkish central bank slashing interest rates in the last two months and President Recep Tayyip Erdoğan promising more rate cuts to come.

During the quarter, Türkiye Vakiflar Bankasi Türk Anonim Ortakligi registered a share price return of nearly 94%, while shares of Türkiye Is Bankasi AS and Yapi ve Kredi Bankasi AŞ rose 72% and 63% in value, respectively, Market Intelligence data shows. All three hit historic share-price highs during the quarter.

Shares of domestic peers Türkiye Halk Bankasi AS and Akbank TAS also performed well, both increasing more than 40% over the period.

Austria's Raiffeisen Bank International AG and Italy's UniCredit SpA were also among the top-performing bank stocks in the quarter. Both have significant exposure to Russia and have suffered significant share price declines in the first half.

Credit Suisse, UK banks in the red

Shares in scandal-hit Credit Suisse Group AG fell nearly 27% in the third quarter. Year-to-date, its shares have lost around half their value. Speculation about the potential outcome of the bank's strategy review have intensified in recent months and stoked fears over its liquidity and capital position.

Many U.K. lenders were among the worst-performing banking stocks during the quarter. Shares in British financial institutions took a hit in September amid market chaos triggered by the new government's radical economic plan to slash £45 billion in taxes and increase borrowing. The fallout of the plan reverberated to the mortgage market, prompting lenders including HSBC Holdings PLC and Nationwide Building Society to temporarily halt or withdraw new mortgage products.

The U.K. government has since reversed plans to scrap the 45% rate of income tax for high earners, a key part of its fiscal strategy, in a bid to calm rattled markets.

Overall, European bank stocks performed slightly better than their U.S. peers amid the global economic downturn. The S&P Europe BMI Banks index has fallen 24.5% year-to-date, compared to 27.4% for the U.S.-based S&P 500 Bank index. Shares of Asian banks, meanwhile, have generated a negative return of 11%.

* Access financial highlights for Credit Suisse on the CapIQPro platform. * Access indexes, including regional bank indexes, on the CapIQPro platform.