2014 Annual Report
Esteemed stakeholders,
Ziraat Bank successfully completed 2014, a year marked by economic and financial volatility across the globe as well as heightened geopolitical risks. In 2014, the Bank completed the main phases of its restructuring project. In doing so, Ziraat Bank became more equipped for the competition in the banking sector on behalf of its customers with its customer oriented business model.
The restructuring of all domestic and foreign branches was completed, a process undertaken to fulfill all of our customers’ financial needs under the roof of the Ziraat Finance Group. The Bank maintained its support for the real sector by using its own resources without compromising its priorities of meeting the financial needs of agriculture sector.
Ziraat Bank achieved a higher rate of loan growth than the sector in 2014. The Bank’s total assets expanded by 19% YoY to TL 247.6 billion. There was a 28% YoY expansion in loans which constitute 57% of the total asset size, while non-cash loans grew by 36%. Ziraat Bank enhanced its infrastructure operationally and financially, and the Bank used this power to contribute to the Turkish economy. Ziraat Bank’s cash loans grew by 28% to TL 142 billion while the total volume of loans including non-cash loans, reached TL 183 billion.
Ziraat Bank is also a leader in agricultural loans. Ziraat Bank aims to be the main bank working effectively for its customers in all phases from agricultural production to final consumption, supporting producers in the industrial agriculture sector, while helping them attain competitive power on a world scale. The Bank also aims to contribute to industrial agriculture by evaluating all links in the agricultural value chain together. Within the scope of this goal, the Bank had provided TL 27.8 billion of resources to agriculture as of 2014.
The Bank’s total deposits had increased to TL 153 billion by the end of 2014, compared to the TL 142 billion at the end of 2013, maintaining a deposit structure spread to the base. Within the framework of increasing and diversifying the structure of its resources, the Bank renewed a syndication loan, with the renewed amount exceeding the renewal (USD 800 million), issued a USD 750 million Eurobond with a 5 year maturity - the first time a Eurobond was issued in the history of Ziraat Bank - while continued bond issuances for domestic investors. In addition, TL 14 billion of resources were obtained from international institutions and banks, of which TL 7 billion was obtained through the post finance method, conducted for the first time in the Bank.
Within the framework of its profitability and efficiency strategy, Ziraat Bank increased its net profit by 22% YoY to TL 4,051 million in 2014, up from the TL 3,330 million in 2013 which itself was up by 26% from the TL 2,650 million net profit written in 2012.
Within the framework of enhancing shareholders’ equity, shareholders’ equity reached TL 28.5 billion by the end of 2014, from the TL 18.3 billion at the end of 2013, as a result of the Bank’s business model.
Enhancing its position in the sector, Ziraat Bank has the most widespread service network of any Turkish Bank in the international area with its branches, representative offices and affiliates at 85 points in 16 different countries. The Bank continues to open branches to increase the effectiveness of its widespread branch network, while also restructuring the current branches under a customer oriented approach. As of the end of 2014, the number of domestic branches had increased to 1,682 while the number of ATMs had reached 6,043. The Bank’s medium term goal is to exceed 2,000 branches and enable its customers to access financial services in an easy, rapid and qualified way with Ziraat Bank at all times.
Moreover, more branches are expected to have fewer employees, use more technology and be of a more boutique nature.
While Ziraat Bank manages its own balance sheet effectively with its renewed structure and customer oriented banking approach, it will maintain its contribution to Turkey’s balance sheet and growth as one of the country’s key assets.
Yours sincerely,
Hüseyin Aydın
Member of the Board of Directors and General Manager
