Ziraat Bank’s main objective is to increase the total assets and profits of its subsidiaries within the Ziraat Finance Group in the medium term and to offer its services under the Ziraat Finance Group’s roof.
Ziraat REITZIRAAT REIT, THE NEW MEMBER OF ZIRAAT FINANCE GROUP, STARTED OPERATIONS IN 2016.
A strategy focused on sustainable profitability and growth
Ziraat Bank’s corporate participation strategy is to ensure sustainable profitability and growth under the roof of Ziraat Finance Group. In this context, the Bank has set out the following main strategies:
- to maximize the synergies between domestic subsidiaries operating in different sectors and foreign subsidiaries spread over a wide geographical area,
- to ensure that each subsidiary is the most popular among its customers as well as being the most profitable in their respective sectors.
The Bank’s main objective is to increase the total assets and profits of its subsidiaries within the Ziraat Finance Group in the medium term and to offer its services under the Ziraat Finance Group’s roof.
Ziraat Bank regularly evaluates organic and inorganic growth alternatives in all countries and sectors where it identifies potential based on profitability and efficiency, in line with its strategy and goals.
Within this scope, Ziraat REIT, which has a paid-in capital of TL 1,300 million with all of its capital owned by Ziraat Bank, was established on 1 November 2016.
Also in 2016;
- The paid-in capital of ZiraatBank BH d.d., operating in Bosnia and Herzegovina, was raised by 40 million BAM in cash to 140 million BAM.
- Ziraat Portföy Yönetimi A.Ş.’s paid capital was raised to TL 12.5 million.
International Subsidiaries
Ziraat Bank International AG
Ziraat Bank International AG has been serving its corporate and customers from a wide range of individual segments with its branches in Germany for 52 years and from the Istanbul Representative Office, which entered operation in April 2014.
As of the end of 2016, Ziraat Bank International AG had a paid capital of EUR 130 million, equity of EUR 199.7 million, total assets of EUR 1,676 million, loans of EUR 1,570 million and total deposits of EUR 1,451 million. In 2016, the bank’s net profit stood at EUR 15.1 million, growing by 10.8% YoY, with 23.4% YoY growth in loans.
ZiraatBank BH d.d.
ZiraatBank BH d.d., which began its activities in 1997, was Bosnia and Herzegovina’s first bank to be owned by foreign capital.
ZiraatBank BH d.d., which provides services through 31 service units and 53 ATMs throughout the country, had total assets of USD 462 million, loans of USD 342 million, deposits of USD 273 million and equity of USD 84 million at the end of 2016. The bank wrote a profit of USD 106,000 for the 2016 full year. In order to provide better quality service to its customers, the bank was relocated to a new service building in February 2016. The banking system was renewed and the paid capital increased by 40 million BAM to 140 million BAM.
Ziraat Bank Montenegro AD
Ziraat Bank Montenegro AD, which was granted a permit to conduct banking activity by the Montenegro official authorities in April 2015, began offer services in July 2015.
The bank operates in the Head Office and the Podgoritsa Branch in the capital Podgoritsa. Ziraat Bank owns all the shares of the bank that has a capital of EUR 10 million. As of the end of 2016, the bank’s total assets amounted to USD 42.4 million, loans amounted to USD 34.2 million and deposits amounted to USD 11.2 million.
Ziraat Bank Azerbaijan ASC
Ziraat Bank Azerbaijan ASC acquired its banking license as of 30 December 2014 and began its operations in July 2015.
Established to provide services mainly in the field of corporate banking, Ziraat Bank Azerbaijan ASC operates from its Head Office in Baku as well as the İçerişehir Branch. All of the shares of the bank, which has USD 28.2 million of paid-in capital (AZN 50 million), belong to the Ziraat Finance Group, held by Ziraat Bank (99.98%) Ziraat Sigorta A.Ş. (0.01%) and Ziraat Yatırım Menkul Değerler A.Ş. (0.01%). As of the end of 2016, the bank’s total assets stood at USD 74.2 million, with loans of USD 30.5 million and deposits of USD 29.9 million. The bank wrote a net profit of USD 3.4 million in 2016.
Ziraat Bank (Moscow) JSC
Ziraat Bank (Moscow) JSC began operations in Moscow in 1993.
Operating mainly in the corporate banking sector, the bank achieved remarkable growth in 2016, with its total assets increasing by 60% YoY, its deposits by 204% YoY, its loans by 13% YoY and its net profit by 114% in local currency terms. As of the end of 2016, its assets amounted to USD 90.7 million, with total loans of USD 29.8 million and a net profit of USD 2.4 million.
Ziraat Bank’s international subsidiary banks are operating in Germany, Bosnia and Herzegovina, Montenegro, Azerbaijan, Russia, Kazakhstan, Turkmenistan, and Uzbekistan.
Kazakhstan Ziraat International Bank (KZI Bank)
KZI Bank was established in 1993 as the first bank with foreign capital in Kazakhstan with its head office in Almaty. The bank provides services to customers in the corporate and retail banking fields through its branches in the cities of Almaty, Astana, Shymkent and Aktau.
As of the end of 2016, the bank’s assets amounted to USD 172.7 million, with equity of USD 70 million and a net profit of USD 7.1 million. The bank’s loan portfolio amounted to USD 93.2 million with customer deposits of USD 101 million at the end of 2016.
Turkmen Turkish JSC Bank
Turkmen Turkish JSC Bank, Turkmenistan’s first bank with foreign capital, was established in 1993 with the equal participation of Ziraat Bank and Dayhan Bank.
Operating in Turkmenistan’s major cities with 268 staff, the bank reached an asset size of USD 279.6 million in 2016 and net income of USD 3.9 million. The bank offers all banking products and services to its corporate, SME and individual segment customers.
UTBANK JSC
UTBANK JSC, Uzbekistan’s first bank with foreign capital, was established in 1993 in Tashkent with a Category 1 banking license, with the equal participation of Ziraat Bank and Agrobank (Uzbekistan).
The bank provides all banking products and services in the corporate and retail banking fields to its customers at international quality standards and the quality of the bank’s operations were certified with ISO 9001: 2008 certification in 2016. In 2016, the bank’s loan amounted to USD 36.3 million, total assets amounted to USD 74.3 million, deposits amounted to USD 35.9 million and net profit stood at USD 3.1 million.
Currently operating with the Central Branch and Yunusabad Branch in Tashkent, the bank will increase its operating points to seven when the branches and offices in the Samarkand and Fergana provinces are opened in 2017, in line with its growth vision.
Domestic Subsidiaries
Ziraat Sigorta A.Ş.
Ziraat Sigorta was established on 11 May 2009 and began its insurance activities in 2010. The company succeeded in becoming an exemplary company in the sector, maintaining sustainable growth and profitability while commanding a leadership position in the premium generation of banking insurance.
Having completed its seventh year of operation, Ziraat Sigorta maintained its steady development in 2016 and achieved a 43% YoY increase in premium generation to approximately TL 1,338 million. This places it 8th in terms of premium generation in the sector among companies operating in the non-life branches.
As of the end of December 2016, the company commanded an asset size of TL 838 million and an equity capital of TL 265 million. The company’s net profit increased by 48% YoY to TL 129 million during 2016.
Ziraat Hayat ve Emeklilik A.Ş.
Ziraat Hayat ve Emeklilik A.Ş, which obtained the permission for its establishment in 2009, started to offer products in the life and personal accident insurance branches at the beginning of 2010 and in the Individual Pension branch in July 2011. The company has led the sector in terms of premium generation from life insurance policies since its establishment. The company realized TL 1,084 million of premium generation during 2016, achieving a market share of 21%.
In its Individual Pension System, Ziraat Hayat ve Emeklilik A.Ş. recorded a fund volume f TL 2,375 million, marking an increase of 63% and the number of participants stood at 513,000, an increase of 32%. As of the end of December 2016, the company’s total assets stood at as TL 3,792 million and its equity at TL 394.1 million, while it recorded a net profit of TL 231.6 million.
Ziraat Finansal Kiralama A.Ş.
Founded in 1991, Ziraat Finansal Kiralama A.Ş. has been one of the leading companies in the sector with an asset size of approximately TL 2.4 billion, net rent receivables of TL 2.2 billion and a net profit of approximately TL 30 million in 2016.
Ziraat Yatırım Menkul Değerler A.Ş.
Founded in 1997, Ziraat Yatırım operates with one central branch and six liaison offices. In 2016, the company realized transaction volume of TL 29.6 billion in the Istanbul Stock Exchange Certificates of Stock Market, TL 10.2 billion in the Derivatives Exchange Market and TL 78.6 billion in the Repo-Reverse Repo and Bond and bills Markets.
Within the scope of corporate finance services, Ziraat Yatırım maintained its effective position by intermediating in private sector bonds and bill issuance worth TL 7.9 billion aimed at qualified investors in 2016. As of the end of the year, the company’s equity amounted to TL 99.7 million.
Ziraat Bank’s domestic subsidiaries provide services in a wide range of areas including insurance, private pensions, financial leasing, investment banking, portfolio management, IT, participation banking, and real estate investment trust.
Ziraat Portföy Yönetimi A.Ş.
Ziraat Portföy Yönetimi was founded in 2002. The company, which provides management services as a proxy to the investment portfolios consisting of capital market instruments, has a capital of TL 12.5 million. Ziraat Portföy Yönetimi obtained the authority to be a fund founder in 2015 and is now the founder of 21 investment funds and manager of 13 pension investment funds, together with interest-free funds.
The company’s assets under management rose from TL 7.5 billion in 2015 to TL 9.9 billion in 2016, an increase of 32.63% compared to the previous year. The company increased its size in the Private Asset Management (Individual & Legal) from TL 2.8 billion to TL 3.4 billion, achieving 20.83% growth and maintaining its position as sector leader.
When investment funds and pension funds are also included, the company was ranked 5th among all managed portfolios in terms of size, increasing its market share from 7.64% to 8.16%.
Ziraat Teknoloji A.Ş.
Since its establishment in 2001, Ziraat Teknoloji has been providing information technology services to Ziraat Bank and its domestic/foreign partnerships in the fields of application development, systems management, project management and technology consultancy.
Ziraat Teknoloji continues its activities in the Technology Development Zone (Teknopark) located in the Yıldız Technical University campus. It plays an important role in the projects carried out by the Ziraat Finance Group thanks to its competence in the field of technology with the software and applications that it developed in line with the requirements of ISO 9001, 22301 and 27001 standards.
The company completed the Ziraat Finance Group’s Data Center this year and also started a new banking software development project for the entire finance group.
Ziraat Katılım Bankası A.Ş. (Ziraat Participation)
Ziraat Participation entered operation on 29 May 2015.
Ziraat Participation listens to its customers in all situations, in line with the principles of participation banking and works to a basic philosophy of providing solutions specific to them. As well as operating for its customers and shareholders, the bank also carries out work to add value to society and all stakeholders. A total of 99.99% of the bank’s shareholders’ equity capital, amounting to TL 764 million, belongs to Ziraat Bank. As of the end of 2016, the bank’s total assets stood at TL 8 billion, with loans of TL 6 billion and a profit of TL 31 million.
Ziraat Gayrimenkul Yatırım Ortaklığı A.Ş. (Ziraat REIT)
Ziraat REIT began operations on 1 November 2016. Ziraat Bank owns all of the shares of the company, which has a paid capital of TL 1,300 million. The company’s asset structure includes some important real estate projects, especially the Ziraat Finance Group projects. The Istanbul Financial Center project, initiated to bring Istanbul to the status of being a regional and global financial center, has a total construction area of 426,000 m² consisting of two towers of 40 and 46 floors, rising from a 27,195.5 m² plot.
