As demonstrated by the worldwide economic and trade data, 2016 has produced low growth. The European Central Bank (ECB) strove to drive demand through its monetary expansion policy, while OAPEC countries attempted to rebalance their deteriorated macroeconomic indicators as a result of plummeted oil prices by cutting production. Events including the US presidential election, the ongoing state of war in Syria, and the UK’s exiting the EU membership (Brexit) gave rise to a process where political developments put pressure on economic data.
In this process, Ziraat Bank sustained its support to all segments of the economy. 2016 saw the launch of a series of mega projects, in the financing of which Ziraat Bank is involved. As of year-end 2016, the number of financed projects rose to 39 while project finance amount reached USD 12.3 billion. Besides financing mega projects, Ziraat Bank sustains and further increases its support to meet the financing needs of small and medium sized enterprises with its diversified products, giving the top priority to the agricultural sector. The Bank continues to facilitate the reach of the agricultural sector to financial services. In SME banking, the Bank provided financing support to these establishments by way of new loans set up with the Credit Guarantee Fund (KGF) and the Small and Medium Enterprises Development Organization (KOSGEB) in addition to the Bank’s own products.
In keeping with its core strategic goals, Ziraat Bank offers unrivaled banking service to all of its customers. Ziraat Bank kept standing by the real sector and all segments of the society, being the only bank with a physical presence at nearly 400 locations and acting as more than a bank also in 2016. During the reporting period, Ziraat Real Estate Investment Trust joined the Ziraat Finance Group family and started operations.
Ziraat Bank kept offering low-cost, solution-oriented credit products to its customers. Growth in all fields of industry and manufacturing has been backed by Ziraat Bank’s loans in 2016. Acting on the principle of sustainable growth, the Bank enlarged its cash loans by 25% to TL 233 billion. The aggregate of cash and non-cash loans reached TL 312 billion. Total assets of Ziraat Bank grew by 18% to TL 358 billion during 2016. Loans account for the largest portion of total assets with 65% share.
In managing its balance sheet size, the Bank offered solutions aligned with diverse financing demands, while protecting its credit quality. While it is the sector’s leading bank in terms of financials and financial ratios, the Bank set productivity as its main goal. Along this line, the Bank continues to enhance the qualities of branches and qualifications of employees, and to increase basic balance sheet sizes per branch and per employee.
Within the frame of activities aimed at increasing the savings ratio in our country, Ziraat Bank keeps allocating funds to new investments via various savings and deposits products it offers. Under the broad-based deposits strategy, total deposits reached TL 223 billion, and the Bank kept expanding its deposit base.
At year-end 2016, the Bank’s shareholders’ equity went up to TL 38 billion, taking 11% share out of the balance sheet. Boasting a strong financial structure, Ziraat Bank continued to evolve its business model in a bid to sustain its stable growth.
In order to deal with the future volatilities and to secure increased investment and spending appetite in a manner that will not disturb financial stability, the Bank carries on with efforts aimed at a low-interest rate environment. Leading the sector to reduce rates in housing loans, Ziraat Bank guided the sector and created funds for the real estate industry.
Based on the results of “Turkey’s Lovemarks 2016”, a survey conducted to identify the consumers’ favorite brands in 2016, Ziraat Bank was named the top brand in the banking category and became Turkey’s lovemark in banks.
At the 13th International Stevie Business Awards held in 2016, one of the world’s most comprehensive and prestigious recognition programs in which more than 3,800 entrants from 60 different countries participate, Ziraat Bank was voted the “Favorite Bank” in the Banking segment in the “People’s Choice” category. Ziraat Bank also ranked first in the Banking league in Social Brands Turkey, a social media performance survey looking into the performances of brands’ social network accounts.
Ziraat Bank is right in the heart of people’s lives and has the highest accessibility as a bank. Ziraat Bank remains Turkey’s bank that boosts morale as it works to be the bank of everyone and every segment through fulfilling the financing needs of small enterprises and retail customers, as well as those of large-scale institutional companies, and investing their savings.
Ziraat Bank Board of Directors
