Ziraat Bank seeks to strengthen its financial structure through sustainable growth, profitability, and productivity. In 2016 the Bank continued to reinforce its equity-compatible balance sheet structure through the asset & liability management strategies that it adhered to and it remained on course in terms of capital adequacy, profitability, and productivity.

As of year-end 2016 the Bank’s total assets amounted to TL 357.8 billion and its total equity to TL 38.4 billion. Importance was again given to supporting equity through sustainable profitability: total equity accounted for about a 11% share of the Bank’s balance sheet.

Recognizing the key importance of sustainable profitability in equity management, the Bank increased its net profit by 27.4% in 2016 to TL 6.6 billion. As of year-end, Ziraat Bank’s return on equity and return on assets ratios were 18.7% and 2.0% respectively while its capital adequacy ratio was 14.5%.

In keeping with the Ziraat Bank Customer Service Model, the Bank focuses on providing financial solutions to all real-sector actors, but especially to those in agriculture, with the result that lendings are making up a steadily increasing share in the balance sheet. As a result of this customer-weighted balance sheet management strategy, the total volume of the Bank’s cash lendings increased by 25% to TL 232.6 billion and corresponded to 65% of total assets while the share of marketable securities, which was 21% in 2015, was down to 19% in 2016. Ziraat Bank’s NPL ratio in 2016 was 1.8%. The Bank’s consistent ability to maintain a below-average NPL ratio without selling off any of its assets is an indication of the high quality of its asset structure.

In line with Ziraat Bank’s approach of contributing to the country’s overall level of saving and of having recourse to broadly-based, low-cost resources, total deposits reached TL 223 billion, a performance that maintained the Bank’s standing as the sector’s leading deposit-taker in 2016. Deposits and non-deposit resources account for 62% and 21% shares respectively of total liabilities. In keeping with the Bank’s ongoing efforts to diversify and deepen its sources of funding, in 2016 Ziraat Bank continued to seek out and tap alternatives such as international agency and financial institution lines of credit, post-financing, and bank bond & bill issues.

The Bank focuses on productivity rather than on profitability, and works to turn productivity into a priority culture in its activities. Being the bank possessing the sector’s broadest branch and ATM networks, Ziraat Bank targets to further increase the efficiency and productivity of this service network, and to maintain its position as the bank with the lowest cost/income ratio among banks of a similar scale.