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 all of its services under the Ziraat Finance Group’s roof.
The synergistic structure of Ziraat Bank with its subsidiaries ensures the motivation it needs for sustainable growth and is the driving force of its domestic and international development.
Ziraat Bank’s corporate participation strategy focuses on sustainable profitability and growth.
Ziraat Bank has a wide ranging international and domestic participation portfolio that is shaped in the framework of its participation policy built on the basis of productivity and profitability, offering customers products and solutions in all areas of financial services.
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 all of 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.
In this context, the Bank’s branches in Georgia began operating under the name of “JSC Ziraat Bank Georgia” as of 2 May 2017 as a subsidiary bank.
All of the shares of UTBANK JSC, which has been operating as the first foreign capital Bank of Uzbekistan since 1993 and which is a 50% owned subsidiary of Ziraat Bank, were acquired by the Bank; thus UTBANK JSC is 100% owned by the Ziraat Finance Group. The Bank will continue its activities as “Ziraat Bank Uzbekistan JSC” from 2018.
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 53 years and from the Istanbul Representative Office, which entered operation in April 2014.
As of the end of 2017, Ziraat Bank International AG had a paid capital of EUR 130 million, equity of EUR 217 million, total assets of EUR 1,744 million, loans of EUR 1,557 million and total deposits of EUR 1,507 million. In 2017, the bank’s net profit stood at EUR 17.2 million, growing by 12.7% YoY, with 4% YoY growth in total assets.
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 30 service units and 54 ATMs throughout the country, had total assets of USD 638 million, loans of USD 636 million, deposits of USD 421 million and equity of USD 97 million at the end of 2017. The bank wrote a profit of USD 1.6 million for the 2017 full year.
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 2017, the bank’s total assets amounted to USD 63.1 million, loans amounted to USD 52.7 million and deposits amounted to USD 30.2 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 29.4 million of paid-in capital (AZN 50 million), belong to the Ziraat Finance Group (Ziraat Bank 99.98%). As of the end of 2017, the bank’s total assets stood at USD 108.8 million, with loans of USD 39.1 million and deposits of USD 70.4 million. The bank wrote a net profit of USD 2.4 million in 2017.
Ziraat Bank (Moscow) JSC
Ziraat Bank (Moscow) JSC began operations in Moscow in 1993. Operating mainly in the corporate banking sector, the bank’s total assets increased by 14% YoY, its deposits by 2% YoY, its loans by 104% YoY and its net profit by 26% in local currency terms. As of the end of 2017, its assets amounted to USD 109.2 million, with total loans of USD 63.9 million and a net profit of USD 3.1 million.
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 2017, the bank’s assets amounted to USD 171.9 million, with equity of USD 77 million and a net profit of USD 6.5 million. The bank’s loan portfolio amounted to USD 106.4 million with customer deposits of USD 93.2 million at the end of 2017.
Ziraat Bank Uzbekistan 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. In the last quarter of 2017, all of Agrobank’s shares in the Bank were transferred to Ziraat Bank and 100% of UTBANK JSC’s shares were registered in the name of Ziraat. The Bank continues its activities as “Ziraat Bank Uzbekistan JSC”.
In 2017, the bank’s loan amounted to USD 39.2 million, total assets amounted to USD 52.5 million, deposits amounted to USD 13.9 million and net profit stood at USD 3.4 million.
JSC Ziraat Bank Georgia
JSC Ziraat Bank Georgia was established on 2 May 2017, after Ziraat Bank’s Tbilisi, Batumi and Marneuli branches, which were already operating in Georgia, were transformed into the status of a subsidiary bank. The entire GEL 30 million of paid up capital of Ziraat Bank Georgia belongs to Ziraat Bank.
At the end of 2017, the Bank had USD 36 million in total assets, a loan portfolio of USD 7 million and deposits of USD 24 million.
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, the bank reached an asset size of USD 613.5 million in 2017 and net income of USD 4.2 million. The bank offers all banking products and services to its corporate, SME and individual segment customers.
Domestic Subsidiaries
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.
Among the Company’s priorities is the development of real estate projects needed by the Ziraat Finance Group. For this purpose;
- The tender process for the construction of two towers, one with 40 storeys and the other with 46 storeys, with a combined floor area of 426,000 m2, which will be realized on a 27,195.50 m2 plot in the Istanbul Finance Center, which is being developed so Istanbul will become a regional and global financial center.
- 248/300 shares of real estate in the form of land in Konak, the cultural quarter of Izmir, have been purchased and a lease goodwill protocol was signed for Ziraat Bank’s use.
- A sales promise contract for the purchase of a total of 140 independent sections located in the ROTA MAVİ Site, Istanbul, Yakacık Çarşı Mahallesi, Panorama Sokak, which is still under construction, was concluded with the APG firm.
- Feasibility studies are underway for the realization of a large number of real estate projects.
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 2.6 billion, net lease receivables of TL 2.3 billion and a net profit of more than TL 68 million in 2017.
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-manager of 18 investment funds and manager of 13 pension investment funds, together with interest-free funds.
The company’s assets under management rose from TL 10 billion in 2016 to TL 13.6 billion in 2017, an increase of 36% compared to the previous year.
The company increased its size in the Private Asset Management (Individual & Legal) from TL 3.5 billion to TL 4.7 billion, achieving 34% growth.
The company, which was the sector leader in private asset management between 2015 and 2016, maintained its share in the sector in 2017.
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 8.2% in 2016 to 8.6% in 2017.
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.
Completed the Ziraat Finance Group’s Data Center last year, the company continued its new banking software development project for the entire finance group.
Ziraat Yatırım Menkul Değerler A.Ş.
Founded in 1997, Ziraat Yatırım provides services through the internet branch, mobile applications and General Directorate brokerage services (0 850 22 22 979). In addition, all branches of Ziraat Bank throughout the country serve as agents of Ziraat Yatırım Menkul Değerler.
In 2017, the company realized transaction volume of TL 49.1 billion in the Borsa İstanbul Stock Market, TL 16.2 billion in the Derivatives Exchange Market and TL 59.2 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 12.9 billion aimed at qualified investors in 2017.
As of the end of the year, the company’s equity amounted to TL 117 million.
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 eighth year of operation, Ziraat Sigorta maintained its steady development in 2017 and achieved a 30% YoY increase in premium generation to approximately TL 1.7 billion. This places it 7 in terms of premium generation in the sector among companies operating in the non-life branches.
As of the end of December 2017, the company commanded an asset size of TL 1.1 billion and a shareholders’ equity of TL 435 million. The company’s net profit increased by 64% YoY to TL 222 million during 2017.
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 and personal accident insurance since its establishment. The company realized TL 1.4 billion of premium generation during 2017, achieving a market share of 19.2%.
In its Individual Pension System, Ziraat Hayat ve Emeklilik A.Ş. recorded a fund volume f TL 3.9 billion, marking an increase of 63.5% and the number of participants stood at 581 thousand, an increase of 13.4%. The Company, which is one of the key players of the Private Pension sector, has signed contracts with 7,000 companies in the Automatic Participation Application and became the sector leader in Automatic Participation Application with a total of 676,000 participants and a fund volume of TL 424 million.
As of the end of December 2017, the company’s total assets stood at as TL 5.7 billion and its shareholders’ equity at TL 662 million, while it recorded a net profit of TL 448 million.
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.
Ziraat Bank has a total of 99.99% share in the bank’s shareholders’ equity of TL 1.4 billion.
As of the end of 2017, the bank’s total assets stood at TL 14.4 billion, with loans of TL 11.3 billion and a profit of TL 168 million.
Ziraat Participation’s 2017 annual report can be reached at www.ziraatkatilim.com.tr.
