Ziraat Bank defines its targets as sustainable growth, profitability, and productivity. In 2019 the Bank continued to sustain the strength of its equity-compatible balance sheet structure through the asset & liability management strategies that it adhered to.

As of year-end 2019 the Bank’s total assets amounted to TL 650 billion and its total shareholders’ equity to TL 70 billion. Importance was again given to supporting equity through sustainable profitability: total equity accounted for about a 10.8% share of the Bank’s balance sheet.

Recognizing the key importance of sustainable profitability in equity management, Ziraat Bank’s return on equity and return on assets ratios were 10.1% and 1.1% respectively while its capital adequacy ratio was 17.02% at 2019 year-end.

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 loans increased by 18% to TL 448 billion and corresponded to 69% of total assets while the share of marketable securities, which was 17% in 2018, increased to 20% in 2019. Ziraat Bank’s NPL ratio in 2019 was 2.8%. The Bank’s consistent ability to maintain an NPL ratio below the sectoral average 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 sources, total deposits reached TL 447 billion, a performance that maintained the Bank’s standing as the sector’s leading deposit-taker in 2019. Deposits and non-deposit sources account for 69% and 16% shares respectively of total liabilities. In keeping with the Bank’s ongoing efforts to diversify and deepen its sources of funding, in 2019 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’s most important income item in 2019 was interest income, which amounted to TL 66 billion. The share of interest received from loans in total interest income was 80% as a result of the credit activities carried out during the year. The Bank continued its efforts to improve the net interest margin and as a result net interest margin rose by 15.5% in 2019. As a result of the Bank’s efforts to increase non-interest income, net fees and commission income increased by 36% in 2019.