157 yearsHaving been playing an active role in the building the financial future of Turkey for 157 years, Ziraat Bank maintained its operations in the extraordinary conditions of 2020, focused on fulfilling its duties as one of the main stakeholders in the economic cycle.

Distinguished stakeholders,
Following a global economic slowdown in 2019, the world had started 2020 with positive expectations. However, news of the epidemic in the Far East and World Health Organization’s declaration of the Covid-19 pandemic on March 11, the global economy entered a process of sharp contraction. With successive lockdowns in this process, production and trade rapidly ground to a standstill on a global scale.

The pandemic, which is thought to have the potential to have an impact more widespread and profound than the 2008 global financial crisis in the medium to long term, has also given rise to increased rates of unemployment and increased inequality in income and wealth distribution in most countries.

Based on the IMF’s January 2021-dated estimates, the world economy is expected to have contracted by 3.5% in 2020.

Turkey was among the countries to have successfully managed the pandemic process with the public health measures taken and packages implemented within the framework of the monetary policies and financial policies which it put in place.

In this challenging period, our country was able to manage the pandemic with a proactive approach thanks to the timely and rapidly implemented measures taken by our government and other regulatory bodies.

The success achieved has two axes. The first of these has been the determined stance in the field of protecting public health. With its strong and modern health infrastructure, our country has achieved significant success in this field, with the devoted efforts of the health sector employees, notably in the Ministry of Health, being the prime factor behind the success. On behalf of myself and our Board of Directors, I would hereby like to take this opportunity to express my gratitude to all of esteemed healthcare professionals.

Another success was achieved in the field of sustainability of economic activities. Our government ensured that the loss in the production-employment cycle was as limited as possible with its range of rapidly implemented support packages as well as other measures which regulate economic life, standing shoulder to shoulder with households in need and the real sector.

The Turkish economy recorded 4.5% growth in the first quarter of the year, before contracting by 10.3% in the second quarter with the shock caused by the pandemic. However, the economy subsequently bounced back with the corrective measures taken in the second half of the year, and the economy recorded 6.3% growth in the third quarter and 5.9% growth in the fourth quarter. As a result, Turkey wound up the year 2020 as one of the few countries in the world to conclude the year without entering a recession with a positive 1.8% rate of growth.

We think a combination of the gains brought about by the ongoing vaccination program in bringing the pandemic under control and the structural advantages and experience in the economic cycle gained from the difficult conditions of 2020 will play a role in driving the recovery in 2021, particularly in the second half of the year.

In its latest projections, IMF set out its forecast of 6% growth in Turkish economy in 2021.

Ziraat Bank is determined to seize the opportunities which are expected to be offered in the future with a well-judged and responsible approach.

Having been playing an active role in the building the financial future of Turkey for 157 years, Ziraat Bank maintained its operations in the extraordinary conditions of 2020, focused on fulfilling its duties as one of the main stakeholders in the economic cycle.

I would hereby like to express gladly that in addition to its physical service network covering all four corners of Turkey, our Bank has provided the necessary support to the real sector as well as to households, deploying the digital banking competencies it has built upon recently, continuing to generate value for its stakeholders.

Without deviating from its risk-sensitive lending approach and backed by its strong financial structure, our Bank will maintain its efficiency-oriented sustainable growth journey and continue to build long-lasting value for Turkey.

About the future…
The acceleration in industrialization which came about with the industrial revolution, a growing world population and excessive consumption of resources have led to the emergence of an equation with multiple variables, which has manifested itself in the form of global warming and the climate crisis, and which await an immediate solution.

The pandemic we experienced in 2020 served as a stronger than ever reminder for economic actors such as our Bank of our responsibilities. It is our belief that at a point where global and local action has continued unwaveringly, our advanced technological competencies have the power to provide a solution to environmental problems, and the climate crisis can be brought under control before it turns into a catastrophe in the coming centuries.

In our position as our country’s largest provider of financial services, we have set out initiatives to contribute solving the climate crisis, which is also a matter of priority for our government, in the short, medium and long term. While continuing to offer financial solutions to our customers which set an example of good banking practices, we are also determined to step up our efforts in the field of sustainability.

We believe in the necessity of building a better and healthier world for all our stakeholders, notably our country and our people. The large family of Ziraat Bankers will also continue to work towards this goal.

I would like to thank our human resources for the strong performance and the success story which they achieved during the challenging period of 2020.

On behalf of myself and our Board of Directors, as we move forward I would like to pay my respects to the valuable contributions and support of our stakeholders, and I wish you all health, prosperity and peace in 2021.

Dr. Ahmet GENÇ
Chairman of the Board