Focusing on institutionalizing and extending the culture of change and progress in all fields, Ziraat Bank continued to generate value with the innovations which it has implemented in 2020.

Having adopted a strategy based on sustainable profitability and growth, Ziraat Bank commanded TL 943 billion in total assets and TL 93 billion in shareholders’ equity as of the end of 2020. Attaching importance to backing its shareholders’ equity with sustainable profitability, the Bank attained a 9.7% return on equity (RoE) and 1% return on assets (RoA) in 2020.

Ziraat Bank’s total lending amounted to TL 601 billion at the end of 2020, accounting for 64% of the Bank’s assets.

The Bank’s total deposits increased to TL 630 billion in 2020, accounting for 67% of its liabilities. Ziraat Bank remained the sector leader in terms of total deposits in 2020.

Diversity Through its product, service and distribution network diversity, its clout in securing low-cost funding and its liquidity advantages, Ziraat Bank continues to achieve successful results in the Corporate/SME Banking business line.

CORPORATE/SME BANKING

Through its product, service and distribution network diversity, its clout in securing low-cost funding and its liquidity advantages, Ziraat Bank continues to achieve successful results in the Corporate/SME Banking business line.

Positioning itself as a service provider focused on growing in the Corporate/SME Banking business line, the Bank responds with the same degree of efficiency in meeting the product and service requirements of small-scale enterprises as it does when responding to its corporate customers’ demands for big ticket financing facilities.

Ziraat Bank took a series of measures to tackle possible disruptions in economic activity during the pandemic and has designed products which would enable corporate customers which have been either directly or indirectly adversely affected by the pandemic to continue their economic activities, and to finance their basic requirements under appropriate conditions. In this context, the Bank offered products such as the İşe Devam (Carry on Working) Loan Support Package, the Cheque Payment Support Package, the Tourism Restaurant-Cafeteria Business Support Loan Package and the Tourism Support Loan providing KGF-guaranteed lending opportunity within the framework of the Treasury-Backed Guarantee System.

Ziraat Bank studiously paid attention to promoting the access and widespread use of these loan packages, which provided a suitable source of financing to a large number of customers.

On the other hand, Ziraat Bank also aimed to fulfill the growing demand for strategic raw materials and intermediate goods and for machinery, the most basic input for produced goods in the raw material/intermediate goods manufacturing industry and machinery manufacturing industry which serves as the driving force of industrialization through local production. Designed in line with this target and presented as a new product in 2019, lending operations within the scope of the “İVME (Advanced, Productive, Indigenous Industry) Financing Package” continued in 2020 with approximately TL 26.8 billion in loans extended.

Ziraat Bank acknowledges the need to provide a healthy and sustainable contribution to existing employment, as well as to the production infrastructure, in order to ensure the consistent growth and development of the national economy. In this vein, the Bank works to expand the set of facilities which the banking sector makes available to the real sector. Accordingly, approximately TL 12.8 billion was lent to over 7,000 customers within the scope of the Employment-Oriented Working Capital Loan (in Turkish: İSTOD) which was introduced on October 31, 2019.

SUPPORT PACKAGES FOR SMEs

In addition to the convenient financing source offered by the İşe Devam (Carry on Working) Loan Support Package and Cheque Payment Support Package, Ziraat Bank has prioritized support for the tourism sector, which is one of the sectors to have been hardest hit by the pandemic, providing affordable financing to meet their requirements, particularly to restaurants and cafeterias which rely on tourism. For this purpose, the Bank brought the Touristic Restaurant-Cafeteria Business Support Loan Package into practice which provides KGF-guaranteed lending opportunities within the framework of the Treasury-Backed Guarantee System.

Moreover, within the scope of the transition to the normalization process and to support the revival of economic life, Ziraat Bank aims to enable micro-enterprises, which form the backbone of the economy and the social order, to meet their financing requirements under appropriate conditions through the KGF-guaranteed Support Loan Package for Micro Enterprises within the framework of the Treasury-Backed Guarantee System. The purpose of the loan package, which supports the protection of production and employment capacities and market values ​​of micro enterprises, is to meet salary and rental payments and fixed expenses related to the contract/invoices of micro enterprises.

In addition, the Bank introduced the KGF-guaranteed Tourism Support Loan within the framework of the Treasury-Backed Guarantee System for enterprises in the tourism sector which provide accommodation and food services, travel agencies, tour operators and other reservation services and related operations, as well as for the enterprises which provide goods and services to these businesses.

LOANS SECURED FROM INTERNATIONAL FINANCIAL INSTITUTIONS AND ON-LENT TO SMEs

Since 2010, Ziraat Bank has been obtaining low-cost funds from international financial institutions for on-lending to SMEs or larger-scale companies.

The agreements executed within this framework incorporate special provisions related to environmental and social control criteria, while also mandating overall compliance with the environment-related legislation in Turkey. The agreements also include lists of environmentally-sensitive sectors or sectors which must be excluded.

Pursuant to international credit agreements, customers are required to sign a supplementary agreement in addition to Ziraat Bank’s general credit agreement for such loans on-lent to SMEs. The document constitutes a pledge by the customer to ensure compliance with the environmental and social requirements stipulated by the related financial institution. During the reporting period, international financial institutions which Ziraat Bank cooperates with also conducted audits at the Bank and its credit customers on a periodical basis.

International Financial Institution	Project Topic	Amount	Maturity
World Bank (IBRD)	Financing for SMEs (SME II)	USD 200 million	25 years
World Bank (IBRD)	Financing for SMEs through leasing companies as an APEX loan (SME III)	USD 300 million	30 years
World Bank (IBRD)	Financing energy efficiency projects of SMEs	USD 200 million	30 years
European Investment Bank (EIB)	SME financing	EUR 100 million	10 years
European Investment Bank (EIB)	SME and MIDCAP financing (5 projects)	EUR 500 million	8 years
European Investment Bank (EIB)	Financing IPARD investments approved by the Agricultural and Rural Development Support Institution	EUR 100 million	14 years
German Development Bank (KfW)	Financing SMEs operating in the agricultural sector or rural areas	EUR 150 million	10 years
Council of Europe Development Bank (CEB)	Micro and SME business loan (to create employment or protect existing jobs)	EUR 100 million	7 years
French Development Agency (AFD)	Financing for SMEs which process agricultural products and food of animal origin	EUR 100 million	12 years

While continuing its uninterrupted financing support for the agricultural sector, Ziraat Bank also develops projects aimed at resolving the sector’s structural problems and facilitating direct access to finance.

FINANCING OF THE AGRICULTURAL SECTOR

While continuing its uninterrupted financing support for the agricultural sector, Ziraat Bank also develops projects aimed at resolving the sector’s structural problems and facilitating direct access to finance. These projects are implemented through joint work with the related ministries, institutions, establishments and agricultural organizations.

In this context, the Bank prioritizes diversification of credit products which will facilitate access to financing for small business owner farmers, who constitute the most critical link in the agricultural value chain.

Investments and operations aimed at increasing agricultural businesses’ storage, processing, packaging and marketing capacities for their own production are among the Ziraat Bank’s target production areas, with a special emphasis on the following areas in operations carried out in line with this objective;

• contracted production model,
• controlled undercover farming,
• increasing the production of products which will reduce reliance on imports,
• building agricultural enterprises up to an economic scale,
• use of idle operating capacities,
• increasing the agricultural mechanization of businesses,
• projects to encourage the use of technology to increase productivity in agriculture,
• investment projects which will create added value in agricultural production and respond to our country’s needs,
• licensed storage and cold storage depot investments.

TL 79.9 billion loan from Ziraat Bank’s own resources to finance the agricultural sector
The balance of agricultural loans provided from the Bank’s resources had reached TL 79.9 billion by the end of 2020, and the number of customers with loans reached 684,000. The number of new customers added to the portfolio exceeded 53,000.

35% of Ziraat Bank’s agricultural loan portfolio consists of investment loans while 65% of it consists of working capital loans.

On the other hand, the Bank also mediated in the payment of TL 70.6 million in loans from the funds provided by various institutions to more than 1,200 individuals determined by the related institutions. In this context, a total of TL 1.6 billion originating from fund-based credit payments which it mediates were reached with the number of customers exceeding 59,000 by the end of 2020.

Overall, the total volume total of loans extended by Ziraat Bank from its own resources to finance the agricultural sector, together with the fund-based credits which it mediated in had reached TL 81.5 billion by the end of 2020, with a total of 744,000 customers receiving loans.

Affordable interest rate practice on agricultural loans
In line with the decree and communiqué on reduced interest rate loans, Ziraat Bank continued to extend loans to its customers operating in the sector at affordable interest rates within subsidized rates which are defined on the basis of production areas.

Agricultural value chainZiraat Bank prioritizes diversification of credit products which will facilitate access to financing for small business owner farmers, who constitute the most critical link in the agricultural value chain.

The contribution of the financial model to agriculture-based industry-producer cooperation

Contracted Production
Within the framework of contracts entered into with 24 firms operating in a number of areas including vegetable farming, seed farming, broiler breeding, pepper and tomato cultivation and sugar beet production, Ziraat Bank’s balance of contracted production loans extended to more than 35,000 contract producers stood at approximately TL 307.5 million at the end of 2020.

Producer Financing System
The Producer Financing System was introduced in line with Ziraat Bank’s strategy of “being an effective bank in financing the agricultural value chain from the farm to the plate”.

This system was put in place to promote the development of direct product trade between agricultural producers, notably producers of fresh vegetables, fruit and red meat, and buyers (such as chain markets, meat integrated facilities, canned food factories, ready-made food factories) without the use of intermediaries (such as brokers or merchants), while reducing the influence of intermediaries in the supply chain on the formation of the final product price and contributing to the formation of more reasonable product purchase prices and consumer prices by providing maturity advantages to buyers.

Within the scope of the system, which was put into practice in the second half of 2020, approximately TL 80 million of loans had been extended for the sale of agricultural products as of the end of the year.

Crop production loans
In 2020, Ziraat Bank extended a total of TL 22.8 billion in loans to 225,000 customers for vegetative production. As a result of this lending under various areas, the balance of loans disbursed for crop production had reached TL 25.6 billion as of the year-end, with the number of customers receiving credit reaching 277,000.

Livestock loans
In 2020, Ziraat Bank extended a total of TL 21 billion in livestock production loans under various names to approximately 170,000 customers. As of the end of 2020, the balance of loans disbursed for livestock production had reached TL 29.7 billion with the number of customers receiving credit reaching 255,000.

Aquaculture loans
During the same period, Ziraat Bank extended TL 566.4 million in loans to more than 1,600 customers under various titles in the field of aquaculture. As of the end of 2020, the balance of loans disbursed in this area had reached TL 771.5 million and the number of customers receiving such credit exceeded 2,500.

Modern irrigation system loans
In 2020, Ziraat Bank extended TL 519 million in loans to be used for pressurized irrigation systems to more than 4,600 borrowers. These loans were used to irrigate approximately 346,000 decares of land using modern pressurized irrigation systems, resulting in 30%-40% water savings thanks to the use of drip and overhead irrigation systems.

Agricultural mechanization loans
Ziraat Bank provides financing for tractors and agricultural mechanization in order to increase the level of mechanization of agricultural enterprises, efficiency of production and profitability.

In this framework, TL 5 billion in tractor loans were extended to more than 44,000 customers, along with TL 1.1 billion in agricultural mechanization financing loans to more than 32,000 customers in 2020.

As of the end of 2020, the Bank had more than 182,000 customers using a total of TL 9.7 billion in tractor loans, and more than 85,000 customers using TL 2.1 billion in mechanization loans.

In 2020, 21,120 customers benefited from Small Equipment Credit provided for the purchase of small farming tools and equipment needed by agricultural enterprises belonging to real persons or legal entities, to help them sustain their operations efficiently and profitably. Approximately TL 590 million of loans were extended within this context.

Loan Packages
In addition to the loans which the Bank continuously extends to finance agriculture, Ziraat Bank last year designed and offered three new loan packages for its customers. Within this framework, the following packages were introduced:

• The “Greenhouse Farming Loan Package” with loans to cover increased agricultural production in greenhouses, the installation of new greenhouses, work to bring idle greenhouses into economic use and the modernization of existing greenhouses
• The “Loan Package for Livestock Establishments Growing Their Own Feed” in order to encourage livestock enterprises to grow foraging crops in order to meet their needs for animal feed, partially or completely, and/or to meet these needs through pasture grazing.
• The “Soy Bean, Corn and Sunflower Loan Package” to encourage production of strategic arable products which are currently largely imported.

The following results were reached with the implemented packages during 2019 and 2020;

• Under the Greenhouse Farming Loan Package, TL 3.3 billion in loans were extended to 11,013 growers in 2020; the volume of loans granted since 2019 has reached TL 6.2 billion with the number of producers reaching 18,000 within the scope of the package.
• Under the “Soy Bean, Corn and Sunflower Loan Package”, TL 2.7 billion of loans were extended to 22,806 growers in 2020, taking the volume of loans extended since 2019 to TL 3.9 billion and the number of producers to 30,000 within the scope of the package.
• Under the “Loan Package For Livestock Establishments Growing Their Own Feed”, TL 3.4 billion of loans were extended to 30,216 growers in 2020, taking the volume of loans granted since 2019 to TL 4.8 billion and the number of producers to 42,000 within the scope of the package.

Within the scope of these loan packages implemented in 2019-2020, the number of producers granted loans exceeded 91,000 with and the total volume of loans reaching TL 14.9 billion.

In 2020, the “I have Many Reasons To Live In My Village” project and the “Accumulated Agricultural Electricity and Irrigation Debt Loan” product were added to existing range of packages.

A new addition to the financial solution alternatives for small businesses: “I have Many Reasons To Live In My Village” project

The “I have Many Reasons To Live In My Village” project had the following aims;

• increasing the scale of enterprises operating in the field of small cattle,
• bringing idle operating capacity into production,
• providing regional development with local sheep breeding,
• increasing demand for domestic-born female livestock, creating a market as well as reducing livestock imports,
• diversification of financial solution alternatives for small businesses.

Within the scope of the project introduced at the beginning of September, protocols were signed with 29 governorships within a period of four months.

The “Accumulated Agricultural Electricity and Irrigation Debt Loan” product was offered with the aim of ensuring that agricultural production in our country continued without interruption during the period where the sustainability of agricultural production and food supply security are of paramount importance, and offered reasonable payment periods for accumulated debts arising from agricultural electricity and agricultural irrigation subscriptions used by producers in their agricultural production operations.

With this loan, producers were provided with the opportunity to pay their accumulated agricultural electricity and irrigation debts with terms of up to 36 months at a preferential rate of interest.

The Young Farmers Academy, a social responsibility project launched in September 2018, continues to develop and expand.

Young Farmers Academy
The Young Farmers Academy, a social responsibility project launched in September 2018, continues to develop and expand. Within the scope of the project through which Ziraat Bank has received more than 10,000 applications to date, the number of participants successfully completing the training programs organized on dairy cattle breeding, greenhouse farming and sheep breeding has approached 300 with the cooperation established with six universities.

With university education interrupted by the pandemic affecting the whole world, the Academy was unable to open for the new period. However, interest in the Academy continues to grow and the Academy continues to receive applications.

The Bank plans to resume training at the Academy as soon as universities begin face-to-face education once the pandemic is brought under control.

RETAIL BANKING

Having offered a number of new products, Ziraat Bank introduced banking practices in the retail banking business line in 2020 which will bring ease to the lives of its customers.

In Retail Banking, which has the largest customer group of any business line in Ziraat Bank, the Bank offers services with a diverse range of products to a large retail audience ranging from students to pensioners, merchants to entrepreneurs and housewives to farmers, by effectively deploying its nationwide branch network. The Bank’s ATMs, the internet and mobile banking applications are all used extensively in these services.

During the pandemic, which negatively affected economic and commercial activity in all aspects, Ziraat Bank prepared a raft of loan packages aimed at meeting the basic requirements of its individual customers under favorable conditions. To this end, the Bank offered its customers Individual Basic Support Consumer Loan products, which provide KGF-guaranteed loans within the scope of the Treasury-Backed Guarantee System.

Ziraat Bank offered Second Hand Vehicle Support, Social Life Support and Vacation Support loan packages to meet the possible financial requirements of its customers under appropriate conditions with the aim of stimulating the return normal life in the normalization process as society emerged from the global pandemic.

Ziraat Bank continued to market the State Subsidized Dowry (Çeyiz) and the State Subsidized Housing Account products set out in legislation drawn up by the Ministry of Family, Labor and Social Services and the Ministry of Treasury and Finance to promote savings among the general public. Accordingly, the Dowry Account had 9,200 customers with a balance of TL 74 million, while the Housing Account had 2,400 customers and a balance of TL 60 million as of the end of 2020. The Bank transmits state subsidy applications from customers who have carried out payments regularly for three years to the Ministries, and state subsidies are deposited in the accounts of qualifying customers.

Ziraat Bank carries out operations focused on deepening its funding base, diversifying and enriching its products to provide financing in accordance with customer activities and needs.

Accordingly, marketing operations also continued in 2020 for Inflation-Indexed/Interest Protected and Inflation Protected products which were introduced to customers in 2019, and the maturities of the accounts were renewed. By the end of December 2020, balances had reached TL 18.3 billion with 147,000 customers in Inflation-Indexed/Interest Protected accounts, while reaching TL 1.3 billion with 14,000 customers in Inflation Protected accounts.

INSURANCE OPERATIONS

Within the context of the New Economy Program, the work being carried out by the Ministry of Treasury and Finance to gather public insurance and life/pension companies under a single roof, with the aim of creating a strong structure, was completed. Ziraat Bank commenced agency operations with Türkiye Sigorta A.Ş. and Türkiye Hayat Emeklilik A.Ş.

Within the scope of studies aimed at digitalizing insurance products and reducing the operational burden of branches, sales and collections were provided for the following;

• PPS plans over the Bank’s website and mobile application,
• The Turkish Natural Disasters Insurance Pool (DASK, TCIP) product was offered from the Bank’s website, internet branch and mobile application.

The transition to an online structure got underway with the rollout of “Life Insurance Transactions Related to Agricultural Loans” offered for corporate loans used by real person customers operating in the agricultural sector. As a result of this transition, the continuity of credit connections for TL 65 billion of insurance coverage in 1.2 million policies was achieved for 442,000 insured customers, contributing to commission income.

The Complementary Health Insurance-TSS (CHI) product, which covers treatment costs without paying any additional fees, was put into place in Social Security Institution (SSI, SGK) and Türkiye Sigorta A.Ş. contracted private hospitals.

Safe Trade System - Bankkart Başak Supply Chain FinancingThe Safe Trade System - Bankkart Başak Supply Chain Financing product which offers special pricing and maturity advantages to buyers and sellers in the supply chain through its merchant and corporate card infrastructure, and which eliminates the risk of collection between buyers and sellers has been introduced.

BANKKART BAŞAK SETS ITSELF APART WITH ITS SUPERIOR FEATURES

In the first quarter of 2019, Ziraat Bank began offering the Bankkart Başak which combines the characteristics of a debit and credit card thus enabling “Assets and Liabilities Management with a Single Card” to its SME and corporate customers.

Designed in accordance with market conditions in view of our country’s macroeconomic priorities and setting itself apart from other products in the market with its superior features, the Bankkart Başak promotes commercial shopping and introduces a new perspective to economic life, and continued to attract further growth in its customer portfolio and transaction volume in 2020.

Bankkart Başak is equipped with an array of features which support commercial life in addition to its features as a debit and credit card. These features include the following;

• Guaranteeing the receivables of small-scale parent companies possessing an extensive dealer and sales network with Micro DDS,
• Optimizing supplier-dealer cash flow processes with Dealer Special Limit,
• Managing sectors in which holders of supplementary cards can shop with Sector-Based Spending,
• Easily reaching spending details of all Bankkart Başak cards allocated to companies with Detailed Reporting.

The number of cards in circulation reached 694,000 while total risk balance stood at TL 7.3 billion at the end of 2020.

Ziraat Bank introduced the Safe Trade System - Bankkart Başak Supply Chain Financing which offers special pricing and maturity advantages to buyers and sellers in the supply chain through its merchant and corporate card infrastructure, and eliminates the risk of collection between buyers and sellers.

In the Safe Trade System, buyers and sellers can safely trade among themselves through the card payment system by creating a payment schedule suitable for their own cash flows. The product, which will increase the business volumes of buyers and sellers and allow buyers to access products and raw materials more quickly, was introduced to the Union of Chambers and Commodity Exchanges of Turkey (TOBB) members and the general public in a meeting held with TOBB on December 10, 2020. The relevant process is continuing for the signing of a protocol with the TOBB member chambers, stock exchanges and professional chambers throughout Turkey.

Operational process improvements
Ziraat Bank carries out initiatives in line with its targets of simplifying and centralizing its operational processes, and reducing and digitalizing back-office operations. The following key developments were carried out by the Bank in 2020:

• Steps were taken to ensure that tax collections could be performed quickly and easily with 20 different payment options through the Bank’s transaction channels.
• The level of operational business taking place in the branches was reduced by centralizing lien removal and deed of release transactions and updating the foreclosure information records carried out by the branches.
• Efforts to digitally receive 100,000 Social Housing applications to the Housing Development Administration of Turkey (TOKİ) over the e-government portal were completed in partnership between TOKİ, Türksat and the Bank and expanded in all projects. Of the 1,035,000 applications made, 43% were through the e-government portal, with 390,032 applicants not needing to come to the branches thanks to rebate applications being performed through ATMs without a card.
• For citizens affected by natural disasters such as earthquakes or flood throughout the country, debt account openings sent to the Bank by the Disaster and Emergency Management Presidency (AFAD) were centralized.
• Electronic data sharing with relevant institutions was initiated by ensuring that reports requested by source institutions (collection, utilization, remaining debt, etc.) were transferred to a digital environment.
• Customers were given increased ability to collect bills through Internet Banking, contributing to increased customer satisfaction and improved branch business management.
• A Letter of Attorney Inquiry System was activated with the integration realized with the protocol signed between the Notaries Union of Turkey (TNB) and the Bank. The Letter of Attorney Inquiry System was made available to all branches, eliminating uncertainty in the process flow and ensuring reliability.
• The “Scan QR Code and Pay” option was added to the Mobile Banking application in order to keep SSI premium collections straightforward and error-free.
• The Second-Hand Vehicle Sales - Safe Payment System, integrated with the Notaries Union of Turkey Information System, was offered to customers through branches, Internet Banking and Ziraat Mobile in order to ensure the simultaneous and safe exchange of the ownership of the vehicle and the funds in the purchase and sale of second-hand motor vehicles.
• “Easy Address” definition operations, which can be used instead of account information in TL money transfer transactions, were put in practice through the Internet, Mobile and branch channels by associating an account with an easier to remember mobile phone number, e-mail address, TCKN (national ID number) Tax Identity No (VKN), Foreign Identity No (YKN) or passport number.
• Following development and simplification work regarding the “Tax Collection Transactions” process, tax screens were combined on a single screen and made available to branches, allowing faster and easier transactions.
• In order to simplify existing screens related to debit and credit cards, combine screens with similar content, provide easy and fast access to information and design user-friendly screens, the “Renewal of Card Screens” project was initiated and screen enhancements were implemented in pilot branches.
• Integration to the FAST system was achieved, enabling money transfer on a 24/7 basis within the limits set by the Central Bank.
• The rollout of the TR QR code has enabled QR code sharing and fast money transfer over the QR code.
• Introduced at the end of 2019, the “OPİ-Operational Innovation” initiative, which allows customers to send transaction instructions to the Operation Center directly through the internet and mobile channels, had reached nearly 100,000 corporate customers as of the end of 2020. Within this scope, there were achievements in terms of simplifying back-office operations in the branches and ensuring customer satisfaction.

A total of 198,653,392 transactions were performed through the Operations Center in the 2020 operating period, with an overall centralization ratio of 99.39%.

CUSTOMER-ORIENTED CASH MANAGEMENT IMPLEMENTATIONS

Ziraat Bank aims to ensure that its banking products and services are competitive, effective and productive. Creating no-cost funds and cross-selling opportunities on the back of its activities carried out towards this target, the Bank pressed ahead with its customer-focused cash management implementations in 2020.

The number of businesses covered under an agreement within Ziraat Bank’s Direct Debit System (DDS) stood at 778 at the end of 2020. The total collection volume decreased by 67% compared to the previous year, while the number of dealers included in the system decreased by 43% as dealer entries reached their saturation point in the receivable collection model within the scope of the direct income support.

In addition, the Micro DDS (MDDS) product was introduced in order to guarantee the receivables of small-scale parent companies with extensive dealer and sales networks or to include dealers with relatively small volumes in the relevant sector into the system, allowing such companies to customarily take out instalment loans and offering them the opportunity to defer instalments. The number of Micro DDS Protocols executed within this framework reached 718 during 2020.

The Bank offered its Discounted DDS product, which serves to carry collections for bills in the system by direct debit ahead of their due payment dates, and which contributed to the interest income generated by the Bank.

Ziraat Bank intermediates in invoice and other payments with a total of 715 contracted organizations, with the Bank’s Customers able to carry out their payments through ATMs, Internet Banking, Mobile Banking and Automatic Payment channels in addition to the branches.

Ziraat Bank realized 297.4 million contracted institution collections with the Corporate Collection System, amounting to a total of TL 509.2 million. The Bank had automatic payment orders for 13.8 million institutional payments as of 2020. In addition, the Bank continued to offer customized payments, electronic cheques/notes, accounting integrations, pool accounts and cash collection services to meet the needs of its customers.
Within the strategy of carrying out public collections, notably tax payments, through card systems and new payment methods being developed in digital channels, the Bank introduced the Customs Duty Collection Loan product. This product provided customers with the opportunity to use intra-day credit for customs duties which they pay via SMS.

Meanwhile, the Customs Consultancy Web Service for customs consultations facilitated Customs Collection, Liquidation Laboratory (TASİŞ) Collection and Money Transfer (Money Order/EFT) transactions for customs consultancies.

Ziraat Bank improves its processes and system flows in line with its goals of simplifying operational processes, reducing and digitalizing branch transactions, and developing digital channels.

DIGITAL BANKING

Ziraat Bank is one of the banks to use technology most intensively in the banking sector, increasingly integrating it into its product and service delivery process.

Developing and renewing its existing technologies, the Bank is also focused on new technologies which can add value to its customers.

Closely pursuing technological developments in 2020, Ziraat Bank has continued to invest in modern infrastructure systems in order to expand the use of alternative distribution channels.

By the end of 2020, the number of the Bank’s digital customers had reached 23.8 million, with a total of 14 million active digital banking users.

As of the fourth quarter of 2020, there were a total of 9.36 million Ziraat Bank credit cards registered, with a 12.37% share of the credit card market in terms of the number of cards and a 9.11% share in terms of monthly turnover. During the same period, a total of 39.96 million debit cards were in circulation, as the Bank’s leading position in the sector was maintained with a 21.21% market share in monthly shopping turnover.

As of the fourth quarter of 2020, the number of the Bank’s member merchants stood at 741,400, with 604,700 POS and Payment Recording devices and TL 53.5 billion in member merchants turnover. The Bank maintained its leading position in the sector in 2020 in terms of number of POS and Payment Recording devices.

Online transactions with Ziraat Mobile
Ziraat Bank added a new project to its portfolio aimed at encouraging the active use of digital banking channels and allowing online applications and password renewal transactions to be carried out over Ziraat Mobile with a national ID card.

This innovation allows the Bank’s customers to use their national ID cards as a verification method while carrying out online applications to the digital channels and renewing their mobile banking passwords. With this method, the customer’s information on the ID card is matched with information on the card chip, and the image of the user at the time of the transaction is verified by accessing the biometric photo inside the card using NFC (near field communication) technology, with a vitality analysis then performed. As a result, customers are offered the opportunity to become digital banking customers without needing any other product-related verification element. Ziraat Bank broke new ground again in the sector with this two-component security infrastructure.

Ziraat Bank has placed special importance on efforts to integrate the national ID card into the banking system. Following the development actions, the Bank aims to further increase transaction security by renewing its processes, increasing efficiency by shortening processes and maximizing customer satisfaction. Studies are underway to use the same method in the remote customer acquisition process in the future.

Tax and SSI payments with barcode and QR code
Ziraat Bank improves its processes and system flows in line with its goals of simplifying operational processes, reducing and digitalizing branch transactions, and developing digital channels. Development work carried out within this framework ensured that customers could complete payments by scanning barcodes and QR codes on their tax and SSI slips to Ziraat Mobile.

This method ensures an error-free and easy performance in payments. With the implementation of the developments, the rate of realization of related transactions through digital channels had increased to 90% by the end of 2020.

Individual Basic Requirements Support Loan
With the goal of minimizing the potential fallout of the global Covid-19 pandemic on economic life, production and employment, which has affected our country as well as the rest of the world, the Government introduced the “Economic Stability Shield Package”. In order to contribute to this package, Ziraat Bank launched the Individual Basic Requirements Support Loan to financially support customers in the retail segment with a household income of TL 5,000 or less per month.

Within this context, loans of up to TL 10,000 were extended to customers with 36-month terms to be paid back in equal monthly instalments with a 6 month grace period, to finance their basic requirements under favorable terms.

Within the scope of this loan package (BTİDK), all 9.3 million applications made to Ziraat Bank so far have been received through digital channels (Ziraat Mobile, the Internet Branch, Call Center and Website) in order to protect the health of employees and customers. Since April 13th, loans were extended to a total of 3.82 million applicants, with the unconfirmed phone information of 1.27 million (33%) of these applicants subsequently confirmed through the use of the Credit Registry Bureau (KKB) and Information and Communication Technologies Authority (BTK) confirmation mechanisms, removing the need to involve the branches.

With these confirmation mechanisms, 758,000 applicants newly became customers of the Bank. In addition, through the BTİDK payment screen added to the ATM cardless transaction menu, approximately 930,000 customers without a card were able to receive their loans without entering the branch.

The ATM-Ankes (ATM-Cash Balance) Mobile Application
Ziraat Bank launched the ATM-Ankes Mobile application within the scope of its digital transformation activities. The application is aimed at bringing ease to the lives of its customers, to use technology more effectively in today’s conditions to minimize operational costs and to provide 24/7 access to ATMs, which are an indispensable part of the alternative distribution channels.

This application provides the opportunity to access the Branch Support Line along with the Active ATM List, ATM Fault Notifications, Instant and Closed Service Level Agreement (SLA) Status Reports, ATM Safe Status Tracking Screens and the E-Library application for the management of faults.

The introduction of the ATM-Ankes Mobile application removed the need to send 75 million SMS text messages per year.

Awards for digital channel activities
Ziraat Bank won two awards in the annual PSM AWARDS 2020, which is held every year to reward technology-oriented innovative projects in the finance, informatics, software and insurance segments of financial institutions, notably banks, FinTechs, start-ups and companies which develop joint projects by providing solutions to these sectors, and to encourage the innovative creativity.

Having submitted its applications for the PSM AWARDS 2020 in the two categories of “Innovative Customer Interaction and Experience” and “Social Responsibility”, the Bank’s work was recognized with awards in both categories following the evaluation by the PSM Awards jury.

With its “National ID Card and Ziraat Mobile - Internet Banking Online Application & I Forgot My Password” projects, Ziraat Bank won the Golden PSM Award in the “Innovative Customer Interaction and Experience” category under the heading of “Innovation” and the Silver PSM Award in the “Social Responsibility” category under the heading of “Social Benefit” with its “Individual Basic Requirements Support Loan (BTİDK)”.

In today’s banking world, where services in the banking sector can be provided to customers regardless of the time or the place, and with digitalization at the forefront of attention for users, Ziraat Bank is delighted to be pioneering this transformation with its innovative work and for its efforts to be recognized, and continues its work in this respect with determination.

Efforts focused on removing barriers
Supporting the participation of individuals with disabilities in economic and social life, Ziraat Bank carries out systematic activities to provide its customers with disabilities with easier access to its products and services.

As a result of initiatives which constitute its Accessible Banking activities, the following steps were completed:

• Tactile paving was installed on indoor and outdoor surfaces for visually-impaired individuals, a call button was put in use for individuals with disabilities who need assistance when they come to the branch, and information printed in the Braille alphabet was placed on the doors in 1,075 branches,
• Accessible elevators were installed in 40 branches and Head Office buildings,

Ziraat Bank aims to extend its efforts to enable customers with disabilities to easily access the branch, ATM and internet banking services in all of its branches.

TREASURY MANAGEMENT AND INTERNATIONAL BANKING

Ziraat Bank predominantly supported its funding needs, which increased on the back of the 34% growth in cash loan volume, through deposits. The Bank has continued to consolidate its widespread funding structure with core deposits, also taking advantage of its extensive branch network. TL deposit products, designed to meet the various needs and expectations of customers, continued to attract customers, with the inflation-indexed TL deposit product being particularly popular.

82% growth in Ziraat Bank’s gold deposits
In addition to the significant expansion in Turkish lira and foreign currency deposits, Ziraat Bank recorded an 82% expansion in the volume of its gold deposits in 2020 as the trend among households to purchase gold continued during the year, due to the perception of risk.

The Bank carried out transactions of approximately 222 tons throughout 2020 on the back of its customers’ intensive gold purchase and sale transactions, providing uninterrupted service to its customers through all channels.

In line with this growth, Ziraat Bank realized over 20 tons of transactions in the BİST Precious Metals and Diamond Markets. Continuing its scrap gold collection campaigns, one ton of gold which had been kept at homes under-the-mattress was recovered for the economy by the Bank.

Ongoing success as a market maker in government debt securities
In the government debt securities market, Ziraat Bank successfully maintained its position as a market maker, as determined by the Ministry of Treasury and Finance, in 2020 and played an active role in the secondary markets. The share of securities in total assets stood at 24% at the end of 2020, compared to the 20% share in 2019.

In order to enable the use of long-term TL loans, the Bank started to use TLREF-based products instead of TRLIBOR in financial products based on variable interest rates, and started to offer TLREF-indexed products to its customers.

Efforts to ensure funding source diversity
Ziraat Bank supports the work carried out by the National Working Committee, in which it actively participates, in the process of the transition from IBOR Rates to Alternative Reference Interest Rates being experienced worldwide.

In order to enable the use of long-term TL loans, the Bank started to use TLREF-based products instead of TRLIBOR in financial products based on variable interest rates, and started to offer TLREF-indexed products to its customers.

Ziraat Bank issued TL 2.5 billion of TLREF based bonds in the domestic market to qualified investors in a bid to expand the diversity of its funding sources and widen its customer base. With these issues, the Bank helped investors diversify their portfolios and distribute their risks effectively.

In order to manage the TL interest rate risk of the sector without using foreign currency liquidity, the Bank started to publish benchmark pricing in data distribution systems in 2020 to create market depth and liquidity for TLREF-based interest rate swap agreements, in an attempt to contribute to the expansion of interest rate swap agreements with both legs in Turkish Lira.

Strategies focused on developing the capital markets
Ziraat Bank continues activities with the aim of diversifying its funds and obtaining low-cost, long-term resources. To this end, the Bank’s USD 7 billion GMTN (Global Medium Term Notes) program, which was set up to borrow from international capital markets, was updated with effect from 10 March 2020.

Moreover, the Bank continued to secure external funding through private placements. In August 2020, the Bank issued a USD 200 million bond with a 5-year maturity through private placements in international markets.

The Bank has started working on issuing its first sustainability bond under the GMTN (Global Medium Term Notes) program. Within this context, in August 2020, the Bank prepared the “Green, Social, Sustainable Finance Framework”, which determines the appropriate lending areas which may be subject to sustainable bond issuance, and a second party compliance opinion was obtained from the internationally recognized Sustainalytics company, and both documents were posted in English on the website.

Ziraat Bank also secured alternative funds such as bilateral loans and post-financing from correspondent banks thanks to its long-going and consistently maintained robust relationships with its correspondent network. These funds amounted to USD 1.9 billion as of the end of 2020.

Syndication loan secured
Despite the deterioration in global financial conditions brought about by the spread of the Covid-19 pandemic all over the world, Ziraat Bank secured a USD 1.1 billion, 367-day syndication loan in April 2020, which was participated in by 38 banks from 22 countries. This was achieved thanks to the support of its robust relationships with its strong correspondent network. This transaction was the eighth consecutive borrowing transaction carried out by the Bank through international syndication for the purpose of financing foreign trade.

To secure this loan from the correspondent network operating in various regions, despite the panic affecting the global economy in the second half of March 2020, once again served to confirm international confidence in Turkey and Ziraat Bank.

Ziraat Bank also secured alternative funds such as bilateral loans and post-financing from correspondent banks thanks to its long-going and consistently maintained robust relationships with its correspondent network. These funds amounted to USD 1.9 billion as of the end of 2020.

Standing by its customers in every respect with the products and services it offers, Ziraat Bank actively supports its customers in foreign trade finance with a wide variety of financial products and services including discounted letters of credit and avalized/discounted bills of exchange/promissory notes. Working closely with export credit agencies such as Hermes, Serv and Sace to meet the foreign trade financing needs of its customers, the Bank provides medium- and long-term country loans to its customers.

Within the scope of agreements with the Export Import Bank of Korea (KEXIM) and The Export-Import Bank of the Republic of China (Taiwan Exim), the Bank provides medium- and long-term and low-cost financing opportunities to meet the working capital and investment financing requirements of customers which have business ties with Taiwan and South Korea.

Ziraat Bank increased the number of customers performing foreign trade transactions by 10% compared to the previous year, expanding its foreign trade volume to USD 50 billion by the end of 2020.

Increasing synergies with the Ziraat Finance Group
In line with Ziraat Bank’s strategy and vision to increase its effectiveness in the countries in which Ziraat Bank’s international subsidiaries and branches operate and to contribute to the development of commercial and economic relations between these countries and Turkey, the Ziraat Finance Group (ZFG)’s share in global foreign trade has grown at a constant pace. ZFG prioritizes the development of foreign trade between the countries and the companies supporting foreign trade.

A strong and sustainable correspondent bank network during the pandemic period
Despite the Covid-19 pandemic, Ziraat Bank continued to offer solutions to its customers located in many locations around the world and in Turkey in the field of foreign trade thanks to the robust cooperation provided by the correspondent network which includes over 1,760 financial institutions in more than 140 countries.

As one of the leading banks in foreign trade thanks to its increasing service quality and wide product diversity in recent years, Ziraat Bank’s leading role in supporting the real sector during the pandemic has helped it strengthen its position as the preferred bank in foreign trade and foreign exchange transfer transactions among customers in 2020. Taking advantage of its extensive correspondent network in domestic and overseas FC money transfers, the Bank offers its customers fast and lower-cost alternative solutions, increasing the number of FC transfers.

A reliable correspondent bank limit allocation model
Ziraat Bank updates the creditworthiness of resident and non-resident correspondent banks and other financial institutions through periodic studies, and limits are allocated to these institutions based on internal rating model..

An integrated perspectiveZiraat Bank carefully considers existing and potential business opportunities in the regions where it operates with an integrated perspective.

INTERNATIONAL BRANCH BANKING

Ziraat Bank has developed its operations in the field of International Branch Banking in line with its international banking strategy and vision. The Bank undertakes successful International Branch Banking operations with the following main objectives;

• To provide fast, modern and high-quality services to all customers in all regions where the Bank operates, as well as Turkish entrepreneurs and companies,
• To secure a higher share in the financing of foreign trade between Turkey and other countries where it operates and to play a strong role in financing international trade,
• To ensure the sustainable profitability of international branches with a healthy and efficient balance sheet structure,
• To create effective synergies within the framework of the “Ziraat Finance Group” approach.

 “Ziraat Is Always with You Wherever You Are in the World”
Ziraat Bank carefully considers existing and potential business opportunities in the regions where it operates with an integrated perspective. In line with the motto “Ziraat is always with you, wherever you are in the world”, determined within this framework, the Bank will continue working with the objective of becoming the strongest and the most efficient bank in the countries where it has a presence, in addition to Turkey.

In its London Branch, in order to adapt to the dynamics of the London financial center, the Bank reshaped its products and services in a way which would increase its effectiveness, particularly in the fields of structured finance and foreign trade finance. Serving as an important touch point in accessing international financial markets, the London Branch maintains its pioneering and advantageous position in terms of money market and treasury transactions.

In Greece, providing services through three branches in Athens, Komotini (Gümülcine) and Xhanti (İskeçe), Ziraat Bank focuses on services such as corporate banking and foreign trade financing. Playing an active role in developing trade between the two countries, the Bank completed the transition to the new core banking software in the first quarter of 2020, marking an important step in terms of ensuring product diversity and managing banking business processes more effectively.

In Bulgaria, four branches are operating in the corporate and retail segments in Sofia, Plovdiv, Kardzhali and Varna under the Bulgarian Country Administration. Financial services and solutions are offered to customers through non-branch channels such as ATMs and Internet banking. Ziraat Bank continued to increase its financial support for direct investments of our entrepreneurs operating in Bulgaria and the financing of foreign trade between the two countries in 2020.

In Kosovo, four branches are operating in the corporate and retail segments in Pristina, Prizren, Peja and Ferizaj under the Kosovan Country Administration. In Kosovo, where corporate and individual customers are offered a wide range of products, the service network was expanded with new branch openings in the cities of Prizren and Peja in 2018 and in Ferizaj in 2019. Ziraat Bank played an important role in the financing of infrastructure investments, especially transportation infrastructure and renewable energy resources in Kosovo in 2020, continuing to contribute to the financing needed in the development of the country’s economy.

In the TRNC (Turkish Republic of Northern Cyprus), customer and market-oriented operations are carried out by expanding the product range and continuously increasing service quality. The eight branches in the TRNC provide corporate and retail banking products to the customers in Turkey’s standards, continuing to contribute significantly to the economic development of the TRNC.

In accordance with its responsible banking approach, during the pandemic Ziraat Bank offered its loan support packages created under the coordination of the TRNC Central Bank to customers in need of financing in the most effective manner, and captured a significant share of total loan volumes. The Bank has maintained and increased its lending activity to the education and tourism sectors, two leading sectors in the TRNC economy.

In Iraq, the Bank supports the development of economic and trading activities between Iraq and Turkey with its two branches in Baghdad and Erbil. The branches fulfil the contracting firms’ requirements for letters of guarantee, in addition to serving as the financial solution point for international companies, organizations and institutions and, in particular, for Turkish and Iraqi corporate customers operating in the country.

The Baghdad Branch of the Ziraat Finance Group, which is an important contact point in Iraq, has played an active role in ensuring our country’s access to international energy resources under favorable conditions, effectively and quickly.

In Saudi Arabia, the Jeddah Branch opened its doors in 2011. The Branch meets the banking requirements of Turkish and Saudi Arabian corporate customers operating in the country, primarily the letters of guarantee requirements of Turkish contractors, as well as intermediating in and developing foreign trade between Turkey and Saudi Arabia. Continuing its efforts to expand its product and service range, the Branch continued to support foreign trade between the two countries with cash loans in addition to non-cash loans.

Ziraat Bank’s second address in the Gulf region, the Bahrain Branch, plays an active role in accessing international financial markets.

Ziraat Bank Human Resources Group Directorate revised its Human Resources and Training functions in line with current HR strategies and consolidated its operations under two new functions; Career Management and Talent Management.

HUMAN RESOURCES PRACTICES

The Ziraat Bank Human Resources Group Directorate revised its Human Resources and Training functions in line with current HR strategies and consolidated its operations under two new functions; Career Management and Talent Management. The purpose here is to define “Talent” for the Bank, discovering existing and new human resources which meet this definition, bringing them to the Bank and then developing both Career Management and Talent Management practices with the objective of retaining talent within the Bank.

2020 Career Management Operations
Operating in a sector characterized by intensive international competition, each and every year Ziraat Bank strives to take a step further on its status as the strongest national bank. In 2020, the Bank continued to develop its adopted modern human resources management system with an awareness that it owes its exclusive and distinguished position in the sector to high-level human resources which offer the right value proposals to its customers at the right time, through the right channel with their original market knowledge and experience.

In the global pandemic conditions of 2020, human resources units have taken on major responsibilities to ensure business continuity, put in place crisis management systems and support the motivation of employees with the aim of carrying companies into the future. Studies were undertaken to understand the needs and motivating factors of employees in order to create an employee experience which is able to respond to changing demands brought about by the new conditions.

The Ziraat Bank Human Resources department analyzed the effects of employees’ psychology on performance during this challenging process and continued to offer training activities on online platforms to increase the psychological resilience of employees in spite of the pandemic. Practices were developed aimed at accelerating the flow of information in terms of crisis management and increasing employees’ ability to take quick actions. Any employee experiencing health problems or found to be struggling with this process was contacted on a one-on-one basis and efforts were made to meet their needs and requirements. In terms of business continuity, remote and rotational working models have been adopted, and working hours have been regulated.

With all these measures, the Bank aimed to manage the pandemic process as well as was possible, to make employees feel that they are accompanied under all conditions and to create an employee experience which will respond to changing conditions.

Employee profile
With the goal of providing modern and reliable banking services by fulfilling the requirements of the banking and international competitive environment, Ziraat Bank served its customers with a total of 24,673 employees as of the end of 2020. On the other hand, the total number of employees in the Ziraat Finance Group stood at 28,389 including domestic and foreign subsidiaries. Having provided jobs for 674 people in 2020, the average age of employees in the Bank stood at was 37. Among the Bank’s employees, 85% had an associate, undergraduate, graduate or doctorate education, and had served as an employee for an average of 13 years.

BREAKDOWN OF ZIRAAT BANK’S HUMAN RESOURCES BY LOCATION, AGE GROUP AND EDUCATIONAL BACKGROUND:

Breakdown by Head Office, Regions and Branches

Unit	Number of People	%
Head Office	5,528	22.41
Regions	287	1.16
Branches	18,770	76.08
International	88	0.36
Grand Total	24,673	100.0

 

Breakdown by Age

Age	Number of People	%
30 -	1,966	9.97
30 – 50	21,694	87.93
51 +	1,013	4.10
Grand Total	24,673	100.0

 

Breakdown by Educational Background

Educational Background	Number of People	%
Post-Graduate	44	0.18
Graduate	2,253	9.13
Undergraduate	16,121	65.34
Associate	2,563	10.39
High School	3,558	14.42
Secondary School	134	0.54
Grand Total	24,673	100.0

Recruitment
Ziraat Bank has always opened its doors to creating employment for young people wishing to pursue a promising career in banking. A recruitment examination was also conducted in 2020 to meet the Assistant Specialist needs of Ziraat Teknoloji, one of the Bank’s subsidiaries. The Bank’s recruitment process was redesigned within the scope of “Candidate Satisfaction”. In order to relieve the anxieties surrounding examinations among new graduates, pre-interview preparatory training including various training and tasks was provided, with the selection and evaluation carried out afterwards through a structured interview process.

Transparent career management
In keeping with the transparent career management approach to which the Bank adheres, Ziraat Bank trains its own management candidates among its staff. Accordingly, 2,752 existing employees who were succeeded in the written promotion exams conducted in 2020 were promoted to a higher position. In addition, more than 100 employees who successfully completed the Management Trainee Program were appointed to management positions in the branches and units.

There are a total of 28,389 employees within the Ziraat Finance Group, including domestic and foreign subsidiaries (when outsourcing personnel are included, this number becomes 33,416). Ziraat Bank has taken firm steps towards becoming a global brand in the banking sector in all countries where it operates, offering attractive career progression, pay, training and development opportunities to all employees working under the Ziraat roof. In addition to the companies operating in Turkey, efforts continue to expand Ziraat HR practices among the subsidiaries located abroad.

The Ziraat Finance Group pays attention to the satisfaction and happiness of its employees, its most precious resource, and the effective management of their experiences in this context. The Group continues to strengthen its communication channels in order to support its employees not only in managing their career, financial situation or working environment, but also their expectations and concerns regarding life.

Within this framework, the level of satisfaction of employees across the Ziraat Finance Group was measured in 2020 by conducting employee satisfaction surveys in all domestic and foreign subsidiaries together with the Bank’s employees, and short and long-term action plans were created based on the analysis of factors affecting satisfaction.

Furthermore, with the “Happiness Barometer” survey, the Bank kept its finger on the pulse of employee’s feelings on a daily basis. In addition to any general reasons, any reasons for dissatisfaction specific to the employee were determined through one-to-one interviews with the employees participating in the survey, and plans were set out to solve any problems.

The “Communication Network Analysis” practice, which is one of the decision-making mechanisms developed by Ziraat Bank to act in accordance with the level of success and knowledge of the employees in their careers and to create a systematic structure that would allow them to manage their careers within the framework of the determined rules, was deemed worthy of Golden Awards on two important international platforms, the Golden Bridge Awards and the Harvard Business Council International Awards. Following the analysis carried out in view of the results of this practice, the Bank’s training content was renewed and an online platform was established where employees could share their talent with the whole organization.

Performance management
The Individual Performance Management System measures each employee’s individual achievements and ranking in each period on the basis of objective and quantifiable criteria. The system consists of two basic components; numeric-based and competence-based criteria.

The Bank’s strategies are reflected in the field through the performance system. Indicators associated with customer-focus, profitability, productivity and risk management have a significant impact on the numeric performance score. The numeric performance scores calculated according to measurements of goals, development and magnitude are combined with competency scores, which provide individuals with rankings which are used as the basis of performance bonus payments.

The individual performance bonuses, which are determined and paid on the basis of periodically conducted individual performance reviews, are intended to strengthen the Bank’s customer-focused business model, to promote an approach to work which is focused on marketing and effectiveness, to increase company loyalty by motivating personnel and to provide tangible benefits to those whose individual achievements are compatible with the Bank’s corporate objectives.

A current bonus budget is determined by taking the Bank’s profitability and operational results into account with the proviso that the budget’s total amount shall not exceed 8% of the Bank’s aggregate monthly salary payments. This allocation is paid out to recipients as an individual performance bonus at three-month intervals together with their monthly salaries in the months of February, May, August, and November and is based on objectively defined and numerically expressible specific criteria.

In this system, which has been set up to focus mainly on marketing in line with the Bank’s strategies and targets, bonuses are paid to reward those who contribute more to the realization of the Bank’s strategies and targets. While calculating bonuses, different coefficients are used according to branch segment and scale, individual performance ranking and job position criteria. Marketing group personnel bonuses are calculated in direct proportion to the individual performance points in each section.

Aiming to motivate employees towards increasing their corporate engagement and to reward individual achievements aligned with the Bank’s corporate strategies, Ziraat Bank included all other Head Office units within its performance management system in the second quarter of 2018, as well as the units subject to numeric performance measurement, taking into account the competence-based evaluation system.

On the other hand, within the framework of the fundamental Ziraat Finance Group concept, individual performance evaluation, competence evaluation and bonus system practices were launched throughout the domestic subsidiaries. During the reporting period, the Bank also continued to take steps to introduce individual performance management systems in its foreign subsidiaries. Ziraat Bank plans to follow up the outcomes of the performance system devised for foreign subsidiaries and to initiate performance bonus payments among these units as well.

Remuneration practices
The Remuneration Committee is responsible for overseeing and supervising Ziraat Bank’s remuneration practices on behalf of the Board of Directors. The Committee assesses the remuneration policy and practices within the framework of risk management to ensure that remuneration policies are aligned with the Bank’s ethical values and strategic goals, and shares its suggestions with the Board of Directors.

Within the context of the third term collective bargaining agreement signed between Ziraat Bank and Öz Finans-İş Trade Union to be effective from January 1, 2019 through December 31, 2020, union members were granted certain personnel rights including leave in addition to receiving additional monthly payments. In the Bank, which has a unionization rate of around 90%, adjustments to pay for 2020 were carried out in accordance with the Collective Labor Agreement.

The system, set up to monitor the amount of overtime carried out by personnel continued to be used effectively in 2020. A focus was placed on reducing overtime, in keeping with the sensitivity placed on maintaining the work-family life balance for employees.

Health benefits and practices
In addition to the health services provided by the Social Security Institution, Ziraat Bank provides benefits regarding health insurance to its employees and family members subject to the provisions of private law;

• Based on the authorization provided by the Bank’s Board of Directors,
• Based on the authorization provided by the Board of Directors of Health and Assistance Fund (the Fund) for the Fund members.

The Bank also executes special agreements with healthcare service providers, under which its employees can obtain healthcare services, and announces these agreements to all employees.

Measures taken against the Covid-19 pandemic and social security practices
To reduce the negative impact of the Covid-19 pandemic, which originated from China in the first quarter of 2020 and spread rapidly throughout the whole world with the effects of globalization, the Ziraat Finance Group immediately implemented a series of measures by prioritizing the health of its employees and their families, and strived to be support its employees.

In this context, the pandemic was closely monitored from the very first day and regular information was provided within the scope of business and operational continuity. Employees in high-risk groups for reasons such as pregnancy, breastfeeding, chronic illness and disability were prioritized. During the Covid-19 pandemic, work areas were routinely disinfected and programs put in place for employees to work remotely or on alternate days as much as possible. Furthermore, the hours of service of the branches were revised in line with the process.

The Covid-19 Status Notification Mobile Application was developed with the aim of quickly detecting possible cases of Covid-19 within the Bank and to take necessary actions. The health status of employees can be monitored instantly with the application and actions taken according to their situation.

Efforts were taken to meet the needs of employees, retired employees and their relatives or those suspected of having Covid-19 had any needs regarding health expenses, with food aid provided to those in need and accommodation provided for personnel where deemed necessary.

The children of employees who had achieved national or international success in fields such as sport, painting and music were closely followed in this process.

Human Resources analytical practices were deployed with trend analysis activities created by following the number of cases in various countries during the pandemic period on a daily basis. Diffusion Trend Modeling was developed for our country by analyzing Covid-19 case statistics in the world, and the outputs of the model were used as inputs in workforce planning.

Talent management Ziraat Bank attaches importance to training and development activities aimed at improving both the professional knowledge and skills and personal talents of its employees within the framework of its strategy of “Investing in Human Resources and Learning Organization”.

Talent Management Practices
Ziraat Bank attaches importance to training and development activities aimed at improving both the professional knowledge and skills and personal talents of its employees within the framework of its strategy of “Investing in Human Resources and Learning Organization”.

By contributing to the development of its employees in every aspect and adding value, the Bank aims to discover, evaluate and develop talent in the most efficient manner by standing by these individuals in every period of their business life. Accordingly, an extensive and user-friendly rate of content was diversified by taking various user needs into consideration and transferring them from various channels.

Developing talent
Providing continuous professional and personal development opportunities to its employees, Ziraat Bank offered each of its employees an average of 30 hours of training in 2020. During the pandemic in 2020, virtual classroom practices and distance learning were preferred instead of in-class training in order to limit the risk of transmission of the virus.

In 2020, Ziraat Bank provided training to its employees not only in technical banking matters, but also in many areas that directly affect the quality of life of employees, such as parenting, healthy living, fitness, coping with stress and emotional resilience.

During the pandemic, employees were supported with a range of different content in a wide range of subjects such as child psychology, spending quality time with children at home, measures to stay healthy and coping with stress.

Written works of the Bank’s employees who wrote books were published on the Banking School platform within the scope of the “Ziraatli Yazarlar (Authors of Ziraat)” project.

Digital Solutions In line with Ziraat Bank’s “Digital Solutions” strategy, applications including the latest technology in the field of training were followed and put into use.

Technologic applications in training
In line with Ziraat Bank’s “Digital Solutions” strategy, applications including the latest technology in the field of training were followed and put into use.

Distance learning, which allows more employees to train at a low cost in a short space of time and is accessible for employees at any time and any place, has gained even greater importance during the pandemic. The Bank, which quadrupled its existing e-training, assigned 160 distance learning sessions per employee, with content differing depending on their field of duty, through the Banking School platform.

In addition to this content, the digital library, “KütüphanemiZ (Our Library)”, which contains more than 1,000 volumes, was opened for the use of all employees. KütüphanemiZ (Our Library) provides a vast range of interesting distance learning courses, videos, audio files and documents for all employees seeking to develop themselves professionally or personally.

Ziraat Bank produces some of its digital training itself, taking flexible actions in matters that require rapid information.

With a belief that we cannot claim our future without knowing our past, the processes which took place during the Bank’s founding year were discussed in an online panel held with three renowned historians.

Ziraat Bank launched the “ZiraatliYORUM” platform in a bid to enhance intrabank sharing and allow employees to transfer and record their knowledge and experience for all employees, and as well as creating an environment where employees can demonstrate their skills. On this platform, employees are provided with the opportunity to share their own articles, read and comment on other articles and to support them by liking them.

With variations depending on the fields of duty of the employees, Ziraat Bank prepared journeys with the mobile application, Rootie, which allows information to be collected instantly from the field, as well as ensuring permanence with micro learning and enhancement. With the application, which is designed to present the practicality of mobile learning by accompanying employees in their fast-moving lives, items such as surveys and exam questions, reminders, greetings and messages of congratulation can be addressed on a daily basis within the framework of a planned calendar, in addition to micro learning items.

In order to invest in the Bank’s corporate culture, employees were asked “What’s it like to be a Ziraat employee”, and the first version of “The A-Z of Being a Ziraat employee”, a collective and living digital book, was created with the answers taken.

Within the scope of the activities to mark the 157th anniversary of Ziraat Bank’s foundation, a painting contest was held for children on the subject “What do you think Ziraat Bank is?”. At the end of the competition, which sought to reveal what Ziraat Bank means for young people through their imaginations, all pictures were declared a winner by the jury after having evaluated their beautiful pictures. Their works of art were also featured in the 1iz (We Are One) magazine and shared on the Ziraatvolley Instagram account. This was an example of how the Bank sought to interact with its employees, even during the pandemic.

In 2020, Ziraat Bank focused on “gamification” on one hand while enriching its educational content on the other. “NextPlease” is a Gamified Competency Development Tool based on the 5-factor personality model OCEAN, which creates a realistic “customer-employee communication process” by simulating different types of customers, personalities and moods with the help of artificial intelligence. With the “NextPlease”, employees had the opportunity to develop their communication skills by experiencing and entertaining.

Training operations within the framework of the “Responsible Banking” strategy
Within the framework of its “Responsible Banking” strategy, Ziraat Bank also pays regard to sustainability in its training activities.

By offering an extensive range of content, which had been previously been shared in printed form, on a digital environment by e-mailing training notes to participants instead of printing and distributing them, and by switching to a “mobile signature” practice in in-class training, the Bank has decreased its paper consumption every year.

Our “E-training Exclusive for Juniors” activities, initially prepared to raise awareness of savings among children and introduce them to basic financial concepts, were updated. In this fun packed activity, children gained knowledge of the relationship between money and banks, the functioning of banks, internet and telephone banking, credit and credit card awareness and efficient use of all resources from money to electricity and water with the themes of “Money-Bank Island, Savings Island, Credit and Credit Card Island and Budget Island”.

The other following training programs were also offered by Ziraat Bank in 2020 in line with its “Responsible Banking” strategy:

• In order to raise awareness among employees, articles on “What is Zero Waste?” and “What We Can Do to achieve Zero Waste in Our Homes” were published on the ZiraatliYORUM blog, as well as the “Zero Waste” e-training program.
• Training on secure credit card use and agricultural insurance was updated within the scope of customer training.
• In 2020, training programs on the “Prevention of Laundering of Proceeds from Crime and Financing of Terrorism” continued for employees in line with legislation.
• Containing 9 videos, Financial Literacy training was added to the existing range of training programs.

In 2020 Average Training Per Person (hours)30Number of Digital Training items Assigned per User1,360

New e-training programs added to Ziraat Bank website
Within the framework of “Banking for Everyone” and “Excellence in the Customer and Employee Experience” strategies, new e-training programs, which are accessible to all, are added to the Ziraat Bank website every year.

Despite the pandemic, in 2020 Ziraat Bank continued to provide internship opportunities, albeit limited in scope in the circumstances of the pandemic, to approximately 1,800 students enrolled in Vocational High Schools and Higher Education institutions who required internship, placing the greatest care on the rules of social distance and hygiene.

Within the framework of a structured program, the Bank also offered internship opportunities to approximately 100 students as part of the Internship Mobilization Project initiated by the Presidency HR Office.

Within the scope of the program, each and every day of the student’s experience was planned in depth with the “Customer Experience” approach, from the welcome step on the first day up until their farewell. Over 100 items of content including videos, distance learning and reading materials on many different subjects were brought into use for the students on the digital platform, and were made available exclusively for them.

Basic banking, the A-Z of credit information, digital literacy, correspondence techniques, corporate professionalism, resilience, information security and zero waste are among the training programs offered through the mobile application. Small competitions were organized to increase participation and encourage learning, and every step of the program was followed through the mobile application on daily basis.

SOCIAL RESPONSIBILITY AND PUBLIC RELATIONS

Ziraat Bank provides continuous support in the area of social responsibility having acted with the spirit of social sharing for 157 years. In 2020, the Bank continued to contribute to activities in health, education, service and sport aimed at developing individuals and the society.

Culture and Art Activities
Ziraat Bank has illustrated the importance it has attached to art and artists ever since its establishment under the motto “In Art for Art”. Continuing to participate in various activities in all artistic disciplines, more than 10,000 art lovers visited 13 exhibitions opened by the Bank in 2020 in the Ankara Kuğulu and Çukurambar Art Galleries and the Istanbul Tünel Art Gallery.

The “State Theatre on the Ziraat Stage”, which was executed under the cooperation of the General Directorate of State Theatre and Ziraat Bank with the mission of supporting culture and arts, continues to serve connoisseurs of the performing arts.

The Ziraat Bank Museum, which was built in 1929 by the Italian architect Giulio Mongeri as one of the structures of the First National Architectural Period, was opened in 1981 in the Hall of Honor on ground level of the historic head office building in the Ulus district of Ankara.

Pursuing a goal of transferring the Bank’s knowledge and experience to the future, the Ziraat Bank Museum illustrates the commercial, economic, political, cultural, artistic and educational changes of the Turkish banking system from its beginnings right up to the present day. These are depicted in an array of antique artifacts which were once used in the banking system, which the Museum exhibits in a historic setting.

Having been expanded to include the basement floor following the restoration initiated in the historic building in 2017, the Ziraat Bank Museum was temporarily closed to visitors due to the pandemic in March 2020. During this period, the Museum offered virtual visitors the opportunity chance to see and experience the museum step by step with the virtual online tour.

Ziraat Bank boasts one of Turkey’s leading collections of sculptures and paintings. The Bank brings works of art in its collection to the public with its collection and comprehensive exhibitions which it organizes. With more than 2,500 works, the Ziraat Bank Painting Collection continues to expand with the works of art purchased from artists exhibited in the Ziraat Bank galleries.

An important supporter of the development of Turkish sports
Having put its name on the Turkish Cup with its sponsorship in the past 12 seasons, Ziraat Bank has contributed invaluably to the development of Turkish sport. Additionally, the Ziraat Volleyball Team, competing in the Turkish Men’s Volleyball leagues since 1981, competed successfully in the Efeler (Premier) League, the AXA Sigorta Cup Volley (Turkish Cup) and the CEV Challenge Cup in Europe in the 2020/2021 season. Having succeeded in qualifying as the runner-up in the CEV Cup in the 2017-2018 season, the Ziraat Volleyball Team represented Turkey at the Balkan Cup held in Pazardzhik, Bulgaria and claimed the championship title. The team also won the Turkish Champion titles in the U-18 and U-20 categories at the latest Infrastructure Turkey Championships.

Ziraat Bank’s efforts to school improvements in priority regions for development continued in 2020 within the scope of the “Children on Vacation, Schools in Renovation” social responsibility project.

Support for Social Responsibility Projects in 2020
Ziraat Bank has supported the National Solidarity Campaign in solidarity with the continuing fight against the coronavirus pandemic which has affected all areas of our lives, and to support citizens who have been economically affected by the pandemic.

In order to fulfil the mission which comes with its social responsibility and to bring land ravaged by forest fires in the province of Hatay back to life as soon as possible, the Bank donated 60,000 saplings on behalf of its employees, their children and pensioners.

The Z-Library Project, conducted by the Ministry of National Education, is intended to spread a culture of reading, help develop libraries, deliver a service of sustainable quality and provide support in the form of materials. Ziraat Bank’s support for the establishment of Z-Libraries, earmarked to be set up in all 81 of Turkey’s provinces, continued in 2020.

In addition, the Medeniyet University Ziraat Bank Library Project, which is planned to be the largest library in İstanbul, reached completion with Ziraat Bank contributing to efforts to consolidate its support to the socio-cultural and economic development of Turkey as well as to provide a gift of permanent value to our country.

Ziraat Bank’s efforts to school improvements in priority regions for development continued in 2020 within the scope of the “Children on Vacation, Schools in Renovation” social responsibility project.

In 2020, the Bank continued to provide support to seminars, conferences and training activities organized by the Higher Education Student Loans and Dormitories Authority, taking the view that the young people in higher education who are living in the Authority’s dormitories would go on to steer Turkey’s socio-cultural and economic development and progress in the future, as well as with the aim of instilling them with an awareness of cultural values, history and literature.

Advertising and Communication Activities
In the Brand Finance 2020 survey conducted by Brand Finance, Ziraat Bank was named Turkey’s second valuable brand and Turkey’s most valuable banking brand. This success was shared with the public through the print media and social media.

The Bank’s televised commercial, “Dinlemezsen (If You Do Not Listen)”, was presented to its audience through national television channels and social media, and was highly popular among the viewing public.

Commercials celebrating Mother’s Day and Father’s Day were streamed on social media.

The televised commercial explaining the “Vacation Support Loan” product for retired and working customers who receive their salaries and pensions through Ziraat Bank and the Bank’s PPS customers was broadcast on national television channels and social media.

The “Online Channels” commercial, which informs viewers that Ziraat Bank customers can apply for internet and mobile banking from the Bank’s website or Ziraat Mobile without having to go to the branch, was aired on national television channels and social media. Additionally, an introductory film explaining the ease of access to internet banking just by using a national ID card, and introductory films providing information on to apply to the Bank’s digital services and online password renewal processes were transmitted to users through social media channels.

Ziraat Bank rolled out the “Safe Payment System” which ensures the simultaneous and safe exchange of ownership and the funds when selling a vehicle during the sale and purchase of second-hand motor vehicles. A film promoting this product was aired on social media.

A 157th anniversary commercial, worthy o Ziraat Bank’s 157 year deeply rooted past, which has brought smiles to faces of Bank employees and customers alike, was presented to viewers through national television channels and social media.

The commercial, which allows us see the great actor, Kemal Sunal, among us again by using “deepfake” technology for the first time in Turkey, created something of a stir in the print and visual media.

Other Operations

• In accordance with the corporate identity principles of the Ziraat Finance Group, the websites of domestic and overseas subsidiaries were renewed in order to provide a common experience for the Bank’s customers.
• Within the framework of Intellectual and Industrial Property Rights, all kinds of application, objection and registration transactions carried out by the Bank and the entire Ziraat Finance Group both domestically and abroad regarding trademarks, patents and registrations, as well as renewal procedures for registered trademarks, patents and design certificates were carried out.
• The interactive magazine, 1iz (We Are One), was published on the Bank’s portal and the Ziraat Finance Group mobile application on a bimonthly basis, pursuing the goals of fostering a sense of belonging among Ziraat Finance Group employees, informing them of developments in the Finance Group and the Bank, ensuring the continuity of corporate culture, creating an institutional memory and for creating a communication platform between Ziraat Family members.
• Ziraat Bank carries out operations to cement its position in the sector, to increase its brand value and to become a brand which achieves complete customer satisfaction. In this context, the Bank commissioned a Corporate Internet Banking Customer Satisfaction Survey in the fourth quarter of 2020 to measure the level of satisfaction and loyalty among corporate internet banking customers. The Survey also aims to specify areas where the Bank is strong and areas, if any, where its performance is lacking, and set out create necessary action plans for improvement.
• Ziraat Bank aims to become the most effective Bank in the sector in the social media channels in which it operates in order to respond to its customers’ requests and expectations on each platform and to maintain the highest level of customer satisfaction. Attracting more than 2,300,000 likes and followers on its Facebook page in 2020, the Bank has steadily increased its effectiveness in social media with more than 450,000 followers on Twitter, 200,000 followers on the Bank’s Instagram account and more than 80 million views on YouTube and other similar platforms.

Sponsorships
With the birth of agriculture 10,000 years ago, the Anatolian region was the cradle of today’s civilization and created a great balance between nature and the human race. The Ministry of Agriculture and Forestry has prepared a documentary project entitled “Agriculture is Our Future” to explain this region to young people through imagery and to raise an awareness that agriculture represents our future. In 2020, Ziraat Bank provided sponsorship support to this project consisting of ten 45-minute episodes which would share the stories of agriculture in our different regions.

Ziraat Bank aims both to contribute to the development of sport in Turkey and also to raise its brand recognition to a much wider audience. Taking into account the interest audiences show in football, the Bank took over the naming rights of the Turkish Cup for the 2020/2021 season, continuing its run of the last 11 seasons since 2009.

A slew of achievements crowned with prestigious awardsZiraat Bank’s initiatives and numerous projects have attracted the appreciation and admiration of stakeholders, with its products receiving recognition in various events. The awards that the Bank won in 2020 in recognition of the brand introductions and social media and corporate social responsibility initiatives which it conducted are listed on the next page.