Within the scope of its selective loan policy, Ziraat Bank maintained its investments in the fields of agriculture, manufacturing, exports, energy and technology in 2021.

ZIRAAT BANK PRESSES AHEAD IN ITS CORPORATE DEVELOPMENT JOURNEY WITH THE SAME COMMITMENT IT HAS DEMONSTRATED FOR 158 YEARS.

In 2021, Ziraat Bank realized a number of investments covering new projects and ideas aimed at achieving the targets it has set in line with its strategies.

With a commitment to generating value for its customers and our country, Ziraat Bank has stood by its customers, offering the right solutions at the right time to meet the requirements of the real sector and households throughout the year, and implemented numerous innovations together with its domestic and international subsidiaries.

OUR STRATEGIES

SUSTAINABLE GROWTH

Remaining a pioneer in the sector through a selective loan policy and effective use of resources
While Ziraat Bank makes its balance sheet increasingly customer-oriented, it proactively manages loan quality through effective loan processes and prioritizes the effective use of resources and cost control. Ziraat Bank continues to support investments in the fields of agriculture, manufacturing, exports, energy and technology at an optimal resource cost through its selective loan policy.

The Bank continued to develop the right solutions by working to understand the financial needs of its customers and offering products and services that make life easier.

Cash loans registered 29.6% growth in 2021, bringing the share of cash loans in the Bank’s balance sheet to 56.8%.

The bank operates to a strategy of diversifying its resource structure, increasing long-term borrowing opportunities and expanding the investor portfolio in place. In line with this strategy and its sustainability vision, which includes environmental and social approaches, the Bank issued a sustainable bond of USD 600 million with a 5-year maturity in the international markets.

Ziraat Bank signed a USD 400 million loan agreement with the Chinese Exim Bank, one of the leading financial institutions in China. The purpose of this loan agreement is to diversify the resources obtained internationally in the medium and long term and increase financial cooperation in different geographical regions.

In addition, Ziraat Bank obtained a syndicated loan of USD 1.3 billion with a maturity of 367 days, with the participation of a total of 45 international banks from 23 countries.

In addition to the syndicated loan, Ziraat Bank obtained USD 1.2 billion in alternative resources such as bilateral loans and post-financing, from correspondent banks in 2021, at affordable rates and reasonable maturities.

Maintaining its uninterrupted financial support to the agricultural sector, Ziraat Bank signed a protocol with six more governorships in 2021. The protocol was signed within the scope of the “I Have Many Reasons to Live in My Village” project. The Bank implemented this project in September 2020 in order to increase the number of livestock for farmers engaged in cattle breeding.

Moreover, the Bank introduced the “Irrigation Loan for Water Saving” product in order to expand the use of modern pressurized irrigation systems in agricultural irrigation and ensure more efficient use of water resources.

The Bank also offered the TOKİ (Housing Development Administration of the Republic of Turkey) early closure loan campaign and Bağ-Kur (social security system for the self-employed and business owners & partners) premium debt restructuring loan. Moreover, the Bank prepared the Tourism Sector Fire Support Package in order to ease the financial pressures on tourism businesses operating in the regions which had been ravaged by forest fires.

Ziraat Bank launched a number of loan packages during the year as part of its ongoing cooperation with the KGF. In addition, the Bank started to offer the Edirne Province Emergency Support Loan, the West Black Sea Emergency Support Loan, the Artvin Province Emergency Support Loan and the Forest Fires Emergency Support Loan products in accordance with the protocols signed with KOSGEB.

The Bank created the Manufacturing Based Import Substitution Support Package in order to finance the investments of enterprises holding the investment incentive certificate issued by the Ministry of Industry and Technology, at an affordable cost and with guarantee support.

THE BUSINESS MODEL OF THE FUTURE

Offering digital solutions to the customers
Ziraat Bank continues to work to offer digital solutions to its customers, including the digital banking experience, and to provide financial consultancy services. In addition to digital solutions, the Bank proactively identifies the needs of its customers with analytical solutions and develops solutions for each customer segment.

Ziraat Bank started to acquire customers remotely through the mobile application with the new National ID card as of 1 May 2021. In the first phase of the process, biometric verification is completed through the National ID card. In the final step, a video call is made between the customer and customer representative, in which the process of becoming a customer is completed without the need for any additional application, doing away with the need to issue a document with a wet signature.

With 17 million active digital banking customers, the Bank pressed ahead with its work on the digitalization of branch processes and more effective use of digital channels in 2021. Within the scope of these activities, the Bank offered its customers numerous new facilitator practices.

• Virtual bank cards were introduced, allowing customers to use virtual bank cards in their e-trade transactions.
• Corporate customers could conduct their corporate loan applications and organize loan collections through the internet branch and mobile application.
• The Digital Loan product, which offers consumer loans through digital channels, started to be offered to customers not receiving a salary in addition to those who do.
• Customers were offered the opportunity to submit their chargeback applications through the mobile and internet branches.
• Bill collections could be performed through the automatic payment order.

Renewed with a modern and animated screen design, the Ziraat Mobile login page allows customers to access transactions quickly. With the developed story feature, a new interaction channel was created, offering customers instant access as well as promoting products and services offered through digital channels.

Ziraat Bank enabled the customers with the new National ID Card to update their phone numbers and unblock their SIM cards through the mobile application by using the biometric verification method.

With the addition of the Merchant Transactions menu to its mobile application, customers could easily switch to the Merchant Platform, which was specially prepared for its member merchant customers, without the need to enter passwords and user information.

TECHNOLOGY IN LIFE

Continuing to work with advance technological infrastructures
Ziraat Bank continuously improves its technological infrastructure through its flexible software development processes, global data center and high information security practices.

Ziraat Bank maintained its efforts to develop and automate the operational processes of the General Directorate and branches in 2021. The number of processes increased to 66 in robotic process automation applications, the usage areas of which were developed.

Ziraat Bank launched the Title Deed Trusted Account application for the simultaneous and secure exchange of real estate ownership and transfer fees, thus eliminating the risk to customers of carrying cash and providing protection against counterfeit money. This application also removed the concern of trust between the parties (Transferer/Transferee), ensuring ease of transfer at minimum cost and in the shortest time.

The passwords of the main and sub-users of Corporate Internet Banking and Corporate Monitoring, who had logged in using the same password, were differentiated. This development eliminated the security risk for the Bank’s customers and resolved the problem of password locking.

The Information and Communication Security Guide Project was initiated by the Digital Transformation Office of the Presidency. Within the scope of this project, the current situation was analyzed regarding all measures which had been determined for the Bank’s asset groups in order to protect assets, identify deficiencies in the monitoring processes and take security actions. The asset group current situation analysis report was prepared after this process.

Ziraat Bank took the necessary measures to tackle cyber risks during the periods of remote working in the pandemic by enabling the virtual desktop application within the scope of remote working processes.

In 2021, Ziraat Bank continued to integrate the lifecycle of data into its business processes within the framework of data governance. The data/business dictionary work involves work on data ownership and rules are determined. Work to integrate data quality management processes into data/business dictionary work have also got underway. The Bank carries out process improvement activities in order to systematically provide fast and error-free responses to customer requests from its branches within the scope of the KVKK (Personal Data Protection Law).

As part of the transformation set out in the banking software project, infrastructure, middleware and REST (Representational State Transfer) transformations were completed in 2019. Front-end transformation work continued in 2021. With the experience gained, the Bank completed and commissioned the basic banking software of the Bahrain branch, and continues its efforts to develop basic banking software for foreign affiliates.

Work continued in 2021 to ensure that branch employees utilize mobile applications for the transactions carried out by the branches.

“BİLGE”, an in-house virtual assistant application, responds to employees’ questions regarding a range of subjects such as human resources practices, the legislation data bank, branches and ATMs. Similarly, an information bot was commissioned, where customer representatives were able to ask questions about applications which will facilitate the call center and their defined jobs. In addition, work continues to classify notifications received from the customers through the artificial intelligence application.

Ziraat Bank brought the “Raportal” application into use. The application was created by combining all reporting tools on a single platform, as part of its in-house central reporting portal work.

Ziraat Bank effectively uses artificial intelligence/machine learning models and business intelligence tools. The infrastructure of these tools was prepared in the fields of instant loan and accounting controls within the scope of internal control activities. In addition to achieving resource efficiency, the Bank aims to detect new risk areas early by performing anomaly analysis through this model.

DEVELOPING ORGANIZATION AND SATISFIED EMPLOYEES

Continuously improving business practices and investing in the professional development of employees to enhance the employee experience and organizational efficiency
Ziraat Bank provides employees, who represent the Bank’s most valuable asset, with the opportunity to develop their skills through a range of training opportunities. It observes equality of opportunity by conducting competency and quantitative performance evaluation processes. The Bank also aims to increase employee motivation and corporate loyalty by continuously improving human resources practices.

Ziraat Bank signed a protocol with Ankara University in order to improve the academic aspect of its education programs and initiate cooperation which will provide employees with the opportunity to enroll on a master’s degree course. The content of the first graduate program was completed within the framework of the protocol.

• Ziraat Bank focused on bringing ease to the lives of its employees and helping them stay safe during the pandemic in 2021. In this context;
• Employees suffering from chronic illnesses continued to work remotely,
• In order to reduce density in the General Directorate buildings, the practice of transferring some employees to different locations continued,
• The practice of remote and rotational working continued,
• Training content, made available on the Banking School application which can be accessed from both computers and via mobile devices, was enriched. Training programs on healthy living, advanced movement (such as how to move properly), coping with stress and emotional resilience were offered.

Ziraat Bank has been offering professional and personal development opportunities to its employees through continuous training. It provided an average of 11.8 hours of classroom training and 25.3 hours of training remotely per person in 2021.

Ziraat Bank continues to offer the “Digital Library”, which contains over 1,000 volumes, which is available for all employees to use. It provides a wide array of e-training content, videos, audio files and documents for all employees seeking to develop themselves professionally or personally.

The Bank developed the “Ziraatli- yorum” (comments from Ziraat Bank members) platform. This platform provided employees with the opportunity to share their knowledge and experience with other employees and increase internal sharing. In addition, the Bank also rendered information permanent by organizing competitions among employees through educational mobile games.

The Bank continued the competency and quantitative performance evaluation processes also in 2021 in order to ensure the development of the Ziraat Finance Group employees in line with the strategies.
Ziraat Bank continues to implement the individual performance and competency evaluation practices and bonus system at the subsidiaries in Turkey. Ziraat Bank continues its efforts to put performance management systems into use also at the subsidiaries abroad.

The Bank organized the Ziraat Finance Group Human Resources Summit with the participation of the employees of the Human Resources departments working at foreign subsidiaries and branches from 18 countries and at domestic subsidiaries under the roof of Ziraat Bank. The purpose of the summit was to continuously improve the Ziraat Finance Group human resources practices and create a strong employee experience in all countries where it operates.

A GLOBAL BANK

Maximizing customer satisfaction by providing integrated financial solutions in all countries where the Ziraat Finance Group operates.

In order to offer a complete package meeting the financial requirements of Ziraat’s customers, the Group generates integrated solutions with its domestic and international banking subsidiaries, branches and finance entities, offering these solutions to its customers in the most efficient manner by taking advantage of the economies of scale provided by being a finance group.

In 2021, Ziraat Bank continued to expand its international service network. The Bank’s fifth branch was opened in Burgas in Bulgaria, after having opened branches in Sofia, Plovdiv, Varna and Kardzhali. The fifth branch of Ziraat Bank Uzbekistan JSC, the Bank’s subsidiary in Uzbekistan, was opened in Fergana. Also during 2021, the Azad Branch of Ziraat Bank Azerbaijan ASC in Azerbaijan opened its doors to customers.

Ziraat REIT is Turkey’s real estate giant, with its major projects which will add value to the future and its strong capital. Ziraat REIT was offered to the public, and at the end of 2021, 18.94% of the shares in Ziraat RET were open to the public, with Ziraat Bank holding 81.06% of the shares in Ziraat REIT. Various activities were carried out within the Ziraat Finance Group, including technological infrastructure projects, during 2021.

Work on the Key Global Project continues in respect of the development of the main banking applications used by foreign units and to bring the banking applications used by the foreign units in line with Ziraat Finance Group standards. The Key Global Project was completed and put into practice in the Bahrain branch while analytical and software work for the project continues in the London branch. The renewal of the main banking applications of Ziraat Bank Uzbekistan JSC, the Bank’s Uzbekistan subsidiary, will get underway in due course.

Work continues on the commissioning of the remittance infrastructure, which is used jointly with foreign branches and subsidiaries. The commissioning also includes the Finance Group Transfer System, which will enable secure and rapid money transfers within the Ziraat Finance Group. The Finance Group Transfer System was put into practice in seven countries, including Azerbaijan, Bosnia, Kosovo, Russia, Kazakhstan, Georgia and Bulgaria, is planned to be implemented in Uzbekistan and Iraq in the coming period.

Efforts to expand the robotic process automation application within the Ziraat Finance Group are continuing. After the process work carried out at the Bank’s London Branch and Kazakhstan Ziraat International Bank, which is its subsidiary operating in Kazakhstan, processes at its subsidiary JSC Ziraat Bank Georgia, which operates in Georgia, were also updated to work by robotic automation in 2021.

With the increasing importance of digital channels, Ziraat Bank has also focused on the internet and mobile banking investments in its international branches. The Bank maintains its efforts to launch the mobile application at its Kosovo and Iraq branches.

Ziraat Bank offers internet and mobile banking channels at its international units operating in Bosnia, Azerbaijan, Georgia and Russia for corporate customers. It offers the mobile application for customers in Turkmenistan who are drawing a salary. It offers internet and mobile banking channels at its international units operating in Uzbekistan. The Bank has offered its customers online access to financial products through the internet banking channel in its international units operating in Greece, Bulgaria, Kosovo, Kazakhstan, Germany and Montenegro.

Ziraat Bank offers new products and services in cooperation with the entire financial ecosystem in order to provide its customers with better banking and financial means whenever they need it.

PLATFORM BANKING

The services which will be available to customers at every moment and on every platform within the framework of future service models.

Ziraat Bank offers new products and services in cooperation with the entire financial ecosystem in order to provide its customers with better banking and financial means whenever they need them.

The financial ecosystem will evolve into a more integrated structure which will be able to provide end-to-end solutions to the customer by offering open banking services, service model banking and platform banking. Ziraat Bank continues to work on new products and services which it will offer within the scope of the newly published Digital Banking and Service Banking legislation.

Ziraat Bank offers new products and services in cooperation with the entire financial ecosystem in order to provide its customers with better banking and financial means whenever they need them. In this context, the Bank provides single point access to many applications, particularly the Member Business Platform, where specific transactions and reports are presented for member businesses, the e-Government gateway and the Türkiye Hayat Emeklilik (Turkey Life Pension) Platform, through existing digital banking applications.

Ziraat Bank established the Ziraat Pay infrastructure which allows its customers to securely complete payment transactions initiated through different e-commerce platforms via the mobile applications. The account and money transfer web services of corporate companies were developed and improved. The OPI application, launched at the end of 2019, allows corporate customers to send transaction instructions directly to the General Directorate. A renewed version of the OPI application was offered, with more functions, again putting the user experience and security at the forefront.

Ziraat Bank continues to roll out and facilitate access to banking products and services by allowing customers to meet their needs instantly and through any channel with the new features and services it has implemented.

RESPONSIBLE BANKING

Integrating environmental and social risk governance principles into its business model. Ziraat Bank aims to create added value with its banking principle which respects people and the environment in line with its Sustainability Policy.

Within the scope of lending activities, environmental and social risk assessment is carried out in investment projects exceeding a certain amount, according to the policy which determines environmental and social impact management principles. Activities related to environmental and social impact management are also planned to be carried out in a systematic way within the Bank. In this context, the Bank organized a training program for personnel who will conduct environmental and social risk assessments.

Ziraat Bank aims to link the syndicated loan of 2022 to sustainability. In line with this goal, the Bank has planned to impress upon investors the commitment to reach performance targets which display positive contributions to the environment or social life within a certain period of time.

The project to digitalize contracts will allow contracts and forms used in the Bank’s business processes to be viewed and approved within the internet branch/mobile banking applications. With the paper saved through this project, 5,953 trees were saved from being felled by transferring the documents to the digital environment for approval.