2022 INTEGRATED ANNUAL REPORT
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TRDIRECTORY
IN OUR 159TH YEAR…
MOVING FORWARD TO THE FUTURE

Working in synergy with the Ziraat Finance Group, which it leads, the Bank has implemented a host of innovative applications and further strengthened the added value it produces.

STABLE GROWTH

Continuing to be a pioneer in the sector with its selective credit policy and effective use of resources
Ziraat Bank, which has gradually transformed its balance sheet into a customer-oriented structure, proactively manages credit quality through effective loan processes and always prioritizes effective resource use and cost control. Within the framework of its selective credit policy, the Bank continues to finance the agricultural, manufacturing, export, energy investment and technology sectors while optimising resource costs.

Attaching importance to supporting growth with sustainable profitability, Ziraat Bank recorded a Return on Equity of 26.4% and Return on Assets of 2.3% in 2022.

The Bank’s total deposits expanded to TL 1,739 billion in 2022, with deposits comprising a 75% share of liabilities. Ziraat Bank maintained its leadership in the sector in terms of total deposits in 2022 as well.

Bolstering a strong funding structure with new collaborations in 2022
Ziraat Bank realized its first sustainable themed syndicated loan in 2022. The 367-day, USD 1.24 billion loan is the tenth borrowing transaction provided by the Bank from international markets through syndication.

Reinforcing its strong funding structure with new collaborations it entered into in 2022, Ziraat Bank continued to use alternative sources such as bilateral loans and post financing from correspondent banks, in addition to syndication loans. The total volume of funds provided by the Bank through these resources had reached USD 1.5 billion by the end of 2022.

Ziraat Bank maintains its efforts to diversify its resources and provide cost-effective, long-term resources. In this context, the USD 7 billion GMTN (Global Medium-Term Notes) program, which involves borrowing from international capital markets, was updated on 5 May 2022. In addition, the Bank continued to obtain foreign resources through private placement issuances.

Offering products and services which bring ease to peoples’ lives with the right solutions
Continuing to meet the financial needs of its customers with the right solutions in 2022, Ziraat Bank recorded a 63% expansion in its cash loans while the share of cash loans in the Bank’s balance sheet stood at 55%.

In a bid to protect customers vulnerable to exchange rate volatility from exchange rate risk and encourage them to place their investments in Turkish lira terms, Ziraat Bank launched TL Currency Protected Time Deposits, FX Converted Currency Protected TL Time Deposits, YUVAM TL Time Deposits, Quarter Gold Coin Time Deposit Accounts and Quarter Gold Coin Demand Deposit Accounts.

With its selective loan policy aimed at increasing employment, achieving growth in the real economy and contributing to our country’s development, Ziraat Bank continued to support the agricultural, manufacturing, export, energy, investment and technology sectors with the loans it provided in 2022, within the framework of this policy.

TURNING ITS BALANCE SHEET TO A CUSTOMER-ORIENTED STRUCTURE, ZIRAAT BANK UNWAVERINGLY CONTINUES TO FINANCE AGRICULTURE AND MANUFACTURING, EXPORTS, ENERGY INVESTMENTS AND TECHNOLOGY WITH ITS SELECTIVE LOAN POLICY.

RESPONDING TO THE NEEDS OF THE REAL SECTOR AND HOUSEHOLDS WITH ITS PRODUCTS, SERVICES AND SOLUTIONS THROUGHOUT THE YEAR, ZIRAAT BANK USHERED IN A NEW ERA OF SUCCESS IN ITS JOURNEY OF SUSTAINABLE AND PROFITABLE GROWTH.

Ziraat Bank plays an important role in bringing out our country’s tremendous potential in agriculture.

Supporting the agricultural sector with Ziraat Bank’s “Financing the Agricultural Ecosystem” strategy
Ziraat Bank’s strategy in the agricultural sector, which it classes as a priority area, is “Financing the Agricultural Ecosystem”. This strategy is built on four main headings; “solution orientation”, “strong communication”, “sustainable financing” and “accessible financing”. In this vein, the Bank has determined value-added production, economies of scale, cooperative banking, technology-intensive agriculture, integration of industry in agriculture, environmentally friendly loans and areas specific to women and the young as its main targets.

Ziraat Bank plays an important role in releasing our country’s tremendous potential in agriculture.

In 2022, the Bank aimed to finance the Agricultural Ecosystem through the following products;

In addition, the Bank has introduced a wide array of products specific to financing modern pressurized irrigation and cooperatives, and aims to raise awareness in society with these products.

Ziraat Bank signed protocols with four more governorships in 2022 as part of the “I Have Many Reasons to Live in My Village” project. This took the number of governorships with which protocols had been signed to 40 by the end of 2022, the number of producers benefiting from the project to 7,314, the volume of loans extended within the scope of the project to TL 1.1 billion and the number of livestock received with these loans to 702,000.

On the other hand, the “I Have Many Reasons to Live in My Village - Cattle” project, which was aimed at expanding the scale of the enterprises operating in cattle dairy farming with qualified animal breeds, diversifying the range of financial solutions available for small enterprises, bringing idle operating capacity into production and increasing demand for domestically born female livestock while creating a market for excess capacity of female livestock in existing dairy farms, was implemented to support efforts to reduce imports of livestock, to attract new customers to the Bank’s portfolio and to increase efficiency, productivity and profitability in this area by directing cash flows related to the work carried out within the scope of the project to the Bank. Work on the implementation of the project will continue in 2023.

The Bank’s agricultural loans doubled in 2022 when compared to the previous year, with the number of farmers using loans within the framework of “Achievable Financing Strategies” reaching 1 million.

As of the end of 2022, the combined volume of loans extended from Ziraat Bank’s own resources for the financing of the agricultural sector and the funds originating from its intermediation had reached TL 233.7 billion, with a total of 1,078,519 customers with loans.

Ziraat Bank’s support for SMEs has gained continuity with the collaborations it has developed.
Within the scope of the ongoing cooperation between Ziraat Bank and the KGF, the use of Investment Support, Export Support and Operational Expenditures Support Packages and Manufacturing Based Import Substitution Support Packages continued in 2022 as well. The Construction Services Financing Support Package was brought into use in order to meet the expenditures of SME and non-SME construction companies for the completion of ongoing housing projects.

Within the framework of Ziraat Bank’s protocol with the KGF, the KGF Support Loan-2 (Second Period) was introduced to meet the needs of SMEs for guarantee limits and thus ensure the continuity of the support provided to SMEs.

The Central Bank Investment Committed Advance Loan (YTAK), which has been made available only to non-SME companies through the Development and Investment Bank of Turkey (TKYB) has also been made available to public banks, and became one of the important loans commissioned by Ziraat Bank in 2022.

With the protocol signed between KOSGEB and KGF, Ziraat Bank implemented the KOSGEB Employment Contracted SME Financing Support Package to finance the capital for customers who are committed to creating and maintaining formal employment for citizens of the Republic of Turkey and Syrians under Temporary Protection (GKAS) or Persons Granted International Asylum (UKSK) in selected provinces affected by migration.

Within the scope of the loan guarantee protocol signed between the Export Development Inc. (İGE) and the Bank, the second HDI Equity Guarantee Support Package was offered to businesses which are exporters or have potential to be exporters and real or legal person businesses involved in services and activities which earn foreign currency.

Ziraat Super Branch customers are offered preferential interest rates, lower fees and limit advantages on a wide range of banking products such as deposits, loans, money transfers, investments and credit cards.

THE BUSINESS MODEL OF THE FUTURE

Continuously improving of our business model to offer our customers the most advanced technology-oriented solution proposals
Ziraat Bank constantly renews and develops its business model in line with the needs of the digital world. Working tirelessly to provide its customers with the best digital experience, the Bank proactively identifies its customers’ needs and differentiates its solutions according to customer segments, using data analytics effectively.

Ziraat Bank considers digitalization as a whole in order to carry out the entire banking process digitally with the ecosystem logic. In line with this, Ziraat Super Branch, which was commissioned in 2022 as the Bank’s Digital Branch service model, aims to provide the best customer experience by allowing retail customers to benefit from banking services through digital channels without going to the branch.

The Bank offers Ziraat Super Branch customers a wide array of banking products including deposits, loans, money transfers, investments and credit cards with preferential interest rates, lower fees and increased limits.

AI-supported Ziraat Virtual Assistant served 7.8 million customers in 2022.
Supported by Artificial Intelligence, the Ziraat Assistant works as a customer representative, not only improving the channel experience of customers by answering questions quickly but also directing customers to relevant screens in financial transactions such as bill and tax payments, foreign exchange purchase and sale, and money transfer, ensuring that transactions are carried out quickly and easily.

Ziraat Bank established the Financial Agenda, designed as part of its efforts to increase the variety of products and services offered through digital channels, where customers may easily and practically monitor all financial transactions, account movements and expenditures on their accounts on a daily basis, on a consolidated or account basis, on a single screen.

With the developments it has achieved in card systems, customers may use the Bankkart Lira they earn through the Bank’s digital channels, from the moment of shopping to the cut-off date, at any time through the applications launched by the Bank such as Agricultural Support Payments and KGF Secured Loans via cards, Mobile Contactless Payment with Debit Card and the Pay with Bankkart Lira feature.

Other developments in 2022:

Ziraat Bank has integrated data not only into its business processes but also into its organizational structure, in line with its strategy of “Being a Data-Driven Company”.

Integrating data governance and data analytics into the Bank’s future business model strategy
Ziraat Bank established data governance processes to ensure end-to-end corporate management of data. In this vein, the Bank determined strategies aimed at being a data-oriented company, creating a corporate culture for data value, ensuring that data is managed with common terminology and developing a proactive approach to data security.

Ziraat Bank has integrated data not only into its business processes but also into its organizational structure, in line with its strategy of “Being a Data-Driven Company”.

By ensuring the integration of data governance and data analytics into business processes with superior data quality, a relational structure has been defined between the Bank’s strategy, business, application, data and technology layers.

Data governance and data analytics, which support the decision-making mechanism, have become the common language for the Bank, enabling branches to offer the right product recommendations to customers by directly benefiting from analytical data.

Continued support for initiatives which develop innovative and innovative solutions
Ziraat Bank supported initiatives to develop innovative and innovative solutions in 2022 as part of its strategy of establishing cooperation with fintechs and start-ups and implementing new business models.

In 2022, the Bank implemented the FIDE Fintech Acceleration Program in conjunction with Yıldız Technical University.

The Program was created for entrepreneurs seeking to develop products or services in their fields as listed below:

More than 15 training programs on important topics and over 100 hours of one-to-one mentoring were provided to 11 entrepreneurs selected within the scope of the program. The program provided the entrepreneurs with the opportunity to promote their ventures at the Fide Demo Day event held on 28 September 2022.

The Istanbul Finance Center - an integral part of Ziraat Bank’s changing business model
The Istanbul Finance Center, a major national project, has reached the completion stages. Ziraat Bank continues its work to contribute to the future of our country by taking its place in the financial center, which is at the heart of the financial sector, as rapidly as possible.

ADVANCED TECHNOLOGICAL INFRASTRUCTURE

Continuing to work with comprehensive technological infrastructures integrated into all stages of the Banking Life Cycle
Ziraat Bank continuously strengthens its technological infrastructure with flexible software development and high information security processes implemented at all stages of the banking lifecycle.

By accessing Big Data sources with Artificial Intelligence, Machine Learning and Deep Learning methods and algorithms, Ziraat Bank has ensured the establishment of an end-to-end analytical software platform that can perform structured and unstructured data analysis quickly and effectively. The related platform targets the more effective use of the analytical models implemented at the Bank.

During 2022, the Bank, which ensures efficiency in its business processes through the effective use of technology, supported the Data Center with active backup devices and received the Uptime Tier 3 “Operational Sustainability” certificate for the Data Center and completed the Cyber Security Center studies. In addition, the Endpoint Security Project paved the way for an increase in the rate of pre-detection of advanced threats on client computers and servers at the Bank.

Integrating Artificial Intelligence/Machine Learning based models into its internal audit activities
Within the scope of its internal audit activities, Ziraat Bank effectively uses Artificial Intelligence and Machine Learning-based models and business intelligence tools, the infrastructure of which has been prepared in the field of instant credit control and information systems controls.

The use of Artificial Intelligence and Machine Learning models is aimed at increasing the effectiveness and efficiency of monitoring activities as well as detecting new areas of risk in advance by performing anomaly analysis.

Ziraat Bank continuously improves its business processes by integrating them with the latest technologies in order to provide excellence in the customer experience.

EFFICIENT AND LEAN PROCESSES

Continuous improvement of business processes through integration with the latest technologies
Ziraat Bank continuously improves its business processes by integrating them with the latest technologies in order to provide excellence in the customer experience.

Continued efforts focused on the development and automation of operational processes
Ziraat Bank unwaveringly pressed ahead in its work to develop and automate the operational processes of the Head Office and branches in 2022.

More than 190 million transactions were carried out through the Operations Center in the 2022 operating period, with employee productivity increased by reducing the operational intensity in the branches.

With the development studies in robotic process automation applications, the total number of processes increased to 124.

Ziraat Bank continues its work to expand the new version of the OPI application, which allows customers to directly transmit their transaction instructions in Foreign Trade Transactions to the Operations Center through the Internet and Mobile channels, offering a more functional user experience with priority on security.

Streamlining its business processes through systematic integrations with institutions
Ziraat Bank accelerates its business processes by increasing efficiency through system integrations with various institutions. By the end of 2022, the Bank had secured integration with a total of 1,900 institutions.

Through the integration with the Revenue Administration, it has become possible to automatically retrieve balance sheets, income statements and trial balances directly from the system.

Thanks to the integration between the Public Oversight and Accounting and Auditing Standards Authority and Ziraat Bank, it is possible to obtain customers’ independently audited financial statements and audit reports in all branches of the Bank through the Bank’s system.

The integration of the State Accounting Information System for the electronic transmission of the instructions sent by public institutions to the Bank was completed and brought into use.

The integration between Ziraat Bank and KOSGEB enables queries of the status of customers as SMEs and customer information is recorded in the database. In addition, the integration allows the Bank’s branches to query customers’ SME characteristics, their scale and the dates their statutes as an SME are valid.
With the power of attorney inquiry integration provided with the Notaries Union of Turkey (TNB), signature circulars issued on and after 1 March 2016 may be instantly queried, and the accuracy of the signature circular can be checked by comparing the information on the document with the information in the TNB system.

Bringing ease to the lives of employees with Mobile Applications and “Bilge”, the in-house Virtual Assistant
Ziraat Bank simplifies the daily banking transactions of its employees through its ZFG Mobile platform, providing instant access to Ziraat Finance Group corporate applications and information on a 24/7 basis. The platform includes more than 30 applications which continued to be developed in 2022, and new applications are constantly being added in accordance with employee feedback.

The In-house Virtual Assistant, “Bilge”, can answer questions from the Bank’s employees in 25 different subject areas such as Personnel Information, Branch and ATM Address, Directory Information, the Legislation Information Bank, Basic Banking Information and around 200 subtitles. Bilge, the Virtual Assistant which can be accessed via the portal and ZFG Mobile, is being developed with the addition of new areas with the support of the employees.

With the Mobile Approval app, which was developed to facilitate business processes with mobile solutions, both branch managers and employees authorized to issue approval may quickly terminate transactions from their mobile devices. This contributed to the prompt delivery of customer approvals and the continuity of business processes. Work continues on expanding the variety of transactions and including new screens in the application.

Authentication and transaction approvals performed by customers through Card Access Devices (KEC)
As part of its efforts to Integrate the New Identity Card into the Banking System, Ziraat Bank enabled customers to perform identity verification and transaction confirmations when contacting branches through Card Access Devices (KEC) located in branches.

DEVELOPING ORGANIZATION AND HAPPY EMPLOYEES

Ziraat Bank is continuously increasing its organizational efficiency with happy employees with a strong corporate culture by constantly improving the employee experience with the focus of our Development-Oriented Career and Talent Management approach.
Ziraat Bank invests in the professional development of its employees in line with its Development-Oriented Career and Talent Management approach and continuously improves its employee experience with performance evaluation processes based on equal opportunity and motivation-enhancing practices. With these efforts, the Bank aims to ensure corporate loyalty with happy employees who are integrated with the strong corporate culture that has left their mark for centuries.

Ziraat Bank started work to establish the Ziraat Bank Finance and Technology University, backed by the technical knowledge and experience it has gained in the Banking School for more than 100 years.

Work gets underway on the Ziraat Bank Finance and Technology University.
Ziraat Bank took measures to establish the Ziraat Bank Finance and Technology University with the support of the more than 100 years of technical knowledge and experience it has gained in the Banking School. Carrying its experience in banking education to its peak with this initiative, the Bank also aims to contribute to shaping the future of our country.

The university, designed as a Business School, will have many different features including three faculties, a Vocational School, a Technopark and a Financial Behavior Laboratory. The aim of the university is not only to train the bankers of tomorrow, but also to ensure the formation of new companies that will shape the future.

Ziraat Bank attaches importance to training and development activities within the framework of its “Developing Organization and Happy Employees” strategy.Ziraat Bank tirelessly pushed ahead with its training and development activities in 2022 with the aim of improving the professional knowledge and skills of its employees as well as developing their personal abilities.

Providing continuous professional and personal development opportunities to its employees, the Bank provided an average of 18.8 hours of in-class training and 30.1 hours of e-training per person in 2022.

The “Branch Manager Development Journey” program for bank managers, Coaching and Mentoring training and practices, “On-the-Job Trainer Training” program and “Executive Manager Development Journey” program continued throughout the year.

Moreover, “First Step Training” is provided for new employees who have just joined Ziraat Bank, to help them get to know the Bank, adapt to the corporate culture and acquire the basic knowledge and skills necessary for their position, with the “Executive School Program” offered to employees who are candidates for management positions based on the information in the Individual Performance and Competency Evaluation System.

“Licensing/Certificate Training” were provided in order to prepare personalized training for national and international licenses and certification exams.

Graduate education programs were initiated with Ankara University, one of our country’s well-established universities, in 2021 and continued with a new intake of participants in 2022, in order to improve the academic aspects of Banking School Specialists and Assistant Inspectors who had just joined Ziraat Bank, and to support them in their postgraduate education.

Certificate Programs for Artificial Intelligence and Data Science as well as FRM-Risk Management are provided to help employees advance the competencies they use in their current positions. A total of 127 employees completed their training on Artificial Intelligence and Data Science and received their certificates. The FRM-Risk Management Certificate Program, which started in December 2022, continues to be offered to employees.

In line with its “Digital Solutions” strategy, Ziraat Bank also follows the latest technologies and applications in the field of education and quickly puts them into use.

Introducing the latest technology and applications in the field of education
In line with its “Digital Solutions” strategy, Ziraat Bank also keeps its finger on the pulse of the latest technologies and applications in the field of education and quickly brings them into practice.

The Bank’s e-training catalogue provides a wide array of absorbing distance learning, videos, audio files and documents for all employees who are seeking to develop themselves in a professional or personal capacity. In addition, the Digital Catalogue, which contains over 4,000 volumes, is available for all employees.

The “Ziraatli-comment” block, which increases in-bank sharing and allows their employees to share their knowledge and experience with each other, was used by 18,278 employees in 2022 with 663 articles added to the blog.

A new program has been put into practice in order to contribute to the development of young university students carrying out internships at the Bank and to help them make efficient use of the time they spend in the internship program. With the “Customer Experience” approach in the program, every day of the students’ program is planned down to the smallest detail, from the welcome step on the first day to their farewell.

More than 100 videos, items of e-learning content and reading materials covering a wide array of different topics are available to students on the digital platform which has been opened specifically for students. Competitions are held to increase participation and encourage learning, and every step of the program can be followed on a daily basis from the mobile app.

Ziraat Bank’s corporate participation strategy is designed to generate integrated solutions to meet the financial needs of Ziraat Finance Group customers as a whole.

A GLOBAL BANK

Working to maximize customer satisfaction by producing integrated financial solutions in all countries where Ziraat Finance Group operates
Ziraat Bank’s corporate participation strategy revolves around the Ziraat Finance Group producing integrated solutions in order to meet the financial needs of its customers as a whole.

In addition to its domestic subsidiaries, the Bank works in cooperation with foreign subsidiaries operating in Germany, Bosnia and Herzegovina, Montenegro, Russia, Azerbaijan, Georgia, Uzbekistan, Kazakhstan and Turkmenistan within the framework of its participation policy built on the basis of efficiency.

In this context, Ziraat Bank sets out to carry out the following;

Wide range of activities carried out by Ziraat Finance Group in 2022, including the Technological Infrastructure Project
Ziraat Bank has gradually expanded its work on the Key Global Project, which it embarked upon with the aim of developing the main banking applications used by foreign units and harmonizing these applications with Ziraat Finance Group standards.

Work at the Bahrain Branch has been completed while work continues on the software at the London Branch. The renewal of the main banking applications used by Ziraat Bank Uzbekistan JSC, the Bank’s Uzbekistan subsidiary, has got underway.

Efforts are underway to expand the remittance infrastructure used jointly with foreign branches and subsidiaries, and the Finance Group Transfer System, which will enable safe and fast money transfers within the Ziraat Finance Group.

With the addition of Iraq in 2022, the system is now used in six countries (Azerbaijan, Bosnia, Kosovo, Georgia and Bulgaria, as well as Iraq). The Finance Group Transfer System is also scheduled to be implemented in Uzbekistan in the coming period.

The “Information Security Standardization Project”, initiated to comply with the security standards set for Ziraat Finance Group, was completed in Turkmenistan and Greece.

The project to “Transfer E-Mail Infrastructure to the Ziraat Data Center” project, which aims to maximise performance of services in the Ziraat Data Center, provide continuous accessibility, security and offer advanced messaging features has been completed in Georgia, Montenegro, Uzbekistan, Bosnia, London and Azerbaijan. The same work is planned to be carried out in Greece, Bulgaria, Iraq and Bahrain.
Integration work carried out in Uzbekistan to bring the Monitoring and Warning systems of International Units to Ziraat Finance Group standards and to manage them from Turkey has been completed.

Ziraat Bank provided its customers with online access to financial products through Internet and Mobile Banking channels in its international units operating in Bosnia, Azerbaijan, Georgia, Russia, Turkmenistan and Uzbekistan, and through the Internet Banking channel in its international units operating in Greece, Bulgaria, Kosovo, Kazakhstan, Germany and Montenegro. The Mobile Banking app was launched in Iraq in 2022.

PLATFORM BANKING

To provide services to customers at any time and on every platform within the framework of the service models of the future
Ziraat Bank offers new products and services in cooperation with the entire ecosystem in order to provide its customers with better banking and financial opportunities to meet their needs.

In this context, the Bank has enabled access to a range of applications from a single point, in particular the Member Business Platform, where transactions and reports specific to member merchants are presented, the e-Government gateway and the Türkiye Hayat Emeklilik Platform.

Work completed on Open Banking services
Within the scope of its Open Banking activities, Ziraat Bank allows individual and corporate customers to view the balances of all of their TL, foreign currency and gold demand accounts in different banks, as well as their account activities on the Ziraat Mobile and Internet Branch, with their consent, in addition to the money transfer and transfers through their accounts in different banks while enabling them to complete payments.

Digital platform infrastructure work continuing at the Ziraat Super Branch
The Ziraat Super Branch aims to add value to the lives of its customers and create a positive customer experience by providing advantages to customers in non-banking product and service offerings through collaborations with companies from a range of different sectors over the platform infrastructure.

The Bank continues to expand and facilitate access to banking products and services by helping customers meet their needs instantly and through any channel with the new features and services which it has implemented.

Ziraat Bank aims to create added value with its banking principle that respects people and the environment, in line with its Sustainability Policy.

RESPONSIBLE BANKING

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

Environmental and social risk assessment implemented in Ziraat Bank’s investment projects in 2022
From March 2022, Ziraat Bank started to consider loan applications for projects with an investment amount of more than USD 50 million from an environmental and social point perspective within the scope of its “Environmental and Social Impact Management Policy in Lending Activities”.

The assessment is carried out using the Environmental and Social Risk Assessment Model (ESRD). This model observes the Performance Standards set out by the International Finance Corporation (IFC) as well as local legislation. Customer risk and project risk are considered as a whole in the Environmental and Social Risk assessment. A total of 21 projects were evaluated on the basis of environmental and social aspects in 2022.

All loan requests are reviewed according to the Unfunded Activities List, which is an element of the Environmental and Social Impact Management Policy. Activities in this list are not financed under any circumstances. No projects were rejected due to their inclusion in the Unfunded Activities (FEF) list in 2022.

This sustainability-themed syndicated loan, in which 45 banks from 21 countries participated, was Ziraat Bank’s first to be linked to Environmental, Social and Governance (ESG) activities.

Ziraat Bank’s syndicated loan in 2022 connected to Environmental, Social, Governance (ESG) criteria
This loan, which was carried out with the participation of 45 banks from 21 countries, was Ziraat Bank’s first sustainability-themed syndicated loan.

The sustainability key performance indicators (ESG KPIs) of the loan provided within the framework of sustainable growth and the responsible banking approach included contributing to gender equality, equality of opportunity in production by offering favourable conditions for agricultural loans to be used by women and young farmers, offering employee training to increase sustainability awareness within the Bank and ensuring that branches and ATMs would provide greater ease for disabled citizens and help them access banking services.

In this context, Ziraat Bank prepared an “Sustainability E-Training” program and presented it to its employees in order to raise awareness of sustainability. Offering 270 ATMs specially designed for customers with orthopaedic disabilities and 5,352 ATMs for the visually impaired in its Accessible Banking business line, the Bank aims to increase the number of ATMs for the visually impaired with the purchase of new ATMs in the coming periods.

Ziraat Bank carried out a sustainability bond issuance of USD 600 million with a 5-year maturity in February 2021. It was Turkey’s first such issuance from a 100% state-owned financial institution. The resources obtained from this borrowing transaction, which is a successful application of sustainable finance, have been directed to environmental and social themed loans specified in the “Green, Social, Sustainable Finance Framework” where the loan areas which can be issued are determined.

The Allocation Report setting out the use of the said resources and the Impact Report stating the impact measurement of the loans and projects financed by the resource were prepared within one year following the issuance, as specified in the framework document, and published on the Ziraat Bank website in January 2022.

Continued diversification of sustainability loans
Ziraat Bank continued to provide “Green Home Loans” and “Green Vehicle Loans”, which are loan products within the scope of the green transformation and sustainability. In 2022, “Housing Heat Insulation Credit” and “Solar Power/Roof Solar Power/Licensed Solar Power Investment and Operational Credits” were added to this range of products.

Continued work to establish a Zero Waste Management System
In accordance with the “Zero Waste Regulation” dated 12 July 2019, all service buildings at Ziraat Bank throughout the country are defined as separate “Facilities” in the Integrated Environmental Information System (ECIS) as set out by the Ministry of Environment, Urbanization and Climate Change.

In this context, the Bank applied for a “Zero Waste Certificate” for a total of 1,827 service buildings throughout the country defined in the system as facilities and received certificates for a total of 1,371 service buildings in 69 provinces. Document applications submitted for the 438 service buildings in the remaining 12 provinces are expected to be approved by the Provincial Environment Directorates in due course.

In order to reduce environmental pollution and save paper, 1.7 million customers were informed in 2022 with the option to decline paper receipts, thus saving paper printing costs.

Contributions to responsible banking through improvements in business processes
In order to reduce environmental pollution and save paper, 1.7 million customers were informed of the option to decline paper receipts in 2022. Receipts can be accessed electronically by adding the option “send e-mail” to the ATM receipt preferences menu.

Enabling Export Acceptance Certificate transactions (IBKB) through Internet Banking did away with the need for using 26,227 sheets of paper over 6 months at the Bank’s branches.

While the reply letters regarding the lien, precautionary and deposit research transactions physically sent to Ziraat Bank Headquarters and sent to the head office by the branches are sent to the relevant institutions physically by cargo, the aforementioned letters are automatically sent via KEP. 252,000 shipments were transferred to the electronic environment each year, thus contributing to sustainability by saving approximately 504,000 sheets of paper and 252,000 post bags annually.

Documents and waste paper kept in the unit and branch archives and whose legal storage period has expired are forwarded to contracted authorized companies for recycling. Approximately 945 tons of waste paper was recycled in this context in 2022.

Ziraat Bank customers were able to obtain queue numbers by scanning QR codes with their mobile phones through the Queue Call System. When customers receive a queue number with a QR code, tickets are not physically printed, and the queue number is only displayed on the customer’s mobile phone. In view of the daily volume of queue numbers issued at the branches, digitalizing queue tickets also contributed to the Bank’s efforts within the scope of environmental awareness and sustainability, as well as the process of digitalization.

With the I-REC certificate, Ziraat Bank has documented that it meets the energy it consumes from Turkey’s renewable resources.
Renewable energy conversion is gaining ever greater importance for a sustainable future. The 24/7 digital services provided by the banking and finance sector to customers increase their electricity consumption.

The I-REC Standard, which documents the total amount of renewable energy produced and ensures that it is matched with consumers in order to expand energy investment and use, allows every MWh of electricity produced throughout the entire process starting from the source up to the final consumer. The I-REC Standard is a renewable energy registration system used in 44 countries in South America, Asia and Africa and accepted by the European Union and the United States of America for carbon footprint measurement, serving as a source of proof in the international trade and finance sector.

Ziraat Bank attaches tremendous importance to Turkey’s renewable energy transformation in order to protect nature and future generations. In addition to the financing support which it provides for renewable energy and energy efficiency projects, the Bank has taken an important step for the national and international market in its sustainability efforts and transition to green transformation by meeting the 50,000 MWh consumption of its Head Office, subsidiaries and branches in 2022 from renewable energy sources.

Aiming to reduce the carbon footprint of its electricity consumption, Ziraat Bank has documented its efforts in this vein with the I-REC (The International REC Standard), which is world’s most widely used renewable energy certificate.

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