2023 INTEGRATED ANNUAL REPORT
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TRDIRECTORY
In Our 160th Year… Moving Forward to the Future

As the pioneer and leader of change in the banking sector for 160 years, Ziraat Bank shapes its corporate policies, strategies and goals in a manner that takes account of the needs of the future.

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 optimizing resource costs. Placing importance on supporting growth with sustainable profitability, Ziraat Bank achieved a Return on Equity of 34.5% and a Return on Assets of 3.0% in 2023.

In 2023, Ziraat Bank provided the largest sustainability-themed syndicated loan provided by a bank in Turkey at any one time.

Fulfilling an important mission in sustainable development in Turkey with its responsible banking approach, Ziraat Bank provided loans totaling USD 1.3 billion, consisting of USD 418 million and EUR 784 million, with a maturity of 367 days.

This syndication loan, the Bank’s tenth borrowing transaction obtained through syndication from international markets and its second sustainability-themed syndicated loan, involved the participation of 52 banks from 25 countries.

Ziraat Bank supports all segments of the economy with the financing opportunities it provides.

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.

 In this context, details of the work carried out in 2023 can be found on "In 2003" section of the report.

THE BUSINESS MODEL OF THE FUTURE

Continuously improving of our business model to offer 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.

The bank is working to establish its own payment company in order to further advance its services in the field of payment systems. In this context, work is ongoing for the establishment of Ziraat Finansal Teknolojiler Ödeme Hizmetleri ve Elektronik Para A.Ş. (ZiraatPay), with the company expected to enter operation shortly.

In addition, the BRSA gave the go-ahead for the establishment Ziraat Dinamik Banka A.Ş., which will be the first digital bank to be established under the ownership of a financial group in our country. The process of obtaining an operating permit is ongoing.

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 Ziraat Super branch had reached a customer base of 750,000 as of the end of 2023.

Striving to provide its customers with the best digital experience

Ziraat Investment’s functions are offered to customers through the Ziraat Mobile app. Investment transactions which can be carried out in the ZBorsa application have also been integrated into the Ziraat Mobile app, allowing customers to easily manage their investments.

In addition to individual customers, companies were able to start the remote process of becoming a customer through the “I Want to Be a Ziraat Member” menu on the Ziraat Mobile app. Legal entities and sole proprietorships could therefore become Ziraat Bank customers through digital channels without needing to go to a branch. As one of the first banks in our country to launch such an app, Ziraat Bank has led the sector in the acquisition of legal customers through digital channels.

In order to safely carry out transactions offered through digital channels, customers may safely increase their financial transaction limits within the limits determined by the new ID card NFC feature.

It is possible to carry out written calls by connecting to a live answer customer representative over the Virtual Assistant on Internet Branch and Ziraat Mobile.

Ziraat Bank proactively identifies the needs of its customers through the effective use of data analytics in its efforts to improve the customer experience and differentiates its solutions on the basis of customer segment. Within the scope of the Digital Analytics and Personal Analytics projects carried out in 2023, work was carried out to ensure the right suggestions were presented to the right customer candidates, from the right channel and at the right time, and customer-focused campaigns were developed.

Work continues on enhancing the analytical perspective and data-based processes in all processes at Ziraat Bank, and to modernize and standardize analytical platforms to meet new requirements.

ADVANCED TECHNOLOGICAL INFRASTRUCTURE

Continuous strengthening of technological infrastructure with flexible software development and comprehensive information security processes applied at all stages of the banking life cycle

A Cyber Security Center structure has been established within the Ziraat Finance Group (ZFG) which examines bank systems and alarm mechanisms seven days a week and without interruption, scans for weaknesses or vulnerabilities, collects intelligence and intervenes against cyber threats.

Details of the systems operating within the Cyber ​​Security Center can be found on "In 2003" section of the report.

Ziraat Bank is improving its capabilities to identify anomalies and detect vulnerabilities through the use of Artificial Intelligence and machine learning, which is able to learn user behavior.

Software-based network infrastructure (SDWAN) was implemented in all branches. Accordingly, field operations were slimmed down by centralizing physical device configurations.

Work continues on enhancing the analytical perspective and data-based processes in all processes at Ziraat Bank, and to modernize and standardize analytical platforms to meet new requirements.

In systems which handle a high level of transactions, anomaly detection activities have been employed through the use of machine learning algorithms in order to detect transactions with potential risks or differences which users cannot detect with certain rules, and the effectiveness of central control systems has been increased.

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. Ziraat Bank unwaveringly pressed ahead in its work to develop and automate the operational processes of the Head Office and branches in 2023.

More than 258 million transactions were carried out through the Operations Center in the 2023 operating period, with employee productivity increased by reducing the operational intensity in the branches.

Within the scope of the project to centralize expropriation transactions, operational processes related to expropriation transactions currently carried out in the branches were brought under the OPİM and the operational intensity of the branches was reduced.

With the development studies in robotic process automation applications, the total number of processes became 85.

By offering Foreign Trade menus to customers through Ziraat Bank’s Internet Branch and Mobile Banking applications, more than 200,000 transactions were carried out on foreign currency transfers, cash and goods-for-goods import transfers, IBKB regulation, IBKB monitoring, foreign trade files inquiry-monitoring and tracking of transfers with Swift GPI in 2023. Accordingly, the transaction intensity of the branches was reduced, and the digital customer experience in foreign trade was enhanced.

Streamlining its business processes through systematic integrations with institutions

Some of the systemic integrations carried out in 2023:

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 32 applications which continued to be developed in 2023, and new applications are constantly being added in accordance with employee feedback.

The in-house Virtual Assistant, “Bilge”, answers employees’ questions under 84 main headings and 788 sub-topics such as basic banking information like a Legislative Information Bank. Bilge messaged employees 800,000 times in 2023. Bilge’s knowledge repertoire continues to be improved, with the rate that it can answer questions rising to 83%.

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. A total of 352,000 approvals were completed over the mobile approval application in 2023.

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.

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.

Providing continuous professional and personal development opportunities to its employees, the Bank provided an average of 24.24 hours of in-class training and 34.59 hours of e-training per person in 2023.

Ziraat Bank attaches importance to training and development activities 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 24.24 hours of in-class training and 34.59 hours of e-training per person in 2023.

Ziraat Bank offered the following special certification programs to raise the competence of its employees in 2023:

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 2023. The E-catalog, which contains over 6,000 items, has been restructured in accordance with the Bank’s basic, functional and managerial competencies and expanded with new content which will contribute to the professional development of employees.

The “Ziraatli-comment” blog, which increases in-bank sharing and allows their employees to share their knowledge and experience with each other, was used by 8,070 employees in 2023.

Ziraat Bank provides special training courses on its website in order to increase the financial awareness of children and customers.

“Special online training for kids” is offered to raise awareness of savings among children and introduce them to basic financial concepts. Providing fun-packed online tuition under the themes of “Money-Bank Island, Savings Island, Credit and Credit Card Island, Budget Island”, children can enjoy learning about the relationship between money and banks, the functioning of banks, internet and telephone banking, credit and credit card awareness, and everything from money to electricity and water. They are provided with information on the economical use of all resources.

Within the scope of customer training, the Bank’s website includes training on secure credit card use and agricultural insurance.

The first step was to implement a digital platform in order to contribute to the development of university students undergoing internships at Ziraat Bank and help them use the time they spent on their internships productively. More than 100 videos and items of e-learning content or reading materials covering a wide range of subjects were provided on the digital platform, with the content made available to students.

Ziraat Bank participated in the Career Summits and Regional Career Fairs in cooperation with the Presidential Human Resources Office, providing an opportunity to meet university students. In addition, around 2,000 university students were offered internship opportunities in various units at the Bank through the CBIKO Internship Mobilization, with the aim of increasing the career awareness of university students and attracting talented young people to the Bank through internships and the events attended.

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.

Within the scope of its digital financial ecosystem strategies, Ziraat Bank created the Ziraat Super Platform structure with the aim of adding value to the lives of customers and creating a positive customer experience. Ziraat Super Branch’s customers benefit from easy access to non-banking products and services as well as unique opportunities through a specially designed platform infrastructure.

Through the Ziraat Super Platform, customers may participate in campaigns and access the advantageous products and services offered to them by reviewing the campaign details of the business partners which the Bank collaborates with in the ecosystem.

Within the scope of open banking activities, individual and corporate customers may view their account movements and balances in other banks and institutions and conduct money transfers on the Ziraat Mobile and Internet Branch. With the improvements made, customers may benefit from banking services more quickly and efficiently, and can easily monitor their accounts through Ziraat Bank’s digital channels.

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

Within the framework of its subsidiary policy built on the foundations of efficiency, the Bank maintains its activities with its foreign subsidiary banks in Germany, Bosnia and Herzegovina, Montenegro, Russia, Azerbaijan, Georgia, Uzbekistan, Kazakhstan and Turkmenistan, in addition to its domestic subsidiaries.

Ziraat Bank’s activities in the field of Foreign Branch Banking are shaped in line with its international banking strategy and vision, and are carried out within the framework of its main objectives;

Wide range of activities carried out by Ziraat Finance Group in 2023, including technological infrastructure projects

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 on the software has got underway in the London Branch, with the work in the Bahrain Branch approaching completion.

Mobile Banking apps were introduced in Kosovo, Iraq and Bulgaria in 2023.

The project to “Transfer E-Mail Infrastructure to the Ziraat Data Center” project, which aims to maximize 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, Azerbaijan, Jeddah, Iraq, Bahrain, Bulgaria and Greece.

Integration work have been completed in Uzbekistan, London, Russia, Jeddah and Azerbaijan in order to bring the Foreign Units Monitoring and Warning systems to Ziraat Finance Group standards and manage them from Turkey. Credit risk reports which had been prepared manually by foreign units have now been automatically transferred to the main banking system in Bosnia and Herzegovina, Kazakhstan, Kosovo, Russia, Montenegro, Bulgaria, Germany, Azerbaijan and Greece with work continuing on transforming this process in Jeddah and Iraq. Accordingly, credit risk reports can be reported without user errors.

“Information Security Tests”, initiated to comply with the security standards determined for Ziraat Finance Group, were completed in 2023 in Montenegro, Azerbaijan, Germany, Uzbekistan, Kosovo, Russia, Greece, Jeddah and London.

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

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”.

Ziraat Bank considers customer risk and project risk as a whole in its Environmental and Social Risk assessment and examines all loan requests according to the List of Unfinanced Activities, which is an element of the Environmental and Social Impact Management Policy.

Ziraat Bank notified the Carbon Disclosure Project (CDP) in 2023 and completed its first sustainability reporting.

As a result of the evaluation conducted by the CDP-Carbon Disclosure Project, the world’s most prestigious and wide-reaching environmental initiative, Ziraat Bank achieved considerable success by being awarded an A- rating in the Water Security category and a B rating in the Climate Change category.

Continued diversification of sustainability loans

Investment and Business Loans for Solar Power Plants, Roof-top Solar Power plants and Licensed solar power plants have also been added to the environmental loan products launched by Ziraat Bank within the framework of its sustainability policy.

Within the scope of green transformation and sustainability, Ziraat Bank continued to provide Green Home loans, Green Vehicle loans and Thermal Insulation loans for its Home range of products in 2023.

In order to support sustainable banking, a digital slip has been provided instead of a physical slip for transactions made with Ziraat Bank cards.

Ziraat Bank plans to establish a Solar Energy Plant (SPP) to provide the electricity it needs.

The aim of the facility, planned to be located in Pınarbaşı district of Kayseri, is to generate 110 million kWh of electricity per year. The aim of the SPP, which is still being established, is to meet all of the Bank’s electricity needs through renewable energy sources.

Taking its mission in social responsibility one step further each year

Work on the construction of a school continues with the support of Ziraat Bank, which has undertaken projects to contribute to the cultural benefit of society, while work also continued in 2023 on improving schools in priority areas for development within the scope of the “Children on Holiday, Schools in Renovation” social responsibility project.

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