ECONOMIC OUTLOOK

The Global Economy

The year 2023 was marked by the slowdown in global economic activity, the restrictive effects of tight monetary policies on the economies of developed countries and geopolitical risks, which continued to have ramifications for the world economy.

Global economic activity exhibited a slowdown as central banks around the world continued to raise interest rates as they grappled with inflation, along with a tightening in financial conditions. Throughout the year, the restrictive effects of tightening monetary policies, especially on production in the manufacturing sector, became more apparent on the economies of developed countries, and geopolitical risks continued to affect economies around the world.

At the same time, the risk of a hard landing in the global economy receded as employment markets maintained their resilience despite the slowdown in global economic activity and high rates of inflation.

In addition to the monetary tightening steps taken last year, there was an easing in energy and commodity prices with inflation in many countries falling faster than expected from the peaks reached in 2022, as the supply chain issues encountered during the pandemic were resolved and supply-side problems eased. Inflation indicators improved in many countries, despite remaining above long-term averages and the targets set out by central banks.

The ongoing war between Russia and Ukraine in 2023, the comprehensive package of sanctions imposed by western countries against Russia, and the Russian government’s announcement of its withdrawal from the Grain Corridor Agreement in July were among the geopolitical risks which caused concern throughout the world.

In addition, the tensions between the USA, Europe and China in the field of technology, developments related to Taiwan and the turmoil in the Middle East and Red Sea region with the conflict between Israel and Palestine in the last quarter of the year were also global focal points of attention.

In addition, despite the supply cut decisions by the OPEC+ cartel, which includes the Organization of Petroleum Exporting Countries (OPEC) and a number of other oil producers, oil prices fluctuated throughout the year due to the increases in production, the stocks of major oil producing countries such as the USA and a weak demand outlook. These indicators were very much in the spotlight during the year, given their pivotal impact on the course of global inflation.

Following the bankruptcy of a bank in the USA and moves to rescue a bank in Switzerland in the first quarter of the year, central banks and regulatory institutions moved rapidly and effectively to keep the risks that may arise in the banking sector under control, thus significantly alleviating downside risks to the global growth outlook.

Risks to global economic growth in 2023 deemed to be broadly balanced.

In its Global Economic Outlook Report published in January 2024, the IMF acknowledged the faster than expected fall in inflation in many regions in a period where global supply-side problems were resolved and restrictive monetary policies were in place. The report also emphasized that the decline in inflation and stable growth had reduced the threat of a hard landing in the global economy, with the risks to global economic growth generally being balanced.

Against this backdrop, the IMF estimated that global economic growth, which stood at 3.5% in 2022, had slowed only to a limited extent in 2023 thanks to the greater than expected resilience of the US economy as well as the economies of some major developing economies, as well the supportive impact of the Chinese economy. The IMF predicts growth of 3.1% for 2024, broadly in line with last year’s growth, with growth of 3.2% in 2025.

However, the IMF emphasized that global growth forecasts for 2024 and 2025 remained below the historical average growth rate of 3.8% due to the impact of the interest rates hikes, implemented to bring down inflation globally, the reduction in the amount of financial support given the pressures created by high indebtedness on economic activity, and the underlying low growth in productivity.

The year 2023 was marked by the slowdown in global economic activity, the restrictive effects of tight monetary policies on the economies of developed countries and geopolitical risks, which continued to have ramifications for the world economy.

Eurozone economy records a significant slowdown in 2023

There was a significant slowdown in the growth rate of Eurozone countries in 2023, which remained virtually stagnant on the back of weakening economic activity throughout the region.

The annual growth rate of the region’s economy decreased from 3.4% in 2022 to just 0.5% in 2023. Feeble consumer confidence, the ongoing fallout of high energy prices, and weakness in the manufacturing sector and investments, which are highly sensitive to tightening financial conditions, were the main factors behind this slowdown.

The German economy, Europe’s largest manufacturing industrial powerhouse and export-oriented economy, entered recession for the first time since the pandemic in 2020, although the contraction remained limited at 0.3% in 2023.

The IMF announced that it expected growth in the Eurozone to remain weak at 0.9% in 2024, below pre-pandemic levels, with a partial recovery. Likewise, the German economy is predicted to grow at a limited 0.5% in 2024.

Continued resilience for the US economy

A tight monetary policy was in place in the USA during 2023, with certain banks experiencing difficulties in first half of the year, along with a debt ceiling crisis. Despite these negative developments, the strong course of private consumption expenditures, the support of consumption, the continued tightness in the labor market and spending of savings accumulated by households during the pandemic enabled an acceleration in the US economy in 2023 when compared to 2022.

In this context, the US economy outperformed expectations, with 2.5% growth in 2023 following the 1.9% growth recorded in 2022. According to IMF forecasts, economic growth in the US is expected to reach 2.1% in 2024 - one of the highest rates among developed countries.

Global inflation continued to trend downward in developed and developing countries in 2023, despite remaining elevated.

Global central banks pause monetary tightening steps amid apparent slowdown in inflation

Global inflation continued to trend downward in developed and developing countries in 2023, despite remaining elevated. In particular, the gradual relaxation in core inflation indicators highlighted expectations that rates of inflation may remain high in the coming period.

Despite the downward trend in inflation due to the positive impact of a global loosening in energy and commodity prices, the strong course of the employment markets ensured that wage-related pressures remained significant, while the more limited slowdown in core inflation indicators increased the expectations that central banks would maintain their tight stance for a longer time to come.

With core inflation indicators (which exclude food and energy prices) remaining elevated, global inflation may stubbornly remain above the targets set out by central banks in the short term. In fact, rates of inflation in many countries are not expected to return to their target levels until 2025. In this context, central banks in many countries have guided that they will keep policy rates at levels that will maintain monetary tightness for the time being.

In addition, with many countries now approaching the peak of their monetary tightening cycles, expectations have turned to additional but more limited tightening. The significant improvement in inflation in developed countries in the last quarter of last year raised expectations among market players that global central banks would start reducing interest rates in 2024, and even potentially bring forward prospective rate cuts.

After hiking interest rates by a total of 100 basis points in the first three quarters of last year, the US Federal Reserve (Fed) left interest rates on hold in line with expectations in the last three meetings of last year, including meetings held in November and December, starting from the September meeting, thus signaling that the interest rate increase cycle had come to an end.

The Fed’s new interest rate path and macroeconomic projections, published in the year’s last meeting in December, predicted rate cuts totaling 75 basis points in 2024, 100 basis points in 2025 and 75 basis points in 2026, with the members of the Fed thus planning a total of 250 basis points in interest rate cuts over three years.

In addition, in his speech following the December meeting, Fed Chairman Jermone Powell stated that although it would take time for inflation to fall to the 2% target, the Fed was of the view that the policy rate was probably at or near the peak in the tightening cycle and, for the first time, declared that the timing of a prospective cut in interest rates in 2024 was under discussion, a serious indication for the markets. This raised expectations that the proposed cuts to interest rates could be brought forward, with a larger cumulative cut in total interest rates.

After raising interest rates by a total of 200 basis points in the first three quarters of last year, the European Central Bank (ECB) paused its interest rate hikes by leaving interest rates on hold in the October and December meetings, in line with expectations. In its December meeting, the ECB stated that it assessed current levels of interest rates to be at a level that would bring inflation closer to the 2% target if maintained for a long enough period, adding that the ECB would continue to follow a data-dependent approach.

The President of the ECB, Christine Lagarde, emphasized that the ECB had not yet discussed interest rate cuts and that interest rate cuts would depend on data, not time. In this context, the ECB pointed out that interest rates would be maintained at current restrictive levels for some time to come.

Monetary and fiscal easing implemented in China amid signs of a slowdown in economic activity

In China, the world’s second largest economy and the world’s largest developing economy, liquidity problems were experienced as a result of the slowdown in the global economy, weakening consumption demand in the country, the debt problems facing local governments and the ongoing debt woes in the real estate sector. The significant slowdown in the first half of the year due to the impact of these problems gave way to a recovery in the second half of the year amid monetary and fiscal loosening steps.

After having posted 3% growth in 2022, the country’s economy recovered in excess of expectations with growth of 5.2% in 2023, slightly outperforming the target of around 5% as set out by the Chinese government.

However, if the largest real estate sector companies in China suffer from liquidity and default problems and disruptions in debt repayments, it is estimated that the sector, which has a significant share in the country’s GDP, could remain under pressure for some time yet, with the economic recovery remaining fragile.

In 2023, the Turkish economy recorded 4.7% growth in the first 3 quarters, with the support of investment items, especially private and public consumption.

The Turkish Economy

The Turkish economy demonstrated a strong growth performance despite the slowing global economy in 2023.

In 2023, the Turkish economy was buffeted by a number of negative developments such as the slowdown in the global economy, a weakening in the main export markets and the devastating earthquakes which struck our country in February. Despite these challenges, the country recorded 4.7% growth in the first 3 quarters, with the support of investment items, especially private and public consumption.

With the rapid and effective measures implemented by the government during the year, economic activity maintained its momentum and the negative impact of the earthquakes on growth remained limited. In particular, a bumper season for tourism was an important factor supporting the increased growth, along with expansion in net exports and investments, which are sustainable components of growth.

The Turkish economy, which posted a vigorous 5.5% growth in 2022, is estimated to have grown by 4% in 2023, close to the target set out in the Medium Term Program (MTP).

Consumption contributed 10.5 percentage points to the economic growth of 4.7% in the first 3 quarters of 2023, with investments also positively contributing 2 percentage points to the growth, while net exports shaved 4.1 points off the growth and stocks also taking 3.8 percentage points off the rate of growth.

In terms of production, 1.9 points of the 4.7% growth was provided by the service sector, supported significantly by the tourism sector, while other items supporting growth were the finance sector (0.5 points) and the construction sector (0.3 points). The industrial sector’s contribution remained limited at 0.1 of a percentage point.

Tourist arrivals and receipts break records in 2023

Despite the slowdown in the global economy and increasing geopolitical risks, the number of tourists and tourism receipts reached record levels in 2023, with the support of a diversification in tourism activities as well in terms of the origin of the tourists on a country-basis, with the performance exceeding predictions.

According to figures released by the Ministry of Culture and Tourism, the number of foreign visitors arriving in our country in 2023 increased by 10.4% compared to the previous year, to reach a record level of 49.2 million arrivals, exceeding the previous record of 45.1 million arrivals in 2019, often referred to as the golden year in tourism.

According to statistics for tourism receipts published by TURKSTAT, tourism receipts increased by 16.9% in 2023, rising from USD 46.5 billion in 2022 to USD 54.3 billion in 2023.

A partial reduction in the current account deficit in 2023

Despite the surge in gold imports in 2023, there was a partial reduction in the current account deficit compared to the previous year, thanks to the decrease in energy imports in volume terms.

The main factors limiting the current account deficit were the rise in service revenues to record levels with the contribution of tourism and transportation revenues and the continuation of the positive course of exports despite difficult global conditions. The current account deficit narrowed from USD 49.1 billion in 2022 to USD 45.2 billion in 2023 – exceeding the USD 42.5 billion as set out for 2023 under the Medium Term Program.

With the exclusion of energy and gold, the current account surplus decreased from USD 50.4 billion in 2022 to USD 33.2 billion in 2023, while the current account deficit/GDP ratio improved from 5.4% at the end of 2022 to 4% by the end of 2023.

A significant jump in total employment, led by employment in the services sector and the construction sector

Total employment in Turkey recorded a significant increase, led by the services and construction sectors, and supported by a positive performance in the tourism sector.

The number of people in employment, which stands at record levels, indicates the position reached in the labor market. Accordingly, the rate of unemployment decreased by 1.1 percentage points from an average of 10.5% in 2022 to an average of 9.4% in 2023. This rate was below than the 10.1% figure set out by the Medium Term Program for the average rate of unemployment for 2023.

A year of increased spending, elevating the budget deficit/GDP ratio over its normal trend

A mandatory increase in public expenditures was carried out as the government sought to alleviate the negative impacts of the devastating earthquakes which struck in February 2023 in our country, and to take pre-emptive measures against future disasters. This increase in spending raised budget expenditures, and the budget deficit/GDP ratio reached a level higher than its normal trend.

In addition, with inflation exceeding the forecasts, there were significant increases in expenditures and income items in nominal terms. In order to meet the additional appropriation need, an additional budget of TL 1.1 trillion was implemented in July.

In a bid to fund these expenses, tax revenue items have were raised in a range of areas, effective from the second half of the year. In this context, the central government budget deficit increased from TL 654.6 billion in 2022 to TL 1.38 trillion in 2023 on an annual basis, with the budget deficit/GDP ratio increasing from 2.9% to 5.4%. According to these figures, the year 2023 was concluded with a budget deficit figure actually within the figure set out in the Medium Term Program, where a cumulative budget deficit of TL 1.63 trillion was projected.

The increase in expenditures in response to the earthquakes is not expected to lead to a structural deterioration in the budget, as they are one-off expenditures, or spread over a period of several years. Indeed, if earthquake expenditures for 2023 are excluded, the budget deficit / GDP ratio was a very low 1.7% - well within the Maastricht criteria and the Medium Term Program target, which serve as the basis for international comparisons, indicating the government’s determination to maintain fiscal discipline.

In the second quarter efforts were undertaken to strengthen financial stability through fiscal policy and structural reforms.

Steep producer price inflation and developments in pricing behavior behind broad-based inflationary pressures

In 2023, high levels of inflation were observed due to higher wages, movements in exchange rates, rising tax rates, food prices, sticky services inflation and a buoyant domestic demand environment. In addition, the high course of producer price inflation combined with developments in pricing behavior led to broad-based inflationary pressures. The annual rate of CPI inflation ended 2023 at 64.77%, in line with the target of 65% set out in the Medium Term Program.

The strong course of growth piled additional pressure on CPI inflation from the demand side. The normalization in supply-side global commodity prices as a result of the slowdown in the global economy served to limit the rise in inflation.

A gradual monetary tightening process initiated by the CBRT with a simplification in macroprudential regulations

With the charge in management of the economic authorities, effective and determined steps were taken in the second quarter of the year to tackle inflation, with efforts undertaken to strengthen financial stability through fiscal policy and structural reforms, in addition to the monetary policy tools.

In this context, the CBRT initiated the gradual monetary tightening process and simplified macroprudential regulations. In addition to the interest rate hikes, the CBRT, which took selective credit and quantitative tightening decisions to support the monetary tightening process, raised the policy rate by a total of 34 percentage points in the seven meetings between June 2023 and the end of the year.

In addition, with the effective steps taken by economic authorities, international credit rating agencies revised Turkey’s country credit rating outlook upward, paving the way for significant reductions in the country’s CDS risk premium.

As foreign investors heightened their interest in Turkish assets during this period, there was an increase in foreign capital inflows and the CBRT’s reserves began to expand.

A positive outlook

While the delayed impact of the monetary tightening process will be more apparent in 2024, continuing credit support in selective sectors such as exporting sectors and investments, as well as the hike in the minimum wage, will accelerate growth through domestic demand.

In addition, the tourism sector, with its supportive effect on growth, could well build on last year’s bumper season with record tourist arrivals and receipts. Following the strong tourism figures, the Ministry of Culture and Tourism emphasized that it targeted USD 60 billion in tourism receipts in 2024, with new records being broken.

Against a backdrop of a slowdown in global economic activity and weakening in our main export markets, downside risks to exports remain. On the other hand, the construction sector may increase its contribution to growth with the impact of comprehensive reconstruction and urban transformation activities initiated after last February’s earthquakes.

Thanks to the rebalancing process in the economy, the current account deficit/GDP ratio is envisaged to improve to 3.1% by the end of 2024 in the Medium Term Program. Within the scope of the government’s goal of achieving a balanced and sustainable structure for growth, it will direct resources to areas that generate the greatest added value in a manner that will support investment, production, exports and employment rather than consumption, thus helping to reduce the current account deficit to more moderate levels.

Tourism receipts are expected to have a decisive impact on limiting the current account deficit in the coming period. In addition, if the normalization in gold imports and decrease in energy imports continues, the improvement in the current account balance may become more evident.

In addition to the expectation of a slowdown in foreign demand in 2024, the more moderate course that domestic demand is expected to follow during the rebalancing process in the domestic economy and the hike in the minimum wage indicate the prospect of some softening in employment. However, the combination of the strong trend in service employment and potential reduction in the labor force participation rate could limit any rise in unemployment.

In 2024, the government is expected to direct substantial amounts of spending to alleviating the negative effects of the earthquake and reducing the risks of new disasters. Nevertheless, the budget deficit/GDP ratio is expected to be lower than the 6.4% level predicted for 2024 in the Medium Term Program, thanks to buoyant revenues and continued fiscal discipline in other public spending, excluding the spending on earthquake recovery.

The annual rate of CPI inflation is expected to peak at 70% in the first half of 2024, largely due to the low base effect. In the second half of the year, inflation is expected to subside significantly due to the positive base effect and the delayed effect of the monetary tightening steps. In this context, the annual rate of CPI inflation is expected to decline to 33% by the end of 2024 under the Medium Term Program.

In its first meeting in January 2024, the CBRT raised the policy rate by 250 basis points to 45%, in line with expectations. This took the cumulative rise in interest rates over the last eight meetings to 36.5 percentage points.

The CBRT did state that the level of monetary tightness to establish disinflation had been reached, and that this level would be maintained as long as necessary. In addition, the CBRT pointed out that monetary tightness would be reviewed in the event of any significant and permanent risks to the inflation outlook, and that additional tightening steps could be taken if needed.

CORPORATE AND COMMERCIAL BANKING

Offering a wide variety of products and services with an extensive distribution network, Ziraat Bank has achieved healthy growth in the Corporate and Commercial Banking business line with its strength in low-cost funding and liquidity advantages.

Financing provided with strong support packages

The devastating earthquake which struck 11 provinces, centered on Kahramanmaraş, on 6 February, 2023, dealt a tragic blow to the people and businesses of the region. Ziraat Bank implemented the KGF Support Packages within the Scope of the 6 February Earthquakes, with the support of the Treasury, in order to meet the investment or business financing needs of all SME and non-SME customers in the affected provinces. By the end of 2023, a total of TL 5.84 billion in loans had been disbursed.

The “Earthquake Support Loan”, introduced in February 2023, amounted to TL 12 billion, being offered to 170,000 individuals. Within the scope of the “Individual Support Packages” loan campaign launched for the earthquake region in the last quarter of the year, 633 loans worth a total of TL 69 million were extended.

Ziraat Bank designed the “2023 KGF Support Packages” with the support of the Treasury to meet the collateral support needs of all SME and non-SME customers within the scope of investment or working capital financing under preferential conditions. A total of TL 66.7 billion in loans had been disbursed within the scope of the 14 packages put into effect as of the end of 2023.

With the protocol signed between Ziraat Bank, KOSGEB and KGF, the second phase of the “SME Financing Support Package with Employment Commitment” was introduced, with a total of TL 653 million in loans extended within the scope of the package to finance the working capital of customers committed to creating and maintain employment in the provinces affected by migration.

The “KGF Support Loan-3 Package” was put into effect in order to meet the guarantee limit demands of SMEs and thus ensure the continuity of the support provided to SMEs. A total of TL 1.6 billion had been disbursed within the scope of the package as of the end of 2023.

Ziraat Bank offers the “Investment Support Package” for its customers requiring collateral support to meet their investment financing needs within the scope of the Investment Incentive Certificate (YTB) to ensure that their loan demands are met under favorable conditions. In this context, TL 214 million of loans had been extended as of the end of 2023.

Within the scope of the cooperation protocol signed between Ziraat Bank and the Turkish Exporters Assembly (TİM), the “Vade(SİZ) Export Credit Package” with appropriate maturity and interest rates, was introduced in order to ensure that exporters, one of the main powerhouses of our country’s economy, could maintain access to credit. In this context, a total of TL 30 billion in loans had been provided as of the end of 2023.

“The CBRT Investment Committed Advance Loan (YTAK)” was introduced to increase exports by providing export support, to contribute to localization by reducing imports, to generate foreign exchange-earning service revenues and to support investments with high added value within the scope of sustainable development goals. This product, which had only been used by non-SME companies, has continued to be offered. As of the end of 2023, a total of TL 28.9 billion in loans had been disbursed through this package.

Within the framework of the loan guarantee protocol signed between Ziraat Bank and the Export Promotion (HDI), the second “HDI Equity Guarantee Support Package” was offered to businesses which are exporters or have the potential to be exporters, and real/legal person businesses and sectors earning foreign exchange. A total of TL 1.9 billion in loans had been extended to 1,097 customers in this context as of the end of 2023.

Additionally, the “HDI 100th Anniversary Treasury Support Package” was introduced to help meet the financing needs of exporters. A total of TL 780 million in loans had been extended to 251 customers as of the end of 2023.

Investment and Operating Loans for Solar Power Plants, Roof-top Solar Power Plants and Licensed Solar Power Plants have also been added to the environmental investment products which Ziraat Bank finances in line with its sustainability policy. In this vein, a total of TL 16.6 billion in loans had been disbursed as of the end of 2023.

Loans for SMEs from International Financial Institutions

Since 2010, Ziraat Bank has been procuring sustainability-themed resources from various international financial institutions at preferential terms to be used in financing the working capital and investment loan needs of SMEs or larger companies.

With these funds, the Bank contributes to the protection and expansion of sustainable agriculture, energy efficiency, rural development and employment.

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 67 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

FINANCING OF THE AGRICULTURAL SECTOR

Ziraat Bank has played a key role in the development and modernization of agricultural production in our country with the support it has provided throughout its 160-year history in the field of agricultural banking, which it describes as a traditional business line.

Providing a financial contribution to the agricultural value chain

Maintaining its financial support for the agricultural sector, Ziraat Bank also develops effective projects within the scope of tackling climate change. In this vein, the Bank carries out various activities aimed at saving water, the use of renewable energy in agriculture, ensuring food supply security and facilitating access to finance in cooperation with relevant Ministries, institutions, organizations and agricultural organizations.

In these activities, priority is placed on facilitating direct access to finance for small-scale business owners, which constitute the most important link in the agricultural value chain, and to diversify loan products for this purpose.

Ziraat Bank’s target areas in the agricultural sector include;

• Increasing production, especially in closed environments, to ensure a sufficient and sustainable supply of agricultural products,
• Rolling out the contract production model to reduce producers’ agricultural input costs and the market risk of their products,
• Increasing the production of products that will reduce imports,
• bringing agricultural enterprises to an economic scale,
• to make use of idle business capacity,
• raising the agricultural mechanization level of enterprises,
• using technology to increase productivity in agriculture,
• carrying out investment projects that will create added value in agricultural production and meet the needs of our country, and investments and activities aimed at increasing the storage, processing, packaging and marketing capacities of agricultural enterprises’ own products, especially licensed warehousing and cold storage investments.

Loans transferred from Ziraat Bank resources to the agricultural sector

Ziraat Bank provided TL 378.5 billion in loans to its 1,057 thousand customers operating in the agricultural sector within the scope of the “Financing of the Agricultural Ecosystem” strategy, and the number of new customers added to the portfolio reached 229,000. The balance of these loans had reached TL 437 billion at the end of the year with approximately 1,207 thousand of customers having loans

31% of Ziraat Bank’s agricultural loan portfolio consists of investment loans while 69% of it consists of working capital loans.

On the other hand, the Bank also mediated in the payment of TL 194.2 million in loans from the funds provided by various institutions to a total of 588 individuals determined by the related institutions. As of the end of 2023, the balance of the fund-based loan payments included in this scope was TL 2.1 billion, and the number of customers was 71,000.

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 amounted to TL 439.1 billion as of the end of 2023, and the number of loan customers reached 1,278 thousand people.

Advantageous interest rates 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 agriculture sector at affordable interest rates within subsidized rates which are defined on the basis of production areas.

In 2023, TL 301.5 billion in subsidized loans, which carry preferential interest rates, were disbursed to around 969,000 producers and companies operating in the agricultural sector.

Financial model contribution to agricultural-based cooperation between industrialists and producers

Contracted Production

Within the framework of contracts entered into with 37 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 38,000 contract producers stood at approximately TL 2.024 billion at the end of 2023.

Producer Financing System

The Producer Financing System was introduced in the second half of 2020 in line with Ziraat Bank’s strategy of “Financing the Agricultural Ecosystem”. 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 Producer Financing System, approximately TL 4.5 billion of loans had been extended for the sale of agricultural products as of the end of 2023.

Crop production loans

In 2023, Ziraat Bank extended a total of TL 120 billion in crop production loans to 809,000 customers for vegetative production. As a result of this lending under various areas, the balance of loans disbursed for crop production had reached TL 126.1 billion as of the year-end, with the number of customers receiving credit reaching 762,000.

Livestock loans

In 2023, Ziraat Bank extended a total of TL 143.1 billion in livestock production loans under various names to a total of 317,000 customers. As of the end of 2023, the balance of loans disbursed for livestock production had reached TL 177.6 billion with the number of customers receiving credit reaching 379,000.

Aquaculture loans

During the same period, Ziraat Bank extended TL 2.8 billion in loans to nearly 2,000 customers in the field of aquaculture. As of the end of 2023, the balance of loans disbursed in this area reached TL 3.9 billion and the number of customers receiving such credit was 2,416.

Support for modern irrigation systems

Through the loans it extends, Ziraat Bank supports the widespread use of modern drip and sprinkler systems, which reduce the use of water by 30-40% in agricultural irrigation, the decrease in irrigation costs and increase productivity and profitability in agricultural production, and thus the effective and efficient use of our country’s water resources. The Bank offered “Modern Pressurized Irrigation Loans” to producers in order to expand the loan volume and customer portfolio in this area.

In 2023, Ziraat Bank extended a total of TL 6 billion of loans for modern pressurized irrigation systems to 14,000 individuals, and contributed to water saving.

Agricultural mechanization loans

Ziraat Bank disburses the tractor and agricultural mechanization loans in order to increase the mechanization level of agricultural businesses and to ensure high efficiency and profitability in production. TL 40.8 billion in tractor loans were extended to nearly 62,000 customers, along with TL 12.1 billion in agricultural mechanization financing loans to 77,000 customers in 2023.

As of the end of 2023, the Bank had nearly 195,000 customers using a total of TL 66.2 billion in tractor loans, and 170,000 customers using TL 18.4 billion in mechanization loans.

Limits for Small Equipment Loans, designed for the purchase of small agricultural tools and equipment needed by agricultural enterprises owned by real or legal persons to continue their activities in efficiency and profitability, were increased from TL 100,000 to TL 250,000 in this period. A total of 43,000 customers benefited from Small Equipment loans in 2023 with approximately TL 4 billion in loans extended in this context.

I Have Many Reasons to Live in My Village-Small Cattle Project

Ziraat Bank launched the “I Have Many Reasons to Live in My Village” project in the last quarter of 2020 in order to increase the number of small cattle (sheep and goats) and develop small cattle breeding.

The “I Have Many Reasons To Live In My Village” project had various aims including;

• increasing the scale of enterprises operating in the field of small cattle,
• bringing idle operating capacity into production,
• providing regional development with local sheep and goat 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.

Under the “I Have Many Reasons to Live in My Village” project, the Bank signed a protocol with four governorships in 2023. In this period, the credit limits that can be used within the scope of the project were increased from TL 150,000 to TL 250,000, and the period of benefiting from the project was extended until 31 December 2026.

At the end of 2023,

• The number of governorships with which the Bank signed a protocol increased to 40,
• The number of producers benefiting from the project increased to 8,169,
• The volume of loans disbursed within the scope of the project reached TL 1.3 billion,
• The number of animals purchased with these loans amounted to 772,000 livestock.

The “I Have Many Reasons to Live in My Village-Cattle” Project

Ziraat Bank introduced its “I Have Many Reasons to Live in My Village - Cattle Breeding” Project for producers operating in cattle dairy farming at the end of October 2022.

• The project set out with the following targets;
• to enlarge the scale of enterprises operating in cattle dairy farming with qualified animal breeds,
• diversification of financial solution alternatives for small businesses,
• bringing idle operating capacity into production,
• increasing demand for domestically-born female livestock, creating a market for the excess demand for female livestock on existing dairy farms, and supporting efforts to reduce imports of livestock.

Protocols continue to be signed between the central unions and head offices of agricultural producer organizations which will cooperate with Ziraat Bank in the project. As of the end of 2023, the number of producers benefiting from the project reached 732 and the loan amount disbursed reached TL 394.6 million.

Financing the Agricultural Ecosystem

Ziraat Bank offered the Young Farmer Loan, Women Farmer Loan, Gold Hive Loan, Solar Powered Agricultural Irrigation Loan, Producer Cooperative Loan and Agricultural Transfer Loan products in April 2022 within the scope of its new strategy in agricultural banking, “Financing the Agricultural Ecosystem”.

Young Farmer Loan

The Young Farmer Loan was established with the aim contribution to increasing agricultural production, ensuring sustainability in the agricultural sector, supporting and developing agricultural enterprise, creating alternative business lines for young people in our country and attracting young people to a career in agriculture.

Within the scope of the loan aimed at meeting the financing needs of real and legal persons who will engage in agricultural production activities, TL 1.8 billion in loans were extended to more than 5,000 producers in 2023.

Women Farmer Loan

The Woman Farmer Loan aims to support entrepreneurship among women farmers, increase levels of income, create alternative sources of income and contribute to the employment of the rural female population.

Within the scope of the Women Farmer Loan, which was established to meet the financing needs of real and legal persons who will engage in agricultural production activities, TL 696.3 million in loans were extended to more than 2,000 producers in 2023.

Gold Hive Loan

The Gold Hive Loan was established to increase production and quality by increasing the number of enterprises operating in this field in Turkey, which ranks first in the world in beekeeping, to develop employment in rural areas and to provide regional development by creating alternative sources of income.

Within the scope of the loan, Ziraat Bank extended TL 736.8 million of loans to more than 5,000 producers in 2023.

Solar Agricultural Irrigation Loan

The Solar Agricultural Irrigation Loan was established in order to expand the use of solar energy systems, reduce energy costs in agricultural production, increase efficiency and profitability and thus contribute to the effective and efficient use of renewable energy resources in our 1.9 billion in loans were extended to more than 2,000 producers within the scope of the loan in 2023.

Producer Cooperative Loan

Producer Cooperative Loan supports the transition from agricultural products to value-added products, developing a culture of doing business together, encouraging clustering in accordance with the product pattern, allocating long-term investment and business loans at preferential interest rates, supporting producers seeking to offer their products in the field or processed agricultural products directly to consumers - thus from the village to the city. The loan was established to contribute to agricultural employment in rural areas by reversing migration.

A total of TL 147.2 million in loans were extended to 36 producers in 2023 within the scope of this loan.

Agricultural Transfer Loan

In order to enable agricultural enterprises to continue their activities and increase their loan repayment power, under the Agricultural Transfer Loan, all agricultural debts which producers has with other banks are closed and transferred to Ziraat Bank.

Within the scope of this loan, TL 501.9 million in credit was extended to more than 2,000 producers in 2023.

Ziraat Bank’s other Initiatives in Agricultural Banking in 2023

• Within the scope of the Agricultural Electricity Credit, which was established to contribute to agricultural production by providing irrigation unions, irrigation cooperatives and real or legal person agricultural producers with the opportunity to regularly pay their accumulated and/or current electricity bills, TL 2 billion of loans were extended to more than 3,000 producers.
• The Cereal Support Advance was established in 2022 for producers of barley, wheat, rye, oats, triticale and paddy (cereals) to support them in their purchases of diesel and fertilizer. A total of TL 9.7 billion in loans were extended to nearly 558,000 producers within the scope of this loan.
• A loan of TL 361.9 million was extended to 418 fishermen within the scope of the Fisherman Support Loan, which was established to support the financing of operating expenses in the 2022-2023 fishing season.

Agricultural Ecosystem Meeting

The “Ziraat Bank Agricultural Ecosystem Meeting”, held on 6 May 2023 to mark World Farmers Day, was attended by the President, Recep Tayyip Erdoğan, Minister of Treasury and Finance, Dr. Nureddin Nebati, the Minister of Agriculture and Forestry, Prof. Dr. Vahit Kirişci, the General Manager of Ziraat Bank, Alpaslan Çakar, members of the Ziraat Bank Board of Directors and industrial stakeholders.

The meeting, which hosted more than 2,000 sectoral stakeholders, attracted significant media attention. The summit, which was covered by 16 television channels with live broadcasts and interviews, was also widely covered in the print and visual media.

During the summit, sessions were held under the title of “Young Farmers Speaking”, “Women Farmers Speaking” and “Co-Producers Speaking” where panelists shared the developments in agriculture with the participants.

The broad range of participants, coming from different cities and regions, proved beneficial in terms of the exchange of information and connecting businesses.

RETAIL BANKING

Serving a large individual audience spread throughout the country with its wide physical service network, the Bank also makes extensive use of alternative distribution channels to reach its customers.

Growth in personal loans

In 2023 Ziraat Bank continued to expand its share in the retail loans sector, which constitutes a significant part of its loan portfolio.

Ziraat Bank extended TL 16.1 billion in housing loans in 2023 through the products it offers within the scope of housing finance, and the Bank’s housing loan portfolio had reached TL 107.6 billion by the end of the year.

Extending TL 58.7 billion of consumer loans in 2023, Ziraat Bank’s consumer loan balance ended the year at TL 63 billion. The Bank also extended TL 9 billion in vehicle loans, increasing its total vehicle loan balance to TL 11.6 billion by the end of the year.

Within the scope of its focus on supporting green transformation and sustainability, Ziraat Bank extended TL 593 million to 1,806 people in Green Housing Loans and TL 58 million to 222 people in Green Vehicle Loans in 2023. The Bank also extended TL 30.2 million to 1,316 people in Housing Heat Insulation Loans, a product commissioned in 2022.

The Bank launched a special vehicle loan application for Togg, Turkey’s domestic and national motor vehicle, extending TL 1.6 billion of loans to 2,294 customers.

Within the scope of the “New Home” housing loan campaign launched in the first quarter of 2023, a total of 3,731 housing loans were extended with a total value of TL 7 billion.

A total of 9.7 billion TL was paid to 2.6 million pensioners within the scope of the new term promotion application for customers who chose to receive their pensions from Ziraat Bank.

Ziraat Bank offered the Definitive Payment product, launched in the second quarter of 2023 to its Corporate, Commercial and Individual customers, allowing customers to carry out their forward-term payments and collections under the Bank’s guarantee. The product had reached 25,190 orders with an order amount of TL 10.6 billion by the end of 2023.

Products that promotes savings

Ziraat Bank continues 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 1,980 customers with a balance of TL 47 million, while the Housing Account had 362 customers and a balance of TL 27 million as of the end of 2023.

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.

TL CURRENCY PROTECTED TIME DEPOSITS DATA FOR 2023

Within the scope of the Ministry of Treasury and Finance		Accounts Converted from FX		YUVAM Account		Fatsi (Exchange-Protected Account Converted from Physical Gold)
Number of Accounts	Balance (TL billion)	Number of Accounts	Balance (TL billion)	Number of Accounts	Balance (TL billion)	Number of Accounts	Balance (TL billion)
112,087	32.2	218,098	299.6	46,021	79.9	2,183	1.4

In order to meet the needs of customers who are sensitive to exchange rate movements, to protect customers concerned that their investments in Turkish Lira denominations from being adversely affected by exchange rate risk and to protect them from exchange rates volatility, the Bank offered the following products;

• TL Currency Protected Time Deposits
• FX Converted Currency Protected TL Time Deposits
• YUVAM TL Time Deposits
• Quarter Gold Coin Time Deposit Accounts
• Quarter Gold Coin Demand Deposit Accounts
• Fatsi (Exchange-Protected Account Converted from Physical Gold)

Ziraat Bank’s “Uninterrupted Term Deposit” product, launched in February 2023, provides customers with the convenience of withdrawing money when they need it, without loss of maturity, while seeing their savings grow. Real person customers may open the account in TL terms with maturities of between 32-364 days.

Insurance activities

Ziraat Bank’s commission income from insurance agency activities reached TL 3.51 billion as of 31 December, 2023.

Ziraat Bank carried out the following activities in the field of insurance in 2023:

• A number of insurance products including Motor insurance with rewards, Togg motor insurance and Ziraat SME-Moving Insurance were offered in the non-life insurance group.
• The Bank completed the screen developments for online transactions in Long-Term Life Insurance, a life insurance group product.
• By raising the coverage limits applied to life insurance, extensive life insurance was included in the coverage.
• Emergency Support Insurance, Goods Package Insurance and Cyber Protection products were offered to customers through the Internet Branch and Mobile Banking application.
• DASK completed the work to obtain information on the basis of address (UAVT), area, building style, usage type, block and parcel from the customer’s expertise report on the sales screens for the Housing Group and Fire Group insurance products.
• The Bank enabled life insurance documents to be obtained with digital approval for transactions conducted from the login screen for Credit Linked Life Insurance and cash or installment policy conversion transactions carried out through the Life Insurance Information Monitoring/Update screen, thus reducing processing times and costs.

Operational processes focused on efficiency

Within the scope of its operational activities, Ziraat Bank has successfully implemented a wide range of systemic improvements in order to offer its customers the best experience in all branches and digital channels.

In line with the goals of streamlined back office operations by simplifying screens and processes and increasing the efficiency of operational processes through the addition of new and user-friendly functions to business processes, around 260 million transactions were carried out through the Operations Center (OPİM) in the 2023 operating period.

The main improvement and development activities carried out by the OPİM in 2023 are listed below:

• After the integration between the power of attorney inquiry and the Notaries Union of Turkey (TNB), the integration was also completed for the “Signature Circular Inquiry” and “ Inheritance Certificate Inquiry” procedures. The name of the current “Power of Attorney Inquiry (MVTTVEKS)” screen was changed to “Notary Public Document Inquiry” and began to be used in branches. With the integration, it was possible to instantly query the signature circulars and inheritance certificates issued on or after 1 March 2016, and to check their accuracy by comparing information on the document with the information in the TNB system.
• Work was completed on the centralization carried out by the Ministry of Family and Social Services for Social Economic Support (SED) and Disabled Home Care and Foster Family payments, which are collected under three main headings and carried out through Ziraat Bank. By transferring aid payments, which had previously been carried out in a dispersed manner, onto a central structure, the operational transaction intensity and the risk of erroneous transactions by the branches involved in the payment process was minimized.
• Ziraat Bank contributed to the feature of enabling inquiry of Earthquake aid payments from the AFAD General Directorate through the Household Support Payment Result Inquiry Screen in the e-government application. With this new feature, inquiries can be carried out into new “Moving Assistance” payments through the Disaster Shelter Support Payment Result Inquiry Screen.
• Work on the “Credit Card Receivable Balance Refund” transactions through digital channels have been completed. Customers in the individual card group may not carry out these refund transactions through the Internet Branch and Mobile Banking channels using the steps “My Cards/Credit Cards/Transactions/Plus Balance Refund”.
• With the completed Clearing Cheque Project, innovations such as combining cheque transaction submissions on the job request entry screen under the “Cheque Transactions” menu, the addition of the payroll record finalization function to the cheque entry screen (TACTCKGR) and combining TL, FC and TRNC cheque entry/update/refund transactions performed on different screens under a single screen have been implemented for the convenience of customers. In addition, the speed and quality of reading MICR / QR Code information has been increased through the use of new technologies, with improvements made in business processes by introducing the front side of reverse scanned cheques.
• Work on including Card Financial Maintenance and Card Support requests into the workflow system has been completed. It is now possible to send transactions currently transmitted through e-mail by selecting the relevant transaction type on the “Job Request Entry” screen.
• The new ATM Expenditure Objection Application screen was designed and ATM objections such as withdrawals, deposit and expenditure were integrated into the batch system with Order Requests.
• As part of the work to include the Head Office’s accounting transactions into the workflow system, requests regarding stamp duty, company advance transactions and guarantee transactions, which are currently transmitted to the OPİM from the “Correspondence Transactions” screen, have started to be transmitted through the “OPCTITLP- Business Request Entry” screen.
• Within the scope of the Centralization of Expropriation Transactions Project, work on carrying out the operational processes related to transactions currently carried out in the branches within the OPİM have been completed and pilot implementation has got underway. Thus, processes have become standardized, reducing the operational intensity of the branches.
• The Bank aims to increase efficiency by directing transactions to lower-cost digital channels and managing the resulting density at an optimum level. Within the scope of the developmental work of OPI functions carried out in line with this goal, the integration of Foreign Exchange Transfer, Cash Import Transfer and Import Transfer Against Goods transaction types into the OPI has been completed. In addition, bulk EFT/Money Transfer transactions performed via SFTP may also be approved through the OPI.
• It is now possible to submit EFT/FAST refund orders through the Internet Branch and Mobile Banking channels.
• With the Order Payment System Activation & Distribution of Common Expenses Function, creditors may convey their demands to the debtor party.
• Data regarding the memorandum of understanding requested by auditors may be obtained from Reportal.
• The unblocking of transaction approvals was completed at the account branch without entering the mono branch.
• Branches may now enter future job requests.
• In regard to the change in Ziraat Bank’s Head Office address, necessary work was carried out on the printouts of foreclosure, deposit research and precaution transactions, and the new address information was displayed.

Effective cash management practices

Ziraat Bank intermediates in invoice and other payments with hundreds of contracted organizations, and offers its customers the ability to carry out their payments through ATMs, Internet Banking, Mobile Banking and Automatic Payment channels in addition to the branches. The Bank successfully continued its effective cash management activities in 2023. Within the scope of the Corporate Collection System, the Bank made 399 million collections making a total of TL 956 billion from contracted institutions in 2023. During the same period, the Bank had 32 million automatic payment orders for corporate payments.

In addition to these, 64 million Tax and Customs collections amounting to TL 1.7 trillion were performed. In 2023 the Bank continued to offer customized payments, magnetic cheques/notes, accounting integrations, pool accounts and cash collection services to meet the needs of its customers.

The Kolay Kasa product, a cash management service which enables stores, branches and dealers to deposit their cash generated during the day directly from Ziraat Bank ATMs to the company’s main account free of charge, both quickly and practically without the need for any intermediary, reached a total of 3,251 defined companies and 21,648 sub-companies with a total transaction volume of TL 1.5 billion.

The number of “Main Companies” with which agreements had been entered into in the Ziraat Bank Direct Debit System (DBS) had reached 2,158 by the end of 2023, with a total collection volume of TL 171.7 billion.

DIGITAL BANKING

Serving its customers with a diverse and extensive digital product portfolio, Ziraat Bank takes the customer experience to the next level with the effective use of digital channels.

Developments in infrastructure to improve the customer experience in the field of digital banking

Aiming to provide the best experience, starting from customer acquisition to meeting all customer needs, Ziraat Bank has placed the digital transformation, which it considers from a broad perspective, as the most important component of its widespread growth strategy.

As of January 2024, the number of active digital banking customers of Ziraat Bank, the bank with the most active digital banking customers in Turkey, increased by 13% compared to the same period last year, reaching 22 million people.

The ratio of financial transactions carried out outside the branch in total transactions stood at nearly 96% in 2023.

When scrutinized the digital channel usage ratios it is seen that the number of customers who only performed transactions on the internet and through Ziraat Mobile, and never carried out any transactions in the branch, stood at 13.5 million last year, while the number of customers who only carried out transactions on the internet and mobile channels, and through ATMs, but who never carried out any transactions at the branch was 16 million.

New investments that will increase technological competence

The BRSA provided the permit for the establishment of Ziraat Dinamik Banka A.Ş., being set up to provide digital branchless services in line with the Bank’s vision and strategies for the future. The process of obtaining the operational permit for Ziraat Dinamik Banka A.Ş., the first digital bank established under the ownership of a financial group in Turkey, is ongoing.

In order to expand its competencies in the field of payment systems and financial technology development agility, and to reach a wider customer base, Ziraat Bank established its new subsidiary, Ziraat Finansal Teknolojiler Ödeme Hizmetleri ve Elektronik Para A.Ş. (ZiraatPay), which received the go-ahead for its establishment from the CBRT. The approval process for ZiraatPay to become operational is ongoing.

The Ziraat Super Branch, which started to offer services at the beginning of 2023, had reached 750,000 customers by the end of the year.

Developments to take digital banking one step further

Some of the key activities carried out by Ziraat Bank in 2023 in order to widen product and service diversity in its digital channels and offer a wide set of transactions are listed below.

Industry leadership in card systems

As of the end of 2023, there were a total of 12.8 million Ziraat Bank credit cards in circulation, with a 10.9% share in terms of the number of credit cards and a 11.6% market share in terms of monthly turnover. The Bank is expected to maintain its leadership in this area in the medium and long term. Having increased its number of debit cards to 47.9 million in the same period, the Bank also maintained its leadership in the sector in terms of its market share of monthly shopping turnover, with a 22.8% share.

As of the end of 2023, there were a total of 1.25 million Ziraat Bank member businesses and 746,000 physical terminals. With a total turnover of TL 465.7 billion in member businesses in the fourth quarter of 2023, the Bank maintains its sector leadership with a 16.9% market share in turnover as of the end of 2023.

In the field of card payment systems, Ziraat Bank introduced a number of products and services in 2023 which were tailored to market conditions and setting the Bank apart in the sector by offering a wide array of new features.

Use of KGF Secured Loans through Credit Cards

The Bank established the infrastructure for the use of Credit Guarantee Fund-guaranteed loans through credit cards as well as debit cards in certain sectors, thus contributing to the use of loans in accordance with their intended purpose, the promotion of a cashless society and tackling the informal economy.

Digital Slip

In order to support sustainable banking, digital slips were produced instead of physical slips for transactions carried out using Ziraat Bank cards.

Bankkart Mobile POS

The Bankkart Mobile POS offers a fast and practical solution to member businesses by turning Android-based devices into payment terminals.

Payment by Link

Thanks to the link payment feature, member businesses may collect their payments easily and quickly by sending the payment link to their customers.

Data analytics projects which create added value 

Data Governance Processes Project

The System integration of Data Governance Processes has been achieved. The integration, carried out to comply with legal regulations and create a data-oriented corporate culture which derives value from data, is capable of reaching data-based decisions and places data at the heart of change. All processes may be monitored through the Data Governance Module.

Data Quality Project

The Data Quality Project, which Ziraat Bank carries out as a part of its data governance processes, aims to measure the quality of data in line with the quality dimensions determined in the Bank, to increase data quality and to correct data at the source in order to make decisions based on data.

Digital CRM

Within the scope of the digital analytics project, the following studies have been completed to create the Digital Customer concept, in line with industry trends and taking into account customers’ channel habits.

• Channel Value Segmentation,
• Demographic Segmentation,
• Channel Behavior Segmentation,
• Customer Channel Trending,
• Channel Migration Modelling

Customer Channel Abandonment (Churn) Tendency Modelling Channel Value Segmentation analyzes are directly used in determining the Super Branch target audience and the customer base for which a campaign offer has been made/will be made to switch to Super Branch.

Individual CRM

The following phases have been completed within the scope of the individual CRM project:

• Non-Bank Value Segmentation: Customers who do not appear to be of high value for the Bank but have a high working size in other banks were identified.
• Customer Behavior Segmentation: Customers are segmented on the basis of all of their behaviors such as product preferences, communication preferences and campaign trends.
• Product Trend Modelling: Products which customers are most likely to use were identified.
• Customer Channel Abandonment (Churn) Tendency Modelling: Customers with a high tendency to move away from the Bank’s products and the Bank were identified.
• Next Best Action modeling has been completed.

With these completed phases of the individual CRM project, it has become possible to offer the right suggestions to the right prospective customers through the right channel and at the right time, and to design customer-focused campaigns.

With the systemic improvements carried out in 2023, the Land Registry Reliable Account application can also be set up through the Ziraat Bank Internet Branch and Mobile Banking channels.

Robotic Processes

Ziraat Bank’s customer acquisition processes were supported by robotic process automation, and reporting activities were carried out more rapidly and in a manner that reduced the operational workforce.

Digitalization in credit operations

Ziraat Bank implemented the Land Registry Reliable Account application, which works in a structure integrated with the General Directorate of Land Registry and Cadastre (TKGM) for the simultaneous and safe exchange of the transfer fees in title deed transactions involving the transfer of real estate ownership rights, in all its branches in December 2021.

The application is aimed at the following;

• The transfer of real estate and the cash amount related to the transfer change hands simultaneously,
• The risk associated with carrying cash is eliminated,
• Protection is provided against money counterfeiting,
• It eliminates issues of trust between parties (payer/payee),
• It achieves ease of transfer at minimum cost and maximum speed.

With the systemic improvements carried out in 2023, the Land Registry Reliable Account application can also be set up through the Ziraat Bank Internet Branch and Mobile Banking channels.

In this context, the payer and payee apply to the Land Registry Directorate where the real estate is registered and apply for a Ziraat Land Registry Secure Account through the Bank’s Internet Branch or Mobile Banking application with the number they receive from the TKGM system, and the process is advanced after the transaction initiated by the payer is approved by the payee.

As of 25 December, 2023, a total of 94 Land Registry Reliable Account transactions had been carried out, 89 of which were through physical branch channels with five through the Internet Branch, and 83 of which were non-credit and 11 were with credit. The transactions amounted to approximately TL 179 million. The Deed Secure Account transaction volume is expected to grow in parallel with the expected increase in housing sales.

The “Credit Monitoring Module”, which was brought into operation within the scope of Credit Risk Monitoring activities in 2023, removed the need for messaging traffic of over 1 million e-mails per month.

Developing reports on Power BI and QlikSense platforms achieved savings both in terms of workload and time.

Going forward, the combination of Credit Risk Monitoring studies and data analytics applications, using the EUS model, warning forecasting and analysis methods are planned to prevent potential risks in high-risk areas and projects.

Targeting the best customer experience at the Call Center

Ziraat Bank’s call centers serve the Bank’s customers from different regions of our country, with the aim of contributing to regional employment in Anatolia with the vision of offering the best customer experience.

In 2023, Ziraat Bank maintained its efforts to widen the diversity of services offered by its Call Center, which carries out a wide set of transactions, and implemented a number of important improvements in this area. One of such measure was to initiate sales calls through the Call Center channel. The share of sales carried out through this channel was in line with the industry average.

INFORMATION SECURITY MANAGEMENT

Ziraat Bank carries out comprehensive activities to build a durable information security culture and environment, develop a cyber ecosystem and minimize possible risks in this field.

Integrated Information Technologies Risk Management structure

Information security activities at Ziraat Bank are carried out under the Audit Committee within the Board of Directors in the organizational structure. In this context, the Board of Directors is ultimately responsible for ensuring information security.

An Information Security Committee (ISC) has been established in the Bank to coordinate the work on information security within the framework of the Banking Law, the Articles of Association and other relevant legislation, as well as the policies and strategies determined by the Board of Directors. The duties and powers of this committee are determined by the Board of Directors.

The Information Security Committee is responsible for creating, approving and periodically updating information security policies and determining the duties and responsibilities in the area of information security. The committee also carries out reviews in the event of extraordinary situations, such as large-scale security incidents, the emergence of new vulnerabilities or critical infrastructure changes. All stakeholders within the organization carry out the implementation of strategic decisions taken by the Information Security Committee, in accordance with their areas of responsibility.

Ziraat Bank has established an integrated IT Risk Management structure in line with the information security strategies and policies which it has determined. The Bank deems IT Risk to be a major corporate risk component and an integral aspect of its banking operations.

In order to ensure business continuity and data integrity, Ziraat Bank attaches tremendous importance to activities on mitigating operational risks and manages IT-related operational risks in an integrated structure with its tech-based subsidiary.

Classifying information assets on the basis of their security value, the Bank determines security checks appropriate to the criticality of these assets, applies tests in connection with these checks and seeks to bring them to levels within the threshold value by applying continuous actions to mitigate the risks identified in the tests.

Within the scope of IT Risk Management, Ziraat Bank effectively manages IT risks by taking account of the Information and Communication Security Guide of the Presidential Digital Transformation Office, the Banking Regulation and Supervision Agency’s Regulation on Banks’ Information Systems and Electronic Banking Services, and other legal regulations and good practices.

Establishing a framework compatible with the Bank’s strategies for IT Risk Management, determining strategies and plans and regularly reviewing the related activities are carried out under the guidance of the Information Security Committee.

Within the Ziraat Finance Group, policies are developed, processes defined and an integrated risk management infrastructure project developed to create a standard risk culture in all foreign subsidiaries and branches and to ensure compliance in the risk management process.

Ziraat Bank has established risk measurement parameters and parabola risk indicators, taking international standards into account. In this context, systemic developments and frontends have been designed to continuously monitor any risks which are found to exceed the threshold value. It is thus possible to conduct root cause analysis of risks, control activities for risks, monitor risks with consolidated reports and take appropriate actions.

Within the framework of the policies determined by the Bank and the IT Risk Management it has created, risks related to the security of its employees are detected before they occur and the issue is approached with sensitivity.

All employees within the Ziraat Finance Group have responsibilities related to information security which are defined in all situations of starting, leaving, and changing duties. With the systems automated with the Identity Management Application, access authorizations are determined and an Identity Management policy is created by taking into account the principle of least authority and separation of duties.

Information Security Awareness Program

A comprehensive Information Security Awareness Program is offered to all employees in the Ziraat Finance Group. In this vein, bulletins are prepared every month and periodic surveys are prepared to assess the information security risk perception among employees.

In addition, internal drills are carried out using social engineering methods throughout the year in order to raise awareness of avoiding phishing attacks. The results of the exercise are reviewed with necessary training assignments put in place accordingly, with the aim of raising employee awareness in this area.

Face-to-face in-class information security training is organized, which is included in the orientation training employees undergo when they start working, and all personnel receive updated information security training assignments throughout the year.

All employees were assigned Information Security distance learning in 2023 with 47,543 hours of remote information security training provided to 25,541 employees in the bank and 6,371 hours of face-to-face information security training provided to 2,078 employees.

Sustainable security technologies that support business strategies

Ziraat Bank keeps its employees updated with the most modern practices and information regarding information security and data protection methods, which change with the widespread use of digital service channels and technological developments. In addition to the awareness activities provided to its employees, the Bank also carries out activities aimed at reducing information related risk arising from human factors for its customers, suppliers, business partners and the third parties from which it receives external service and support services.

In this respect, the Bank provides key information to customers regarding methods such as phishing, identity theft, malware and social engineering, which are frequently used by cyber attackers, as well as information on what customers can do to protect themselves against such attacks.

All assets that are of value to the Bank and used for the processing, storage, transmission, protection and continuity of the generated information are considered information assets. In line with the Regulation on Banks’ Information Systems and Electronic Banking Services published in 2020 by the BRSA, all information assets are classified and an Information Asset Inventory is created, and the confidentiality, integrity and accessibility values of the assets are determined.

At Ziraat Bank, customer data is processed and recorded in accordance with PDPL and other legal regulations. The Bank records and publishes the data it processes as data controller in VERBIS within the scope of the Regulation on Data Controllers Registry.

The identifying characteristics of each information asset at the Bank, such as its owner, custodian and location are recorded and appropriate protection methods are applied.

Additionally, rule sets for the use of information assets are established and procedures are carried out for their physical transfer and destruction.

A Cyber Security Center has been put in place at the Ziraat Finance Group. The Center examines the Bank’s systems and alarm mechanisms, scans for deficiencies and vulnerabilities, gathers intelligence against cyber threats and can intervene seven days a week, without interruption.

Network and client security products and devices (DDOS, IPS, EDR/EPP systems, NAC and WAF systems, Firewall, E-mail Security Products), DLP systems and Web/DNS security systems to prevent data leaks, all security logs monitoring and alarming SIEM systems, software code review systems, penetration test systems and vulnerability management systems that are available in the Center are operating actively without interruption to ensure the security of the applications used.

Additionally, the traffic density of network devices is constantly monitored, and access rule sets are created according to user profiles by using Proxy for internet access. Role-based authorizations are structured in line with the principle of separation of duties, and log records created on the systems are transferred to the SIEM system. An alarm is generated in transactions that violate the predetermined authorization scheme, and rapid action can be taken with the help of advanced systems.

Compliance with laws in creating information security infrastructure

Within the scope of compliance with national/international laws, regulations, regulatory board decisions and instructions affecting information security, Ziraat Bank established a legal infrastructure pertaining to each risk identified on information assets, in accordance with international standards. A procedure for intellectual property rights has also been drawn up.

Some of the nationally and globally accepted standards and models used in creating of Ziraat Bank’s compliance library are listed below:

• Banking Law No. 5411
• Regulation on Information Systems and Electronic Banking Services of Banks and various regulations published by the Banking Regulation and Supervision Agency.
• ISO 27001 Information Security Management Systems-Requirements Standard
• ISO 27005 Information Security Risk Management Standard
• Republic of Turkey Presidential Digital Transformation Office Information and Communication Security Guide
• PDPL (Personal Data Protection Law)
• COBIT (Control Objectives for Information and Related Technology) Standards
• NIST (US National Institute of Standards and Technology) Standards

While creating the information security policy of Ziraat Bank and all its subsidiaries and the legal documents supporting this policy, compliance with the regulations of regulatory and supervisory authorities is ensured. In addition, these regulations are being reviewed in parallel with digital transformation, technological progress and developments in business processes.

Ziraat Bank takes all necessary technical and administrative measures to securely store personal data, prevent unlawful processing and to destroy such data in accordance with the law. In line with the obligation of disclosure, which is a mandatory provision in the Personal Data Protection Implementation Principles and Procedures legislation, the Bank places attention on obtaining the necessary explicit consents, while providing necessary information in all channels.

In addition, both in-class and distance learning is provided in order to raise awareness of the protection of personal data, and all personnel are required to complete the training.

Within the scope of the BRSA’s Circular on Penetration Tests Regarding Information Systems, independent companies which do not have executive duties are subjected to a penetration test at least once a year within the body of Ziraat Finance Group.

These tests are aimed at detecting and correcting any security vulnerabilities in the Bank’s information systems that may leave the Bank vulnerable to unauthorized access or access to sensitive information before such weaknesses are exploited. The findings of the penetration test are presented to the Board of Directors and necessary action plans are undertaken.

Network Security Control Systems are established throughout the Ziraat Finance Group to protect against threats which may arise from both its own corporate network and external networks. Within the framework of the policies regarding the use of network resources, rules are determined regarding the use of USBs, and the sharing of files outside the Bank, database and application access and for non-standard application uploading, with rules also determined for employees of third-party companies who will work at the Bank locations, consultants, employees of independent auditors and external auditors. Standards for computers to be provided to individuals and their access are also determined.

The use of network resources is monitored with Data Leakage Prevention (DLP) Systems, preventing data leaks and creating trace records of transactions.

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

Security policies in line with international standards

Ziraat Bank implements policies which meet international standards for network access in the field of information security. Users are only given access to the network and network services for which they are authorized and are removed when the business need ends. Access authorizations are checked regularly. Private channels are used to share confidential or sensitive information by creating a password policy. Additional restrictions are applied in data processing by using techniques such as masking, blocking, tracking, encryption. Outsourcing of services such as information systems, which have the potential to compromise the confidentiality, integrity and accessibility of banking data and the continuity of banking services and which have access to or share banking data are defined as external services.

Ziraat Bank includes information security requirements in the specifications and contracts for service procurement in order to minimize supplier risks. Supplier companies are evaluated, confidentiality agreements are signed with companies and the obligations in the terms of the agreements are checked periodically.

Ziraat Bank has established a Cyber Incidents Response Team (SOME) in order to respond quickly, effectively and regularly to cyber incidents within the scope of information security breaches and management. Information security events and vulnerabilities related to information systems at the Bank are monitored and recorded through central monitoring mechanisms. Information security incidents action planning is managed in accordance with the rules determined within the framework of the Information Security Incident Management Plan with the aim of reducing security risks. This process involves the assigning of responsibilities for security incidents, taking measures in the fastest way and informing the units related to the incident, depending on the criticality and type of incident.

The information security checks and practices at Ziraat Bank, as well as the external audit company determined by legal regulations and separate directorates within the framework of internal control and inspection of information systems in the Internal Systems Group Directorate, which operates under the Board of Directors, continues to be reviewed periodically. In this context, information security checks are carried out on a regular basis with reported findings shared with the business units, actions are taken and are followed up until their resolution.

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

INTERNATIONAL BANKING

As the most wide-reaching Turkish bank worldwide, Ziraat Bank commands a strong and respected position in the international banking sphere with its strong correspondent relations and solid funding base.

Steadily growing foreign trade volume

Ziraat Bank’s correspondent banking network, which has been structured in order to meet the needs of its customers for foreign trade transactions and international payments, covers more than 1,700 correspondent banks in more than 140 countries.

Thanks to its successful foreign trade activities over the years, the Bank has succeeding in approximately quadrupling its foreign trade volume over the last decade, reaching a volume of USD 98.4 billion in this field by the end of 2023.

Ziraat Bank is able to offer its customers fast and more economical alternative solutions by drawing on the benefit of its extensive correspondent network in domestic and international foreign currency (FX) transfers, increasing the number and volume of FX transfers it mediates in every year.

Working on the basis of ensuring sustainable customer satisfaction in the field of foreign trade with its specialized staff, the Bank facilitates customer access to the wide range of financial products they need, such as foreign financing, letter of credit discount, bills of exchange and policy discounts.

Ziraat Bank works in close cooperation with correspondent banks and export credit institutions such as Hermes, SERV and SACE to meet the financing needs of its customers in their foreign trade transactions and provides medium and long-term country loans to its customers.

As one of the leading banks in the field of foreign trade, Ziraat Bank maintained its position as one of the most popular banks among customers in foreign trade and foreign exchange transfer transactions in 2023.

Customer-oriented foreign trade operations

Ziraat Bank’s share in Turkey’s foreign trade volume stood at 15.92% as of 31 December, 2023, an increase of 1 percentage point compared to the end of 2022 with an 11% increase in the volume of exports mediated in by the Bank. As of the end of the year, Ziraat Bank’s share in mediation in the country’s export volume stood at 21.27%.

FOREIGN TRADE VOLUMES

(USD billion)	2022	2023	Change (%)
Country Imports	364	362	-1
Ziraat Bank Imports	53	44	-17
Country Exports	254	256	1
Ziraat Bank Exports	49	54	11
Country Total	618	618	0
Ziraat Bank Total	102	98	-3
Foreign Trade Share (%)	16.49	15.92

Ziraat Bank mainly provided support to contracting companies and exporters in 2023, issuing 1,149 external letters of guarantee worth USD 3.9 billion and 303 letters of guarantee based on another bank’s counter-guarantee, worth USD 281 million.

Within the framework of the special limits granted to Ziraat Bank by the Central Bank of the Republic of Turkey (CBRT), a total of 2,088 CBRT discount loans worth approximately 25 billion TL were disbursed in 2023, with mediation in the exports of 1,473 companies. The Bank’s CBRT Rediscount Loan balance stood at approximately TL 25 billion at the end of 2023.

According to figures for the sector published by the BRSA and in Independent Audit Reports in 2023, Ziraat Bank commanded a 19.2% share in Turkey’s total letter of credit volume as of September 2023, with the Bank ranking first with a letter of credit balance of TL 91.1 billion.

The Foreign Trade menus of Ziraat Bank’s Internet Branch and Mobile Banking applications were used extensively by customers in 2023 with more than 200,000 transactions carried out on foreign currency transfers, cash and goods-for-goods import transfers, IBKB (Export Price Acceptance Certificate) regulation, IBKB monitoring, foreign trade files inquiry-monitoring, and tracking of transfers with Swift GPI throughout 2023.

These transactions not only reduced the intensity of transaction in branches by directing customers to non-branch channels, but also ensured high levels of customer satisfaction.

Ziraat Bank’s operational success in FX transfers in 2022 through its correspondent bank, Citibank N.A., and its error-free rate of 99.3% were deemed worthy of the Straight Through Processing Excellence Award in 2023.

The sector’s largest sustainability-themed syndicated loan

Having undertaken an important mission in Turkey’s sustainable development in line with its responsible banking approach, Ziraat Bank extended the largest sustainability-themed syndicated loan offered by any bank in our country in 2023.

With a total of USD 1.3 billion, consisting of USD 418 million and EUR 784 million, with a maturity of 367 days, the loan was the tenth borrowing transaction that the Bank has obtained from international markets through syndication. This loan, which had the participation of 52 banks from 25 countries, was Ziraat Bank’s second sustainability-themed syndicated loan.

The loans offered by the Bank with the aim of alleviating the effects of the earthquakes which struck country in February 2023 and which were provided within the scope of Earthquake Support Packages were found to meet the sustainability performance criteria (ESG KPI) of the syndicated loan.

Foreign financing provided through securitization

Ziraat Bank completed the establishment of the Remittance Flows Based Securitization Program (DPR) in 2023 and completed a total of USD 1 billion in issuances under the program with a 2-year grace period and a 5-year maturity.

The first series of issuances within the framework of the Program, designed based on international remittances including goods and services, exports, tourism, capital inflows and individual transfers in US dollar denominations, were carried out in conjunction with international investment banks. In addition, the Earthquake Support Packages prepared to alleviate the effects of the earthquake which struck in February were included within the scope of DPR and “social credit” themed borrowing transactions were carried out.

Strengthening its strong funding structure with new collaborations in 2023, Ziraat Bank continued to provide alternative resources such as bilateral loans and post-financing from correspondent banks, in addition to syndicated loans and the DPR Program. The Bank had obtained a total of USD 740 million in financing from alternative sources by the end of 2023.

Mindful of the gradual growth in the Ziraat Finance Group’s (ZFG) share in global foreign trade volume, the Bank includes the development of foreign trade between countries where the ZFG is active among its priorities.

Increased synergies with the Ziraat Finance Group

Increasing the effectiveness of the Bank’s foreign partnerships and branches in the countries where they operate and contributing to the development of commercial and economic relations between these countries and Turkey is a central and unwavering part of Ziraat Bank’s strategy.

Mindful of the gradual growth in the Ziraat Finance Group’s (ZFG) share in global foreign trade volume, the Bank includes the development of foreign trade between countries where the ZFG is active among its priorities.

Effective correspondent bank limit allocation model

The creditworthiness of domestic and foreign correspondent banks is updated periodically with analysis carried out, with limits allocated in favor of these institutions using the internal rating model.

Resource diversification in international capital markets

Ziraat Bank aims to diversify its sources of funding and provide cost-effective, long-term funding. In line with this goal, the Bank’s USD 7 billion GMTN (Global Medium-Term Notes) program was updated on 5 May 2023 for the purpose of borrowing from international capital markets.

Ziraat Bank issued USD 500 million worth of bonds with a maturity of 3.5 years in international markets on 1 February, 2023. In addition, the Bank continues to provide foreign resources through private placement issues within the GMTN (Global Medium Term Notes) program.

INTERNATIONAL BRANCH BANKING

Ziraat Bank continues to strive to provide universal and modern financial services to its customers abroad in the best and most profitable way and to strengthen its competitive advantage by widening its product diversity.

The global financial point of contact for its Customers

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 technology-focused and high-quality services to all stakeholders 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 be the global financial contact point for customers by enabling foreign buyers and sellers for customers in Turkey to become customers at the service points abroad,
• To create effective synergies within the framework of the “Ziraat Finance Group” approach.

“Ziraat Is Always with You Wherever You Are in the World”

Under the banner of “Ziraat is always with you, wherever you are in the world”, Ziraat Bank meticulously considers existing and potential business opportunities in all of the regions it serves from an integrated perspective. Boasting the widest international network of any Turkish bank, the Bank has proven itself in the international arena in all fields.

Ziraat Bank aims to be the strongest and most effective bank in the regions where it operates, as well as in Turkey. The Bank’s achievements in the field of foreign banking are summarized below.

The London Branch developed its product and service range in accordance with the dynamics and requirements of the London financial center with the aim of increasing its effectiveness in the fields of structured finance and foreign trade finance. Serving as an important point of contact in accessing international financial markets, the London Branch is thus able to maintain its leading and advantageous position in money market and treasury transactions.

In Greece, Ziraat Bank plays an active role in the development of trade with Turkey by focusing on banking services such as corporate banking and foreign trade financing, providing services from three branches in the country, in Athens, Komotini and Xanthi.

In Bulgaria, services are provided through five branches in Sofia, Plovdiv, Kardzhali, Varna and Burgas, under the Bank’s Bulgarian division. In 2023, Ziraat Bank continued to provide banking services and solution opportunities, such as corporate banking and foreign trade financing, to customers in the corporate and individual segments, through in-branch and external channels.

In Kosovo, services are provided in the corporate and individual segments with four branches operating in Pristina, Prizren, Peja and Ferizaj under the Bank’s Kosovan division. In 2023, Ziraat Bank continued to provide financial services and solutions to corporate and individual customers through the branches and digital channels.

In the Turkish Republic of Northern Cyprus, the Bank’s Cyprus Division offers corporate and individual banking products to its customers to Turkish standards from its 8 branches throughout the territory, and continues to provide a significant contribution to Northern Cyprus’s economic development.

In Iraq, the Baghdad and Erbil Branches provide support to the development of economic and commercial relations between Turkey and Iraq. Ziraat Bank’s branches in Iraq play an important role in meeting the letter of guarantee needs of companies operating in the country and remain the financial solution point for international companies, institutions and organizations, especially corporate customers based in Turkey and Iraq.

In Saudi Arabia, the Jeddah Branch is working to expand the branch’s range of products and services with the aim of meeting the banking needs of Turkish and Saudi corporate customers operating in the country, especially in respect to meeting the letter of guarantee needs of Turkish companies, and mediating and developing in trade between Turkey and Saudi Arabia.

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

Sustainability and Responsible Banking

Ziraat Bank continued to expand its financial support for direct investments carried out by entrepreneurs operating in London, Greece and Bulgaria.

Ziraat Bank played an important role in financing infrastructure investments in Kosovo, especially in transportation infrastructure and renewable energy resources, and continued to contribute to the financing needed for the development of the Kosovan economy.

In the Turkish Republic of Northern Cyprus, the Bank maintained its financial support for the development of the territory’s economy, especially in the education and tourism sectors, which are the two leading sectors of the North Cypriot economy.

With the mission of being an important financial solution and contact point of the Ziraat Finance Group in Iraq, the Baghdad Branch has played an active role in ensuring our country’s access to international energy resources, with a high level of efficiency and speed manner under favorable conditions.

In Saudi Arabia, the foreign trade taking place between the two countries continued to be supported by non-cash loans in addition to cash loans. The Jeddah Branch is actively involved in the financing of foreign trade between our country’s importers and Saudi Arabia’s leading petrochemical companies.

Digital Channels

With the awareness of the increasing importance of digital channels, Ziraat Bank focused on internet and mobile banking investments in its international branches in 2023. With the Internet Branch and Mobile Banking channels, customers were provided with online access to the Bank’s financial products globally.

ADVERTISING AND COMMUNICATION ACTIVITIES

Ziraat Bank frequently makes use of social media, national television and radio channels in its communication activities with all its stakeholders, especially its customers, in order to inform them of its activities.

The key advertising and communication activities carried out by Ziraat Bank in 2023 are listed below:

• Radio spots were prepared for Bankkart’s Motor Vehicle Tax campaign and Ziraat Mobile’s Remote Customer Becoming campaigns broadcast on radio channels. A desktop commercial was also prepared to inform customers about how to become a Remote Customer and was published in the How Do I section of the Bank’s website.
• A desktop commercial of the “Open Banking” application was prepared and presented to the public on national TV and radio channels and social media accounts.
• The activities of the Bank, which provided support from the very outset following the devastating earthquakes which struck our country and affected us all so deeply, were shared on social media accounts.
• Visuals were prepared for 8 March Women’s Day, 14 March Medicine Day and 22 March World Water Day and shared on social media accounts. In addition, the desktop commercial film prepared specifically to mark the Çanakkale Victory day on 18 March was published on social media accounts.
• The visual materials prepared for the promotion of Bankkart’s traditional Ramadan campaign and shared in various media were appreciated by the public. Additionally, a desktop commercial was prepared for the relevant campaign and announced to the public via national TV channels. A radio spot was also prepared for the campaign and shared on national radio channels. A Bankkart radio spot was prepared for Eid al-Adha and broadcast on national radio. Celebration images specially prepared for Eid al-Adha and the Ramadan Feast were shared on social media.
• Desktop commercials prepared for “Trade Route” products, which provide the opportunity to trade with member businesses through “Final Payment”, which secures commercial and individual payments under the guarantee of Ziraat Bank, were announced to the public on national TV channels and social media accounts. In addition, radio spots prepared for the products in question were broadcast on national radio channels.
• The “Farmer Support Credit” product offered to farmers engaged in agricultural production was made available to the public on social media accounts.
• The filming of the advertorial prepared for the promotion of the new agricultural loan products, the “Young Farmer Loan”, the “Women Farmer Loan” and “Solar Energy Irrigation Loan” were completed.
• Images were prepared for the promotion of the “Fisherman Support Loan” product, which aims to finance operating expenses for fishermen, and shared with the public through social media accounts.
• Visuals were prepared for “International Women Farmers Day” and shared on social media accounts.
• The advertorial, “Agriculture is at the heart of our lives”, under the banner of “We have been at the heart of the production and the agricultural ecosystem since day of our establishment”, and five informative commercials as a continuation of this advertorial, were announced to the public through the Bank’s social media accounts and national TV channels. In addition, radio spots prepared for the info films were broadcast on national radio channels.
• Desktop advertorials specially prepared for April 23 National Sovereignty and Children’s Day, Mother’s Day, the Day to mark the Commemoration of Atatürk and Youth and Sports, and Father’s Day were shared with the public through social media accounts. Additionally, a radio spot was prepared for Bankkart’s special Father’s Day campaign and broadcast on national radio channels.
• Visuals were prepared for May 14 Farmers’ Day and shared on social media channels.
• The desktop commercial film prepared specifically for the 19 May Youth and Sports Day was published on social media accounts.
• Visuals for 5 June World Environment Day and 17 June World Desertification and Drought Day were prepared and shared with the public on social media.
• Visuals promoting the “Super Branch”, which started offering services, were shared on social media accounts, and radio spots were broadcast on national radio channels.
• Commercials and visual adaptations for the “YUVAM Account” product were announced to the public through social media accounts. Additionally, prepared radio spots were presented to the public on national radio channels.
• Desktop commercials specially prepared to mark Democracy and National Unity Day on 15 July and Victory Day on 30 August were streamed on social media accounts.
• The visual explaining the “Title Deed Reliable Account” application designed for real estate buying and selling transactions was announced on social media accounts.
• The Vade(SİZ) Export Credit Package product, prepared for flexible-term Export Credit for companies that are members of the Exporters’ Association, was introduced to customers through social media accounts.
• The desktop film celebrating the new academic year was shared on social media accounts.
• The desktop film and visual prepared to promote the “Easy Safe” application were published on social media accounts.
• Static images prepared to mark 29 October Republic Day, World Disability Day and World Soil Day, and were shared on social media accounts.
• The commercial film, radio spot and visuals prepared to mark the 100th anniversary of our Republic and the 160th anniversary of our Bank, under the banner of “We stood by Republic when it was established, and have stood by our Republic as it has risen”, were published on social media accounts, national TV channels, radios and newspapers, gaining wide acclaim among the general public.
• The desktop commercial film prepared to mark the 10 November Commemoration of Atatürk Day, Teachers’ Day and New Year’s Greetings was presented to the public through social media accounts.
• The visuals prepared for the LEED Platinum certificate earned by the Istanbul Financial Center (IFM) Ziraat Towers Project, developed by Ziraat GYO, were shared on social media.
• The Z-Transformation portal, which offers solutions that will bring ease to peoples’ lives by contributing to the digital transformation of companies with a wide array of programs, was promoted through social media accounts.
• Within the scope of the Bank’s “I Have Many Reasons to Live in My Village” project, visuals prepared to announce the increase in the upper credit limit applicable for producers operating in the fields of cattle dairy farming and sheep farming was shared on social media accounts.
• The radio spot prepared for the Bankkart New Year Campaign and Ziraat Super Branch was shared on national radio channels.
• The opening of Istanbul Financial Center was announced to the public through social media accounts.
• The “More than a Bank for Sustainability” desktop commercial and static visuals, describing the Bank’s work and projects in the fields of sustainability and green transformation, were shared on social media accounts.
• Visuals describing the products “Special Transformation Package for Pharmacists”, “Special Vehicle Loan for Togg”, “Environmental Loan Products”, “Export Support Loan”, “Secure Payment System”, “Solar Energy Irrigation Loan” were shared on social media accounts.
• Visuals explaining the ease of use of “Ziraat Mobile” and “Bankkart Mobile” apps were presented to the public on social media accounts.
• The visual prepared for both the promotion of the “Turkish Lira Term Deposit Account” product and the savings day was shared on social media accounts.
• Desktop films reflecting the excitement of the 2023 “Ziraat Turkish Cup” matches and visuals congratulating the winning teams were published on national newspaper portals and social media accounts.
• Visuals prepared to support the Ziraat Bankkart volleyball team, which achieved great success in 2023, and to celebrate their success, were shared in national newspapers and social media accounts.

Other corporate communications activities

• Designed to be responsive and developed on the MS SharePoint infrastructure, the Bank’s corporate website provides easy access to Ziraat Bank’s services and functions. In 2023, new technological advances were integrated into the website and its functionality was improved.
• 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 customers.
• The opening ceremony for the new term at the Ziraat Bank Banking School was held in the historical Ziraat Bank building in Ulus, in Ankara, with the participation of the Minister of Treasury and Finance, Mehmet Şimşek, and other guests. The event was streamed on social media accounts.
• Within the framework of Intellectual and Industrial Property Rights, all kinds of application, objection and registration transactions carried out by Ziraat 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 html-based 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.
• The Bank participated in 14 Agricultural Fairs included in the 2023 fair list announced by the TOBB and four Career Fairs organized under the theme “Talent is all around” under the coordination of the Presidential Human Resources Office, contributing to the promotion of the Bank’s products and services.
• The Visual Identity Inspection work carried out in order to use the corporate identity in accordance with Ziraat Bank standards, to correctly perceive the Bank’s brand image in the eyes of customers, to integrate corporate identity standards into all relevant environments and to prevent erroneous applications was completed.

AWARDS RECEIVED IN 2023

• Lovemark; Turkey’s Most Popular Banking Brand for the 8th time in a row
• International Brilliance Awards 2022; Silver Award in the “Company of the Year which Best Uses Technology in Internal Communication” category with the Virtual Assistant, “Bilge”
• CX Awards; “Productive Project Award” in the “Best Digital Customer Experience-Bank” category in recognition of its “Remote Customer Acquisition” practice
• Fast Company; “Most Innovative Company” award with the “Data-Oriented Organizational Structure” project
• Global Banking & Finance Review; “Best Turkish Bank” award with “Digital Analytical CRM”
• ECHO Awards; First prize in the “Online Banking” category with the project carried out in cooperation with Marketing Türkiye and Akademetre Research and Strategic Planning
• Tech Brands Turkey; “The Most Technological Bank” and “The Most Technological Mobile Bank” awards
• Globee Business Awards; 2023 Golden Globee award for “Identification and Development of Analytical Opportunities Project” in the “Data Quality Solutions” category
• Globee Business Awards; GOLD GLOBEE® WINNER-Gold Award in the “Achievement in International Business” category
• Globee Business Awards; Bronze Award in the “Achievement in the Best Use of Technology” category for “Automatic Chargeback and Automatic Deposit into Account Project”

Brandverse Awards;

• Silver Award for Ziraat Bank in the “Banks” category
• Gold Award for Ziraat Participation in the “Participation Banks” category
• Golden Award with “Bankkart” in the “Credit Cards” category

TCMA Golden Bull Awards*;

• Ziraat Portföy Yönetimi A.Ş. - First prize in the categories of Investment Fund Portfolio Size Leader, Pension Investment Fund Portfolio Size Leader and Individual Portfolio Management Size Leader, and third prize in Investment Funds Return Leader category
• Ziraat Yatırım Menkul Değerler A.Ş. - First prize in Lease Certificate Issuance Intermediary Leader category
• Ziraat Gayrimenkul Yatırım Ortaklığı A.Ş. - Third prize in the “REIT Real Estate Investment Leader 2022” category
• (CTBUH); “Excellence in Construction” award for Ziraat Towers
• TEGEP (Turkey Education Development Platform Association); BEST award in the “Development Program Supporting the Participation and Development of Young People in Business Life” category
• Banking Tech Awards; Highly Commended Data Usage award
• ALFA Awards; “Consumer Brand of the Year” award for the second consecutive time with “Bankkart” in the credit card category

TITAN Business Awards; Business Technology Solutions - Operation Management Solution kategorisinde “Otomatik Chargeback ve Hesaba Toplu Yansıt Projesi” ile Platin Ödül

*The Golden Bull Awards aim to promote the development and awareness of the capital markets, and showcase success stories of sector professionals to the public.