2014 Annual Report
An Assessment of 2014: Strategies, Developments and Targets for the Future

Ziraat Bank maintained its title as the sector’s most profitable bank in 2014 with its net profit of TL 4,051 million.

In 2014, Ziraat Bank unwaveringly pressed ahead towards its meeting corporate goals which had been defined in its strategic road map.

TL 247.6 billion

Total assets (as end of 2014)


Increase in net profit


Increase in loans

Ziraat Bank, the leader of the Banking sector, continued to enhance its presence in the business lines which the Bank is focused on. The Bank created employment at an increasing rate and became a symbol of prestige and high value added in the eyes of all stakeholders.

Ziraat Bank determined its financial management strategy as follows:

  • Optimization of sectoral distribution regarding the corporate customer portfolio,
  • Managing credit quality proactively with more effective credit processes,
  • Ensuring effective operation and expense management,
  • Bringing the shareholders’ equity balance in line with the size of balance sheet.

Ziraat Bank studiously applied the strategies that it had set, and recorded successful results in the activity period.

Ziraat Bank enhanced its already strong, leading position thanks to its strong performance. Ziraat Bank’s 2014 financial results positioned the Bank as “a sustainable success model in all dimensions” and confirmed the accuracy of its strategies again.

Ziraat Bank’s recorded total assets of TL 247.6 billion as of the end of 2014. The Bank targets sustainable profitability, and maintained its title as the sector’s most profitable bank in 2014. The Bank’s net profit increased by 22% YoY to TL 4,051 million.

As of the end of 2014, Ziraat Bank’s total loans had increased by 28% YoY to TL 141.9 billion. The share of loans in assets stood at 57%, while its NPL ratio decreased to 1.9%.

Ziraat Bank maintained its leading position with respect to total deposits in 2014, with its total deposits increasing to TL 153.2 billion as deposit resources were spread to the base. The share of deposits in liabilities came in at 61.9%, while non-deposit resources, including funds, comprised a 22.8% share.

A growing domestic service network
Ziraat Bank provides services at almost every point in Turkey. The Bank is able to fulfill its customers’ banking needs from more than 400 points. Ziraat Bank expanded its widespread domestic branch networks through new service point purchases for its customers, opening 53 new branches in 2014.

Ziraat Bank’s domestic service network was comprised of 1,682 points at the end of 2014, broken down into 24 Corporate Branches, 80 Entrepreneurial Branches, 90 Entrepreneurial Dynamic Branches, 1,486 branches and two Mobile Vehicles. The number of Ziraat Bank’s ATMs increased by 12.89% to 6,043.

Small Enterprise Model (SEM) Evaluation Method put into practice
Ziraat Bank carried out a number of important activities and projects and put them into practice in 2014 to conduct effective risk management and speed up and ease the credit processes.

The Small Enterprise Model is one of these projects. This project was structured to meet the loan needs of micro enterprises in the entrepreneurial segment by quickly evaluating these demands through measuring their credit worthiness in a manner which is:

  • in line with the Bank’s corporate risk perception,
  • free of subjectivity,
  • done quickly and effectively.

The “Small Enterprise Model (SEM)” was developed within the Company Evaluation System (CES) which was designed with a modular structure in the Finart data processing system.

Corporate/Entrepreneurial Banking

Ziraat Bank has been playing an expanding role in Turkey’s long term improvement and development process, thanks to the Bank’s radical change and sustainable growth in recent years.

Ziraat Bank aims to diversify its resources and extend financing opportunities to its customers with the appropriate maturity and costs. Ziraat Bank is consistently expanding its product and service quality in line with the priority of “operating in line with the principles of profitability and efficiency”.

Ziraat Bank unstintingly continued to apply its strategies in 2014, unwaveringly applying its credit policies based on supporting the real sector. Ziraat Bank aims to ensure that the products and services offered in the Corporate/Entrepreneurial Banking to be in a competitive position in the sector. The Bank also aims these products and services to fulfill its customers’ needs exceedingly. The Bank maintained its activities for financing the real sector and expanding its customer portfolio in 2014.

A richness and diversity in banking products and services
Ziraat Bank continuously provides innovative products and services to its wide ranging customer mass which is comprised of large scaled, multinational and national firms as well as small and medium scaled enterprises, with the purposes of creating cheap financing opportunities and supporting Turkey’s economic growth.

Ziraat Bank serves its customers with a modern banking approach through a new service model that was rolled out in all branches and a working approach that is focused on the customer. The Bank is a solution partner in meeting all of the financial needs of its customers in the corporate and entrepreneurial segment.

Ziraat Bank’s most important competitive advantages in placement activities are its international brand power, its asset size, its shareholders’ equity structure and its widespread organization abroad.

Banking which cares about customers’ needs
Ziraat Bank supports the real sector in domestic and foreign projects without any sector limitation. The Bank places emphasis on offering cheaper and more appropriate maturities to help companies meet their working capital and investment loan needs.

Ziraat Bank supports a range of projects, especially those that will create add value for the Turkish economy and decrease dependence on foreign countries. The Bank is focused on financing the commercial segment in addition to agricultural production, agricultural industry and industrial production. Within this scope, the share of corporate/entrepreneurial customers in the customer composition is expected to be increased.

In 2014, Ziraat Bank completed pricing infrastructure for its Corporate/Entrepreneurial Banking products and services such that they could compete with the sector and reach a level which meets the needs of the Bank’s customers. The Bank carried out activities and training programs to simplify the product, system and legislative processes.

USD 300 million

World Bank-SMEs Access to Finance Project

EUR 100 million

14-year maturity IPARD loan to finance rural development projects

World Bank loans for SMEs and Larger Enterprises
World Bank loans are among the financial solutions and sources of support which create value for Ziraat Bank’s customers as these loans provide long term and low cost investment and operation financing opportunities with a flexible payment structure, including a grace period. The Bank continued to transfer these loans to customers in 2014.

Ziraat Bank signed an agreement with the World Bank amounting to USD 67 million in May 2013 to finance the investments in energy efficiency to be undertaken by SMEs’ and larger size enterprises. Ziraat Bank entered an agreement with a consulting firm to provide technical support to the Bank’s customers in energy efficiency investments with the grant resource provided from the
Global Energy Fund within the scope of this loan. This loan started to be utilized in 2014.

Within the scope of the SMEs Access to Finance Project which was signed with the World Bank in August 2013, the third long term resource amounting to USD 300 million was transferred to Ziraat Bank to be allocated to SMEs through leasing companies and banks that are eligible for leasing transactions. The first allocations of this resource to leasing companies started during 2014. As a result, SMEs received support in financing their investments through leasing, while leasing sector was also supported by medium and long term financing opportunities.

“My First Job, My First Bank” loan and “Young Enterprise” loan project, which supports newly established entrepreneurial firms and artisans who need guarantees and initial capital, had been completed by the end of 2014.

European Investment Bank Loans for SMEs and Bigger Size Enterprises
Ziraat Bank completed the transfer of whole resource amounting to EUR 100 million which was obtained by European Investment Bank (EIB) in 2012 for financing SMEs. By doing so, Ziraat Bank contributed SMEs to grow by increasing production, efficiency and employment. The Bank financed SMEs working capital needs and investments undertaken in Turkey to contribute to eliminating the discrepancies in development between regions.

A new EUR 200 million resource was approved for Ziraat Bank as a result of the success in the project. An agreement was signed for the first EUR 100 million part of this resource in September 2013. The transfer of this resource to SMEs and larger size enterprises was also completed in 2014. The second part of the resource, also amounting to EUR 100 million, was signed in July 2014. The Bank started to allocate this portion to finance SMEs and larger size enterprises in their investment and working capital needs.

Following these successful projects, Ziraat Bank singed the EUR 100 million, 14-year maturity IPARD loan with the EIB in September 2014. The loan is being used to finance rural development projects with the purpose of developing relations with the EIB in different areas. This loan will be utilized for projects which meet the conditions set out by the Agricultural and Rural Development Support Institution. This is the first IPARD loan provided by the EIB to a Turkish Bank and has the longest maturity among loans issued by the EIB to a Turkish bank. This resource will be utilized to micro enterprises, SMEs and larger size enterprises, with the aim of removing some of the difficulties experienced in accessing finance in urban areas.

“My First Job, My First Bank” loan and “Young Enterprise” loan, supported by the European Investment Fund Guarantee
This project was set up to create a guarantee for cash loans amounting to TL 300 million which was signed between European Investment Fund (EIF) and Ziraat Bank in 2011 in order to finance operations at attractive conditions without the worries related to additional guarantees. This project was successfully undertaken by the Bank and was increased to TL 1.3 billion in 2013 and TL 2.1 billion in 2014 within the framework of an additional agreement for TL 800 million. This project, which supports newly established entrepreneurial firms and artisans who need guarantees and initial capital, had been completed by the end of 2014.

SEP (Saudi Export Program) Loan
In 2014, Ziraat Bank successfully continued to allocate USD 50 million in resources which were obtained by the SEP in 2013 for the import of goods from Saudi Arabia. The Bank provided cheap financing opportunities with maturities of up to 3 years for customers who import goods, except crude oil, from Saudi Arabia.

German Development Bank (KfW) Loan
A loan agreement amounting to EUR 150 million with a maturity of 10 years was signed with the German Development Bank KfW in June 2014 to allocate loans to SMEs that are active in rural segment or agricultural value chain.

With this project, micro, small and medium size enterprises that are active in prioritized areas for development and other areas determined in the agreement will be provided with operation and investment loans. Accordingly, the Bank aims to contribute to leavening of the divergences in the level of development between regions and to provide medium and long term finance support to firms that are active in the agricultural value chain.

French Development Agency (AFD) Loan
Ziraat Bank aims to fulfill the financing needs of SMEs in animal food sector with EUR 100 million of resources with a maturity of 12 years which was signed with the French Development Agency in December 2014.

This project aims to provide financing to SMEs, which operate in the food sector’s segments related to animal food which is not in primary production, modernization projects for compliance with EU hygiene and environmental standards, as well as with law 5996 in force in Turkey. Ziraat Bank will help provide consumers access to healthier and more reliable food with this project.

Council of Europe Development Bank (COEDB) Loan
Ziraat Bank signed a EUR 100 million, 7 year maturity loan agreement with the Council of Europe Development Bank (COEDB) in December 2014. A EUR 50 million portion of this resource will be allocated through Ziraat Leasing. With this resource, the Bank will provide financing to micro, small and medium size enterprises with the aim of increasing their capabilities for creating employment and maintaining their current levels of employment. Moreover, the Bank will also undertake social projects and offer support to the leasing sector.

Ziraat Bank is consistently stepping up its cooperation with international institutions to offer the right financial solutions that create value to customers within the scope of the Bank’s customer oriented business model. The Bank maintains its services in this area by enriching its product range and helping its customers to gain a financial competitive advantage.

Retail loans, forming an important part of Ziraat Bank’s loan portfolio, continued to increase their sector share in 2014.

Retail Banking

Ziraat Bank conducts its retail banking activities through a wide distribution network including branches, ATMs, internet banking, mobile banking and the call center. The Bank aims to provide the most appropriate products and services to meet the requirements of various customer groups through the most accurate channels. Ziraat Bank remained the first choice of its customers with its innovative applications, competent personnel and widespread service network in 2014.

Ziraat Bank conducted customer oriented activities requirements and trends of different banking segments in the scope of retail banking structuring which was held within the year.

Highlights from the activities conducted in the Retail Banking segment in 2014 are mentioned below.

  • Full compliance with following was achieved: Law 6502 on the protection of the consumer and the BRSA’s Regulation for fees to be collected from financial consumers.
  • The paid Military Service Loan product package was offered to customers who will benefit from the paid military service application.
  • Housing loans grew by 36% YoY on the back of the regulations implemented in Project Housing Loan processes.
  • New contracts were signed for 24 new projects within the scope of Housing Projects. Products are started to be offered accordingly.
  • New flexible payment plans were brought into action in line with operational cycles for real persons who carry out agricultural activities. Special housing loan products were offered for farmers.
  • A loyalty program including various advantages was established for customers who receive their pensions from Ziraat Bank. Within this scope, discount campaigns were planned for retired customers by entering agreements with the Bank’s affiliates (Ziraat Hayat ve Emeklilik, Ziraat Sigorta and Ziraat Yatırım).
  • Continued rationalization activities for customers so they can receive services from the most appropriate branch, thus ensuring that the Bank provides the most effective service to customers and in order to increase customer satisfaction.
  • Continued customer segmentation activities within the framework of the Analytical Banking approach.
  • The Bank maintained its leading position in the Bancassurance generation in 2014. Ziraat Bank generated TL 1,621,334,389 of premiums related to loans and free insurance operations. Ziraat Bank recorded TL 203,463,259 of commission income.
  • The PPS (Private Pension System) campaign, providing free personal accident insurance cover, was organized for teachers in cooperation between the Bank and Ziraat Hayat ve Emeklilik A.Ş. between 5 November  2014 and 31 December 2014.
  • As a result of training programs organized in cooperation with Ziraat Hayat ve Emeklilik A.Ş., a total of 3,608 personnel had obtained the PPS Brokerage Licence by the end of 2014. These training programs will continue in 2015.
  • In 2014, a total of 55,520 units of PPS generation were carried out by branch personnel who hold the PPS license.
  • In pursuance with Article 29 and Article 38 of Law 6502 on the Protection of the Consumer, which was enacted on 28 May 2014, life insurance policies related to loans started to be classified according to declining balance method.


Retail loan allocation to 26,566 customers each week


Retail loan allocation to 5,396 customers each day


Retail loan allocation to 674 customers each hour

Development in the volume of retail loans
Retail loans form an important part of Ziraat Bank’s loan portfolio. Retail loans continued to increase their sector share in 2014. Ziraat Bank offers services to a wide mass of customers spread throughout the country. The Bank reaches its customers through electronic service channels as well as in the branches.

Ziraat Bank provided a total of 1,381,424 retail loans amounting to TL 20,020,184,619 in value in 2014, of which TL 6,246 million was allocated within housing finance while TL 13,961 million was within other retail loan products with payments in installments.

Within the year, the Bank allocated:

  • TL 385,003,550 to 26,566 customers each week,
  • TL 78,203,846 to 5,396 customers each day,
  • TL 9,775,480 to 674 customers each hour.

The allocation Center evaluated retail loan applications amounting to TL 6,305,900,353 to 225,248 customers in 2014. This corresponds to;

  • TL 121,267,314 to 4,332 customers each week,
  • TL 24,632,423 to 880 customers each day.

Ziraat Bank restructured 6,669 retail loan products amounting to TL 98,485,446 in 2014 through arranging a new payment schedule and/or extending the maturity to ensure that the loans are paid back without customers experiencing problems.

Products and services specific to entrepreneurial micro enterprises
Entrepreneurs who are defined as SMEs constitute the backbone of the Turkish economy and their shares in total employment, value added, investment, tax, exports and loans have reached important levels. SMEs have a dynamic structure, accounting for 78% of employment, 55% of value added, 50% of investment and 59% of exports. Micro enterprises are viewed as the driving force of the economy in Turkey as they are in the world. Cash loans allocated to micro enterprises from the banking sector increased by 22.79% YoY in 2014 to reach TL 333,283 billion. Ziraat Bank posted 32.58% YoY growth in the volume of loans extended to the micro and mass segments.

In view of the gradually increasing importance of SMEs in Turkey and in the world, the Ziraat Bank Entrepreneurial Micro Enterprise Marketing Department was established in the last quarter of 2014 to design and coordinate products and services specific to SMEs. Product and service standards are established within this scope. There is a target of offering professional approaches in Entrepreneurial-SME banking.

The Bank determines which product/product combination to which customer when and through which channel by modeling customer date with analytic customer relations management activities. Within this scope, the Bank carries out analytical works on the customers’ needs for financial markets. The Bank reached the final phase in spreading “Product/Service Packages” that were prepared for some certain sectors.

Within the scope of the KGF guarantee, resources amounting to TL 5 million were extended over a period of 2 days to customers in the scope of KÖY with “Micro Loans to PGS micro SMEs” product.

Through its “Foreign Currency loan without Commitment” product, Ziraat Bank aims to provide foreign currency loans to customers who may not be able to provide a commitment for exports but have foreign currency income from other sources such as rent.

Electronic service channels
Ziraat Bank offers an effective and qualified service to its customers through electronic service channels in addition to the branch network. The Bank recorded successful results in this area in 2014.

Credit Cards
The number of Ziraat Bank’s credit cards stood at 3,133,588 at the end of 2014, with the Bank commanding an annual market share of 2.99% in revenue terms.

The number of Ziraat Bank’s debit cards stood at 23,377,408 at the end of 2014. The Bank maintained its leading position in the sector with a 17.54% share in annual shopping revenues.

Ziraat Bank carries out activities aimed at reducing the workload of the branches by increasing and standardizing operating efficiency.


Member merchants

TL 11.3 billion

Annual member merchant revenues in 2014

TAF (Turkish Armed Forces) Smart Card Project
A total of 415 troops were included in the TAF e-Wallet project. As of the end of 2014;

  • The number of TAF Credit Cards was 49,014
  • The number of TAF Chip Debit Cards was 1,214,678
  • The number of TAF Temporary Cards was 978,537.

Youth Debit Card and Campus Card
As of 31 December 2014,

  • The number of the Youth Debit Card stood at 1,333,434
  • The number of Campus Cards was 214,908
  • The number of active saving customers was 429,693.

Member Merchants and POS
As of the end of 2014, Ziraat Bank had a total of;

  • 113,026 Member Merchants
  • 123,291 POS
  • TL 11,272,099,877 in annual member merchant revenues in 2014.

Measures to enhance operating efficiency
Ziraat Bank carries out activities aimed at reducing the workload of the branches by increasing and standardizing operating efficiency. Within this scope, the following measures were added to those undertaken in the Operations Center in 2014:

  • Entrance/update activities for credit agreements
  • EFT transfers that do not match
  • Sending notices and urgency notices regarding retail loans
  • Sending notes
  • Mortgage cancellation operations
  • Arbitration Committee for Consumers operations.

Export activities, import activities and security office activities were also integrated into the Operations Center business flow structure in order to reflect efficiency in business flow processes to other operations made in the Center.

In 2014, a total of 142,730,726 operations were made from the center. General centralization rate increased to 96%. The Operations Center operates according to the increased productivity method and it is the third cheapest service channel after the Internet Banking and ATM channels.

Customer Communication Center (CCC)
The “Customer Communication Center” was moved to Maltepe in Istanbul in September 2014 and its seating capacity was increased.

Within the framework of strategy providing “Accessible, Qualified, Efficient” service in the call center, call centers with a capacity for 150 workers were opened in Bolu and Çorum during September 2014. In doing so, the Bank created new job opportunities for young people and provided a significant contribution to the economies of these cities.

The following applications were launched at the call center in 2014:

  • Customers are addressed by their names when they call for information, having introduced themselves in the Voice Response System on the 444 00 00 number.
  • The customization of the Voice Response System, depending on each customer, is provided by anticipating the reasons customers may be calling the 444 00 00 number.
  • A different option was added to the Voice Response System for frequently received calls related to application results. Customers are made available to connect to a customer representative in a shorter period of time.

Within the scope of the “Receivable Collection and Monitoring System” project, the debt monitoring/collection of credit cards and loans were centralized. Within this framework, Ziraat Bank started to carry out customer oriented calls instead of product oriented calls. By doing so, operational burden that calling customers place on the branches was reduced.

Cash management solutions that increase customer effectiveness
Ziraat Bank offers qualified service and technology based products within the scope of cash management solutions for customers’ needs. These solutions allow improved effectiveness and efficiency for customers while also contributing to customer satisfaction and loyalty as well as the Bank’s profitability.

Through the Direct Lending System, whose effectiveness was improved with changes and innovations in product infrastructure, Ziraat Bank increased the number of firms included in the system during 2014. The Bank provides easy payment for its customers through ATM, Internet Banking, mobile banking and the automatic payment channels in addition to the branches. Moreover, the Bank also offers payment and electronic cheques/notes collection solutions that are specific to customers’ needs, integration of account activities, online transactions through the internet, pool account and cash collection.

Operational transactions at Ziraat Bank

Payment and Collections

20,696,910 payments amounting to a total of TL 2,423,119,882,869.27 were sent from the Bank to other banks.

The Bank received a total of 27,542,913 payments amounting to TL 2,778,995,938,405.58 from other banks.

Western Union
The Bank carried out 628,984 payment transactions amounting to USD 539,282,928.38 while it conducted 141,267 money sending transactions amounting to USD 88,990,785.03.

The Bank recorded commission income of USD 7,030,711.86.

Insolvent T. İmar Bankası T.A.Ş. Payments
Ziraat Bank transferred TL 1,941,737.58 to 133 persons while undertaking payments amounting to TL 2,735,957.92 to 231 persons within the scope of insolvent T. İmar Bankası T.A.Ş. payments between 1 January 2014 and 31 December 2014.

A total of TL 148,900.05 in TTH payments were carried out to 199 persons.

Ziraat Bank undertook KEY payments amounting to TL 6,640,834.25 to 28,429 persons. The Bank generated TL 66,407.90 in commissions from these payments.
A total of 697 sequestering operations took place for sequestering warrants received from enforcement offices. A total of TL 67,408.18 was sent to the enforcement offices.

Agricultural Support
A total of TL 8,617,037,635.62 of support payments were provided in 4,413,082 transactions. The Bank generated TL 17,234,203.15 in commissions.

The netting off of TL 1,131,001,453.81 in lost income from loans that were allocated by the Bank and The Central Union of Turkish Agricultural Credit Cooperatives within the scope of enactments was carried out.

Social Security
Ziraat Bank undertook income/salary payments of TL 62,816,656,176.61 to a total of 54,974,079 customers and EUR 318,413,358.4 to 790,503 customers as well as other payments of TL 4,145,581,401 in 6,577,160 units.

Que Call System
The installment of 1,301 units of a queuing call system had been provided to branches as of 31 December 2014 thanks to the new generation queue call systems that were purchased by the Bank.


  • Transferring Customer Signature Samples to a Computer System
  • A total of 1,677,052 customer signatures were transferred to the system between 1 January 2014 and 31 December 2014.
  • Transferring Customer ID Document to Computer System via Scanning 3,425,806 ID documents were scanned between 1 January 2014 and 31 December 2014.

Ziraat Bank has been the biggest financier of the agriculture sector throughout its long corporate history in Turkey. The Bank has continuously played a role in the development and modernization of agricultural production.

6,043 adet

Number of active ATMs

Ziraat Mobile

TL 27.8 billion

Loan to finance agriculture

Alternative Distribution Channels

In addition to its wide physical service network, Ziraat Bank extensively deploys alternative distribution channels in reaching larger customer masses.

In 2014, the Bank stepped up its work innovative applications that will ensure alternative distribution channels are as popular as the branch channel, and which will enhance the effective use of these channels.

The number of Ziraat Bank ATMs increased by 12.89% to 6,043, while the number of ATMs offering cash deposits had reached 3,706 as of the end of 2014.

Ziraat Bank completed template explanation additions such as rent and office rent to the internet branch application through ATM, SSI collection by credit cards, Ziraat Sigorta premium collection and money transfers through ATMs. Enabling customers whose money transfers was undertaken to transfer money deposit transactions and developments in the tuttur.com and nesine.com collections were completed.
The Turnkey ATM Installation application was introduced in order to follow ATM installation processes in a healthy manner.

The Regional Information System Application, which was designed within the framework of the ATM allocation criteria, was brought into use.

Bank ATMs are divided into segments and the SLA system started to be applied to intra-Bank units for ATM management.

The Ziraat Mobile application was launched for iOS and Android devices. Within the scope of the application, the following features were offered to customers:

  • The opportunity for quick and easy operation with user friendly interfaces and simple transaction steps,
  • A flexible structure that can be adjusted according to customer needs through a customizable home screen,
  • A set of transactions which was expanded and detailed according to customer needs.

The level of security standards was increased with Ziraat Approval technology that has been downloaded as an integrated with Ziraat Mobile application. Thanks to Ziraat Approval Technology that can be used in internet banking and the Ziraat Mobile platform, transactions may be carried out securely with only one PIN.

Developments for other devices besides iOS and Android devices are planned to get underway in the first quarter of 2015.

Financing Agriculture Sector

Applications focused on the development of the agriculture sector
Ziraat Bank has been the biggest financier of the agriculture sector throughout its long corporate history in Turkey. The Bank has continuously played a role in the development and modernization of agricultural production.

Ziraat Bank determines prioritized goals are to enhance both agricultural producers and the industrial agriculture sector, and to provide them with competitive power on a global scale. Ziraat Bank supports its customers with modern financial tools at all stages from agricultural production to final consumption.

Ziraat Bank provides its customers with financing models that will provide standardization in production, decrease costs, increase efficiency, raise sustainability and will generate value added by creating an organic link between small and medium size enterprises and industrial corporations.

Extending finance to support the production of high value added products
In line with Turkey’s agricultural policies, Ziraat Bank aims to maintain its financial support for the establishment and modernization of enterprises that are equipped with new technology and are of a scale which contributes to economies of scale. The Bank also aims to increase the share of high value added products in total production by diversifying its range of agricultural finance products.

The Bank will continue to diversify its products for this goal, to renew its current products in line with needs, to be the first application point for customers which are active in agriculture.

TL 27.8 billion loan to finance agriculture
Ziraat Bank’s loans for financing agriculture had reached TL 27.8 billion by the end of 2014.

Easy financing with Başakkart
Başakkart allows agricultural enterprises to obtain all agricultural inputs such as fuel oil, seeds, fertilizer, drugs, bait and veterinary medicine on credit basis with a maturity of up to 18 months and interest-free periods of up to 5 months.

The Başakkart has reduced the weight of financing in production processes.

Financial model support for cooperation between agriculture and industry
In 2014, Ziraat Bank signed a protocol with 18 companies that are active in the seeds, sugar beet and poultry sectors. The Bank provided the contracted producers of these companies with operational and investment loans with preferential terms.

Zero interest husbandry loans
Ziraat Bank offered zero interest husbandry loans to its customers in August 2010 to fulfill modernization and capacity increase needs of the current bovine, ovine and poultry breeding and fattening enterprises, and to support husbandry enterprises that will be newly established.

Within the scope of resource diversification and long term borrowing strategy, Ziraat Bank issued a USD 750 million Eurobond with a 5 year maturity on 30 June 2014.

Treasury Management and International Banking

Ziraat Bank works to a loan based growth strategy for assets within the scope of Treasury Management and International Banking. The Bank’s need for finance is fulfilled by considering the risk-reward balance, working especially to the principle of spreading deposits to the base but also ensuring other resources have a longer maturity than the deposits.

Ziraat Bank continues to provide its customers with deposit products that were diversified in line with the needs in order to contribute to the saving balance. In 2014, the Bank obtained cheap resources with long term maturities to finance the loans, provided mainly to the real sector. Ziraat Bank reduced its risks and successfully managed its costs by diversifying its resource structure and extending the maturity structure.

Ziraat Bank effectively carried out repo-reverse repo, swap, interbank deposit, loan products received and securities issuances to fulfill the required reserves and to satisfy or evaluate its liquidity needs or surpluses from the market within the framework of TL and foreign currency liquidity planning in the short and long term.

Ziraat Bank’s main asset management strategy was designed to increase the share of loans, especially those extended to the real sector, in the balance sheet and to reduce the share of securities. Ziraat Bank’s securities portfolio is managed by considering the risk-reward balance. While loans expanded within this framework, the Bank has been forming a more balanced asset structure.

The main liability strategy is based on diversification and deepening of non-deposit resources in addition to the expansion of the deposit base. Ziraat Bank carried out further TL bill and bond issuances within the framework of resource diversification and average maturity extension for funding. The Bank carried out borrowing activity amounting to TL 4.4 billion against TL 5.8 billion of redemptions in 2014.

The bills and bonds currently issued by Ziraat Bank in local markets, denominated in TL, amount to TL 1.6 billion, with issuances started in 2012.

Ziraat Bank obtained authorization from the Board of the Directors to carry out the following transactions:

  • Issuing bills and/or bonds amounting to TL 15 billion with various types and maturities in the domestic market,
  • Issuing bonds, bills or similar debt instruments of up to USD 4 billion or its equivalent in other foreign currency or in TL terms, which will be carried out in foreign countries through one or several issues,
  • Establishing a bond issue program.

Within the scope of resource diversification and long term borrowing strategy, Ziraat Bank issued a USD 750 million Eurobond with a 5 year maturity on 30 June 2014. The issue was priced with a coupon rate of 4.25% carrying a semi-annual coupon payment, a return rate of 4,341%, and a maturity date of 3 July 2019. The fact that the issue was five times oversubscribed, and at a low cost of debt when compared to the bonds of peer Turkish Banks traded in the secondary market, indicates the international markets’ trust in Ziraat Bank.

Moreover, within the framework of the GMTN (Global Medium Term Notes) program which enables issues in various currencies and maturities, Ziraat Bank obtained foreign resources in the form of “private placement” amounting to USD 430.5 million with an average maturity of 270 days and an interest rate of 1.48% through 30 transactions carried out in the last quarter of 2014.
In line with Ziraat Bank’s target of expanding its gold deposits, 1.5 tonnes of gold was brought into the banking sector through the Gold Time product, which transforms customers’ physical gold into a savings product. Ziraat Bank maintains its activities aimed at increasing Turkey’s savings with its diversified deposit products to meet the demands and needs of its customers. These include cumulative and loyal gold deposit accounts, as well as time gold deposits, drawing gold accounts and saving gold accounts.

Ziraat Bank is one of banks that are market markers for the Turkish Government Debt Securities market, which are determined by the Republic of Turkey Prime Ministry Undersecretaries of Treasury. The Bank successfully maintained its position of a market maker in 2014. In 2014, Ziraat Bank was ranked in 2nd place in the Borsa Istanbul Debt Securities Market in terms of transaction volume, while the Bank was ranked in 3rd place in 2013.

With the support of its widespread branch network and business model under the “Customer Relations Management” approach, Ziraat Bank’s FX transactions volume increased by 26% YoY in 2014. One of the Bank’s new products was “Option with Full Guarantee” transactions.

TL 4.4 billion

Borrowing by TL bill and bond issuances


Foreign resources obtained within the framework of the Global Medium Term Notes program amounting to USD 430.5 million.


Incease in FX transactions volume

Increase in total volume of mutual funds
Ziraat Bank’s investment funds, set up with the slogan of “a fund especially for you”, to effectively fulfill the needs of customers who have different risk-return profiles continued to grow in 2014. The mutual funds sector grew by 16.8% YoY in 2014, while the total volume of Ziraat Bank’s mutual funds increased by 76% YoY.
Growth of mutual fund sector in 2014 stands at 29.2% when private pension funds are also considered. Ziraat Finance Group, which includes Ziraat Yatırım Menkul Değerler and Ziraat Hayat ve Emeklilik, expanded the total size of their investment funds by 80.7% YoY.

Infrastructure for integration in the Turkey Electronic Fund Distribution Platform was completed to enable investors to gain access to the investments funds of other banks, brokerage houses, participation banks and asset management companies through accounts in Ziraat Bank. Customers of these institutions may also access Ziraat Bank’s funds through this integration.

The authorization required to provide portfolio custody service to collective investment institutions of all corporations, in addition to the Ziraat Finance Group, was obtained from the Capital Markets Board.

Syndication enhancing Ziraat Bank’s strong funding structure
Ziraat Bank diversifies and enhances its leadership position in deposits through funds that the Bank has obtained from international markets. Ziraat Bank aims to effectively support its customers in financing foreign trade with an expanded and diversified rate of financial products and services.

Ziraat Bank signed syndication loans amounting to USD 800 million, USD 211.5 million and EUR 430 million with a maturity of 1 year and cost of LIBOR + 90 bps and EURIBOR + 90 bps on 1 April 2014. A total of 39 banks from 21 countries participated in this transaction. The Bank of America Securities Limited was the coordinator of this syndication transaction.
This was Ziraat Bank’s second borrowing transaction from international markets under the syndication method.

Strong relationships in the international area
Ziraat Bank has established strong cooperation with international financial institutions on strong foundations. Ziraat Bank had correspondent relations with nearly 1,700 correspondent banks in almost 120 countries at the end of 2014. The Bank’s wide correspondent network is continuously changing and developing in line with the needs of customers as well as the conjuncture and trends in the world economy.

Ziraat Bank works in close cooperation with export insurance institutions, such as Hermes, Coface, Serv and Sace. The Bank signed a framework agreement with various correspondent banks for the intermediation of loans that Ziraat Bank will extend to its customers from export insurance institutions.

Ziraat Bank has medium and long term credit opportunities from banks such as US Exim, Taiwan Exim and the Islamic Development Bank within the scope of GSM program that was set up with the Commodity Credit Corporation of the US Department of Agriculture.

Global service points
With branches, representative offices and subsidiary banks in 85 locations in 16 countries, Ziraat Bank maintains its position as having the largest international service network of any Turkish bank.

The Bank’s global points of service continue to work with the mission of delivering a higher quality of service through launching new products and projects in the countries they are present in. Ziraat Bank’s global points of service are comprised of:

  • The New York Branch in the USA,
  • The London Branch in the UK,
  • The Tbilisi Branch, and Batumi Sub-Branch in Georgia,
  • The Sofia Branch, and the sub-branches in Plovdiv, Kardzhali and Varna in Bulgaria,
  • The Athens, Komotini, Xanthi and Rhodes branches in Greece,
  • The Baghdad and Erbil branches in Iraq,
  • The Jeddah Branch in Saudi Arabia,
  • The Lefkoşa, Girne, Gazimağusa, Güzelyurt, Gönyeli, Akdoğan, Near East University, Karaoğlanoğlu, Karakum and İskele branches in the Turkish Republic of Northern Cyprus,
  • as well as 7 foreign banking subsidiaries and 59 points of service.

In parallel with the Bank’s international banking strategy and vision, global service points continue to be restructured with the goal of increasing their effectiveness in the regions of operation, contributing to the development of trade and economic relationships between these countries and Turkey, playing an important role in the financing of external trade, commanding a high share in foreign trade, and providing fast, modern and high quality services to all customers, specifically to Turkish entrepreneurs and corporations.

In parallel with the Ziraat Bank’s international banking strategy and vision, global service points continue to increase their effectiveness in the regions of operation.


The Batumi Sub-Branch, reporting to the Tbilisi Branch, commenced operations.

15.46 hours

During 2014, with an average of 15.46 hours of training provided per employee.

Projects for effectiveness and expansion
Ziraat Bank continues its operations with the goal of being the strongest and most effective bank in Turkey and the region in coming periods by utilizing potential opportunities in all areas that the Bank has operations on the basis of dynamics shaped by developments in global and domestic markets. With this purpose, in drafting projections, Ziraat Bank always conducts studies and evaluations at every point especially in near regions which provide banking opportunities on the basis of their potential in developing commercial relations, in line with the goal of expanding operations in such regions.

Ziraat Bank continues feasibility activities in potential regions in addition to the establishment processes of two branches in Pristina and Prizren in Kosovo and a representative office in China.

In Bulgaria, within the scope of shifting to the Ziraat Customer Business Model, the Bulgaria Directorate started its operations offering services from one branch in Sofia and three sub-branches in Plovdiv, Kardzhali and Varna. The Bank plans to expand its area of operations by offering credit cards and POS products in addition to debit cards, ATMs and internet banking by maintaining the development in non-branch banking and alternative distribution channels which it has achieved recently.

In Greece, Ziraat Bank serves its customers through four branches in Athens, Komotini, Xanthi and Rhodes.

The TRNC Directorate in Northern Cyprus was established within the scope of shifting to the Ziraat Customer Business model in the TRNC, where the Banks has been active since 1974. Accordingly, sub-branches were transformed into branches. The TRNC Directorate maintains its operations with 10 branches, widening product range and enhancing its service quality in line with the trend of steady development. The Bank attracted significant interest in agricultural loans that started to be extended in 2011. Agricultural loan volumes reached TL 65 million as of the end of 2014. Total loans, on the hand, increased to TL 736 million. TRNC branches provide all kinds of services offered in Turkey. Ziraat’s branches are among the biggest and most profitable among those which have operations in the TRNC. The branches in the TRNC continue to significantly support the country’s economy.

In Georgia, the Tbilisi Branch has been in operation since 2001. In addition, the Batumi Sub-Branch, reporting to the Tbilisi Branch, entered operation on 11 March 2013, in the framework of the Bank’s strategy of boosting its presence in the region and expanding in the nearby geographical region. The Bank is in a steady growth trend and continues its operations with a customer and market oriented business model.

In Saudi Arabia, the Jeddah Branch started activities on 14 March 2011. The branch maintains its efforts to meet the needs of Turkish contracting companies for letters of guarantee, as well as meeting the banking needs of businessmen working in Saudi Arabia and Turkish citizens visiting Saudi Arabia for pilgrimages. The Bank also continues its development and expansion activities by expanding its range of products and services.

In Iraq, having entered service delivery in Baghdad in 2008 under extraordinary conditions, Ziraat Bank became the first Turkish bank to open a branch in Erbil on 14 February 2011. The Bank continued to mediate in the letters of guarantee requested by Turkish contracting companies operating in the region and in the money transfers of Turkish firms and workers at an increasing rate throughout 2014.

Human Resources

Ziraat Bank has adopted a modern Human Resources Management System which will realize the Bank’s mission in line with the principles of transparency, collaboration, efficiency and strategic vision. Ziraat Bank’s most important asset is its human resources, which set the Bank apart from the competition.

Ziraat Bank was serving the Turkish Banking sector with 23,617 personnel as of 31 December 2014 to fulfill the requirements of modern banking and international competition. The Bank’s main mission in the area of human resources is to be the bank which the sector’s best employees want to work for.

Ziraat Bank’s main principle in career paths is to raise managerial staff within the Bank. To this end, Ziraat Bank carries out career planning based on objective criteria considering equality of opportunity. The Bank sets out human resources policies which encourage the long term working life for the personnel.

In the recruitment processes, Ziraat Bank seeks to employ young and dynamic candidates who are able to use technological infrastructure, can work in a team and have strong communication and analytical thinking skills. Within this framework, 406 personnel joined the Ziraat Bank family in 2014.

Training Activities

Ziraat Bank organizes continuous training programs for its employees to reach the competences required by their positions.

Training programs under the following main headings were organized in 2014:

  • “Banking School and Orientation”, which helps newly-hired personnel become acquainted with the Bank and to adapt to its corporate culture, while also providing them with basic and essential knowledge and skills,
  • “Career Training” for personnel was given to provide the knowledge, skills and competence required for their positions,
  • “YÖNAP (Management Trainee Program) Training” to prepare personnel who work as managers in the authorized assignment position for branch management,
  • “Development Training” to fulfill the Bank’s need for training in line with its goals and strategies or increasing new product/service/legislation knowledge,
  • “Legal Obligation Training” to train employees of legislation,
  • “Licence/Certificate Training” with the purpose of preparation for national and international licence/certificate examinations.

A total of 14,719 employees received training during 2014, with an average of 15.46 hours of training provided per employee.

Other Activities
Ziraat Bank provided training opportunities to 970 vocational high school students and 20 university students as well as 2,080 university students through internships in 2014.

The “Welcome to Ziraat” book was prepared and distributed to introduce the Bank and Bank culture to newly recruited personnel and to provide them with information that will ease their tasks. Moreover, support for the design, content, print and distribution of Effective and Quick Look at Operations Hand Book and Applications, Principles and Methods for Company Analysis was given to related units.