2014 Annual Report
Moving Forward Together

In 2014, Ziraat Bank uninterruptedly carried out infrastructural and corporate development projects regarding the “Ziraat Customer Business Model”.

more efficiency in services

strong risk management

faster operations

With the perception that change is a never ending journey, Ziraat Bank keeps changing and moving forward together with its employees and customers…

In 2014, Ziraat Bank uninterruptedly carried out infrastructural and corporate development projects regarding the “Ziraat Customer Business Model” which was designed to fulfill the financial needs of its customers through the right channels, at the right time, and with the right value propositions.

Ziraat Bank maintains its efforts to take its hard won gains through its transformation journey starting in 2012 to the future, and complete its global transformation projects. The aim of the transformation project is to bring the Ziraat Finance Group to the future in three main areas: Corporate Banking, Branch Banking and International Banking. Under this approach, the Bank has passionately continued to work and create value within the scope of the 2014 Strategic Road Map which was established to help the Bank reach its strategic goals, and is followed by the Strategic Guide Committee.

1. Customer Relationship Management: “A sustainable relationship with customers”

Ziraat Bank effected improvement/ progress in all channels through which the Bank contacted customers throughout 2014, towards its aim of establishing a sustainable relationship with its customers.

In line with the goal of providing effective banking services to customers through all channels, Ziraat Bank unwaveringly pressed ahead in its projects to provide an effective service to customers in the Bank’s branch and non-branch channels with “channel optimization” activities.

Within this scope, the following activities were carried out:

  • The internet branch, which serves corporate customers, was renewed while the mobile banking application was developed.
  • The Avans Bankkart (Advance Bankcard) feature was brought to Ziraat Bank’s debit cards. This feature allows payment delay for all shopping in Turkey, abroad and online without charging any interest and without any workplace or amount limits. As of December 2014, the Combo Kart, which is both credit and debit card, was offered to the Bank’s young customers.
  • The Quick Başakkart product was launched to provide Başak cards to customers more rapidly.
  • The Retail Internet Banking application was updated and the range of transactions was enhanced. The feature of confirming transactions without the need to enter a password was enabled under the mobile banking application.
  • Efforts continued on adapting the mobile banking application to tablet devices and to enhance the range of transactions available. Ziraat Mobile ATMs were also launched in 2014.
  • Marketing and sales functions were separated. Accordingly, the Head Office and Regional organizational structure were revised. Data analytics and monitor design efforts continue for the branches in order to better understand customers and provide appropriate services to them.
  • With The Barrier-Free Banking project, design activities in the branches and non-branch channels were completed, improving disabled customers’ access to financial services. Pilot activities continue in this area.
  • Integration activities for the Bank’s and Ziraat Hayat Emeklilik’s IT systems were completed within the scope of Ziraat Finance Group’s efforts to meet customers’ financial needs through all of the Bank’s financial partners.
  • The Board of Directors approved the Sustainability Policy which includes Ziraat Bank’s sustainability vision, goals, approach and structuring as well as the Bank’s dialogue with its stakeholders and its stance on the environment, society and its products and services. The sustainability report, which was the Bank’s first sustainability report, received a grade A+ by the GRI.
  • Ziraat Bank continued to establish more contact points for customers by expanding its branch network in 2014. Within this scope, 53 new branches were opened in 2014, with a total of 1,682 branches by the end of the year including 24 Corporate branches, 80 Entrepreneurial branches, 90 Entrepreneurial Dynamic branches, 1,486 bank branches and 2 mobile branches.

2. Corporate Business Processes: “Correct and fast credit evaluation, effective risk monitoring and efficient processes”

Ziraat Bank continued its development activities for current credit evaluation modules during 2014, with the purpose of improving credit evaluation ability and credit processes with the aim of rapid loan allocation and correct analysis. In line with Branch Banking strategy, the Small Enterprise Module was added to credit evaluation modules and was put into practice in October.

Credit monitoring and follow-up systems were developed for the effective monitoring and collection of credits. Within this scope, additional applications became effective for customers who are under non-performing and close monitoring classifications. In addition, development activities for report/warning monitors were continued for monitoring collection and the delay status of the loan portfolio.

Integration with the systems of corporations which have operations with Ziraat Bank is another important issue. Within this scope, integration work with the General Directorate of Land Registry and Cadastre was completed, including customers’ land registration information in the Bank’s system. Integration with UYAP was also completed, thus ensuring effective management of the Bank’s legal processes.

As part of the process management activities conducted to determine the Bank’s processes on an end to end basis and to detect areas for improvement, training for process management methodology and software was transferred to the process-owner business units and process modeling activities were conducted. The “Ziraat Finance Group Quality Policy” will be based on the parameters of providing continuous development, systematically measuring the performance of the processes, carrying out process improvement activities in line with the Bank’s strategic priorities and budget targets, and providing the same quality level of service not just for the Bank but also to its all partnerships.

The aim of the transformation project is to bring the Ziraat Finance Group to the future in three main areas: Corporate Banking, Branch Banking and International Banking.

3. Operational Excellence: “Rapid operations”

In 2014, Ziraat Bank continued its activities to transfer improvement and processes to the center; these activities are carried out to ease the operational workload on the branches, thus leaving the branches with time to concentrate on their customers and create appropriate value propositions for customers by appropriately determining their financial needs.

A proportion of the credit operations that had been carried in the branches and activities within the scope of Arbitration Committee for Consumers defence and decision papers were transferred to the head office.

Work on a system for the delivery of notices/warnings from the center approached completion and the system will be active in the first quarter of 2015. A pilot project for carrying out activities related to cancellation letters for Mortgages and sequestrations from the center continues. This will be made available for all branches in 2015.
Money counting machines were renewed and the number of multi-functional printers was increased with the purpose of speeding up operational processes in the branches.

The e-fax project, which was initiated to record sent and received faxes and cut paper waste, was completed and put into practice.

Ziraat Bank continues to establish operational efficiency by providing automation in activities carried out by the units in the branches, regions and headquarters which will leave the operational labor force free to carry out customer oriented operations. As a result of these activities between 2012 and 2014, 3,220 of the Bank’s employees could instead focus on areas which can create value-added.

customer focused

a bank which employees are proud to work in

4. Objective and Transparent HR: “A bank which employees are proud to work in”

Ziraat Bank continued efforts to expand the scope of its performance management system, including units at the head office. The system aims to enhance the customer based business model, develop a marketing and effectiveness oriented work approach, enhance employee loyalty by motivating them and rewarding individual achievements in line with corporate goals.

The Bank maintains activities to develop its e-training and mobile training programs, aimed at spreading information to a large audience, cheaply and quickly. The method aims to ensure that employees have access to information at any time.

The Management Trainee Program was initiated to fulfill the Bank’s need for managers. The managers of the future are trained through courses provided within the scope of this program.

An employee suggestion system was launched in order to involve employees in the decision making mechanism. Suggestions received through the employee suggestions system have been evaluated by related units simultaneously and are put into practice. Within this scope, 7,205 suggestions were transmitted to the system in 2014. Required actions were taken for the approved suggestions.

The Competence Evaluation System was introduced in 2014 in order to integrate employees’ competences in their performance score in addition evaluating their goal-based performance. This system is planned to be brought into practice in the second quarter of 2015.

right use of IT

quality balance sheet size

5. Effective IT: “Uninterrupted IT services”
IT infrastructure and IT transformation activities, which started to effectively deploy technology to conduct all operations without interruption and evaluate cost advantages, continue. The Bank also started activities to renew the data center in 2014.

The basic banking system screen infrastructure and document management system were renewed and enabled to ensure more effective working. Ziraat Bank unwaveringly continues to carry out activities for monitoring simplification and information security.

6. Sound Balance Sheet: “Qualified magnitude with a customer based balance sheet”
The principle of balance sheet management in line with shareholders’ equity was an important guide in strategic decisions in 2014.

Within the scope of activities to expand resource diversity, Ziraat Bank’s syndication loan was renewed while the Bank continued to issue bills and bonds.

Ziraat Bank issued its first Eurobond in 2014. The Bank secured USD 750 million from international capital markets for its Eurobond issue, with a 5 year maturity.

Ziraat Bank completed a significant proportion of its work on the establishment of a corporate expense management module in order to boost the effectiveness of expense and inventory management, as well as for seeking cost advantages. This module will enter effect in January 2015.