2014 Annual Report
Summary Report – Board of Directors

Ziraat Bank enhanced its organizational infrastructure through the transformation process that started in 2012. The Bank continued to lead the banking sector in 2014 with Ziraat Customer Business Model projects and continued to provide strategic solutions to international markets, domestic markets and customers with its deeply rooted experience and more than 150 years of experience. The principle of balance sheet management in line with equity was an important guide in 2014. In 2014, long term and low cost resources were obtained to finance credits allocated mainly to the real sector. By doing so, the Bank decreased the risk by diversifying its resources and extending maturity structure. In addition, Ziraat Bank also carried out cost management by this way.

For improving credit evaluation capability, Ziraat Bank continued its efforts to improve credit processes for current credit evaluation modules to accurately analyze and allocate credit rapidly in 2014. In line with the Branch Banking strategy, the Small Enterprise Module was added to the credit evaluation modules and it started to be active in October.

Efforts to decrease branches’ operational work-load continued in 2014. The Bank aims to create appropriate value propositions to customers, identifying their needs in a more effective way by ensuring customers have more qualified time in branches by decreasing the operational workload of the branches.

Within the framework of the strategy of being a bank that supports real sector under all circumstances, Ziraat Bank has increased the share of loans in assets and fulfills the requirements of customer based balance sheet. In 2014, total loan amount increased by 28% to TL 141.9 billion by stimulating the country’s producing power within the scope of bank strategy. Share of loans in assets increased from 54% to 57%.

The Bank’s total assets increased by 19.3% YoY to TL 247.6 billion in 2014. The securities portfolio stood at TL 64.5 billion and its share in assets decreased to 26%.

Ziraat Bank increased its deposits to TL 153.2 billion after expanding deposits to the base in 2014. Total deposits maintained their weight in Ziraat Bank’s liabilities. In addition to deposits that are expanded to base, Ziraat Bank attached importance to non-deposit resources. The Bank achieved important progress in credits received from international institutions and banks, post-finance loans, bank bond issuances.

Ziraat Bank continued its efforts to provide a service that sets itself apart in the branches and non-branch channels through “channel optimization” efforts in line with the Bank’s goal of providing effective banking service to customers via all channels. Additionally, Ziraat Bank also supported its customers in 2014 with financial solutions that have long/term maturities, grace periods, flexible repayment schedules and low costs.

Ziraat Bank’s main mission is to support the agricultural sector. The Bank aims to be its customers’ main and effective bank in all phases of agricultural production. The Bank also aims to support industrial agriculture by considering all links in the agricultural value chain as a combined in financing agriculture. Ziraat Bank diversified its product range in 2014 in line with this aim. The Bank also renewed current products in line with customers’ needs.

As of the end of 2014, Ziraat Bank’s equity stood at TL 28.5 billion with an 11.5% share in total liabilities. The Bank’s capital adequacy ratio was realized at 18.22%. Ziraat Bank, which was the most profitable bank in 2013, maintained this title in 2014. Ziraat Bank increased its profit to TL 4,051 million in the 2014 full year.

In 2014, Ziraat Bank created more access points that will provide customers with greater ease by expanding the Bank’s branch network. Within this scope, number of branches increased to 1,682 with 53 new branch openings. The breakdown of branches was as follows: 24 Corporate branches, 80 Entrepreneurial branches, 90 Entrepreneurial Dynamic branches, 1,486 standard branches and 2 mobile branches. The Number of ATMs grew by 12.89% YoY to reach 6,043 by the end of 2014. The number of deposit friendly ATMs reached 3,706.

Ziraat Bank grows with sustainable profitability and efficiency. With its aim of customer based structuring with a sound balance sheet, the Bank continues to operate with the awareness of its responsibilities derived from being more than just a bank, to provide the best services to its customers and our country.


Hüseyin AYDIN
General Manager and Member
of the Board

Muharrem KARSLI
Chairman and Member of the
Audit Committee