2018 Annual Report

With operations in 18 countries at 100 locations, Ziraat Bank continues to contribute to geographical regions that it operates.

Subsidiary structure based on efficiency and profitability

Ziraat Bank’s corporate subsidiary strategy is designed on strengthening equity with sustainable profitability. Within the frame of its subsidiary policy built on foundations of efficiency and profitability, the Bank provides products and solutions in all areas of financial services and serves its customers with a wide domestic and foreign subsidiary portfolio.

The Bank’s main goal is to increase its subsidiary’s share of assets and profits in Ziraat Finance Group in the medium term and provide all services under Ziraat Finance Group umbrella.

In this context the Bank operates with the following objectives:

  • to maximize the synergies between domestic subsidiaries operating in different sectors and foreign subsidiaries spread over a wide geographical area,
  • to contribute financially to its customers’ transaction flows all around the world and establish a global customer management principle,
  • to introduce new/pioneering financial technologies to geographical areas that the Bank operates in.

Ziraat Bank regularly evaluates organic and inorganic growth alternatives in the countries and sectors where it identifies potential based on profitability and efficiency, in line with its strategy and goals. In this context, Ziraat GSYO (Ziraat Venture Capital) was established on 8 November 2018 to manage the portfolio and issue the shares of a portfolio consisting of venture capital investments, capital market instruments and other assets and rights identified by CMB.

Additionally, Ziraat Bank’s foreign service network reached 100 branches in 2018 with the opening of 8 new branches in Bjeljina-Bosnia, Tsereteli- Georgia, Prizren and Peja- Kosovo, Atyrau-Kazakhstan, Ganja- Azerbaijan, Budva and Bar-Montenegro.

International Subsidiaries


With equity of more than EUR 234 million and 122 employees, Ziraat Bank International AG is the most significant Turkish capital bank in Federal Republic of Germany and European Union.

Ziraat Bank International AG has been serving its corporate and customers from a wide range of retail segments with its branches in Germany for 55 years and from the Istanbul Representative Office, which entered operation in April 2014.

Ziraat Bank International AG currently has branches in Berlin, Duisburg, Frankfurt, Hamburg, Hannover, Köln and Munich.

As of the end of 2018, Ziraat Bank International AG had a paid capital of EUR 130 million, equity of EUR 235 million, total assets of EUR 1,514 million, loans of EUR 1,337 million and total deposits of EUR 1,260 million.


ZiraatBank BH d.d., which began its activities in 1997, was Bosnia and Herzegovina’s first bank to be owned by foreign capital. ZiraatBank BH d.d., which provides services through 32 service units and 55 ATMs throughout the country, had total assets of USD 594 million, loans of USD 426 million, deposits of USD 391 million and equity of USD 101 million at the end of 2018.


Ziraat Bank Montenegro AD started its operations in July 2015 in its Head Office and the Podgoritsa Branch in the capital Podgoritsa and opened two new branches in 2018 in Budva and Bar. Ziraat Bank owns all the shares of the bank that has a capital of EUR 18 million. As of the end of 2018, the bank’s total assets amounted to USD 66.3 million, loans amounted to USD 54.5 million and deposits amounted to USD 23.1 million.


Ziraat Bank Azerbaijan ASC acquired its banking license as of 30 December 2014 and continues its operations with Headquarters in Baku and branches in Ganja and Old City. All of the shares of the bank, which has USD 29.4 million of paid-in capital, belong to the Ziraat Finance Group. As of the end of 2018, the bank’s total assets stood at USD 132.8 million, with loans of USD 59.3 million and deposits of USD 92.5 million.


Established in 1993 as a joint venture of Turkey and Russia, Ziraat Bank (Moscow) JSC has been operating as a Turkish capital bank since 2002.

With recent restructuring activities and its reinforced capital, the Bank operates mainly in corporate banking and it increased its deposits by 10% and profit by 24% YoY in USD basis in 2018. As of 2018 year end the Bank’s assets were USD 101 million, credits were USD 62.2 million and deposits were USD 54.5 million.


Kazakhstan Ziraat International Bank (KZI Bank) was established in 1993 as the first bank with foreign capital in Kazakhstan with its head office in Almaty. The bank provides services to customers in the corporate and retail banking fields through its branches in the cities of Almaty, Astana, Shymkent, Aktau and Atırau. As of the end of 2018, the bank’s assets amounted to USD 185.6 million, with equity of USD 43.5 million, a loan portfolio of USD 108.6 million and customer deposits of USD 109.7 million.


UTBANK JSC, Uzbekistan’s first bank with foreign capital, was established in 1993 in Tashkent with a Category 1 banking license, with the equal participation of Ziraat Bank and Agrobank (Uzbekistan). The bank provides all banking products and services in the corporate and retail banking fields to its customers at international quality standards. In the last quarter of 2017, all of Agrobank’s shares in the Bank were transferred to Ziraat Bank and 100% of UTBANK JSC’s shares were registered in the name of Ziraat. The Bank continues its activities as “Ziraat Bank Uzbekistan JSC”.

In 2018, the bank’s loan portfolio stood at USD 35.8 million, total assets at USD 61.3 million and deposits at USD 15.6 million.


JSC Ziraat Bank Georgia, previously operating as a foreign branch, was transformed into the status of a subsidiary on 2 May 2017 with the principle of strengthening the economic relations with this country.

Opening its 4th branch in Tsereteli in June 2018, JSC Ziraat Bank Georgia’ assets were USD 43 million, credit portfolio was USD 13 million and deposits were USD 23 million as of 2018 year end.


Turkmen Turkish JSC Bank, Turkmenistan’s first bank with foreign capital, was established in 1993 with the equal participation of Ziraat Bank and Dayhan Bank.

Operating in one Headquarter Service Building and six offices in Toptancı Pazarı, Türkmenabad, Mary, Daşoğuz, Atamurat and Balşeker Trade Center, the Bank reached an asset size of USD 727.4 million, credit portfolio was USD 56.7 million and deposits were USD 689 million in 2018.

Domestic Subsidiaries

Ziraat Katılım Bankası A.Ş. (Ziraat Participation)

Starting its operations on 29 May 2015, Ziraat Participation provides services through 80 branches in 41 provinces.

As of 2018 year end, total assets of Ziraat Participation were TL 22.1 billion and credits were TL 17.7 billion.

Ziraat Sigorta A.Ş.

Ziraat Sigorta was established on 11 May 2009 and began its insurance activities in 2010. The company succeeded in becoming an exemplary company in the sector, maintaining sustainable growth and profitability while commanding a leadership position in the premium generation of banking insurance.

Having completed its eighth year of operation, Ziraat Sigorta maintained its steady development in 2018 and achieved a 27% YoY increase in premium generation to approximately TL 2.2 billion. This places it 7th in terms of premium generation in the sector among companies operating in the non-life branches. As of the end of December 2018, the company commanded an asset size of TL 1.6 billion and a shareholders’ equity of TL 644 million.

Ziraat Hayat ve Emeklilik A.Ş.

Ziraat Hayat ve Emeklilik A.Ş, which obtained the permission for its establishment in 2009, started to offer products in the life and personal accident insurance branches at the beginning of 2010 and in the Individual Pension branch in July 2011. The company has led the sector in terms of premium generation from life insurance policies and personal accident insurance since its establishment. The company realized TL 1.3 billion of premium generation during 2018, achieving a market share of 17.1%.

In its Individual Pension System, Ziraat Hayat ve Emeklilik A.Ş. recorded a fund volume of TL 5.6 billion, marking an increase of 43.7% and the number of participants stood at 634 thousand, an increase of 9.3%. The Company, which is one of the key players of the Private Pension sector, has signed contracts with 23,700 companies in the Automatic Enrolment and became the sector leader in Automatic Enrolment with a total of 912,000 participants and a fund volume of TL 1.2 billion. As of the end of December 2018, the company’s total assets stood at as TL 7.9 billion and its shareholders’ equity at TL 1 billion.

Ziraat Portföy Yönetimi A.Ş.

Ziraat Portföy Yönetimi was founded in 2002. Ziraat Portföy Yönetimi obtained the authority to be a fund founder in 2015 and is now the founder-manager of 18 investment funds and manager of 22 pension investment funds, together with interest-free funds. (13 Ziraat Emeklilik, 5 Vakıf Emeklilik, 1 Halk Emeklilik and 3 Bereket Emeklilik funds).

The company’s assets under management rose from TL 13.6 billion in 2017 to TL 17.6 billion in 2018, an increase of 30% compared to the previous year.

The company increased its size in the Private Asset Management (Individual & Legal) from TL 4.7 billion to TL 7.1 billion, achieving 53% growth.

Within the framework of financial system restructuring under the New Economic Program, Vakıf and Halk Portfolio Management Companies are being merged under Ziraat Portföy umbrella.

Ziraat Yatırım Menkul Değerler A.Ş.

Established in 1997, Ziraat Yatırım keeps on strengthening its operations to create value in corporate finance area.

In 2018, the company realized transaction volume of TL 71.6 billion in the Borsa İstanbul Stock Market, TL 20.7 billion in the Derivatives Market (VIOP) and TL 102.3 billion in the Repo-Reverse Repo and Bond and Bills Markets.

Within the scope of corporate finance services, Ziraat Yatırım maintained its effective position by intermediating in private sector bonds and bill issuance worth TL 13.8 billion aimed at qualified investors in 2018.

As of the end of the year, the company’s equity amounted to TL 182 million.

Ziraat Finansal Kiralama A.Ş.

As of 2018 year end, Ziraat Finansal Kiralama A.Ş.’s asset size was TL 3.3 billion and financial leasing receivables were TL 3 million. Closing the period with equity of TL 376 million, the Company’s financial leasing receivables share in total assets was 92%.

Ziraat Gayrimenkul Yatırım Ortaklığı A.Ş. (Ziraat REIT)

Ziraat REIT began operations on 1 November 2016. Ziraat Bank owns all of the shares of the company, which has a paid capital of TL 1,300 million.

The Company’s 2018 operations were realized within the frame of identifying, acquisition and designing real estate investments which will have a maximum return with an optimum risk level.

The Company keeps projects/land and building portfolio to carry on numerous real estate projects and continues its studies and feasibility works.

Ziraat Girişim Sermayesi Yatırım Ortaklığı A.Ş. (Ziraat Joint Venture)

The Company was established on 14 November 2018 with a paid-in capital of TL 750 million and a registered capital ceiling of TL 3 billion.

Ziraat Venture Capital continues its operations with a business model which evaluates venture capital investments, investment management and sales strategies along with the portfolio which is outside venture capital investments.

Ziraat Teknoloji A.Ş.

Since its establishment in 2001, Ziraat Teknoloji has been providing information technology services to Ziraat Bank and its domestic/foreign partnerships in the fields of application development, systems management, project management and technology consultancy. Ziraat Teknoloji continues its activities in the Technology Development Zone (Teknopark) located in the Yıldız Technical University campus. It plays an important role in the projects carried out by the Ziraat Finance Group thanks to its competence in the field of technology with the software and applications that it developed in line with the requirements of ISO 9001, 22301 and 27001 standards.

Being a company which provides competitive advantages by offering services within international standards and modern norms to meet its customers’ technology needs and constantly developing itself and its products with R&D activities are the main goals of the Company.

Ziraat Teknoloji continues to work on the new banking software development project within the scope of ZGF project.

Note: Annual reports of subsidiaries based on years can be reached at their own web sites.