Ziraat Bank defines its targets as sustainable growth, profitability, and productivity. In 2020 the Bank continued to sustain the strength of its equity-compatible balance sheet structure through the asset & liability management strategies that it adhered to.

As of year-end 2020 the Bank’s total assets amounted to TL 943 billion and its total shareholders’ equity to TL 93 billion. Importance was again given to supporting equity through sustainable profitability: total equity accounted for about a 10% share of the Bank’s balance sheet.

Recognizing the key importance of sustainable profitability in equity management, Ziraat Bank’s return on equity and return on assets ratios were 9.7% and 1.0% respectively. The Bank’s capital adequacy ratio on the other hand was 18.22% at 2020 year-end.

While Ziraat Bank makes its balance sheet increasingly customer-oriented, it proactively manages credit quality through effective credit processes, prioritizes effective use of resources and cost control. Planning its interactions with its customers in line with customer expectations and habits, the Bank constantly improves its customer-oriented business model. Ziraat Bank continued to contribute to the real sector and the country’s savings balance with the resources it provided, and kept on developing the right solutions by understanding the financial needs of its customers, and offering products and services that make life easier.

As a result of this customer-oriented balance sheet management strategy, the total volume of the Bank’s cash loans increased by 34% to TL 601 billion and corresponded to 64% of total assets. The share of marketable securities increased from 20% in 2019 to 24% in 2020. Ziraat Bank’s NPL ratio in 2020 was 2.3%. The Bank’s consistent ability to maintain an NPL ratio below the sectoral average without selling off any of its assets is an indication of the high quality of its asset structure.

In line with Ziraat Bank’s approach of contributing to the country’s overall level of saving and of having recourse to broadly-based, low-cost sources, total deposits reached TL 630 billion, a performance that maintained the Bank’s standing as the sector’s leading deposit-taker in 2020. Deposits and non-deposit sources account for 67% and 18.4% shares respectively of total liabilities. In keeping with the Bank’s ongoing efforts to diversify and deepen its sources of funding, in 2020 Ziraat Bank continued to seek out and tap alternatives such as international agency and financial institution lines of credit, post-financing, and bank bond & bill issues.

The Bank’s most important income item in 2020 was interest income, which amounted to TL 69 billion. The share of interest received from loans in total interest income was 75% as a result of the credit activities carried out during the year. Net interest income increased by 37% in 2020.