Message from the Chairman

In 2024, the impacts of geopolitical risks, trade tensions, protectionist policies, technological competition driven by artificial intelligence, and initiatives to combat climate change were closely observed. In response to improving inflation indicators, central banks began to lower interest rates and ease monetary tightening measures.
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While the US economy showed favorable growth compared to other advanced economies, the Eurozone experienced only limited growth. In particular, Germany’s economy faced significant challenges, including contraction in the industrial sector, weak investment, disruptions in the business environment, excessive bureaucracy, an aging population, and increased risks from global competition, especially China.
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In Asia, China, the region’s largest economy, achieved its growth target for 2024 via extensive monetary and fiscal stimulus measures. However, concerns about the sustainability of this growth and a potential slowdown in economic activity emerged. Meanwhile, India remained the fastest-growing economy globally, while Japan’s economy lagged its regional counterparts.
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The US Federal Reserve (Fed) began cutting interest rates in September 2024, ultimately reducing rates three times, including twice in the last quarter of the year. The European Central Bank (ECB) also cut rates four times in the latter half of the year. Although these central banks lowered rates due to improvements in the inflation outlook, they indicated a cautious approach to future rate cuts to ensure a lasting decline.

Other central banks joined the interest rate cut process that began earlier in emerging economies. However, many remaining central banks in these regions adopted a cautious approach to interest rate cuts due to a slowdown in the improvement of the inflation outlook.
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After the November 2024 presidential election, Donald Trump was re-elected as President of the United States for a second term. His administration’s expansionary budget expenditures, tax cuts, tariffs, and relaxed regulations in the financial sector are anticipated to bolster growth in the US and shield the economy from foreign competition. However, these measures may also lead to rising inflation, which could slow the Federal Reserve’s interest rate cut cycle. This situation has heightened concerns about the potential for a global trade war and renewed supply chain disruptions.
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Despite global volatility and geopolitical risks, the Turkish economy showed moderate and balanced growth in 2024, driven by both domestic and external demand. As of the third quarter of the year, Türkiye’s economy had recorded continuous growth for 17 consecutive quarters. While the contribution of consumption to growth declined significantly, net exports – one of the more sustainable components – showed increased contributions. A robust tourism sector further supported favorable growth trends. The unemployment rate remained low, staying in single-digit territory.
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Excluding earthquake-related expenditures, the budget deficit-to-GDP ratio remained very low, significantly below the Maastricht Criteria of 3%, indicating strong fiscal discipline. The budget deficit is expected to decrease in the coming period, aided by reduced earthquake related spending and comprehensive austerity measures implemented since the second quarter of 2024, along with effective revenue policies, and measures to reduce the unrecorded economy.

In 2024, a decline in energy and gold imports, along with a significant reduction in the foreign trade deficit – thanks to robust export performance despite challenging global conditions – contributed to a marked decrease in the current account deficit. In addition, strong service revenues, particularly from travel and transportation, played a crucial role in this improvement. Annual inflation downtrended further after peaking in May, signaling an ongoing disinflation process.
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After maintaining the policy rate at 50% for eight consecutive meetings in 2024, the Central Bank of the Republic of Türkiye (CBRT) reduced its benchmark rate by 250 basis points to 47.50% during the December meeting. This decision was influenced by an improving underlying inflation trend and slowing domestic demand. In January 2025, the CBRT further lowered the policy rate by another 250 basis points to 45%. The central bank emphasized a cautious, meeting-based approach to decision-making focused on the inflation outlook and reiterated its commitment to effectively utilizing monetary policy tools in response to significant and persistent inflation deterioration.
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In addition to the year-on-year decline in the current account deficit, the CBRT’s gross and net reserves reached record highs, driven by increased international investor interest in Türkiye and a growing preference among residents for Turkish lira-denominated assets. Reflecting these positive economic developments, international credit rating agencies continued to upgrade Türkiye’s sovereign credit rating. Meanwhile, the country’s credit default swap (CDS) risk premium and external borrowing costs declined significantly. Türkiye’s removal from the “gray list” at the end of June 2024 further bolstered international investor confidence, which is expected to persist into 2025.
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As the leader in the banking sector, Ziraat Bank is committed to financing the Turkish economy efficiently amid rising global uncertainties and a volatile environment. In 2024, we supported investments that promote sustainable development, aligning with our country’s 2053 Long-Term Climate Strategy and carbon neutrality goals while considering environmental and social sensitivities. We also secured a significant amount of funding from abroad this reporting year. As the bank with the most widespread service network in Türkiye and abroad, we place all the resources we provide at the disposal of the real sector and our economy. We always strive to offer the highest added value to our customers and thus to the country’s economy at all service points, including digital banking applications.
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On behalf of the Board of Directors, I would like to thank all our employees and customers who have contributed to the success of our Bank.
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Burhaneddin TANYERİ
‍Chairman of the Board