RAPID AND EFFICIENT
GROWTH POLICIES
ADOPTED IN RECENT YEARS
HELPED ENSURE MORE
EFFECTIVE USE OF OUR
CAPITAL, AND 2012 WAS
MARKED AS A YEAR WHEN
THE CAPITAL ADEQUACY
RATIO, AT 16.3%, ROSE
TO A LEVEL THAT WOULD
SUPPORT THE GROWTH
RATES FORESEEN FOR THE
MEDIUM AND LONG TERM.
sector and stood at 1.9% due to the healthy
growth achieved by performing loans,
strong collection performance, and NPL
portfolio sales.
Aiming to diversify its funding structure
and to secure more suitably-priced funding,
İşbank also made effective use of non-
deposit funds in 2012. The total amount
of non-deposit funds, secured through
bond issues, syndication, securitization and
bilateral agreements and repo transactions,
reached TL 32.4 billion at the end of 2012.
İşbank’s deposit volume rose to TL 105.4
billion in 2012, and our Bank retained its
leadership among privately-owned banks
with a 13.3% share of the total deposits
market.
Rapid and efficient growth policies adopted
in recent years helped ensure more effective
use of our capital, and 2012 was marked as
a year when the capital adequacy ratio, at
16.3%, rose to a level that would support
the growth rates foreseen for the medium
and long term.
During a period in which the growth in
the Turkish economy lost momentum,
we prioritized the creation of long-term,
sustainable revenue sources and focused
on efficiency increase, cost control and
effective capital management, thereby
achieved our targets in accordance with our
seamless, profitable growth strategy.
Our branch network expansion efforts
continued through 2012. 47 new branches
went into service within national borders,
bringing the number of our domestic
branches to 1,231. We opened 2 new
branches outside Turkey, and increased the
number of our overseas branches to 19. We
intend to continue to open new branches in
promising locations in 2013.
AS THE WORLD ECONOMY’S SLOW
GROWTH TREND BECOMES MORE
PRONOUNCED, THE TURKISH ECONOMY
MAINTAINS ITS POSITIVE COURSE.
After a cautiously optimistic 2010 and
2011, thanks to the measures adopted
during the crisis period, the global economy
began to lose speed again in 2012. While
concerns over the public indebtedness and
the banking industry continued to stay on
the agenda particularly in the Euro Zone
countries throughout 2012, data released
in the U.S. indicated a weaker economic
recovery than anticipated, and loss of
pace continued in emerging economies,
especially in China.
In this economic climate, the Turkish
economy successfully realized the soft
landing process desired for 2012, following
high growth rates registered in 2010
and 2011. Despite increased risks in
relation to the global economic outlook,
the national economy continued with its
positive decoupling in 2012, thanks to the
implementation of proactive economic
policies, combined with the strong banking
sector.
In 2012, the Turkish banking sector kept
pace with the overall economy and grew at a
slower speed than it did in the previous year.
However, when evaluating the slowdown
in the sector’s growth rate, policies aiming
to reduce the current account deficit and
ensure sustainable growth, implemented by
the CBRT in particular and other regulatory
authorities in general, must be taken into
account. In an environment supported by a
positive macroeconomic backdrop, financial
markets also decoupled positively from the
overseas markets, and yields on government
benchmark bonds slumped to historic lows.
We are confident that in the coming
period we will sustain our successful
performance and continue to create value
for our investors with our solid corporate
governance approach and in line with our
existing strategies.
INTRODUCTION
ACTIVITIES
CORPORATE GOVERNANCE
FINANCIAL INFORMATION AND RISK MANAGEMENT
17
İŞBANK
ANNUAL REPORT 2012
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