38 İşbank
Annual Report 2015
With the foreign resources it has provided, İşbank
supports the financing of the real sector’s foreign
trade transactions, thereby contributing to the
development of the country’s economy.
İşbank’s balance sheet composition
was shaped with a proactive
approach.
In 2015, İşbank’s balance sheet was
managed in a proactive manner adapting
to changing market dynamics. Foreign
exchange and liquidity positions together
with loan and investment portfolios were
effectively managed, and a flexible balance
sheet composition was achieved by taking
into account all aspects ranging from the
optimum risk-revenue balance to customer
satisfaction.
Development of İşbank’s balance sheet
was parallel to the overall sector trend in
2015. The share of securities in total assets
went down from 17.2% to 16.2%, while the
share of loans stood at 64.2% (end-2014:
65.3%). Deposits continued to account for
the biggest share in liabilities with 55.8%.
Securities issued retained their share in
liabilities at 7.2% in 2015, while the share
of funds borrowed in total liabilities stood
at 10.3%.
Effective risk management and
strong balance sheet structure
In line with Asset-Liability Management
Risk Policy principles, liquidity, interest rate
and currency risk items were managed in
line with the Bank’s risk appetite as part
of treasury-related activities without
compromising sustainable and profitable
growth principle.
The main aim of İşbank is to focus on asset
quality, cost control and effective capital
use and thereby keep the risk-revenue
balance at an optimum level. Hence, the
Bank ensures sustainable and profitable
growth and thereby strengthens the
balance sheet structure. The FX position
and interest rate risk are monitored
through effective models based on an
ad-hoc and different scenarios. In addition
to money and capital markets products,
derivative products are also being utilized in
accordance with the market conditions.
INTERNATIONAL BANKING
Its wide-ranging correspondent bank
network makes İşbank a pioneering
bank in foreign trade.
Through a correspondent bank network
comprised of nearly 1,450 banks located in
125 different countries, İşbank:
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provided customers with foreign trade
products and services, and
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intermediated in foreign trade
transactions between Turkey and over
230 different countries.
İşbank signed new agreements to provide
medium and long term financing under
the coverage of Export Credit Agencies
(ECAs) in order to meet customer financing
needs related to the import of investment
goods and energy projects. Accordingly,
the Bank signed a framework agreement
with Germany’s Landesbank-Baden
Württemberg and an individual loan
agreement with Commerzbank AG, New
York Branch (under US Exim coverage) in
2015. In addition, the negotiations for the
extention of the expiry dates of the two
loan agreements signed with the Japan
Bank for International Cooperation (JBIC)
for renewable energy project financing and
import financing for one more year were
finalized. Furthermore, the expiry date
of the agreement signed with the Export
Import Bank of Korea (KEXIM) for financing
the goods and services of import activities
from Korea was extended for two more
years.
In the year 2015 new projects have been
finalized under ECA coverage or ECA loan
in addition to the already existing and
ongoing ones.
İşbank and its Activities in 2015
