İşbank 2009 Annual Report

İşbank has acted with the responsibility of its pioneering position in the banking sector, even under the macroeconomic conditions that affected the markets adversely during the year 2009.
İşbank supports the real sector through its knowledge base, deeply rooted experience, strong risk perception, the trust engendered by its capital base, and innovative solutions developed by focusing on customer needs. In 2009, İşbank continued to be the preferred bank for corporate customers.

With a comprehensive range of services provided at each of the nine corporate branches staffed with specially trained professionals, İşbank aims to deliver a high level of customer satisfaction.
Corporate banking places great strategic importance on being in comprehensive and long-term relationships with large national and multi-national customers. Corporate banking also helps its customer achieve a competitive edge in both national and international markets through individualized financing solutions created especially for them. With nine corporate branches, four of which are in Istanbul, staffed with highly capable and specially trained professionals, İşbank provides customer-focused services in the corporate banking field.

Corporate Banking loan portfolio successfully grew in 2009.
With a growth objective based on profitability and high-quality assets in the corporate banking field, İşbank’s corporate cash loans grew by 7.7% in 2009.

İşbank continues to contribute to the development of Turkey’s economy via funds allocated and solutions provided in project financing.
Without sacrificing its selective and risk-sensitive approach, İşbank has maintained its strong position in the sector through shares from financing of privatization, acquisition, and merger projects as well as large investments in sectors that play an important role in the development of Turkey’s economy, such as the energy, transportation and warehousing, iron-steel, and retail sectors.

The sector distribution of recent years in project financing remained unchanged in 2009 and İşbank provided a total of USD 888 million, of which USD 677 million was in cash, in new project financing.

İşbank will continue to be an effective player in project financing during and after 2010. The Bank will allocate funds to privatizations as well as significant investments in the energy, production, and service sectors, whose growth will gain momentum depending on Turkey’s need and on the improvement in the local and global economic indicators.

Projects to which İşbank allocates funds receive awards.
Among projects to which İşbank has allocated funds is the USD 1.2 billion Eren Çatalağzı Thermal Power Plant Project, the largest thermal power plant project of the private sector in Turkey. As part of the banking consortium, İşbank has provided USD 330 million as a long-term loan for the Eren Çatalağzı Thermal Power Plant Project. In addition, İşbank has allocated USD 170 million as a long-term loan for the MMK Atakaş Project, the second largest flat steel facility, in İskenderun. The MMK Atakaş Project, worth USD 1.7 billion, is expected to create significant value for the Turkish economy and the production and employment in the flat iron area, in which Turkey has a supply deficit. Euromoney, one of the most prestigious financial publications in the world, named the Eren Çatalağzı Thermal Power Plant Project as the Europe Power Deal of the Year in the energy sector, and the MMK Atakaş Project as the Europe Metals Deal of the Year in the metals sector.

İşbank’s extensive branch network, advanced technological infrastructure, and competitive edge in creating solutions tailored to customers and/or the sector are among the factors that strengthen the Bank in risk and cash management services.

Risk and cash management services were in demand by customers in 2009.
Increasing globalization has complicated commercial and industrial relationships. İşbank has retained its expert position in the application of the quality and diversity of risk and cash management solutions required by this complex relationship. A wide network of branches, an innovative technological infrastructure, a competitive edge in creating customer and/or sector specific solutions are some of the other advantages that make İşbank a strong player in the field of risk and cash management services.

İşbank has continued its efforts to expand and develop derivative products that aim to protect customers from exchange and interest rate risks resulting from medium to long-term liabilities. İşbank has also increased its number of contracted customers, cash management transaction volumes, and market share.

İşbank checks continued to be the most commonly cleared checks.
The number of primary firms grew by 28% to exceed 200 and the number of customers serviced surpassed 12,500, achieving a 10% growth rate, in direct debiting and dealership card implementations, which are the most fundamental products of the cash management package. Additionally, collection of customs tax rose by 40%. According to data from the Chamber of Bank Clearance, İşbank checks were the most commonly cleared checks with a 14% share in 2009, and İşbank continued to lead the market in this area.

In order to help companies monitor their cash flows more closely, easily, and with less cost, İşbank has accelerated its efforts to automate a larger number and wider range of transactions. Furthermore, within the framework of cash management services, İşbank has worked on improving and expanding especially electronic reporting tools tailored for companies and cash pools in cash management services. In addition, the Bank provided tailored solutions to numerous customers as part of the e-statement initiative and expanded the use of the web service application that allows instant reporting of companies’ account activities.

İşbank continued to create tailored solutions for corporate customers participating in the lump sum e-payment service and signed new contracts with companies in keeping up with its vision to turn the internet branch into a payment collection platform. Other examples of the improvements made to the cash management services include the e-signature feature and foreign trade solutions. In 2009, İşbank also became a member of SCORE, a system of SWIFT, that allows institutions to communicate securely with banks.

In 2010, İşbank will continue to bolster its position in cash management services by creating diversified and tailored solutions to meet the needs of prominent corporations.