İşbank 2009 Annual Report

İşbank is a strong leader in foreign trade and foreign currency transfers.
İşbank meets the needs and expectations of its customers in foreign trade financing with a range of high quality products and services. İşbank’s customers active in the foreign trade sector conduct their transactions in a secure and efficient manner via İşbank’s correspondent bank network of more than 1,400 banks and financial institutions in 124 countries. Despite the fluctuating market conditions of 2009 and the contraction in demand, İşbank has further strengthened its market position in foreign trade and foreign currency transfers.

İşbank’s perfectionist approach and quality are regularly recognized with awards.
İşbank has continued its track record of high quality service performance in international banking through 2009. The Bank has been recognized with quality awards (Straight Through Processing - STP) from many international banks since 1997, thanks to the high rate of error-free international foreign currency transfers. This tradition continued in 2009; İşbank received STP quality awards from The Bank of New York Mellon, JPMorgan Chase Bank, and Commerzbank.

İşbank was the focus of attention at SIBOS in Hong Kong.
İşbank had a major role in the international promotion of Turkey through its stand at the SWIFT International Banking Operations Seminar (SIBOS), held by the Society for Worldwide Interbank Financial Telecommunications (SWIFT) in Hong Kong on September 14-18, 2009. Drawing great interest throughout the seminar, the İşbank stand was the only one opened by a Turkish bank during SIBOS organizations and contributed to the promotion of Turkey in an international arena.

İşbank sponsored the annual IIF summit held in Istanbul.
The 2009 Institute of International Finance Annual Membership Meeting was held in Turkey, the country host of the event for the second time, on October 2-4, 2009, just before the IMF/World Bank Summit.

İşbank sets an example in its ability to secure foreign funding.
İşbank has led Turkish banks in the syndicated loan arena.
In 2009, İşbank has shown once again its capabilities as an institution in securing foreign funding, despite the global crisis conditions. In May 2009, İşbank signed a syndicated loan agreement in two tranches, in the amounts of USD 255 million and EUR 225.3 million, with a one-year maturity with the option to renew for an additional year. In September, İşbank exercised the option to extend a syndicated loan agreement from last year for another year; hence creating an additional syndicated loan of USD 350 million and EUR 293.5 million.

Having obtained the second syndicated loan in times when the level of global risk-premium is still uncertain, İşbank has led other Turkish banks in the international markets by establishing a establishing a reference point reference point in setting the cost of funding for syndicated loans. İşbank received the “Best Turkish Loan” award from the “Syndicated Loans and Leveraged Finance” awards held by Euroweek for its September 2009 syndicated loan.

European Investment Bank (EIB) gives EUR 250 million to İşbank with a final maturity of 12 years.
On April 13, 2009, İşbank signed a framework agreement with the European Investment Bank (EIB) for a loan of EUR 250 million with a maturity period of up to 12 years. This loan will be extended to small and medium sized enterprises and government and private sector institutions active in the health, environmental protection, infrastructure, education and energy efficiency sectors for project financing.

Agreement outlining the cooperation with China Eximbank in letter of import credit refinancing
İşbank signed a Letter of Import Credit Refinancing Master Agreement totaling USD 100 million at maximum with the Export-Import Bank of China on October 7, 2009. The agreement aims to provide financing for specified goods or services Turkish companies will import from China for up to a year.

A step toward creating long term funding for the shipping industry
İşbank signed an agreement with the Japan Bank for International Cooperation (JBIC) on December 3, 2009 to arrange a 12-year funding facility in the amount of JPY 10 billion for shipping financing. This agreement is JBIC’s first credit facility in the world only for financing of shipping. In addition, it serves as a significant example of İşbank’s high credit value in the international arena global prestige.

İşbank plans to expand its international network by opening a branch in Azerbaijan and a representative office in both Egypt and Syria in 2010.

Developments in the international service network
İşbank has increased its branch number in TRNC to 13.
İşbank has opened 4 new branches in the Turkish Republic of Northern Cyprus (TRNC) in 2009, increasing the total number of its branches there to 13. İşbank protects the title of having the widest branch network in TRNC among Turkish banks.

International branches and representative offices are building blocks of İşbank’s global service capability.
İşbank continues to expand its activities in international banking via its branches in London and Bahrain and representative office in Shanghai.

İşbank plans to expand its international network by opening a branch in Azerbaijan and a representative office in both Egypt and Syria in 2010.

İşbank GmbH prepares to expand its service network in Romania and Bulgaria.
İşbank GmbH, an İşbank subsidiary located in Germany, offers retail, commercial, and corporate banking services through 14 branches in Germany, France, the Netherlands and Switzerland, where a significant number of Turks reside.

In 2010, İşbank GmbH aims to continue its organizational structuring in Romania and Bulgaria.

İşbank will also continue to conduct research about the feasibility of providing banking services in Russia and Kazakhstan.

Additionally, the Bank will step up its research of markets in regions neighboring Turkey, where it sees great potential and where it believes establishing a physical presence will be beneficial.