In 2013, the loan portfolio structure, which is a fundamental
part of the balance sheet growth was closely monitored, and
policies aimed at securing resources with medium-long term
maturities were implemented. Loan demand was largely met
by deposits, the main funding component of the balance
sheet, while other borrowing instruments were used as
other alternatives in decreasing financing costs and maturity
mismatch risk.
Our Bank has an historical background, sound corporate
structure, banking culture, experience, prestigious reputation
and trust, extensive branch network, distribution channels,
human resources that have been built with a long term
perspective and a wide customer portfolio which has been
maintained by relations based on many years of deeply
rooted collaboration. In this framework, regardless of the
conjunctural developments, our strong customer relations and
effective balance sheet management policies will enable the
management and development of our current market shares
while taking profitability into account.
The most distinguishing characteristics of our Bank are
sincerity, diligence, our style of doing business and being a bank
that matches the nature of Turkey. The products and services
provided by our Bank meets customer needs in the quickest and
most efficient manner with superior quality, adding value to our
customers and the national economy.
The most important factor allowing us to sustain our
competitive advantage can be listed as making the most out
of technology in products and services, coordination of the
organization, and the ability to reflect the quality of İşbank’s
management to the field.
In line with our vision for the upcoming period, maintaining our
efficiency and managing our market shares with an approach
focused on profitability will continue to be the basis of İşbank’s
strategies. In this context, our market shares in loans and
deposits will be continued to manage in a way that enables us
to maintain our position as the leader in the sector. The Bank
will also continue to attach importance to return on equity and
to keep costs under control.
Our works to diversify our funding structure strongly
supported our strategy
.
The funding policies we applied in 2013 were focused on
maintaining composition of İşbank’s funding structure,
a composition which is balanced and suitable for market
conditions.
As deposits continue to be our most important source
of funding, in order to diversify our funding structure,
opportunities to access the foreign funds were evaluated
effectively. The share of funds we raised via our efforts to
secure bilateral and multilateral funding within the framework
of our relations with financial institutions abroad and via issuing
İşbank bills and bonds domestically and abroad, reached 13.5%
in total funding, increasing by 3 percentage points. On the other
hand, the funds we secured in 2013 through syndication loans
was rolled over at a ratio of 106%, creating cost advantages
when compared to the previous year.
Through issues to domestic and foreign capital markets, it
was aimed to support the integration of Turkish banking
sector with global markets, to access investors other than the
financial institutions; and to provide financing to the real sector
with longer maturities and more appropriate terms. Within
this context, another important step taken is to gather our
Eurobond issuance processes within the context of a program.
İşbank established its medium-term borrowing program in
the second half of 2013. This program provided our Bank
with flexibility and diversity in funding sources by enabling
issuances in different currencies and with different maturities
in international markets.
İşbank raised funds worth USD 1.7 billion and TL 600 million
via domestic and foreign issuances in 2013 and offered these
funds to the investments that serve the growth of Turkish
economy; accordingly, to the use of real sector.
In brief
İşbank’s strategy is sustainable
and profitable growth based
on “the bank closest to
customers” philosophy.
In 2013, non-depository
borrowing instruments
were used as alternatives to
decrease the cost of funding
and the maturity mismatch.
İşbank achieved its objectives
set for 2013 to a great extent.
Activities
19
İşbank
Annual Report 2013
