Non-deposit resources, especially security issues,
were continued to be utilized in the banking sector
to compensate for the limited increase in deposits.
İşbank and its Activities in 2013
The ratio of total loans in total assets stood at 60.5%,
increasing by 2.5 percentage points when compared to 2012.
On the other hand, while the total securities portfolio grew by
6.2% in 2013 when compared to its 2012 level, its share in total
assets decreased by 3.1 percentage points to 16.6% in 2013.
The banking sector’s total deposits
(*)
, which had grown by 11%
in 2012, reached TL 946 billion, increasing by 22.5% on TL
basis in 2013. In the same period, TL deposits grew by 14.1%,
while TL equivalent of FC deposits increased by 39.7%. USD
equivalent of total FC deposits recorded 16.3% growth when
compared to 2012. In this period, the share of deposits in
liabilities decreased to 54.6% from 56.3%.
On the other hand, non-deposit resources, especially security
issuances, were continued to be utilized in the sector to
compensate for the limited increase in deposits. Security
issuances which took place in domestic and foreign markets
enabled the diversification of funding resources, decreasing
the costs of resources and a reduction in maturity mismatch.
Likewise, funds borrowed from foreign markets maintained
their strong course over 2013 submitting importance in the
sector’s non-deposit resources, excluding shareholders’
equity. Within this context, Turkey achieved to be among the
countries preferred by global investors and foreign banks; and
thus, provided the benefit of funding resources obtained by
Eurobond issues, syndications, securitizations and bilateral
agreements at maximum.
Dynamic management of balance sheet composition at
İşbank
İşbank’s balance sheet management includes keeping
necessary resources for each offered product and service
available and managing foreign currency and liquidity positions
as well as loan and investment portfolios in the most effective
manner. Balance sheet management has been conducted with
proactive strategies that are shaped in accordance with the
decisions of the Asset-Liability Committee.
İşbank’s balance sheet development in 2013 followed a similar
trend to that of the sector. The share of securities among
the asset items decreased to 17.5% from 21.7%while the
share of loans increased to 64.1% from 60.8%. Deposit
maintaining its importance among the liability items with a
share of 57.5%whereas bonds and bills issued in domestic and
foreign currencies increased their weight among non-deposit
resources. In this framework, domestic bonds and bills with a
nominal value of TL 11 billion and maturities ranging from 3
months to 1 year, and eurobond issuances abroad with a value
of USD 1.8 billion with maturities extending to 10 years were
realized.
Effective risk management which strengthens the
balance sheet structure
İşbank’s main goal is the sustainability of profitability with the
strong balance sheet structure and the formation of a risk-
return balance at optimal levels.
In line with these goals, İşbank attached great importance
to managing liquidity, interest rates and currency risks in
accordance with İşbank’s Asset-Liability Management Risk
Policy principles in parallel with the Bank’s risk appetite in 2013.
Effective risk management models were utilized in all banking
activities. Instant developments in markets were closely
monitored in line with the risks while benefiting frommoney
and capital markets together with derivative products within
the framework of determined proactive strategies. These
transactions were aimed at keeping structural interest rates
and currency risk at acceptable levels while trying to place the
same priority on meeting the liquidity requirement.
(*)
Excludes banks’ deposits.
Activities
46
İşbank
Annual Report 2013
