Summary Report of the Board of Directors
Esteemed shareholders,
Welcome to the 90
th
Ordinary General Meeting of İşbank.
As we present the Board of Directors’ Report and the Income Statement showing our 2013-year results for your review and approval,
we respectfully greet all of you here today.
As a result of the extraordinarily loose monetary policies applied, economic activity began to demonstrate a trend of recovery in
developed countries, especially the U.S. in 2013. The expectation that the US Federal Reserve may reduce the support which it has
been providing to the economy through asset purchases precipitated capital outflows from emerging markets in 2013, while the
increase in perceptions of global risk and the volatility in the market put pressure on emerging markets.
In 2013, which marked a certain shift in the structure of the growth in the Turkish economy when compared to 2012, private sector
consumption expenditures and public sector investment expenditures were the driving forces of the Turkish economy in parallel
with the recovery in domestic demand conditions. As a result, Turkey demonstrated a 4% growth rate in the first three quarters of
2013.
The foreign trade deficit increased by 18.7%YoY to USD 99.8 billion in 2013. Increasing gold imports played a key role in the
expansion of the foreign trade deficit. Because of the gradual recovery observed in EU countries, the region’s share in Turkey’s
exports began to rise again in 2013. Although the current account deficit leveled out in the last two months of the year due to the
tightening in the monetary policy and other measures taken by the CBRT, the current account deficit increased to USD 65 billion in
2013 due to domestic demand conditions and developments in foreign trade.
The positive performance demonstrated by the central administration budget continued in 2013, and the budget deficit fell to
TL 18.4 billion. The annual rate of inflation remained high throughout the year due to the increase in unprocessed food prices and
the fall in value of the TL. The consumer price index (CPI) increased by 7.4% and the producer price index (PPI) by 7.0% in 2013.
In 2013, the international credit rating agency, Moody’s, raised Turkey’s credit rating by one notch from “Ba1” to “Baa3”. With this
step, Moody’s was the second agency after Fitch to raise Turkey’s credit rating to investment grade.
The Turkish banking industry continued to grow in 2013 in terms of total assets, the number of branches opened and number of
employees. The total assets in the sector increased by 26.4%YoY to reach TL 1.732 trillion by the end of 2013.
Supported by the recovery in domestic demand conditions in 2013, the growth in loan volume gained momentum, while
developments in international markets and changes in the CBRT’s monetary policy had an impact on credit pricing throughout the
year. Deposits, which represent the main source of funding in the sector, continued to grow in size, while securities issues continued
to support the sector’s balance sheet.
As far as İşbank is concerned, 2013 was a year in which we demonstrated a strong performance on the basis of profitability and
business volumes.
As of 31.12.2013:
• Our loans increased by 26.4%YoY to TL 134,843 million;
• Our deposits increased by 14.8%YoY to TL 120,975 million;
• Our total assets increased by 20.0%YoY to TL 210,500 million;
• Our shareholders’ equity increased by 3.8%YoY to TL 23,579 million; and our net profit stood at TL 3,163 million.
Corporate Governance
78
İşbank
Annual Report 2013
