In 2013, we placed emphasis on effective cost management on the funding side, while we sought to extend the average maturity
through alternative instruments and to enable resource diversity. Regarding placements, the tendency of the share of the securities
portfolio to fall in total assets continued, while the share of loans increased by nearly 3 percentage points to 64.1% during the
same period. The NPL ratio fell from 1.9% in 2012 to 1.6% by the end of 2013, a result of the healthy loan growth, solid collection
performance and sales from the NPL portfolio. During this period, the capital adequacy ratio stood at 14.4% - well above of the legal
limit. As a result of these developments, the Bank realized an average return on equity of 13.7% and an average return on assets of
1.6% in 2013.
Because of the current weakness of the Turkish Lira with respect to foreign currencies, the Turkish economy is expected to grow
based on net exports in 2014, while the direction of international capital flows and political conjuncture in Turkey are thought to
be the factors that may affect the growth rate. Developments in Turkey’s main export markets, particularly the EU, will continue
to affect economic activity in the coming periods as well. The banking industry is expected to develop in parallel with Turkey’s
economic growth in 2014, as in previous years.
Esteemed shareholders,
We hereby submit our Annual Report, Balance Sheet and Income Statement pertaining to our 2013 activities for your review and
approval. We would like to take this opportunity to express our gratitude to the Turkish public for their steadfast trust in our Bank,
to the institutions of the Turkish State for their continuous support, to our employees for their dedicated efforts; and we extend our
respects to you, our valued shareholders, for having honored this General Meeting with your presence.
TÜRKİYE İŞ BANKASI A.Ş. BOARD OF DIRECTORS
Corporate Governance
79
İşbank
Annual Report 2013
