In 2013, İşbank’s total assets grew by 20.0% to TL 210.5 billion.
In 2013, İşbank increased its total loans (which made the greatest contribution to the Bank’s asset growth) by 26.4% year-on-year
to TL 134.8 billion. During this period, TL-denominated loans were up by 22.0%while the growth in foreign currency loans was
35.2%. The growth in foreign currency loans was 14.2%when the effect of the rising FX rate is excluded.
The share of loans in total assets increased to 64.1% in 2013, while the share of the Bank’s securities portfolio in total loans
decreased to 17.5%, as in 2012.
The ratio of İşbank’s non-performing loans in total loans declined from 1.9% in 2012 to 1.6% (below the sector average) at the end
of 2013, a result of the healthy loan growth, a solid collection performance and sales made from the NPL portfolio. The NPL coverage
ratio stood at 80.4% at the end of 2013.
Total deposits increased by 14.8% to TL 121.0 billion in 2013. During this period, TL-denominated deposits increased by 2.2%
while the growth in foreign currency deposits stood at 35.0%. There was 14.1% growth in foreign currency deposits, excluding the
effect of the weaker TL. TL-denominated saving deposits climbed by 9.5% to TL 45.4 billion in this period while the volume of TL-
denominated saving deposits, which accounted for 37.5% of total deposits at the end of the year, was one of the most important
indicators of the Bank’s extensive and reliable deposit base.
Within the framework of the effective cost management and resource diversification approach, the Bank effectively deployed
non-deposit resources (such as loans, repurchase transactions and securities issues) in financing its assets in 2013. While deposits
remained the primary funding source, with a 57.5% share in 2013, the share of non-deposit resources in total liabilities stood at
23.7%.
İşbank’s shareholders’ equity reached TL 23.6 billion at the end of 2013; accordingly, the Bank maintained its leadership in terms of
shareholders’ equity in 2013. The Bank’s capital adequacy ratio stood at 14.4% - well above the legal limit.
Although İşbank’s net interest margin declined slightly when compared to the previous year, the Bank’s net interest revenues
expanded by 12.3%YoY as a result of the 21.0% increase in interest earning assets, in parallel with loan growth.
Another factor to contribute to profitability was the 12.5% rise in net fees and commissions income in 2013.
İşbank’s net profit for the period stood at TL 3.2 billion, with an average return on equity of 13.7% and average return on assets of
1.6% in 2013.
Financial Condition, Profitability and Solvency
Financial Information and Risk
Management
93
İşbank
Annual Report 2013
