İŞBANK ANNUAL REPORT 2014

İŞBANK

ANNUAL REPORT 2014

İŞBANK AND

ITS ACTIVITIES

IN 2014

İşbank provides support to corporate

banking customers with customized risk

management solutions.

Demand of customers for derivative

products and risk management solution

services, which arose as a result of the

increasing sensitivity of risk perceptions on

market parameters, continued in 2014, as

well.

İşbank develops and provides products

integrated with other banking products and

customized derivative products that protect

customers against risks they may face due

to uncertainties related to interest rates,

exchange rates or commodity prices.

In 2015, İşbank will continue to extend

support to customers through tailor-made

derivative products and need-based risk

management solutions.

Contributing to customer satisfaction

with cash management solutions

İşbank provides cash management

solutions backed by innovative technology

and which are specifically designed to

cater to the needs of customers in various

sectors. These products, which directly

meet clients’ increased needs for speed and

efficiency, maximize customer satisfaction.

For the cash management products, which

include collection and payment systems,

the Bank focused on renewal of the

existing systems infrastructure in 2014. To

this end, the Bank targeted activities that

reduce operational costs, increase overall

efficiency, and at the same time, provide

cost advantages to customers. In addition,

alternative products were developed for

overseas payments of companies during

this period.

İşbank continues to support foreign

trade.

İşbank provides intermediary services in the

foreign trade transactions of customers

through a widespread correspondent

network. The Bank identifies client needs

with an experienced and expert workforce,

and develops transaction-based solutions

on payment methods and domestic and

foreign financing opportunities.

International foreign trade practices are

diligently followed; their rapid integration

with the İşbank system and the on time

notification of clients are provided. At the

beginning of 2014, İşbank implemented a

new payment system called “Bank Payment

Obligation – BPO,” the rules of which were

determined by the ICC. The new system

enables faster, more practical and safer

commercial transactions. As the first

Turkish bank to adapt to this new form of

payment, İşbank once again demonstrated

its capability in innovation.

İşbank maintains a leading position in

the foreign trade transactions market,

in addition to the magnitude of its

transactions volume, with its innovative

approach and full knowledge of legislation.

The growth trends of the Bank’s foreign

trade transactions revenue and its market

share accelerated in 2014.

İşbank maintains a market-leading position in foreign

trade transactions with an innovative organizational

structure and comprehensive knowledge of the legal and

regulatory environment.

Commercial Banking

Ongoing support to commercial banking

clients

İşbank continued to provide consistent

support to customers in the commercial

banking business line in 2014, standing by

Turkey’s industrialists, tradesmen, SMEs,

artisans.

İşbank provides commercial banking

services via:

51 commercial branches,

an extensive branch network located

across the country,

26 sales regions (including T.R.N.C.),

experienced field organizations,

customer relation managers and client

representatives.

Commercial loans portfolio performed

substantial increases.

İşbank continued its successful track

record in commercial banking in 2014. The

Bank maintained a leadership position in

installment commercial loans during the

year with a market share of 17.8%

(*)(**)

The Bank’s installment commercial loan

portfolio totaled TL 28.3 billion

(**)

as of

end-2014.

While providing small and medium-sized

enterprises with working capital and

investment financing, İşbank continued

to support SMEs in their purchases of

commercial vehicles and real estates in

2014. The Bank remained the leading

provider of two major installment

commercial loans in the sector, namely

commercial vehicle loans and real estates

loans, with respective market shares of

27.3%

(*)

and 22.9%

(*)

. In consumer loans,

the Bank maintained a leading position

among private banks with 16.7%

(*)(**)

market share.

(*)

Market shares are calculated using monthly sector data published by the Banking Regulation and Supervision Agency. Interest

accruals and rediscounts are not taken into account. Participation banks are excluded.

(**)

Includes overdraft accounts.