İŞBANK ANNUAL REPORT 2014

İŞBANK

ANNUAL REPORT 2014

İŞBANK AND

ITS ACTIVITIES

IN 2014

İşbank was the most popular bank in

2014, according to the results of a survey

conducted by Ipsos research company.

Life Stage Banking

Under the Life Stage Banking concept,

İşbank engages in efforts that specifically

target children, young people and

pensioners.

Children

The initial contact made between İşbank

and children is established via the Bank’s

publishing house, İş Bankası Kültür Yayınları.

“Kumbara Fonu (Money Box Fund),” one

of Turkey’s most prestigious and leading

mutual funds, and “Çocuk Hesabı (Child

Account)” make up the backbone of the

relationship established between the

Bank and children. The Money Box Fund

remained the largest equity fund in Turkey

as of year-end 2014, controlling a 22.8%

share in equity funds.

Various activities are organized under the

umbrella of Kumbara Fonu (Money Box

Fund), which is designed for those who

want to invest for future of their children

starting today. The fund serves as a symbol

of savings and, at the same, a brand for

children.

Intended for young people between the

ages of 12 and 18, “İlk İmza Hesabı (The

First Signature Account)” is a bank account

product specifically designed to help young

people develop the skills to manage their

own accounts while encouraging saving

habits among teenagers.

Young Adults

The “İş’te Üniversiteli Bankacılık Hizmet

Paketi (University Banking Package at

İş)” is intended to address all financial

needs throughout the young adult years.

Meanwhile, “İş’te Üniversiteli Credit Card

(University Credit Card at İş)” represents

the first step in the lifelong credit card

relationship. İşbank maintains the

relationships it establishes with young

adults during their student years, and

continues to revise their customer card

limits post-graduation.

Under the umbrella of the Bank’s “İş’te

Üniversiteli” brand, which brings together

all banking services for young adults,

İşbank carried out promotional and

communications activities to announce

various campaigns and events designed for

university students.

Pensioners

Having provided customers with a broad

array of retail banking products throughout

their active working lives, İşbank also stands

by them during their retirement years,

offering a high added-value service with

the “Emekli Paketi (Pensioner Package).”

İşbank’s total deposits climbed

to TL 133.6 billion.

At end-2014, İşbank’s total deposits, which

constitute the main source of funding

for the Bank, rose to TL 133.6 billion. The

Bank’s market shares in total deposits, TL

savings deposits and demand deposits

were, respectively, 13.5%

(*)

, 15.2%

(*)

and

16.1%

(*)

In order to preserve the Bank’s competitive

power and market share and to increase

deposits in a sustainable manner, İşbank

continued efforts to expand both the

customer base and the deposits base in

2014. During the year, the Bank’s total

deposits recorded steady growth supported

by an expanding deposit base, thanks to

wide service network and superior service

quality.

İşbank achieved 17.5%growth in

consumer loans.

As of December 2014, total consumer loans

in the banking sector increased by 13.3%,

to TL 269.9

(*)(**)

billion. Meanwhile, İşbank’s

consumer loan portfolio grew by 17.5%

in the same period, climbing to TL 33.3

(**)

billion.

According to Turkey Customer Satisfaction Index results,

İşbank is ranked first in the “Retail Banking” and “Credit

Card” categories among private banks.

The Bank continues to carry out proactive

determination of the instant loan limit,

which helps boost İşbank’s market share

in consumer loans, and which is perceived

as a prestige component, for mass market

customers, primarily those who receive

salary payments through İşbank and

employees in the public and private sector.

İşbank posted rapid growth in the

general-purpose loans segment.

Total general-purpose loans of the sector

amounted to TL 148.8

(*)(**)

billion at end-of-

year 2014, up by 15.3% on an annual basis.

Meanwhile, İşbank’s general-purpose loan

portfolio grew by 22.8% in the same period,

well outpacing sector growth, climbing to

TL 18.8

(**)

billion.

Throughout 2014, the Bank administered

loan campaigns based on different pricing

models and scenarios by observing

customers’ ongoing relationship phases

with İşbank, work situations, behavior

patterns and needs. The campaigns were

also supported by the proactive instant

loan limit determination studies. For each

campaign, the Bank carried out customer-

specific communication efforts.

In addition, the Bank conducted dynamic

communication activities based on real time

data in order to direct customers who are in

need of cash, as indicated by their spending

patterns, to consumer loan applications,

and to direct customers waiting at the

branches to loan application desks.

Technical infrastructure work and

execution testing of the system known as

POS credit, which will enable customers

to secure cash in retail stores, were

completed. The system, called “Nakitnet,”

was provisionally put into service and pilot

implementation started in December.

“Ek Hesap (Overdraft Account)”

At the end of 2014, the overdraft account

balance of İşbank showed an increase of

35.4% compared to the previous year,

rising to TL 444 million. Efforts to sell the

overdraft account product were carried out

intensively.

(*)

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.