İŞBANK ANNUAL REPORT 2014

ACTIVITIES

İŞBANK

ANNUAL REPORT 2014

Innovative banking in gold transactions

The total balance of gold deposit and

investment accounts at İşbank amounted

to 34.5 tons at end-2014. Maintaining its

leadership in the sector in gold deposit

accounts, the Bank’s market share stood at

16.98% as of year’s end.

In 2014, within the context of “Gold

Days at Branches” and “Gold Days at

Jewellery Stores”, amount of the physical

gold transferred into economy which

is interpreted as “under-the-mattress”

increased by 96% over the previous year.

The Gold Days at Jewellery Stores services

designed with a creative, practical and

secure utilization of İşbank’s technological

infrastructure, marked as first of its kind in

Turkey.

Synergy achieved with İş Yatırım

In 2014, İşbank, together with its subsidiary

İş YatırımMenkul Değerler A.Ş. (İş Yatırım),

generated 7.7% of the trading volume

in the Borsa İstanbul Equity Market; this

was the highest market share among 97

brokerage firms operating in this market.

Thanks to synergy generated from this

collaboration, the Bank maintained its long-

running market leading position in 2014.

Leadership in the mutual funds market

At year-end 2014, İşbank’s mutual funds

market share stood at 23%. With this

result, the Bank secured a 7.84 percentage

point margin over the closest peer in the

sector.

Continuing to lead the sector in mutual

funds in 2014, İşbank also had the highest

market shares in Type A and B funds with

respective market shares of 36.97% and

22.97%.

The number of participants in İşbank’s

“Money Box Fund,” the first mutual fund

developed especially for children, is 12

times greater than the participants of the

closest follower in the Type A mutual funds

category. In addition, the total portfolio

size of the Money Box Fund accounts for

22.77% of the total portfolio size of all Type

A mutual funds.

As in previous years, İşbank plans to

continue improving its market share in the

money and capital market products and

gold transactions. This will be achieved with

designing new products and services

which focus on ever-changing customer

preferences and market conditions,

competitive pricing policy

a wide variety of service channels

providing uninterrupted and quality

services.

Treasury Management

Differentiation in monetary policies of

the developed countries and concerns

about a global economic slowdown

2014 was a year in which the expansionary

monetary policies of central banks in

the major developed countries and the

Fed’s interest rate policy were carefully

monitored. These factors, which are critical

for emerging markets, created periodic

fluctuations with the concerns that liquidity

tends towards to a new equilibrium in favor

of developed economies and negatively

affected the markets, especially in the first

half of the year.

While uncertainties stemmed from

differentiating monetary policies of

developed countries and failure to reach

the expected levels of global growth came

to forefront in 2014, the decline in oil prices

and the rise of geopolitical risks related

to the Middle East and Russia were other

factors triggering market fluctuations.

Capital flows, market fluctuations and a

tight monetary policy from the Central

Bank

Starting 2014 with a policy rate rise, the

CBRT adhered to a tight monetary policy

throughout the year, taking into account

uncertainties in global markets and the

increase in the geopolitical risk perception.

In the first quarter of the year, the CBRT

aimed at reducing the volatility of the

portfolio movements and preventing the

depreciation of the TL through interest

rate changes. From the second quarter of

the year, in line with the positive trends

in emerging markets stemming from

differentiation signals of monetary policies

of developed economies, the CBRT gradually

decreased the policy rates.

İşbank maintained a leading position in domestic bonds

and bills issues.