SUMMARY OF BOARD DIRECTORS' REPORT PRESENTED TO THE GENERAL ASSEMBLY
Although it has been a long time since the global financial crisis broke out, the global economy was still seeking a new balance in 2012. Economic growth slowed in 2012, but the Turkish economy was able to successfully manage the soft-landing process.
Developments in the Eurozone have had a significant impact on the global economy in 2012. In general, growth rates in developed and developing economies declined during this period, while a considerable degree of volatility was observed in the global risk appetite. The key developments during the year were the high unemployment rates and the fiscal cliff in USA, the public debt, the banking sector and issues of trust in the Eurozone, and a new government in Japan coming to power promising to attach priority to growth and monetary expansion, and monetary expansion policies applied throughout the world.
Despite the uncertainties and intensive competition in the global economy, the Turkish banking sector has notched up steady growth. Thanks to its robust capital structure, asset quality and profitability, the Turkish banking sector has played a key role in protecting the healthy structure of the Turkish economy since 2008, which marked the onset of the global economic crisis. By allocating resources to the national economy, the Turkish banking sector provided a strong foundation for economic activity to gain momentum, thus significantly supporting Turkey’s rapid growth in the aftermath of the global economic crisis.
In 2012, we celebrated TEB’s 85th anniversary with our stakeholders. As one of the building blocks of the Turkish banking sector, TEB maintains its progress in its 86th year as a stronger, more dynamic and more agile service provider. In our first full operating year after the merger, we demonstrated an extremely successful performance.
The realizations in 2012 stand as an important indicator of TEB’s strong growth potential. Our Bank has always allocated an increasing volume of resources and support for such sectors, especially SMEs, which operate in the manufacturing industry and create new jobs, and will continue to do so in 2013 and beyond. Such support will play a vital role in boosting economic output and contributing to Turkey’s target of sustainable growth and development.
As in the past, TEB will unstintingly continue to pay regard to transparency, accountability, ethics, risk management and corporate management.
While presenting TEB’s operating results and financial statements for the year 2012 for your valuable consideration, we would like to take this opportunity to extend our appreciation to our shareholders’ continuous support.
Board of Directors