TEB FINANCIAL SERVICES GROUP

TEB FACTORING

One of the three biggest firms in its sector, TEB Factoring supplies corporate and commercial firms and SMEs with export, import, and domestic factoring products and services.

In a year in which economic growth lost momentum, TEB Factoring nonetheless boosted its business volume from TRY 8.5 billion in 2013 to TRY 9.0 billion in 2014 while its total assets increased by 19%. Despite the low interest rate environment in Turkey last year, the company succeeded in maintaining its net profit performance and posted a 22.93% rate of return on equity and a 1.27% rate of return on assets.

A comparison between TEB Factoring and other factoring firms shows that it enjoys one of the highest rates of operational productivity in the industry.

In 2014 TEB Factoring increased the total number of customers in its portfolio to 19,861. As of year-end, the company had 2,757 active customers which it was serving with 131 employees working through 18 branches.

A member of Factors Chain International (FCI), the world’s biggest and most important international factoring organization with 275 members in 76 countries, TEB Factoring was voted “Best Factoring Company” by the FCI membership five times, receiving the accolade consecutively for four years in a row between 2009 and 2014. Last year TEB Factoring maintained its standing as the firm whose international factoring business ranked second only to that of Bank of China throughout the world.

2014 was a year in which Turkey’s economic growth slowed down despite it being an election year. Although the demand for credit insurance products increased last year, they have still not reached the stage of widespread use.

TEB Factoring believes however that credit insurance, especially products catering to the needs of the domestic market, will be seeing greater use in 2015 and the years that follow. Those factoring companies that are moving forward rapidly in this direction can be expected to develop products capable of changing the sector’s league table rankings in the near future. Having itself installed the infrastructure needed for these products, TEB Factoring will be devoting more attention to guaranteed factoring operations in an effort to expand its own market share in this business line.

In 2015 TEB Factoring also plans to make greater progress in the sale of products developed jointly with BNP Paribas companies around the world. While doing so, it will also maintain its standing as the Turkish factoring company that is the most widely recognized in the international trade arena.

TEB ASSET MANAGEMENT

With more than TRY 3.7 billion worth of assets under its management, TEB Asset Management is the sixth biggest company in Turkey’s asset management and investment advisory industry. TEB Asset Management seeks to ensure that its individual and corporate customers’ portfolios are managed in the most effective way possible by determining an optimal mix of financial instruments that is the most compatible with the customer’s risk  appetite.

Thanks to its extensive domestic and international delivery channel reach, as of December 2014, TEB Asset Management had:
• A 4.59% market share of mutual funds worth a total of TRY 1.6 billion
• An 8.23% market share of actively managed mutual funds
• TRY 214 million worth of funds under management in discretionary portfolios
• TRY 146 million worth of funds under management through its Corporate Asset Management Service
• A 3.06% market share of mutual funds worth a total of TRY 1.16 billion
• TRY 758 million worth of international funds under management.

Founded in 1999, TEB Asset Management introduced asset management services in June 2004 and has been providing corporate asset management services since the end of 2005. The latter business line, which was launched in order to manage the assets of foundations, associations, institutions, and similar corporate entities, involves investing customers’ assets in three different Turkish lira and foreign currency denominated classes consisting of bonds, absolute-yield instruments, and equities.

The synergies arising from TEB Asset Management’s collaboration with BNP Paribas Investment Partners, a leading player in euro-zone asset management, are speeding up our company’s progress towards becoming a global force in its own right. This collaboration gives TEB Asset Management the ability to enter into increasingly more strategic partnerships with multinationals, a process that is furthered by roadshows promoting the company and its services to potential investors in Europe (Austria, Switzerland, France, UK) and the Far East (Japan, Singapore).

Founded in Holland in 1998, TEB N.V.’s mission is to be one of the most effective and service-focused players in Turkish and European financial markets as a service provider that specializes in international trade and commodity finance.
TEB N.V. joined the BNP Paribas family in 2005. Benefiting from the extensive correspondent network of one of the world’s biggest financial institutions, the bank immediately set about serving customers in 78 countries. Taking advantage of BNP Paribas’s credit-risk analysis systems, TEB N.V. continues to benefit from groupwise synergies in the successful management of its trade and commodity finance portfolios.
TEB N.V. distinguishes itself through:
• A highly liquid balance sheet consisting mainly of short-term assets
• Experienced human resources
• A strong focus on effectiveness and transparency
• A solid economic structure resulting from risk-mindful approaches and practices
• A customer-centric, solution-focused business approach.

2014 performance
As in previous years, TEB N.V. once again conducted its operations showing liquidity and capital adequacy ratios above industry averages in 2014.
As of end-2014, TEB N.V.’s balance sheet amounted to EUR 504.7 million. During the previous twelve months, its shareholders’ equity increased by a net EUR 5.7 million and reached EUR 105.5 million.
TEB N.V.’s gross operating revenues amounted to EUR 15.6 million in 2014. Last year the bank booked EUR 25.7 million as interest income, EUR 3.7 million as net fees and commissions, and EUR 1.7 million as specific loan provisions. In 2014 TEB N.V. showed a net profit of EUR 4.6 after tax and provisions while its shareholders’ equity reached EUR 105.5 million.
TEB N.V. negotiated a total of EUR 1.1 billion worth of international trade in 2014.
Having earned the appreciation of its stakeholders for its expert team, solid financials, and a long-standing reputation for superior-quality service, in 2015 TEB N.V. will continue to provide trade and commodity finance solutions that focus on customer satisfaction and are consistent with its effective risk management policies.

TEB Asset Management was given responsibility for the management of the Turkish Equity Mother Fund, a Japan-based fund whose EUR 128 million in assets make it one of the largest equity funds to invest in Turkish equities, and of the Parvest Turkey Fund (EUR 108 million). As a consultant for a number of other international funds (total EUR 33 million) investing in Turkish equities, TEB Asset Management is Turkey’s biggest asset management company active in this business line.

TEB Asset Management gives great importance to the design and issue of new products.
In keeping with its culture of innovation, TEB Asset Management is a company that has expanded Turkey’s investment horizons with its Eurobond Fund, its BRIC Fund, Absolute-Yield Targeting Fund, and Tactical Allocation Fund.

The three TEB Asset Management products which were the most popular with investors and which drove the company’s business in 2014 were the TEB Private Sector Bond & Bill Fund, the TEB Eurobond Fund, and the Absolute-Yield Targeting Fund.

The overall performance of the funds managed by TEB Asset Management in 2014 was high.
As of end-2014, most of the primary mutual funds managed by TEB Asset Management generated above-benchmark returns while the performance of its international funds and equity-weighted pension funds ranked among the highest in their respective categories. The TEB Private Sector Bond & Bill Fund has been in first place ever since its launch in May 2013.

2015 is expected to be an even more difficult year for capital markets than 2014 was.
With Turkish parliamentary elections due in June 2015 making the political horizon even cloudier than usual, the US Federal Reserve having ended its asset-buying program with the US economy on the mend and even hinting that it might start raising interest rates, persistent economic oldrums in Europe and Japan despite efforts to counter them, some of the weakest growth figures to come out of China in 24 years, and a Russian economy reeling from sanctions imposed because of strife in Ukraine, there are strong reasons for thinking that 2015 is going to be a tough year in general and for expecting that it’s going to be an extremely volatile one in Turkey’s capital markets in particular.

In such a global climate as this, TEB Asset Management will continue to introduce new products to the market in keeping with its innovative approach while also protecting both its customers and itself against potentially harmful market risks by guiding investors towards the right investment options at the right time and by exploring and taking advantage of opportunities to increase market share through cooperation with its domestic and international stakeholders.

TEB INVESTMENT

Founded in 1996, TEB Investment is a brokerage house that engages in capital market operations subject to Turkish capital market laws and regulations.

TEB Investment’s services include:
• Capital market instrument trading brokerage
• Capital market instrument issuances and public offerings
• Capital market vehicle margin-trading, shorting, borrowing, and lending
• Capital market vehicle repurchases/buybacks
• Domestic and international derivative trading brokerage and custody services.

TEB Investment’s vision is informed by the principles of being one of the best and most trusted capital market brokerages; expanding its customer portfolio through the use of advanced technology and by competing at the highest level in response to customer wishes and market trends while always abiding strictly by the requirements of law and the dictates of ethical conduct; achieving the highest possible level of customer satisfaction.

In keeping with this vision, the company has made it its mission to give its customers the best possible service by:
• Maintaining a dynamic and effective personnel structure
• Keeping abreast of advances in technology
• Paying heed to customer feedback
• Taking time to understand customers’ needs.

TEB Investment supplies its domestic and international customers with a broad array of products and services through delivery channels that are shaped according to different customer profiles. This approach makes TEB Investment a hub through which investment products such as equities, forward contracts, mutual funds, bonds & bills, and repo contracts and their related services and information flow to corporate finance departments, researchers, international capital markets, investment centers, and online trading platforms.

TEB Investment distinguishes itself in the sector through:
• Experienced human resources capable of serving individual and corporate customers effectively
• Research services provided by an experienced team of research specialists
• Superior local know-how and collaboration with its global partner.

In 2014 TEB Investment ranked 7th in Borsa İstanbul equities market trading with a market share of 4.11% worth TRY 71,787 million. In trading on the Borsa İstanbul futures & options market it ranked second with a market share of 10.89% worth TRY 94,679 million.