2015 ANNUAL REPORT
TEB FINANCIAL SERVICES GROUP
TEB FAKTORİNG A.Ş.
One of the top four players in its sector, TEB Faktoring provides export, import, and domestic factoring products and services to corporate and commercial customers, with a particular focus on the SME segment of the market.
In 2015 TEB Faktoring wrote TRL 7.6 billion worth of business, down somewhat from the previous year’s TRL 9 billion due mainly to last year’s sluggish economic growth. Total assets amounted to TRL 1,240,129. The company registered an 11.10% return on equity and a 0.64% return on assets.
TEB Faktoring has one of the highest rates of productivity among all the firms that are active in the Turkish factoring industry today.
In 2015 the total number of customers in TEB Faktoring’s portfolio reached 22,635. As of year-end, the company had 2,758 active customers, 18 branches, and 131 employees.
TEB Faktoring is a long-time member of Factors Chain International, the world’s biggest and most important umbrella organization for independent factoring companies with more than 280 members in 77 countries. Between 2009 and 2014, TEB Faktoring won FCI’s Export Factor of the Year award five times in five consecutive years. In 2015 the company added to its successes by becoming the first factoring company in Turkey to offer post-shipment rediscount credit to exporters.
Turkey underwent a double round of parliamentary elections in 2015, while the country’s economic growth lost momentum. Although the demand for credit insurance benefited somewhat from the consequent uncertainties, such products are still not widely used in the country.
TEB Faktoring believes that credit insurance products will become increasingly more common in the period ahead, especially those that cater to the particular needs of the domestic market.
Having installed the infrastructure necessary for such products, the company began offering them in 2015.
In 2016 TEB Faktoring intends to further develop these products in order to provide guaranteed factoring services and increase its market share in this business line.
In 2016 TEB Faktoring also plans to make even greater headway in products that are developed jointly with BNP Paribas companies. Another TEB Faktoring goal is to make Turkey one of the world’s leading countries from the standpoint of factoring product and service use.
One of the highlights of TEB Faktoring’s operations in 2015 was the progress made in its business process digitalization. Last year’s renovation of the TEB Faktoring internet branch made it the first factoring company in Turkey to give customers the ability to initiate and track all of their factoring transactions online. The company intends to further increase the level of process digitalization with the addition of new modules and transaction types.
A 2016 Action Plan has been prepared for the development of the multi-local factoring solutions undertaken jointly by TEB Faktoring and BNP Paribas factoring companies. These products are now being intensively marketed by TEB branches and are being publicized in social media.
TEB ASSET MANAGEMENT A.Ş.
An asset-management joint venture of BNP Paribas, one of Europe’s leading financial institutions, and of Türk Ekonomi Bankası (TEB), one of Turkey’s leading banks, TEB Asset Management was the ninth biggest asset management company in Turkey, whose portfolio of TRL 3.5 billion worth of assets under management gave it a 3.5% share of the sector.
TEB Asset Management seeks to manage retail and corporate clients’ portfolios in the best way possible by identifying and maintaining financial instrument compositions that best suit their owners’ risk profiles.
As of December 2015, TEB Asset Management was an asset management company with an extensive international distribution network and it:
Founded in 1999, TEB Asset Management introduced asset management services in 2004. In late 2005 the company added corporate asset management services to its business lineup in order to manage the assets of institutional clients such as foundations, associations, and the like. For the conduct of its corporate asset management services, the company has formulated both Turkish-lira and foreign-currency based models in three different asset classes: bonds & bills, guaranteed-yield instruments, and equities.
The synergies which TEB Asset Management generates by collaborating with BNP Paribas Investment Partners, one of the Euro Zone’s leading asset managers, are powering the company’s progress towards becoming a global force. Thanks to this collaboration, TEB Asset Management continues to enter into strategic partnerships with many other international firms.
TEB Asset Management manages the Parvest Turkey fund, a leading open-ended collective investment scheme (SICAV) whose assets of TRL 220 million are invested mainly in the equities of companies headquartered in Turkey. TEB Asset Management also manages the Japan-based Turkish Equity Mother Fund, whose assets amount to about TRL 168 million. These two plus the TRL 82 million in other international funds which invest in Turkish equities and for which the company acts as a consultant make TEB Asset Management Turkey’s biggest asset manager working for international clients.
A year of many changes
Most commentators regard 2015 as something of a transition year for Turkey’s asset management industry.
The most important development last year was a change in the regulatory framework that requires investment funds (mutual funds etc.) to be set up and managed only by licensed asset management companies. As a result of this change, TEB Asset Management took control of all the funds which its parent TEB had previously set up and is now also responsible for the establishment of new ones. TEB Asset Management has likewise entered into agreements with a number of other banks and brokerages to manage their funds as well.
Because of another important change in the regulatory framework that took place in 2015, the client assets which asset management companies manage must now be entrusted to depository institutions (custodians) which have been licensed by the Capital Markets Board. In line with this requirement, TEB Asset Management has signed a custodianship agreement with TEB in order to ensure that the investors’ assets in the portfolios it manages enjoy the highest level of safekeeping possible.
The third important development in 2015 was the launch of the Turkey Electronic Fund Trading Platform (TEFAS), which gives investors convenient, one-stop access to all of the mutual and other investment funds whose shares are traded in Turkey.
In 2016
In 2016 TEB Asset Management will continue to introduce new products in keeping with its well-established reputation as a market innovator, to guide investors in their making the best possible investment choices at the best possible time, to work with domestic and international stakeholders in the exploration and exploitation of ways to boost market share, and to protect its clients as well as itself against adverse market risks.
TEB INVESTMENT A.Ş.
TEB Investment Securities commenced operations in 1996. The company provides capital market services pursuant to the Capital Markets Act (Statute 6362) and relevant laws and regulations.
Last year the company’s licenses were reviewed and renewed by the Capital Markets Board pursuant to two Capital Markets Act communiques: Communique III-37.1 on principles regarding investment services and activities and their ancillary services (“Investment Services Communique”) and Communique III-39.1 on the establishment and operation of investment institutions (“Investment Institutions Communique”). The company has been providing investment and ancillary services as a “broadly-licensed brokerage” since 13 November 2015.
The company is currently licensed to provide the following investment and ancillary services:
TEB Investment Securities reaches its domestic and international clients and it supplies them with an extensive lineup of products and services through a variety of service channels that address the particular needs of different investor profiles. In this way the company provides different client groups with the investment and trading services (equities, mutual funds, bonds & bills, repo, etc.) as well as corporate finance and research services according to their requirements.
TEB Investment Securities distinguishes itself in the sector by virtue of:
TEB Investment Securities’ 5.55% share, worth TRL 113,359 million, of the Borsa İstanbul Equities Market’s trading volume ranked it in 5th place as of year-end 2015. On the BIST Derivatives Market, its 14.60% market share worth TRL 165,724, ranked it first as of the same date.