2017 ANNUAL REPORT
EVALUATION OF FINANCIAL STATUS, PROFITABILITY AND SOLVENCY
A review of TEB’s financial statements that are drawn up in accordance with the regulations of the Banking Regulation and Supervision Agency (BRSA) reveals as follows:
TEB’s after-tax profit for 2017 went up by 13% to TL 1,069 million and the Bank posted a RoE of 13.4% in line with its strategies focused on profitability and productivity.
While the Bank’s total assets grew by 8% to TL 85,758 in 2017, total lending also expanded around 12% and reached TL 63.3 billion; in this context, the Bank continued to extend maximum support to its individual and corporate customers. As part of the strategy to offer service to a broader customer base, retail loans reached TL 15.8 billion. Loans made available to SME, Commercial and Corporate customers that serve as a key indicator of TEB’s regular support to the national economy were worth TL 46.8 billion and accounted for 74% of the Bank’s performing loans portfolio.
As at end 2017, TEB converted the entirety of the deposits it has collected into loans and finished the year with a loans/deposits ratio of 114%. Time deposits volume that covers a substantial portion of the Bank’s funding need went up 9% and the ratio of total deposits to balance sheet liabilities was registered as 65%. On the other hand, demand deposits also reached TL 9.50 billion, making a significant contribution to the Bank in terms of funding cost.
Having renewed its syndicated loan on 7 September 2017, TEB signed a loan agreement with the participation of 25 international banks for the purpose of supplying a syndicated loan in the amount of EUR 385 million and USD 85 million with 367-days maturity, and for USD 75 million with a maturity of 2 years and 30 days.
For the 367-day maturity portion of the syndicated loan, the interest cost was Euribor plus 0.85% and LIBOR plus 0.95%, respectively. All-in cost of the facility with a term of 2 years and 30 days, which will be used to finance general foreign trade, is LIBOR + 1.90%.