TEB 2019 Annual Report

In 2019, even though global growth predictions were revised downwards, forecast revisions for Turkey were upwards. For the first time since 2001, we recorded a current surplus in 2019 and TCMB decreased interests parallel with the decreasing inflation trend. Growth trend which started at the last quarter of 2019 is expected to continue in 2020.

As of 31 December 2019, TEB’s total assets went up by 11% to reach TL 107,4 billion in the January-December period, while the Bank booked TL 1,1 billion in net profit. Loans, which make up the most important indicator of TEB’s support to the economy and its customers, accounted for 65% of its total assets in 2019.

Giving priority to risk management and asset quality, as always, our bank’s total credits were TL 69,2 billion and deposits were up by 12% and reached TL 72,2 billion. Maintaining its stable growth along with its robust capitalization, TEB’s shareholders’ equity was TL 9,7 billion, while capital adequacy ratio was a strong 16.95%, well above the targeted ratio of 12%.

On 28 October 2019, TEB signed a syndicated loan agreement for EUR 306 million and USD 61,5 million with a maturity of 367 days which was participated by 22 leading banks from USA, Canada, Middle East and Asian countries. This syndicated loan was expected to be used particularly in financing of exports and provide a great contribution to Turkish economy and companies’ growth. All-in-cost of the syndicated loan is Euribor+2.10% and Libor+2.25%, for Euro and USD portions, respectively.

While allocating 17% of live credits other than individual credits to financing of exports, TEB was ranked as 7th at the comparison made based on export credit volume. Within the scope of TİM’s supporting the exports campaign TEB provided an advantageous credit package at a special cost of 350 million euro and at the same time continued to support importer customers with its solutions. In this context, TEB provides financing up to 5 years in import letters of credit with the support of its partner BNP Paribas.

Number of customers of TEB’s mobile banking application CEPTETEB reached 930 thousand at the end of the fourth quarter. Ratio of customers who receive service from TEB’s internet and mobile channels increased to 60%.

After CEPTETEB which is in operation to serve individual customers since 2013, TEB introduced CEPTETEB İŞTE mobile application to allow SMEs, Corporate and Microbusiness customers perform many of their financial transactions easily and rapidly. CEPTETEB İŞTE, which was developed based on customers’ needs and expectations digitalized daily banking transactions of SMEs and all commercial companies responding to their specialized needs. With this application, TEB’s commercial customers can easily perform their ‘daily banking’ transactions such as transfers, tax and bill payments, ‘cash management’ transactions such as cheque, note, credit and member firm functions and ‘investment’ transactions such as currency, gold and time deposits without going to the branch.

Supporting the start-ups and developing the Turkey’s start-up ecosystem with its Start-up Banking activities since 2013, TEB assessed more than 6 thousand business ideas under TİM-TEB Start-up House and supported almost one thousand technological start-ups with 200 in 2019. With the addition of Scale Up to its start-up programs in 2019, TEB aimed to focus on start-ups which want to grow in global markets and to increase foreign trade success of Turkish entrepreneurs.

Having a Responsible Banking approach, TEB continues to raise an awareness of savings in society and contribute in raising a financially literate generation under the roof of Family Academy. As of 2019 year-end, with the TEB Family Academy, trainings were provided on digital financial literacy for 6,500 students at more than 30 universities and approximately 250 thousand people on online platforms. Moreover, by collaborating with various organizations, TEB provided financial literacy trainings to more than 350 thousand people by delivering classroom trainings and digital trainings at universities to contribute to financial literacy of every segment of the society.

TEB started providing services to its Retail and Private Banking Group customers via a new chatbot application, “Telepati”. The application rapid service to customers for branch and ATM inquiry, frequently asked questions and product pricing.

We hereby present the operating results and financial statements of TEB for 2019 fiscal year for your comments and review. On behalf of the Board of Directors and myself, I would like to thank you, our valued shareholders, our team, our customers and our business partners for accompanying and having confidence in us throughout our journey.

Sincerely,

Board of Directors