General Evaluation

TEB wrote a pretax profit of TRY 366.9 million and an after-tax profit of TRY 300.3 million in 2010.
Due to the growth in loans and securities in particular, TEB raised its total assets by nearly 26% year-on-year in 2010.

The bank’s securities portfolio staged especially impressive growth as inflation-indexed products with the purpose of investment were included. These products also had a significant positive impact on TEB’s shareholders’ equity.

Still maintaining the momentum it gained in the second half of 2009, TEB sustained its performance in 2010 and achieved a 31% year-on-year expansion in its credit portfolio by the end of the year.

Supported by the economic recovery as well as TEB’s asset quality-oriented credit policies, non-performing loans began to decline in 2010, with their share on total loans diminishing as credits were repaid.

The rate of growth in personal loans was maintained as a result of the rapid increase in consumer loans; the share of personal loans in the total credit portfolio climbed from 24% at the end of 2009 to 26% by the end of 2010. Corporate and commercial banking, one of TEB’s key fields of operation, also continued to grow in 2010, underpinned by special products designed in line with customers’ needs.

Deposits remained the primary source of our funding operations in 2010, while products such as Index Linked Deposit Account offered to customers during the year allowed us to extend the maturity of this resource.

TEB's Position in the Sector

TEB's market shares in the sector, and the indicators related to this movement in market share during 2010, are shown below.

 (TRY million)

31 December 2010

31 December 2009



TEB’s Share (%)



TEB’s Share (%)

Total Assets *







Total Loans *







Total Deposits *







Number of Branches **







Number of Personnel **







* Source (sectoral figures): February 2011 Monthly Bulletin, Banking Regulation and Supervision Agency
** Source (sectoral figures): Banks Association of Turkey

Comparisons between TEB's own balance sheet composition and the sector’s composition as a whole are shown below:

% of Balance Sheet Total

31 December 2010

31 December 2009





Liquid Assets





Marketable Securities










Fixed Assets










Total Assets















Money Markets










Subordinated Debt










Shareholders’ Equity





Total Liabilities





* Source: February 2011 Monthly Bulletin, Banking Regulation and Supervision Agency

In 2010, TEB's

  • total assets increased by 19% when compared to the first half of the year;
  • shareholder's equity reached TRY 1,813 million;
  • share of total deposits in the balance sheet came in at 63%;
  • credit portfolio increased by 12% when compared to the first half of the year in parallel with the expansion in personal loans and operating capital loans, to compose 62% of the assets.
  • NPL ratio was below the sector average, with a rate of 3.00%. Strong lending policies and a cautious approach to risk played a significant role in these positive results.
  • Loans to deposits ratio was 98%, showing that TRY 98 of each TRY 100 deposit was used as a loan.
  • Capital adequacy ratio was 14.43% and return on equity was 17.35%.

The ratios summarized above are strong indicators of TEB's capacity for rapid growth.

TEB is focused on improving its effectiveness in the market in 2011 and beyond in line with its vision, by acquiring new customers and deepening its relations with current clients. After the merger transaction with Fortis Bank is completed, TEB will be in a better position to grow strongly, both in terms of scale and extent, and continue to produce ever more added value for all if its stakeholders.


TEB International Banking

2010 was a successful year for TEB International Banking. The Bank increased its market shares in a range of fields and strengthened its relations with international institutions.

TEB International Banking,

  • Increased its market share in international payments by nearly 24% year-on-year. Its market share rose from 6.87% in 2009 to 7.38% by the end of 2010 thanks to the qualified and rapid services offered to its customers.
  • Increased its market share in foreign trade related guarantee transactions by 12% year-on-year thanks to the high quality of its products. TEB raised its market share from 9.11% in 2009 to 9.73% by the end of 2010.
  • Increased collaboration with the subsidiaries of the World Bank. In addition to the foreign trade finance contracts signed with the IFC and EBRD, TEB signed a contract with the Asian Development Bank (ADB).
  • TEB has successfully renewed the syndication loan within the framework of its need for foreign finance and carried out negotiations with supranational institutions on long-term funding facilities.
  • The Bank provided € 50 million in funds with a 12-year maturity and a low interest rate from the French Development Agency, in order to finance its customers’ projects in the fields of energy efficiency and renewable energy.

Tremendous demand in syndication loan

The significant demand shown in the Bank’s syndication loan in 2010 was the most concrete sign of the international markets’ confidence in TEB. TEB received a syndication loan worth US$ 345 million in total with two separate tranches in Euro and US$ terms for use in export financing. The total cost of the syndication loan, which had a 1-year maturity and was provided in two separate tranches (€ 190 million and US$ 100 million), was Libor+1.3%.

Although it demand exceeded 100% in 2010 in contrast with the syndication loan issued in 2009, TEB preferred to maintain the previous year’s loan amount, in parallel with its needs.

Competitive advantages of International Banking with TEB
Deemed as one of the leading banks with respect to providing resources with long maturity and low interest rates - which is what the Turkish economy actually needs - the sustainable business relations it has entered into with supranational financial institutions has enabled TEB to;

  • produce rapid customer-specific solutions in money transfers through its extensive network of correspondent banks;
  • offer qualified services to its customers even in locations where it is difficult to carry out transactions, thanks to BNP Paribas’ extensive network of correspondents in Middle East and Africa; and
  • finance its customers’ long-term investments with cost-efficient terms.

Highlights from international banking practices in 2010

  • With permits for livestock exports given to individuals and corporations with investments in stockbreeding, TEB signed a cooperation agreement with a pioneer correspondent bank in this field, offering rapid funding facilities to its clients with respect to livestock exports.
  • Following the signing of the contract with the ICIEC (The Islamic Corporation for Insurance of Investments and Export Credits), the Bank will be able to serve its customers in risky transactions in the Far East, without actually undertaking those risks . Based on the agreement that entered force in December 2010, TEB will offer advantages to its customers with respect to the ability to work in more countries and with more banks.
  • Currently able to perform money transfers in 125 currencies, TEB is also undertaking efforts to enable its customers to accept money transfers in various currencies.
  • TEB conducted efforts to enter into a risk-sharing and risk sales agreement with Inter-American Development Bank, a supranational institution. This agreement, which would offer advantages to TEB customers who export goods to Latin America and Caribbean countries, is planned to be completed in 2011.
  • Following the agreement reached by senior official executives with respect to the execution of commercial relations between China and Turkey directly over the Turkish Lira and the Yuan (Renminbi), TEB signed an agreement with the Bank of China Ltd. (Hong Kong) and became one of the first Turkish banks to facilitate transactions using the Chinese Yuan. This agreement allowed TEB customers to send money to and to receive money from China over their Yuan accounts and to carry out foreign trade transactions through Yuan.

Joint work conducted between TEB and other institutions in international banking

In 2010 TEB undertook joint efforts with the BNP Paribas Fixed Income Securities team to enable Turkish companies to obtain long-term resources from international bond-bill markets.

TEB maintained its pioneering position in the field of tobacco and nut financing in 2010, supported by the synergy it created by combining BNP Paribas’ experience in the field of commodity finance with its long years of experience. Within the framework of tobacco and nut financing, the Bank provided more than € 200 million of resources to its clients in 2010.

TEB sh.A, founded in the Republic of Kosovo, received its first foreign resource from the IFC in 2010. This was the first project that the IFC invested in following the World Bank’s decision to include Kosovo on the list of investible countries.

Progress in operations addressing the Africa and Middle East

  • In 2010, TEB signed an agreement entitled “Foreign Trade Finance Program” with the Asian Development Bank (ADB). Within the framework of this agreement, TEB was able to serve its customers in the banks’ transactions where TEB was formerly unwilling to take the risk.
  • The number of export transactions related to Africa grew by 5% in 2010, compared to 2009. Likewise, the number of export transactions related to the Middle East increased by 7.5% year-on-year.
  • TEB entered agreements with Taiwan Exim and South Korea Exim to support the finance of imports of TEB clients who import investment goods and/or services from South Korea or Taiwan. Through these agreements, TEB provides those clients purchasing machinery, equipment or services, as well as clients importing investment and consumption goods with financial facilities offering maturities of up to 5 years under reasonable conditions.
  • TEB continued to strengthen its relations with supranational institutions through long-term loans in 2010. Thanks to the long maturity of the € 50 million resource provided from the AFD, the Bank decided to use the loan to support energy efficiency and renewable energy projects.

New solution packages

As a result of the ‘Intraturkey’ contracts which TEB entered into with its Euro and Dollar correspondents, preferential rates were obtained for domestic FX transfers. Thus, TEB began to carry out transactions for clients seeking to perform domestic Euro or Dollar transfers more rapidly and cost-efficiently.

Following the signing of new contracts with its correspondents, the Bank offered its clients the option to send money in 125 different currencies.

Developments in 2010 in EFIL IV Loan and in the field of commodity finance
TEB financed its clients’ investment and operating capital needs for the medium and long-term through the EFIL 4 loan to provide support to increase their FX revenues; the Bank continued to support those of its clients who were exporting through the fund, which was provided by the World Bank.

TEB Foreign Trade Centers
Helping increase the security of its clients’ sales to risky markets from a macroeconomic standpoint, TEB undertook efforts in 2010 to assume the risks of banks operating in various African countries and signed an agreement with the ICIEC, a subsidiary of the Islamic Development Bank, to insure risks related to export letters of credit.

Within the scope of the campaign entitled ‘The African Initiative’, the Bank offered solution packages that fit the needs of its clients who export to the continent, while a similar process was performed for countries in the Middle East.

TEB’s market share in foreign trade remained steady in 2010 with a 4.5% share in imports and a 6.7% share in exports.

Within the organization of TEB, four Foreign Trade Centers were operating (Istanbul, Izmir, Adana and Ankara), while another Foreign Trade Center was opened in Bursa, one of Turkey’s major industrial cities in 2010 in response to significant demand from clients.

Specialists working at TEB Foreign Trade Centers target not only existing clients, but also prospective companies, by conducting regular visits to firms heavily involved in foreign trade. This strategy also contributes to the addition of new clients. TEB also pays careful attention to developing the best foreign trade financing solutions which best meet customer needs in cooperation with other centers in related countries and TEB's wide correspondent network.

A worldwide network of BNP Paribas Foreign Trade Centers...
TEB is in close communication and cooperation with the Foreign Trade Centers of BNP Paribas at 90 locations in 55 countries. It also has strong relations with BNP Paribas subsidiaries, especially in North Africa. TEB offers effective and rapid solutions to companies and exporters in the Turkish construction sector through the BNP Paribas network.

Turkey Desks service continued to develop in 2010...
Turkey Desks is another positive result of the multi-faceted BNP Paribas-TEB synergy. The first Turkey Desk was set up in Algeria at BNP Paribas El Djazair in 2005, followed by Ukraine, Egypt and Russia within the next four years.

Commanding the highest share of Turkey’s exports, EU countries were hit hard by the global economic crisis in 2009, which was one of the most fundamental reasons behind the contraction in Turkey’s exports. Turkish exporters, who adopted a proactive approach to deal with the contraction in demand throughout the EU, sought out new markets, especially Northern Africa, where BNP Paribas enjoys a strong presence. BNP Paribas’ Trade Centers served exporters as if they are Undersecretaries of Trade.

TEB will continue to monitor Turkish exporters all around the world throughout 2011, developing solution packages that meet the requirements of its clients in different parts of the world and providing exporters with information on buyers with the support of insurance corporations.

TEB Corporate Banking

The TEB Corporate Banking Group gained further prestige and raised its market share by achieving growth in its credit and deposit volumes in 2010. Mediating medium and long-term investment loans, TEB Corporate Banking acquired new foreign-capital clients on the back of the synergy it created with BNP Paribas. The Group achieved 25% growth in its cash FX loans, with non-cash loans growing by 20% and deposits by 35%.

Aiming to strengthen its position as a major bank by establishing long-term cooperation with its clients, TEB Corporate Banking set itself apart from the sector in 2011, thanks to

  • Its client-centered “business partnership” approach performed through long-term relationship management,
  • Its competitive edge, particularly in countries in Northern Africa and the Middle East, based on the synergy created with the global network of BNP Paribas,
  • Its effective customer contact in foreign-capital companies on the back of the synergy created with BNP Paribas, and
  • Its cash Management Services supported by a strong technical infrastructure, which offers customizable solutions.

The synergy between TEB and BNP Paribas increased the number of banking transactions through TEB performed by BNP customers who have investments in Turkey. Within this framework, accounts were opened for international companies and solution packages were offered to cover their financial and cash management needs.

The relations with BNP Paribas Corporate and Investment Banking (CIB) product groups continued to evolve in 2010. We aimed to create new business lines in agricultural products as well as precious metals and oil mediated preparation of a number of finance offers in the field of country loans. In other CIB products, we cemented our communication with respective BNP Paribas departments on a transaction basis.

Efforts to create synergy with business lines within the Bank and the subsidiaries continued as a strategy during 2010.

TEB Commercial Banking

In 2010, TEB Commercial Banking

  • pursued a strategy of extending and building its relations with current customers and expanded its client base;
  • increased the volume of revolving enterprise loans issued, predominantly in parallel with growing TL and FX loans in 2010 (28% growth in TL loans and 40% growth in FX loans);
  • raised short and medium-term credit volume;
  • raised its share in the foreign trade volume as a business line;
  • increased both exports and imports when compared to the previous year; and
  • developed derivatives and cash management products; supported cash management products with various campaigns.

Strategy of building stronger relations with clients
TEB Commercial Banking aimed to strengthen its relations with customers in 2010. While focusing on identifying client needs, TEB also focused on directing its clients to qualified products such as derivatives and cash management products. At the same time, TEB continued to create solutions addressing the Bank’s customers who require expertise in cooperation with Trade Centers and with the support of BNP Paribas.

The synergy created with BNP Paribas raised the prospect of benefiting from the facilities and experience of the Trade Centers, and supported TEB in its target of being the preferred consulting bank of clients.

Joint efforts were conducted between TEB Arval, TEB Cetelem, TEB Leasing and TEB Factoring to address customer needs, and the cooperation was continued in offering joint solutions to Bank customers.

TEB Commercial Banking is determined to maintain its growth strategy and customer-oriented service approach in 2011.

TEB Gold Banking

Sector leader in gold loans
The volume of gold loans, one of TEB’s Gold Banking products, rose by 8.6% as of December 20th, 2010 on a kg basis, when compared to the beginning of the year. TEB became the sector leader in gold loans in 2010 with a 35% market share.

Gold prices reached US$1,385/oz in 2010, an increase of 27.1% compared to the beginning of the year. While this situation enhanced gold demand for investment purposes, it led to a decline in demand for gold loans in the market, as it brought about a decline in the demand for gold for ornamental purposes.

TEB worked closely with sector-related chambers and associations throughout the year and organized meetings to provide information about the Bank and gold banking to potential firms operating in the sector. TEB supported the jewelry sector by participating at local fairs that address the sector.

By reaching a wider customer mass with lower savings capacity, TEB paved the way for generalizing gold deposits to the base in 2010.

TEB SME Banking
Having embraced the task of being “the first bank to be remembered when SME banking comes to mind”, TEB SME Banking aims to be the “consulting bank” for SMEs, and also in a pioneering practice, by developing solutions for the non-financial needs of SMEs.

Working to realize firsts in the sector in an innovative and creative approach, TEB SME Banking was deemed worthy of significant awards both at national and international platforms, thanks to this approach, as well as its diverse products and services.

TEB SME Banking offers unique services to SMEs through qualified human resources which it trains through various programs. At the same time, the Bank undertakes projects like TEB SME Academy and Future Strategy Conferences and provides a significant contribution to Turkey’s social life by taking important steps on behalf of social responsibility.

Steadfast support for SMEs in all fields
In 2010, TEB pressed ahead with its training and informing activities addressing SMEs and assisting them in developing their competitive strength at national and international platforms and helping them to acquire effective management models.

Besides offering services with high added value, TEB has been in close cooperation with KOSGEB (SME Development Organization of Turkey) and taken part in all interest support programs since 2008 to assist SMEs in accessing public resources. Having mediated in four support packages during 2008 and four packages during 2009, in 2010, TEB continued to grant the loans within the framework of three of the four projects which were launched in 2009. The volume of loans extended to SMEs totaled TRY 31.6 million during the year.

SMEs submitted a total of TRY 213.8 million in applications for the Scale Indexed Growth Support Loan and Export Finance Support Loan, which were launched in 2010.

The cooperation between TEB and KOSGEB not only covers interest support programs; the Bank undertook a new joint project with KOSGEB in 2010.

The “Train 100,000 SMEs” project, launched by KOSGEB as part of its 20th anniversary events and which aims to provide detailed information regarding the subsidies offered to SMEs by KOSGEB, was conducted jointly by KOSGEB and TEB; more than 1,500 SMEs in 10 cities were provided with the necessary training by TEB and KOSGEB over a 5-month period.

In addition to KOSGEB’s support programs, SMEs were given the opportunity to receive training from specialists on strategy and marketing/growth. TEB plans to organize similar training programs in 2011.

TEB aims to strengthen its cooperation with KOSGEB.

The cooperation TEB entered into with the Credit Guarantee Fund (CGF) in 2005 allows SMEs to make greater use of loans, allowing them to benefit from long-term and cost-efficient loans. As part of its cooperation with the CGF, the Bank encourages entrepreneurism and contributes to economic growth and development by creating an additional credit facility opportunity.

TEB is included in the scope of CGF support programs and granted loans to its 95 customers in 2010 against a total of TRY25.1 million worth of CGF guarantees.

A financial market structure addressing SMEs
Within the framework of the synergy generated with its subsidiaries and group companies, including TEB Leasing, TEB Factoring, TEB Arval and TEB Cetelem, TEB set up a financial market structure in which all financial needs can be covered. Within the scope of this synergy, the Bank offers holistic services including the finance of SMEs’ investments, management of their receivables and satisfaction of their vehicle renting needs.

The number of SMEs for which TEB mediates salary payments, rose by 74% in 2010, while the number of people served rose by 73%.

With the AFD Energy Credit received in 2010, TEB has taken its environmentally friendly approach one step forward. This approach aims to support SMEs by raising their awareness of energy efficiency and renewable energy.
Having supported and financed economic and social projects in more than 80 countries via various financial instruments, the French Development Agency (Agence Française de Developpement - AFD) selected TEB as its business partner in Turkey and provided € 40 million in resources as the first stage in the project aimed at raising SMEs’ awareness on corporate social responsibility.

A new loan was received from the AFD in 2010: a new financing facility worth € 50 million was provided, which will be utilized to draw people’s attention to energy efficiency, renewable energy and carbon emissions and to encourage companies to invest in these fields.

With the AFD Energy Credit, SMEs are able to finance their energy saving related investment projects with credits of up to 8 years in maturity, while also benefiting from energy studies that calculate the amount of energy to be saved with these projects. Moreover, within the scope of the study, the carbon footprints of the related projects of those SMEs receiving loans are measured in order to support sustainable development by reducing carbon emissions.

Towards 2011…
In 2011 TEB SME Banking aims to

  • keep growing profitably by building its relations with existing clients and by acquiring new clients,
  • contribute to Turkey’s social life and support forward looking investments through projects aimed at encouraging social responsibility and energy efficiency, and
  • diversify the finance facilities offered to SMEs by entering cooperation with global institutions such as the AFD and local organizations like KOSGEB.

Synergy between BNP Paribas and TEB SME Banking

Having been awarded the brass ring at the BNP Paribas Innovation Spirit Contest in 2007, the TEB SME Academy Project was conceptualized by BNP Paribas to be put in practice in developed countries. The concept introduced in the project will soon be introduced to SMEs from the USA, Italy, France, Belgium and Ukraine.

During the preparation of the project, BNP Paribas teams worked together with TEB SME Banking teams and performed effective sharing of know-how.

TEB SME Academy Corporate Development Training
TEB SME Academy Corporate Development Training sessions continued to offered to SMEs in 2010. Within the scope of these meetings, SMEs in Malatya, İzmit, Konya and Izmir were able to obtain information first-hand from specialists in areas such as like strategy, foreign trade, marketing and institutionalization. The TEB SME Academy received a new award in 2010; it was deemed worthy of the “Award of Perfection in SME Customer Services” at Financial World Innovation Awards.

Future Strategy Conferences (FSC)
The Future Strategy Conferences (FSC) played an effective role in shaping the futures of cities in 2010; the Future Strategy Conferences (FSC), organized in Malatya and Sivas, involved identifying development areas of these two cities.

Within the framework of the FSC, TEB also held a General Strategy Conference in the Turkish Republic of Northern Cyprus (TRNC). A first in the TRNC, this event received a very positive welcome from senior state representatives; the results achieved through the FSC were shared with nearly 200 business men and women, senior executives of public institutions and representatives of non-governmental organizations.

All these efforts contributed to TEB’s recognition in the region, allowing the Bank to expand its client base and strengthen its relations with existing customers.

Sectoral Future Strategy Conferences
Sectoral Future Strategy Conferences which aim to identify the strategic targets of sectors, continued with the “Jewelry Sector” in 2010. In the study carried out with the participation of leading representatives from the sector, the 2-year and 5-year targets of the jewelry sector were identified and a wide information sharing platform was set up.

TEB plans to carry out further such organizations in 2011.

As in 2009, TEB SME TV was chosen as “People’s Favorite” in 2010 with the votes of users at the Altın Örümcek (Golden Spider) Contest, which is one of the most prestigious web contests in Turkey.
Helping SMEs reach information in a single “click” since 2006, TEB SME TV continued to serve its users in 2010 with its new homepage and its more functional interface.

With its content enriched in 2010, TEB SME TV offers a platform where experts answer questions on such matters as taxation, social security, business law, state incentives and business management. In 2010, foreign trade was also included to the topics, allowing TEB SME TV to reach a broader user mass.

A total of 3,955 questions were forwarded to TEB SME TV experts in 2010, with the service receiving 3.5 million visitors.

SME Consultants Project
The TEB SME Consultants Project allows SMEs to identify their weaknesses with respect to organization restructuring, strategy, sales-marketing, human resources, foreign trade and finance management through comprehensive analyses. SMEs are also able to take concrete and professional advice from SME Consultants before taking any steps towards growth and development.

The SME Consultant Project, an important project aimed at improving TEB staff’s competency, trains customer representatives at TEB providing services to SMEs to become specialized in fields including international domestic sales and marketing, product management, finance management, and are thus able to offer clients more comprehensive and outstanding services.

The success of TEB SME Consultants Project extended beyond Turkey’s borders in 2010, bringing TEB two international awards
The TEB SME Consultants Project reached the final under the SME Customer Services category in the Financial World Innovation Awards, received the brass ring under the Best Service category at the International Business Awards – Stevie’s Contest, and the winning award under the Corporate Social Responsibility category at the 8th Active Academy Finance Summit.

TEB SME Banking, which aims to stand by SMEs whenever help is needed, began to offer a new unique service in the sector in 2010, in order to generate solutions when it comes to foreign languages, which is one of the most fundamental obstacles to SMEs in finding new markets and customers.

KOBİLİNGO is a platform which allows company executives to establish instant and easy communication with their foreign correspondents without any knowledge of foreign language. It is designed to offer solutions for the foreign language problem for firm executives who need help communicating in foreign languages to communicate with the rest of the world. The platform will support executives seeking to penetrate new markets and allow them to save time and resources, as well as helping cut communication/human resources costs.

KOBİLİNGO ensures that texts written by the user in their chosen language are submitted to the counterparty in any desired language and that the counterparty’s message is received in any language chosen by the user. Any client seeking to establish communication invites their correspondent to join KOBİLİNGO in a standard invitation letter, which may be written in any of 6 languages, while members may, when online, write to each other in any of 57 languages. Anyone who is a member of TEB SME TV may make use of KOBİLİNGO.

TEB Retail Banking

A year of innovative projects
Having received the winning award under the “Customer Satisfaction” branch at the BNP Paribas Innovation contest in 2010, the TEB Green Trumpet project was a multi-channel marketing communication platform through which the most competitive campaigns of Retail and Enterprise Banking were announced throughout the year.

One innovative idea put forward by TEB employees, “TEB Outlet”, which was created with inspiration on the outlet concept in banking, was put in practice in January 2010 as “TEB Green Trompet”.

Launched on TV in January, the first campaign of Green Trompet entitled “there is nothing more economic” offered customers personal loans with the market’s lowest interest rate throughout the campaign.

The TEB Green Trompet project paved the way for prominent services to be offered in the banking sector throughout the year, such as the following:

  • Magnet Loan, which allows clients of the bank to transfer all their debts to TEB,
  • Instant Money, an installment cash advance product from TEB Bonus Card,
  • TEB Personal Loan campaigns.

Innovations in alternative investment products

In 2010 a product entitled “Index Linked Deposit Account“, which offers investors high returns based on potential changes in financial instruments like stock exchanges, FX and interest rates, as well as precious metals, was offered to TEB customers.

Clients seeking to invest in gold are allowed to make gold transactions with a minimum amount of 0.01 grams through Gold Drawing and Deposit Accounts, thus allowing investors to buy and sell gold safely.

TEB Pensioner Service Project was awarded under the Product and Service Category at the BNP Paribas Innovation Contest in 2010.
The project which was put in practice in August 2010 aims to ensure that pensioner customers have easy access to TEB branches. Initially, at 6 TEB branches where the project was first put in practice, more than 300 pensioner customers began to use the transportation service offered by our Bank in order to draw their retirement pensions and to carry out other transactions.

Planned to be organized on a regular basis in the coming period, TEB Pensioner Service was awarded under the Product and Service Category at the 2010 BNP Paribas Innovation Contest, as an example of TEB’s customer-oriented service philosophy.

In 2010 pensioner TEB customers also continued to benefit from S.O.S. and Emergency Medical Packages, a present from TEB to pensioners.

Synergy with group companies
A big portion of customers who received automobile loans from TEB Cetelem, a group company of TEB, pay their loan installments predominantly through TEB branches. Efforts are shown to make it a satisfactory banking experience for these people who visit TEB branches and thus acquire them as new customers. In 2010, various banking products/services were sold to these new customers.

Western Union Services is at 316 TEB Branches
Based on the contract signed by TEB in 2009, Western Union services began to be offered at a total of 316 TEB branches nationwide as of July 5th, 2010. Effective and rapid service offering capability of TEB branches also allows Western Union services to be rendered swiftly.

During 2010, the Bank designed promotional products for Western Union transactions, which are advantageous for its clients, and distributed many promotional products by marketing them at 43 branches in 9 cities. TEB plans to design more promotional products in 2011.

Having rapidly expanded its client base in retail banking in the recent years, TEB has once again proven the strength of its service approach that fits its client profile and its ambition in retail banking, and raised its market share in 2010.
Carrying out efforts to increase customer activity and cross-sales, TEB reliably grew in the field of retail banking, continuing its success in banking addressing its client base. In 2010, TEB organized retail banking campaigns in line with its targets of achieving a well spread deposit base, maintaining healthy growth in loans and further penetration of existing customers. The Bank recorded an increase of

  • 29% in salary customers,
  • 26% in internet banking customers,
  • 27% in automatic payment customers,
  • 25% in current accounts,
  • 75% in personal loans,
  • 20% in housing loans, and
  • 17% in the number of credit cards.

Growth in loans exceeds the sector average

TEB continued to support its customers in 2010 through comprehensive individual loan products aiming to cover the diverse needs of its customers. Having expanded the number of its customers on credit by 41%, the number of TEB’s individual loan customers reached 152,000 by the end of the year.

  • In installment loans, TEB grew by 26% demonstrating a higher performance than the sector which grew by 22%;
  • In personal loans, TEB grew by 60% while the sector grew by 31%; and
  • In vehicle loans, TEB grew by 38% while the sector grew by 7%.

TEB Star Banking

The TEB Star Banking segment continued to offer privileged services to TEB customers in 2010 through every channel by means of experienced and specialized asset representatives who give priority to personal recommendations and management of relationships, as well as by means of a diversified website and call center service.

Addressing the top income group, TEB Star Banking served through 56 branches in 2010 with 58 representatives.

The strategy of TEB Star Banking is founded on the continuous development of customer loyalty and efficiency per customer, as well as acquisition of new customers by identifying the desires and needs of its customers with regard to banking services and lifestyles. TEB Star Banking, while informing Bank customers in the field of banking through conferences on economy, has deepened its relations with its clients through events addressing customers’ private fields of interest.

While product diversity was provided to customers through 8 Index Linked Time Deposit and 9 Capital Protected Fund issues in 2010, mortgages were the prominent product.

International mortgage practices, launched in October 2008 in cooperation with BNP Paribas International Buyers, were applied under TEB Star Banking, which has been serving the top income group since July 2010. The amount of loans made available to customers in 2010 within this program reached € 1.9 million.

In 2011, TEB Star Banking plans to market sophisticated products in addition to traditional instruments, pursue a privileged service approach through competitive pricing support and expand its service field by raising the number of its branches and customer representatives.

TEB Small Business Banking

TEB Small Business Banking aims to be the first bank remembered by traders and craftsmen, producing high added value for the national economy. In line with the needs of its customers and the market and paralleling this target, TEB Small Business Banking continued to develop new products and service models that fit the needs of the market and to strengthen its position in the small business banking line by providing any kind of financial support.

TEB possesses a specific scale, a delivery network and a high technological infrastructure, which allow the Bank to offer its products and services to customers at the right time and the right manner. Accurate, planned and effective use of TEB Small Business Banking capabilities in 2010 strengthened TEB’s ambition and market share in the field of small business banking.

TEB Small Business Banking offers clients rapid and result-oriented services through an approach which prioritizes customer satisfaction and which ensures that customers feel that the Bank is always standing by them.

Thanks to the campaigns jointly conducted with group companies in 2010, the Bank offered a higher number of products with more advantages to customers, while recording a significant development in leasing and insurance business lines.

Having achieved significant breakthroughs in 2010, TEB Small Business Banking, within the framework of its cooperation with SGK (Social Security Institutions) which was launched in 2009, continued to mediate the SGK payments of its customers operating in the health sector in 2010 as well; within this framework, a Health Package was created, with which advantageous products and services are offered to Bank customers in the health sector, especially pharmacists.

A world of special advantages for traders and craftsmen
In 2010, in order to support traders and craftsmen, TEB

  • supplied a total of TRY 79 million in KOSGEB-supported loan packages to more than 3,000 customers in KOSGEB projects in 2009 and 2010;
  • offered chamber members advantageous products in a variety of fields from loan products to insurance services within the framework of cooperation with traders and craftsmen associations;
  • in cooperation with a large national newspaper, regularly informed customers of the Bank regarding the developments in the sector and the Bank’s practices and produced customized solutions for traders, craftsmen and the sector;
  • reached 11,000 new customers in 2010 through its Solution Package for Traders and Craftsmen; and
  • continued to support tradeswomen and craftswomen who own their businesses in their efforts to expand their business or through services like filling the missing link in their cash cycle, as part of activities to commemorate March 8th, International Women’s Day.

TEB Small Business Banking plans to raise product penetration in its existing customers and to expand its client base with the support of its experienced sales personnel in 2011.

Contribution by Small Business Banking to POS Market Share
The POS product, which is one of the major means of canalizing customers’ cash flow through TEB, remained one of the prioritized products of TEB Small Business Banking in 2010.

Restaurant POS Package
The Restaurant POS Package, which is implemented with sector-specific solution packages, was one of the most effective service packages in 2010. In this context, restaurants, cafés, kiosks and pastry shops which opted for TEB’s POS gained sector-specific advantages.

The Restaurant POS Package, while providing all kinds of financial support through TEB to restaurant and café owners who contribute significantly to the Turkish economy, offered solutions that address the needs of enterprise owners, thanks to the Bank’s collaboration with a number of organizations.

İşim Nette (My Job on the Net)
With the free website installation package titled “İşim Nette”, TEB Small Business Banking expanded the boundaries of the qualified service approach that it offers to its customers, and experienced the excitement of breaking new ground in the sector with this free service.

The Draft Turkish Trade Code, which restructures trade practices in Turkey, brings every capital-holding company the liability to have a website, so TEB Small Business Banking has gifted website installation packages to its customers.

TEB Agricultural Banking

The private bank offering the highest number of agricultural loan products
Founded in November 2008, TEB Agricultural Banking achieved to be one of the most recognized brands in the sector.

Offering the highest number of agricultural loan products among private banks, TEB supplied TRY 385 million in cash loans to the agricultural sector, corresponding to a 68% growth compared to 2009. This growth is generally a result of TEB’s organizational structuring and a well set-up strategy.

In line with the strategy it defined in 2009, TEB Agricultural Banking continued to acquire qualified and sustainable agricultural enterprises as customers in 2010, too.

The share of investment loans (excluding tractors and equipments) in total agricultural loans rose from 9% in 2008 to 25% in 2010.

Meanwhile, the number of Harman Kart cards in issue rose to 8,000. The cards were first offered to the market in October 2009, providing enterprises with the facility to conduct shopping on a periodic basis, interest-free, and the ability to be indebted in a controlled manner.

Capabilities of TEB Agricultural Banking
TEB Agricultural Banking differentiates itself with its

  • service approach which takes account of the circumstances in the sector,
  • ability to offer the right products, the right pricing and the right schemes,
  • ability to offer various financing schemes to fit any sub-production category, and
  • experienced agricultural banking employees, a significant portion of which are agricultural engineers.

TEB Agricultural Banking is currently in a position to establish a long-term and ever increasing competitive edge in the sector with its organizational structure, staff of specialized personnel and information-based strategic approach.

Maintaining its strategic importance for Turkey, the agricultural sector has become more and more important and has been an increasing priority for TEB. The agricultural sector is currently in a process of rapid restructuring, consolidation and modernization. In accordance with this process, TEB continuously updates its agricultural business models and expands its organizational structure.

In August 2010, TEB began to offer Letter of Intent and Agricultural Project Loan services to enterprises seeking to apply at the Instrument for Pre-Accession Assistance for Rural Development (EU) (IPARD) Grant Program. Also, in 2011, TEB plans to carry out efforts in sectors with high unit added value that provide significant contribution to the national economy, such as greenhouse cultivation, production of fruit and vegetables, good agricultural practices and organic agriculture, bovine and ovine breeding, poultry production, etc.

With its specialized personnel and information-based strategic approach targeting in the agricultural sector, TEB Agricultural Banking strives to achieve permanent and steady growth in the sector.

Credit Cards and Bank Cards

Highlights from developments in 2010

  • TEB’s market share of credit card turnover was realized at 1.31%.
  • The number of cards in circulation rose by 11% to 795,000.
  • The Bank’s credit card turnover from abroad rose by 6%, achieving a market share of 1.43%.
  • TEB was ranked 9th in the sector in terms of average expenditure per credit card and in 6th place in business cards, with a 3.5% market share.

New products with plentiful advantages

In the top segment, 26,000 credit cards and bank cards were issued by TEB in 2010; the Bank also began to offer its private customers World Signia, deemed to be one of the world’s most prestigious cards.

Izmirim (My Izmir) Bonus Card
The TEB Bonus Izmirim Card, offered since 2007 upon cooperation with Izmir Trade Chamber’s Education and Health Foundation, was the first credit card in Turkey available exclusively to people from one city. Izmir’s football clubs received financial support from the funds generated with this card.

TEB She Card
First issued in June 2010, TEB She Card was specially designed to meet women’s needs. The total number of users of this card had reached 12,000 by the end of year.

TEB She Card

  • Offers a 5% bonus in women’s spending of clothes and cosmetics worth 100 TRY or more;
  • offers an installment option for medical, coiffure, skincare and massage spending, a first in the sector;
  • offers a 25% discount under the slogan “treating yourself is in your hands” in many areas ranging from personal care to magazine subscription, dry cleaning to childcare; and
  • includes a free-of-charge insurance against stealing/snatching.

The first credit card in Turkey to offer discount in fuel oil: TEB Total Card

Launched on TV, newspapers and other platforms at the end of June, TEB Total Card attracted 70,000 members by the end of 2010. The TEB Total Card offers the following advantages to its customers:

  • a continuous 5% discount in fuel oil and motor-LPG with no minimum purchase amount,
  • discount of up to 40% in necessary vehicle parts (such as navigation, vehicle maintenance, etc),
  • a voucher worth TRY 49 from Ziebart for each Bank customer, which can be used until the end of the year,
  • a personal accident insurance policy from Zurich Insurance.

TEB Screen Card: the world’s first bank card with a screen

Offered to the market in September 2010, the total number of TEB Screen Cards in the market had reached 26,000 by the end of the year. It is the first bank card to generate internet banking passwords, thanks to its digital touch screen.

The TEB Screen Card won the Publi-news Oscars award and was selected by BNP Paribas as product of the year.

TEB plans to offer its customers the new version of its Screen Card in 2011.

Blackberry application practice
Loan application by Blackberry began in June 2009. With this practice, TEB received the BNP Paribas Innovation Award in 2010.

Developments in POS

TEB continued to carry out eye-catching campaigns in the POS sector in 2010, too. Within this framework, TEB

  • handed out 100 netbooks in a new year campaign, bringing smiles to 100 small business owners;
  • began to use tebpos.com.tr as an effective means of POS sales; handed out USB memory sticks to businesses whose POS application over internet had been approved; and
  • carried out local and regional campaigns aimed at POS sales.

Alternative Delivery Channels

In parallel with the differentiated, varied and rapidly growing customer needs, a fundamental shift is occurring in the banking sector; alternative delivery channels are no longer alternative, but now complementary.

Aiming to be a bank which offers its customers the most comfortable and most practical solutions in non-branch channels, TEB employs the latest technological solutions. Within this framework, shifting the operational workload from the Bank’s physical service network to alternative delivery channels was a priority.

The TEB Express, Call Center, mobile banking and Internet applications comprise TEB’s primary alternative delivery channels, with which TEB provides services to different customer segments with its extensive options.

The shares of the Bank’s client transactions which were completed through alternative delivery channels in 2010 are as follows:

  • TEB Expresses; 20%,
  • Retail and corporate/commercial Internet branches; 72%,
  • Mobile banking; 1%, and
  • The Call Center; 7%.

Nearly TRY 1 billion of transactions were completed through the internet, mobile banking, Call Center and TEB Express channels in 2010.

TEB won an array of prestigious awards in 2010, thanks to its delivery channels, including;

  • The “Advergame Award” with its TEB Internet Branch and the TEB Handy Internet Branch in the 14th Web Award organization in 2010 held by the Web Marketing Association,
  • The “Selective Website Award” at the Az Tuşlu Piyano website, www.aztuslupiyano.com,
  • The “Financial Services Excellence Standard Award” at the TEB Bonus Card’s website, www.tebbonus.com, and
  • The “Excellence in Financial Services Award” at the TEB Private Banking website, www.tebozel.com.

TEB Internet Branch

The number of Internet Branch users reached 400,000 in 2010, a 40% increase compared to the previous year. The number of active users totaled 140,000, a 27% year-on-year increase. The branch’s active customer penetration rate increased from 16% to 17.3%.

TEB Handy Internet Branch
TEB Handy Internet Branch continued to enhance its offerings with new functionality added in 2010.

Designed for customers looking for a unique internet banking experience, the TEB Handy Internet Branch was chosen as the “Second Best Internet Branch” in 2009 in the Golden Spider Web Awards. The internet branch proved its claim of “excellence” in its sector with “Financial Services Excellence Standard” and “Banking Excellence Standard” awards it received at the 2010 Web Awards.

Users can access information on domestic and global markets (exchange rates, ISE, gold and repo, foreign exchange market indices), the closest TEB Branch and TEB Express and the Bank’s loan and investment products at wap.teb.com.tr.
TEB customers can conduct money transfers and payments and withdraw cash as well as review their account details, account summary and TEB Bonus Card information on CEPTETEB WAP Branch.

TEB Private Banking

TEB Private Banking supports a service quality at international standards with new and proper products in parallel with the development of Turkish and global markets. Having increased its number of clients by 7% in 2010, TEB Private Banking has cemented its competitive strength by offering commercial real estate consultancy services, and issued the TEB Private World Signia Card for a specific number of Bank clients.

Providing private banking services since 1989, TEB has differentiated itself in the sector, thanks to its

  • experienced and specialized workforce who monitor global markets throughout the day,
  • more than 20 years of experience and knowledge, and
  • effective business model that enables the follow-up of portfolios throughout the day.

Within the framework of Asset Management Consultancy, TEB Private Banking continues to offer alternative products to its customers, such as Index Linked Time Deposit Accounts launched by the end of 2009 and Capital Guarantee Funds, which had been offered three years ago. Maintaining the volume of its assets under management in 2010 in the face of fierce price competition, TEB Private Banking widened its product diversity, gained independence from deposits and thus reached a very high percentage in Capital Guarantee and Index Linked Accounts.

TEB Private World Signia Card
The painting entitled Anatolian Money by the artist, İsmail Acar, was used in the design of the TEB Private World Signia Card, a special card in every aspect. The painting, which includes coins from various civilizations which existed in Anatolia over 2,600 years, gave TEB the idea of creating the TEB Private World Signia Card, the most recent and most private version of money at present. The product is currently used by TEB Private Banking clients.

Commercial Real Estate Consultancy in Cooperation with Jones Lang LaSalle
TEB offered its clients, free of charge, the information and experience of Jones Lang LaSalle, the world’s leading commercial real estate consultancy, which is an important area of investment. TEB Private Banking also offers a solution package entitled the “Commercial Real Estate Loan Package” in case its clients need loans during their investment.

TEB Private Banking organized Economy and Commercial Real Estate Seminars for its customers throughout the year, thus allowing them to obtain information on the matter and ask interactive questions.

Further strengthened by BNP Paribas’ international experience and knowledge
Working in cooperation with the BNP Paribas Wealth Management team in implementing the practices of BNP Paribas in the field of financial and non-financial consultancy services, TEB Private Banking, within the framework of this synergy, plans joint production in legal, tax, inheritance, art, commercial real estate consultancies, especially investment consultancy. TEB also offers its customers with up-to-date reports on the global economy and information on markets, again with the benefit of BNP Paribas’ global experience.

A wider array of products for customers through TEB Asset Management
The offering of Capital Guarantee Funds, founded and managed by TEB Asset Management, to TEB Private Banking customers was an important step, both in terms of enhancing product diversity offered to clients and also in cooperation with subsidiaries.

In addition to funds, TEB Private Banking, which has been providing asset management services in conjunction with TEB Asset Management since 2004, plans to focus on this practice, a first in the field of Asset Management, through a brand new work model in 2011.

Another area, where TEB Private Banking and TEB Asset Management worked in cooperation, was the Capital Guarantee Fund, an instrument used in the sector primarily for investment instruments with a 1-year maturity. This instrument enabled Turkish investors to spread risk via commodities traded globally, as well as various investment instruments and maximize revenue in accordance with their own investment profiles.

TEB Private Banking plans to apply a unique approach in introducing the products and services BNP Paribas created in the field of private banking through its global know-how and experience. Most of these products will be carried out for the first time in Turkey.

TEB Treasury Group

Gaining an ever more dominant position in derivatives transactions
TEB Treasury Group pursued a policy of generalizing derivatives among its client base in 2010 and inclined towards commercial clients with lower transaction volumes compared to the corporate business line.

TEB is one of the few banks that are able to hedge three primary risks (FX, interest, and commodity) which Turkish companies hold in their balance sheets. Derivatives currently have less recognition than other banking products. Various flexibilities were provided to each business line so derivatives could be marketed efficiently and rapidly. This situation played a key role in raising the number of clients using derivatives.

TEB benefits from BNP Paribas’ expertise in derivatives-related pricing systems. These systems allow rapid and effective pricing in multi-leg products. The flexibility of these systems raises the speed of product development and allows the right products to be offered to clients at the right time.

A new and pioneering product: index linked deposits
In 2010 TEB introduced a brand new deposit product to the market, which is indexed to asset-liability management.

The product is a type of deposit with a 6-month maturity and can be indexed to any market indicator in the market. As long as the related index is within the specified interval, customers are offered interest rates exceeding even the highest interest rates on deposits in the market.

With this strategy, the Bank succeeded in moving a proportion of its deposits to maturities longer than 6 months. The developed product pioneered the sector and began to be applied by some other banks.

Cooperation with BNP Paribas in treasury management
Relations established between BNP Paribas ALM and TEB ALM paved the way for development in the technical capacity of assets-liabilities management.

TEB plans to offer new products to the market in 2011 by employing BNP Paribas’ expertise in alternative funding products. The joint goal of these efforts, as in index linked deposits, is to minimize high costs introduced by competition in the market and to create resources with longer maturities.

Relations with Group companies in treasury management
TEB remained in close communication with Group companies in Turkey and abroad with respect to assets-liabilities management in 2010. TEB shares its own market projections and assets-liabilities management techniques with Group companies at regular meetings and whenever necessary at the right time and in accordance with its business structure. This situation allows the benefits introduced by accurate market projections, particularly when it comes the use of gap management by other Group companies.

TEB Securities Services
In 2010, TEB Securities Services served its customers as the Turkey branch of BNP Paribas Securities Services, Europe’s biggest custody bank and the fifth largest custody bank in the world.

TEB Securities Services recorded growth in its transaction volume, custody balances and profitability (a 95% increase in revenues) during 2010 on the back of new customer acquisitions and supportive market conditions, and also because TEB customers began to operate in different areas.

In addition to typical settlement and custody services, TEB Securities Services began to provide products to its customers in various matters related to the capital markets. Some of these services cover issue and payment transactions for warrants, short selling transactions and stock option management provided for foreign capital companies.

The joint efforts of branches and related units for Group companies and the Bank maintained their importance in 2010.
Thanks to joint products designed by TEB Investment and TEB Securities Services with regard to derivatives, the market share of TEB Securities Services in this field increased to 30% with new customer acquisitions, thus taking a significant step towards becoming the market leader.

Within the scope of the merger between Fortis and TEB, TEB Securities Services were able to share BNP Paribas Securities Services’ expertise in the field of securities and pension funds related services with Group companies like TEB Investment, TEB Asset Management, etc. and the Bank’s fund services units.

TEB Securities Services proved the quality of its services by receiving Top Rated qualification in the field of non-Group and foreign settled customers at the “Global Custodian Magazine Agent Banks in Emerging Markets Survey”; and began to offer new services with high added value to corporate customers and their shareholders through the joint efforts conducted with corporate branches.

TEB Information Technologies

TEB Information Technologies adds value to TEB by working in accordance with ITIL processes and COBIT and CMMI standards. It rapidly improves innovative banking services thanks to its banking knowledge and expertise, robust technological infrastructure, and rapid software development environment and processes and without compromising quality.

In 2010, TEB Information Technologies maintained its efforts to keep customer satisfaction at the highest level by offering the necessary services 24/7, rapid, qualified and practical banking transactions and processes for Bank customers and to provide maximum support to the Bank’s cost management by raising efficiency in processes.

In 2010, the foundations of the TEB Information Technologies Group were made by efforts carried out in line with the “Practical Banking” vision. TEB Information Technologies concentrated on the following:

  • renewal of banking, branch and headquarters faceplates with more friendly and “Practical” ones (“Pusula” - Compass),
  • switching of the management systems linked to credit cards, POS and ATM devices to a new software infrastructure and
  • Fortis - TEB merger.

Highlights of the applications conducted by TEB Information Technologies in 2010

  • “OPTIMUS”, the Card Systems Management Package, which was reprogrammed under a new design and new technology, was put in practice, while a number of arrangements were applied to card systems in 2010 through the new package.
  • TEB Information Technologies ensured that the credit card collections of a wide array of products were made available through Virtual POS in all of the channels (branch, website, call center) that they had defined.
  • In addition to the new arrangements applied to the joint POS system, a new POS infrastructure was developed and efforts with respect to the messaging protocol between POS and the Main Center were completed.
  • The integration between Cash register and POS was put in practice.
  • Access to personal internet banking and CEPTETEB through the Cep PratikŞifre practice, a program installed to mobile phones which can generate instant passwords, was made possible.
  • For Factoring and Leasing, software was designed and implemented with internal resources.
  • The Cetelem practice was improved; in addition to consumer finance practices, motor vehicle loan supply functions were maximized.
  • A portal that enables branches to collectively monitor the performances and development of all funds managed by the TEB Asset Management, as well as all information required for fund management was developed.
  • Some practices already used by the Bank were made available to other Group companies, thus creating synergies.
  • TEB Information Technologies allowed those customers of the Bank who use Master Cards abroad to directly access TEB to carry out their transactions.
  • The new customer efficiency system, which includes profitability evaluations on a product basis, was made available, while screens allowing easy evaluation of customers were opened to TEB branches.
  • Within the scope of the NCAP 5 project, corporate loan allocation processes were reconsidered thoroughly and improved in accordance with present conditions.

In 2010, with “Practical Banking” vision, 50 projects were completed and many efforts were conducted by TEB Information Technologies to ensure that Bank customers carry out their transaction more rapidly and in a more qualified way.

Improvements in TEB Information Technologies’ Processes and Infrastructure
TEB Information Technologies undertook improvements to its infrastructure aimed at allowing the Bank to offer its services without interruption and reliably, and at a superior level of quality. Within the framework of this infrastructure work,

  • “PLANIT”, a demand and project management practice which thoroughly supports software changes, demand management processes and project management processes was put in practice at TEB with customized processes and generalized;
  • BTStudio, a project aimed at ensuring easy access to all information practices required for software development processes was introduced;
  • Processes bringing suppliers’ and personnel’s access to IT systems under control, were integrated into the system;
  • The training environment system, which is used to ensure more rapid and efficient realization of system training, was restructured together with its infrastructure;
  • efforts continued to integrate with other systems aimed at raising the effectiveness of the TEBKeys identity management practice;
  • existing duties and authorizations were evaluated according to SoD rules and improvements were made in authorization processes in line with the results of the evaluation; and
  • internet access infrastructure was amended within the scope of harmonization with BNP Paribas standards.

Within the framework of cooperation with BNP Paribas

The ACE program, which has been conducted in line with BNP Paribas’ customer orientation and operational perfection targets, was put in practice at TEB together with the BNP Paribas team within the framework of the “practical banking” vision.

Moreover, in 2010, joint efforts were conducted via “Multichannel International Banking” infrastructure and program, one of the strongest areas for BNP Paribas Retail Banking.

TEB Banking Operations

In 2010, the Banking Operations Group focused on two important areas:

  • to effectively execute its daily activities with an approach which focuses on operational perfection, minimum risk and maximum customer satisfaction and
  • to thoroughly review all operational processes and procedures within the scope of the merger and to determine the most ideal business flows for the new bank.

New regulations with respect to customer acquisition and new cheque laws which were imposed by regulatory institutions also impacted the Bank’s daily business flows. In 2010, the Banking Operations Group developed strong business models in accordance with legal regulations that took effect in these fields.

Outsourcing, which began with the purpose of increasing the effectiveness of operations, was one of the most important areas of activity in 2010. Within the framework of these efforts, outsourcing, particularly in cash custody services, branches, ATMs and cash services for corporate customers, contributed to the Group’s effectiveness.

The Banking Operations Group continued to participate in customer inquiry efforts within the scope of the government’s inter-organizational electronic data exchange project. The Group also carried out work to ensure the standardization of centralized operational units and arrangement of processes. Among the topics dealt with within this framework were branch operations, customers, loans, foreign trade, payment systems and treasury operations.

Central operational units in Istanbul continued to operate with their own business lines and in conjunction with the regional directorates they are linked to. The branch operation model was solidified to maximize its support to marketing and sales activities.

Another project carried out by the Group in 2010 was the establishment of new teams to coordinate insurance operations. The risk control methodology, which aimed to ensure close monitoring of any type of risks that may arise from the fluctuations in the market became one of the Group’s most fundamental tasks.

Working on TEB-Fortis merger was one of the key activities carried out by the Banking Operations Group in 2010. It was the Group’s prioritized target to design a new business process in the new bank. Projects which had been operationally defined following extensive cooperation and initiatives were completed successfully. Training sessions, regional and branch visits and e-education efforts were among the Group’s other contributions in 2010.

The Banking Operations Group realized all of its primary targets in service fields in 2010.


Human resources policy
The underlying objectives in TEB’s human resources activities are to be one of the best examples of excellence in human resources practices in the financial services sector, to manage all human resources related processes actively so as to give itself a competitive edge and to support the Bank’s human resources performance through coordination of the overall effort.

TEB Human Resources strives to

  • ensure that the TEB Group is always prepared for change, and keep its organizational structure dynamic in line with the Group’s strategic plans and targets,
  • ensure that the TEB Group, within the framework of TEB’s Talent Pool, recruits individuals of the highest level of education with entrepreneurial talent and potential to develop themselves and their jobs, and who are well trained, innovative and likes changes, who are energetic, dynamic, adaptable to teamwork and able to adopt and lay claim to TEB’s corporate values,
  • support the personal and professional development of TEB employees through development programs determined in accordance with their career roadmaps in order to ensure the use of the Bank’s human resources in the most effective and efficient manner, in line with TEB’s targets and strategies,
  • create a professional working environment and career development opportunities through BNP Paribas’ advanced training programs,
  • contribute to the development of Bank employees in line with TEB Group’s targets and strategies within the framework of the approach entitled “continuous learning and development with the TEB Formation Academy”, which considers training and development as an investment made in human resources,
  • raise Bank executives from within TEB and evaluate in-house requests preferably for new positions,
  • focus on various systems of awarding with the Performance Evaluation System by improving individual and team performance through processes and systems that increase quality at all times, and
  • offer equal opportunities and facilities to everyone in line with their career roadmaps.

With these practices, TEB Human Resources provides swift and effective support to all employees in all human resources related matters, while playing a key role in further raising the efficiency and performance of TEB branches.

In striving to achieve its strategic targets, TEB’s most important asset is its human resources.
At the end of 2010, the Bank had 5,646 employees on its payroll and a total of 335 branches. Of TEB’s employees, 66.1% are university graduates, 6.3% hold a master’s degree and 0.1% have a doctorate.

The average training period per employee was 32 hours in 2010.

Competence Management and TEB Competency Model in 2010
In 2010, follow-on development of employees who had demonstrated high potential and performance within the framework of Competence Management processes was specially conducted through Competence Management, in conjunction with the employee’s manager and TEB’s Training & Development unit.

Individual training plans contributed significantly to the development of TEB employees, which were prepared in accordance with employees’ needs. These plans were complimented by mentoring work and other development instruments.

TEB Competency Model
With the purpose of sustaining a high level of performance, TEB continued to apply its TEB Competency Model in 2010, which plays a key role in the development of employees in the light of TEB’s vision, mission and corporate values.

The TEB Competency model has four main headings and 12 Competencies, which can be measured on a staff position basis.


Vision & Change Leadership
Influencing & Leading
Innovation & Creativity

Think the Business

Entrepreneurship and Business Acumen
Generating Strategic Business Relations / Create Synergy
Performing with Excellence / Customer Orientation

Drive Results

Problem Solving & Decision Making
Planning & Organizing

Maximize Yourself

Continuous Learning
Self Confidence/Flexibility/Strength
Professional Expertise


So as to help employees easily understand competencies and apply them in daily business life, supporting documents, which are accessible over the Human Resources Portal, were prepared and various informative meetings were held..

Competency evaluation is performed annually at TEB through “Competence and Development Report Cards”. The impact of employees’ individual and professional development on their performances was objectively measured by ensuring system integration between “Competency and Development Report Cards” and “Performance Report Cards”.

Projects undertaken by the Human Resources Group in 2010

Innovation in TEB
Winning the admiration of the US-based international consultancy, Gartner Group, in 2009 thanks to its innovation efforts, TEB continues to foster a culture of innovation by encouraging its employees to generate innovative and creative ideas through internal initiatives, and offering innovative and creative products to its customers.

In 2010, TEB’s approach towards innovation and its management models were found to be exemplary in a study addressing 145 banks from 50 countries conducted by the European Financial Management Association (EFMA).

“TEB Smart Ideas Competition” – Make an Invention
The 4th TEB Smart Ideas Competition, a reflection of TEB’s innovation efforts, was held in 2010. Facilitating its customers’ lives with innovative and creative services offered to them, TEB deems innovation as one of the most important instruments in its strategy of making a difference. The competition also includes social targets such as

  • cooperation with universities,
  • increasing innovation-related information and competencies of university students and young people,
  • the recruitment of talented young people by TEB and
  • ensuring that products and services offered to customers are shaped by them personally.

Ideas entered into the competition in 2010 were, as in previous years, presented to customers as products and services; five of the finalists were recruited by TEB. The TEB Screen Card, which was ranked 1st in the competition, was introduced in 2010 and shown by Master Card as a new generation card in the world, which can produce internet banking passwords.

Kıvılcım Portal and TEB In-House Innovation Competition
Since 2007, 36,500 recommendations have been submitted to the Kıvılcım Portal, an internet portal to which TEB employees forward their new ideas throughout the year, and the most innovative of those were implemented. Among the projects in 2010 were the “TEB Green Trompet” and “İki Bayram Arası Ödemezi Kredi” (Loan with No Repayment between two Holidays).

The in-house innovation competition, which was organized for the first time this year, aimed to encourage employees of the Bank to produce ideas as a team with employees from different departments, creating an entertaining environment of competition by racing innovative projects.

TEB senior executives were commissioned as jury members for the competition, which attracted a great deal of interest from TEB employees, and identified the three winning projects. The second in-house innovation competition, which is planned to be continued in coming years, will be organized in 2011.

“TEB Smart Ideas Conferences” – Innovation Summit
“TEB Smart Ideas Conferences”, which are organized every year with the participation of 1,500 employees and 500 customers, brought international lecturers, TEB customers and employees together in 2010 as well.

In the first part of the TEB Smart Ideas Conference, international lecturers expanded participants’ vision with their presentations on innovation; awards were handed to the most creative employees who submitted their ideas to the Kıvılcım Portal, as well as customers, university students and new graduates who had ranked highly in the “Smart Ideas Competition”. The TEB Directors’ Meeting took place in the second part.

2010 BNP Paribas Innovation Competition Award Ceremony
The “BNP Paribas Innovation Competition” award ceremony was held in Turkey in 2010, as in 2009. In the competition, which involved a total of 32 projects, 11 projects qualified for the final, eight of which were from TEB and three from Fortis.

TEB was deemed worthy of an award with its “Green Trompet” project under the “Customer Satisfaction” category and its “TEB Pensioner Banking” project under the “Products and Services” category. Moreover, TEB and Fortis were given awards under the “Process Optimization” category with their joint project, which enables loans and credit card applications to be submitted from Blackberry devices.

University Activities – Smart Ideas Campus
In 2010, the TEB Human Resources Group continued to organize university campus activities to identify young, budding talents and introduce them to TEB.

A total of 2,100 applications from 82 universities were submitted to the Smart Ideas Campus, which was launched in 2008 for students, while 290 people from 30 universities took part in a total of 20 campus activities. 61 of these students were given the opportunity for internship at TEB, while one was recruited at TEB.

Training at TEB
As an institution that attaches importance to continuous learning and development and prioritizes investment in its employees, TEB continued its training activities in 2010 paralleling its principle of offering everyone equal opportunities and facilities.

TEB Performance Evaluation System was a kind of guidance for training and development activities, thanks to its structure aiming to measure and improve individual and team performance. Within the framework of the system, evaluation results coming from the competency evaluation process were analyzed; competency development programs were prepared paralleling employees’ needs and participation of employees at these programs was ensured.

TEB continued Talent Management program in 2010. “Individual development plans” were prepared for Bank employees who recorded high potential and superior performance; also, special training programs were designed in line with their needs.

In accordance with the Bank’s developing and changing needs, the Corporate Culture and Values project led by TEB Human Resources Group was completed. Upon the completion of the project, efforts for generalizing corporate values among all employees were initiated to make sure that employees adopt these values. In the first quarter of 2010, all employees participated at regionally organized group works and got the chance to anticipate and adopt the values of the TEB Group in an interactive learning environment.

Efforts related to the target of raising bank executives from inside the organization were continued in 2010, as well. Works related to the Evaluation Center were performed to measure the executive competencies of TEB employees and to identify their areas of development.

Mentorship activities at TEB
The TEB Mentor program contributes to self-development of employees by benefiting from the professional knowledge and experience of mentors, who are more advanced in their careers at TEB.

A first in the Bank, the TEB Mentor program evaluated requests of 160 employees and assigned mentors for 147 of them in accordance with their needs. Requests of Bank employees, who would like to benefit from the TEB Mentor program but whose needs can be met by means of any channels other than mentorship, were covered through different methods (training, rotation, career interview, etc).

TEB Club
The Bank’s contests, social events, and athletic and cultural activities are conducted within the framework of TEB Club, which serves as a motivational tool for the staff. TEB Club’s wide range of activities attracted much interest from employees across the Bank in 2010, as well.
In this context,

  • An exciting competition environment was created with painting contests on “April 23rd National Sovereignty and Children’s Day” and “environment”. While picnics and paintball tournaments were organized in regions, expeditions performed by the members of the Photography Club were good opportunities for TEB employees who enjoy photography.
  • The Bank was well represented by TEB Stars in the Corporate League and TEB Rowing Team in the TEB Rowing-Full Unity Dragon Festival. TEB football teams in the regions represented the Bank in banking soccer tournaments. TEB runners raced on behalf of the Bank in the Eurasia Marathon and Atatürk Running.
  • Entertaining bowling tournaments were held in the regions and Istanbul.
  • Within the scope of the Bank’s support to the handicapped, donations were made to the Turkish Spinal Cord Injury Association with support provided to TEB’s voluntary runners.
  • In cooperation with the Divers’ Club, diving sessions were organized at the TEB Formation Academy, offering employees of the Bank the chance to receive a diving certificate. In expeditions performed by the club in spring and summer, TEB employees had the chance to practice diving.
  • A link was established between art and TEB employees, by organizing the Marc Chagall exhibition, Mozart’s opera named “The Marriage of Figaro” and Emmanual Bex’s Trio concert at the Pera Museum.
  • A special preview of the film entitled The Revenge of Arthur Maltazar, sponsored by BNP Paribas, was shown at the Feriye Cinema for Bank employees; employees were given surprise gifts and had the chance to enjoy time with their children.
  • The launch of Starbank, The Game and 2010 Starbank World Cup organized by BNP Paribas was introduced to TEB employees through in-house announcements.
  • A Historical Istanbul Culture tour was organized to bring TEB and Fortis employees together.

“HR is with you” Meetings

The “HR is with you” program was implemented with the belief that the way to increase employee satisfaction and loyalty is to be closer to employees and to listen to their concerns. Priority in the program was given to field teams.

In “HR is with you” meetings, in addition to interactively organized general informing sessions, one-to-one interviews were held with all employees who wished to take part. These meetings were held first in the regions, then at the Bank Headquarters in Ümraniye, İstanbul. A total of 1,370 people participated in the meetings and personal interviews were made with 520 of them.
Quick Facts

Turkey's 1st Solar Branch
TEB became the author of another first. The first bank branch that uses solar energy for all its energy need provides service in İstanbul.

Turkey's 1st Solar Mobile ATM
Turkey's 1st Solar Mobile ATM, which is a first in banking sector, started to give service to our customers in 2010.

TEB Environment Club for Employees
The Club was created in order to raise TEB employees' awareness for environment, to find solutions for environmental problems together, and to make TEB employees active participants in environmental activities.

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